07-26-99 Council Meeting Minutes

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REGULAR MEETING JULY 26. 1999 RESOLUTION NO. 2714-99 A RESOLUTION OF THE CITY OF SOUTH BEND COMMON COUNCIL, PROVIDING PRELIMINARY APPROVAL OF THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS TO FINANCE CERTAIN ECONOMIC DEVELOPMENT FACILITIES WHEREAS, Dynamic R.E.H.C., Inc., an Indiana corporation (the "Applicant ") desires to finance the acquisition, construction and equipping of an approximate 50,000 square foot manufacturing facility located on Lots 7 and 8 in the U.S. 31 Industrial Park on the west side of Ameritech Drive approximately 910 feet north of Brick Road in South Bend, Indiana, for lease to Dynamic Industries, Inc. d/b /a Bud's Machine Co., for use in its business as a machine shop in the manufacture of machine tool components and related products. WHEREAS, to induce Applicant to proceed with such project, the Common Council desires to adopt this resolution. NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: 1. It is apparent that said project will increase job opportunities and industrial diversification in and near the City of South Bend, resulting in a benefit to the welfare of the public in the City. 2. In order to encourage and induce Applicant to undertake such project, the City shall cooperate with and take such action as may be necessary to finance the cost of such project from the proceeds of economic development revenue bonds issued by the City in an aggregate principal amount of not to exceed $1,495,000, including reimbursements of costs of the project paid prior to the issuance of the bonds. 3. The City shall proceed to cooperate with and take such action as may be necessary in drafting documents or in the performance of such other acts as will facilitate the issuance of such bonds to provide funds for such purpose. 4. The Applicant may proceed with such project in reliance upon this resolution. 5. The liability and obligation of the South Bend Economic Development Commission, the Common Council, and the City of South Bend, Indiana, shall be limited solely to the good faith efforts to consummate such proceedings and issue such bonds, and such entities and their officers and agents shall not incur any liability if for any reason the proposed issuance of such bonds is not consummated; and the bonds shall be special, limited obligations of the City, payable solely from the funds provided therefor as described in the documents authorizing the issuance of the bonds, and shall not constitute an indebtedness of the City or a loan of the credit thereof. 6. This Resolution shall be in full force and effect from and after its adoption and approval by the Mayor. s/ Sean Coleman Member of the Common Council Mr. Kenneth P. Fedder, Attorney at Law, 205 West Jefferson Boulevard, South Bend, Indiana, advised that he was present on behalf of the South Bend Economic Development Commission. He noted that Mr. Philip J. Faccenda, Jr., Barnes & Thornburg, 6001St Source Bank Center, 100 North Michigan, South Bend, Indiana, is bond counsel for this project. Mr. Fedder made the presentation for this Resolution.