09-22-86 Council Meeting Minutes

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REGULAR MEETING SEP.TEMB-PR WHEREAS, at the present time there are insufficient employment opportunities and insufficient diversification of business, commerce 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 the corporate limits of the City pursuant to the provisions of Indiana Code 36 -7 -12 (the "Act "); and WHEREAS, South Bend Orthopedic Associates, Inc., an Indiana Corporation and /or Tripods Partnership, an Indiana partnership (hereinafter collectively referred to as "Applicant "), are constructing economic development facilities in South Bend, Indiana as defined in the Act, and the City has financed costs of such economic development facilities pursuant to he Act through economic development revenue bonds issued in 1985; and WHEREAS, the South Bend Economic Development Commission has received an application by the Applicant for the issuance of City of South Bend Economic Development Revenue Bonds in the approximate principal amount of Seven Hundred Thousand and no /100 Dollars ($700,000.00) with the terms of repayment to be determined by existing market rates at the time such bonds are sold, and the proceeds of the bonds will be used to finance cost overruns related to the Project, which project consists of acquisition of real estate, construction of improvements to real estate and acquisition of equipment to be used as a medical facility located on the South side of LaSalle Street immediately east of the St. Joseph River in South Bend, Indiana, resulting in a minimum of three (3) full -time jobs at the facility following completion of the project with an annual payroll of approximately $60,000.00. NOW, THEREFORE, the Common Council of the City of South Bend resolves as follows: 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 Seven Hundred Thousand and no /100 Dollars ($700,000.00) 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, will comply with the purposes and provisions of the Act. 3. The Applicant may proceed with acquisition and construction 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 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 the South Bend Economic Development Commission and the City of South Bend, Indiana, their officers and 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. /s/ Beverlie J. Beck Member of the Common Council A public hearing was held on the resolution at this time. Mark Krcmaric, attorney, indicated this bond issue would be used to finance construction and equipping of the new medical office facility on the east bank of the St. Joseph River. He indicated the building will be owned by Tripods and leased to South Bend Orthopedic. He indicated three new jobs will be created. Council Member Taylor made a motion to adopt this resolution, seconded by Council Member Paszek. The resolution was adopted by a roll call vote of nine ayes. Council Member Taylor made a motion to combine public hearing on the next two resolutions, seconded by Council Member Paszek. The motion carried. RESOLUTION NO. 1439 -86 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE MAYOR TO SUBMIT AN APPLICATION TO THE INDIANA DEPARTMENT OF COMMERCE FOR THE INDUSTRIAL DEVELOPMENT GRANT FUND. WHEREAS, the City of South Bend is dedicated to pursuing economic development through promoting growth of businesses which stimulate the local economy and thereby benefit the people of South Bend as a whole; and WHEREAS, the Mastic Corporation expansion project will benefit the local economy, specifically by creating new manufacturing jobs and new construction jobs, by generating new taxes on real and personal property by utilizing vacant land, and by contributing to the construction of a new building and infrastructure development in the South Bend community; and