01-08-01 Council Meeting Minutes

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REGULAR MEETING JANUARY 8, 2001 WHEREAS, the South Bend Economic Development Commission (the "Commission ") has rendered a report concerning the proposed financing of economic development facilities for the Company and a certain other project which is not proceeding at this time, which report incorporates findings of fact of the Commission regarding the competitive effect of the Project on similar facilities already constructed or operating in the City; and WHEREAS, the Commission has given its approval to such financing of the Project; and WHEREAS, the issuance and sale of the revenue bonds will not reduce the legal bonding capacity of the City; and WHEREAS, the City is to bear no expense in connection with the issuance and sale of said revenue bonds and all expenses in connection thereto which are incurred by the City shall be reimbursed to the City by the Company; and WHEREAS, the principal and interest payable on said bonds are payable solely from the payments made by the Company to the City pursuant to a loan agreement, and are not payable from funds raised by taxation by the City; and WHEREAS, the issuance of said bonds shall not obligate the full faith and credit for the taxing power of the City; and WHEREAS, subject to required approvals, it appears that the financing of the Project will be of public benefit to the health, prosperity, economic stability and general welfare of the City and its inhabitants; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana: Section 1. This Common Council hereby finds, determines, ratifies and confirms that the Project is desirable to better the health, prosperity, economic stability and general welfare of the City and its inhabitants, that the Project complies with the purposes and provisions of the Act, and that it is in the best interest of the City that it take such action as it lawfully may to encourage the Company to construct the Project. Section 2. This Common Council hereby further finds, determines, ratifies and confirms that the issuance and sale of revenue bonds of the City under the Act, and the use of the net proceeds derived therefrom to finance the construction of the Project, will enable the Project to be constructed and thereby serve the public purposes referred to above in accordance with the Act. Section 3. In order to induce the Company to proceed with the construction of the Project, this Common Council hereby undertakes that: (i) It will authorize and issue one or more series of revenue bonds of the City pursuant to the Act, in the approximate aggregate principal amount of Two Million and 00 /100 Dollars ($2,000,000.00), to finance the costs of the Project, including reimbursement or repayment to the Company for planning, engineering, underwriting and attorney and bond counsel fees, and will enter into a financing agreement to lend the net proceeds of such bonds to the Company to enable the Project to be constructed and repay the loan in installments sufficient to pay the principal of, premium, if any, and interest on such bonds; (ii) It will adopt such ordinances and resolutions and authorize the execution and delivery of such instruments and the taking of such actions as may be necessary or advisable for the authorization, issuance and sale of such bonds; and (iii) It will take or cause to be taken such other actions as may be required to implement the aforesaid or as it may deem appropriate in pursuance thereof, provided that all of the foregoing shall be authorized by law and mutually acceptable to the City and the Company.