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REGULAR MEETING JUNE 26, 2006
<br />Whereas, the City of South Bend, Indiana (the “City” is authorized by I.C. 36-7-11.9 and
<br />12, as supplemented and amended (the “act”), to issue revenue bonds for the financing of
<br />economic development facilities, the funds for said financing to be used for the
<br />development, construction, installation and equipping of said facilities; and
<br />Whereas, PEI/Genesis, Inc. (“PEI”) and Tuliptree Associates, LLC(“Tuliptree”) (PEI and
<br />Tuliptree, collectively, the “Applicant”) desire to finance the acquisition, construction
<br />and equipping of an approximate 142,000 square foot manufacturing facility to be located
<br />at 4747 West Cleveland Road in South Bend, Indiana, which facility will be owned by
<br />Tuliptree and leased to PEI (the “Project”); and
<br />Whereas, the Applicant has advised the South Bend Economic Development Commission
<br />(the “Commission” and the City that the Applicant proposes that the City issue economic
<br />development revenue bonds for the purpose of providing financing for certain economic
<br />development facilities consisting of the development, construction and equipping of the
<br />Project; and
<br />Whereas, it is anticipated that the Project will result in the creation of approximately
<br />twelve (12) new, full-time, permanent jobs with an estimated annual payroll of $340,000
<br />and will retain one hundred forty (140) full-time, permanent jobs and four (4) part-time,
<br />permanent jobs with a total estimated annual payroll of $3,700,000; and
<br />Whereas, the issuance of said bonds shall not obligate the full faith and credit of the
<br />taxing power of the City; and
<br />Whereas, subject to required approvals, it appears that the financing of the Project would
<br />be a public benefit to the health, prosperity, economic stability and general welfare of the
<br />City and its inhabitants; and
<br />Whereas, to induce Applicant to proceed with the Project, the Common Council of the
<br />City desires to adopt this resolution.
<br />NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
<br />Bend, Indiana, as follows:
<br />1. It is apparent that said Project will increase job opportunities and industrial
<br />diversification within the City, resulting in a benefit to the welfare of the public in the
<br />City.
<br />2. In order to encourage and induce Applicant to undertake such Project, the City
<br />shall cooperate with and take such action as may be necessary to finance the cost of such
<br />Project from the proceeds of economic development revenue bonds issued by the City in
<br />an aggregate principal amount of not to exceed $8,500,000, including reimbursement of
<br />costs of the Project form the proceeds of the bonds.
<br />3. The City intends this Resolution to satisfy the requirements of the Internal
<br />Revenue Code of 1986, as amended and the regulations promulgated thereunder, and
<br />specifically Treas. Reg. §1.150-2, regarding the declaration by the City of its official
<br />intent to issue its revenue bonds for the purpose of reimbursing original expenditures (as
<br />that term is defined in Treas. Reg. §1.150-2 (c)) incurred with respect to the Project
<br />within 60 days preceding the adoption of this Resolution.
<br />4. All original expenditures of the Project incurred within 60 days preceding the
<br />adoption of this Resolution, including the disbursement and/or repayment of monies
<br />expended by the Applicant for the planning, engineering, interest paid during
<br />construction, underwriting expenses, attorney and bond counsel fees, and expenditures
<br />relating to the improvement, expansion, rehabilitation, renovation, acquisition,
<br />construction, reconstruction, equipping and furnishing of the Project, will be permitted to
<br />be included as part of the bond issue to finance the Project, and the City will thereafter
<br />loan the proceeds of such financing to the Applicant for the same purposes.
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