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<br />REGULAR MEETING AUGUST 22, 1988. _
<br />Allied Products Corporation ( "Applicant ") proposes to acquire and rehabilitate
<br />economic development facilities in South Bend, Indiana, as defined in the Act, and
<br />has requested that the City finance costs of such economic development facilities
<br />pursuant to the Act.
<br />The South Bend Economic Development Commission has received an application by
<br />Applicant for the issuance of City of South Bend Economic Development Revenue Bonds
<br />in the approximate principal amount of Five Million Two Hundred Fifty Thousand
<br />Dollars ($5,250,000.00) with the terms of repayment to be determined by market rates
<br />at the time the bonds are sold, and the proceeds of the bonds will be used to
<br />modernize, rehabilitate and generally improve an existing facility to be used as a
<br />manufacturing facility located at 601 West Broadway Street, South Bend, Indiana, and
<br />to acquire and rehabilitate machinery and equipment for use in said facility,
<br />resulting in the preservation of approximately 400 jobs.
<br />NOW, THEREFORE, the Common Council of the City of South Bend, Indiana resolves
<br />as follows:
<br />Section 1. The projects constitutes economic development facilities which shall
<br />be financed by the City through the issuance of revenue bonds pursuant to the Act
<br />and the City is willing, upon compliance with all provisions of Indiana law, to
<br />authorize approximately Five Million Two Hundred Fifty Thousand Dollars
<br />($5,250,000.00) of its revenue bonds, which bonds will not be general obligations of
<br />the City but will be payable solely from the limited sources authorized and
<br />permitted by the Act.
<br />Section 2. The proposed financing will be of benefit to the economic health and
<br />general welfare of the City and will comply with the purposes and provisions of the
<br />Act.
<br />Section 3. The Applicant and the City may proceed with the proposed project in
<br />reliance upon this resolution.
<br />Section 4. That the liability and obligation of the South Bend Economic
<br />Development Commission, the South Bend Common Council and the City of South Bend,
<br />Indiana, shall be limited solely to the good faith efforts to consummate such
<br />proceedings and issue such bonds, and the South Bend Economic Development Commission
<br />and the City of South Bend, Indiana, their officers and agents, shall not incur any
<br />liability if for any reason the proposed issuance of such bonds is not consummated.
<br />This Inducement Resolution shall be in full force and effect from and after its
<br />adoption by the Common Council and approval by the Mayor.
<br />/s /John Voorde
<br />Member of the Common Council
<br />A public hearing was held on the resolution at this time. Council Member Luecke
<br />indicated the Human Resources Committee recommended this resolution favorably.
<br />Ernest Szarwark, attorney, made the presentation for the resolution. He indicated
<br />this project consists of modernization and rehabilitation of the existing facility
<br />and acquisition and rehabilitation of machinery and equipment at that facility. He
<br />indicated this will assist in Allied's efforts to attain preferred supplier status
<br />with the major automobile manufacturers. He indicated 400 jobs will be retained at
<br />this location. Council Member Coleman made a motion to adopt this resolution,
<br />seconded by Council Member Zakrzewski. The resolution was adopted by a roll call
<br />vote of nine ayes.
<br />RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH
<br />BEND, INDIANA, AUTHORIZING THE MAYOR TO SUBMIT TO THE
<br />UNITED STATES GOVERNMENT, DEPARTMENT OF HOUSING AND
<br />URBAN DEVELOPMENT, AN APPLICATION FOR A SECTION 108
<br />LOAN GUARANTEE UNDER TITLE I OF THE HOUSING AND
<br />COMMUNITY DEVELOPMENT ACT OF 1974, AS AMENDED.
<br />WHEREAS, the Mayor of the City of South Bend, Indiana, is the Chief Executive
<br />Officer of the City and is the applicant for a Section 108 Loan Guarantee under
<br />Title I of the Housing and Community Development Act of 1974, as amended; and
<br />WHEREAS, proceeds from this loan will be used for various redevelopment
<br />activities within the West Washington- Chapin Development Area as outlined in the
<br />"Final Statement of Section 108 Loan Guarantee Objectives and Projected Use of
<br />Funds;" and
<br />WHEREAS, the redevelopment of the West Washington- Chapin Development Area will
<br />be greatly facilitated by the receipt of proceeds available through a Section 108
<br />Loan Guarantee.
<br />NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of South Bend,
<br />Indiana, as follows:
<br />SECTION I. That the Mayor of the City of South Bend, Indiana is hereby
<br />authorized to submit the Section 108 Loan Guarantee Application to the United States
<br />Government under Title I of the Housing and Community Development Act of 1974, as
<br />amended.
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