HomeMy WebLinkAboutInducement Resolution Relating to: American Energy Corporation ProjectINDUCEMENT RESOLUTION
OF
THE CITY OF SOUTH BEND, INDIANA
Relating to: American Energy Corporation Project
WHEREAS, at the present time there are insufficient employ-
ment opportunities and insufficient diversification of business, com-
merce and industry in and near the City of South Bend, Indiana (the
"City "); and
WHEREAS, the economic welfare of the City would.be benefited
by the acquisition and construction of economic development facilities
in St. Joseph County pursuant to the provisions of Indiana Code
18 -6 -4.5 (the "Act "); and
WHEREAS, American Energy Corporation, a Virginia corporation
( "American Energy ") proposes to acquire and construct economic develop-
ment facilities in St. Joseph County as defined in the Act if the City
will finance costs of such economic development facilities pursuant
to the Act; and
WHEREAS, the South Bend Economic Development Commission has
received an application by American Energy for the issuance of City
of South Bend Economic Development Revenue Bonds in an amount not to
exceed Three.Million Two Hundred Fifty Thousand and no /100 Dollars
($3,250,000.00) repayable with interest thereon to be determined but
not expected to exceed fourteen percent (14 %) over a period not to
exceed twelve (12) years in order to purchase real estate and equip-
ment and construct an industrial building for an anhydrous full grade
alcohol distilling plant resulting in approximately fourteen (14) new
jobs by the principal user with an annual payroll of approximately
Two Hundred Thirty -four Thousand Dollars ($234,000.00) per year.
NOW, THEREFORE, the Common Council of the City of South Bend
r
Indiana resolves as follows:
i
1. The project constitutes economic development facilities
which shall be financed by the City through the issuance of revenue
bonds pursuant to the Act and the City is willing, upon compliance
with all provisions of Indiana law, to authorize approximately Three
Million Two Hundred Fifty Thousand Dollars ($3,2501000.00)'of its
revenue bonds, which bonds will not be general obligations of the
City but will be payable solely from the limited sources authorized
and permitted by the Act.
2. The proposed financing will be of benefit to the
economic welfare of the City and will comply with the purposes
and provisions of the Act.
3. American Energy may proceed with acquisition and con-
struction of the economic development facilities in reliance upon
this resolution.
4. That the liability and obligation of the South Bend
Economic Development Commission, the South Bend Common Council,
the City of South Bend, Indiana, the St. Joseph County Council and
St. Joseph County shall be limited solely to the good faith efforts
to consummate such proceedings and issue such Bonds, and�the South
Bend Economic Development Commission, the City of South Bend, Indiana
and St. Joseph County, their officers or agents, shall not incur
any liability if for any reason the proposed issuance of such Bonds
is not consummated.
This Inducement Resolution shall be in full force and
effect from and after its adoption by the Common Council and
approval by the Mayor.
NOT APPROVEED
ADOPTED ?- j - �J
ember of the South Bend Common Coun
FILED III CLERK'S fffICE
MAR' 414Qi
IreneGammo
CITY oar, SDI n
BEND, IND. n