07-27-81 Council Meeting Minutes

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REGULAR MEETING JULY 27 1981 I This bill had second reading. Council Member Serge made a motion to pass this bill, seconded by Council Member Taylor. The bill passed by a roll call vote of eight ayes. RESOLUTIONS RESOLUTION NO. 895 -81 AN INDUCEMENT RESOLUTION RELATING TO THE FINANCING OF ECONO- MIC DEVELOPMENT FACILITIES FOR DAYTON- HUDSON CORPORATION. WHEREAS, at the present time there are insufficient employmernt 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 pursuant to the provisions of Indiana Code 18 -6 -4.5 (the "Act "); and WHEREAS, Dayton- Hudson Corporation (the "Company "), proposes to acquire and construct economic development facilities as defined in the Act if the City will fi- nance costs of such economic development facilities pursuant to the Act; and WHEREAS, the South Bend Economic Development Commission has received an applica- tion by Dayton- Hudson Corporation for the issuance of City of South Bend Economic Development Bonds in an approximate amount of Two Million, Four Hundred Thousand ($2,400,001 Dollars, repayable over a period not to exceed thirty (30) years, with interest thereon at a rate consistent with interest rates generally paid on tax - exempt bonds at the time the bonds are issued in order to permit the remodeling of economic development facilities and the purchase of new fixtures and other physical improvements, resulting in an increase of approximately two hundred (200) additional employees, with an increased annual payroll of approximately One Million, Five Hundred Thousand ($1,500,000.00) Dollars per year. NOW, THEREFORE, the Common Council of the City of South Bend, Indiana resolves as follows: 1. The Project constitutes economic development facilities which may be fi- nanced 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 the issuance of its revenue bonds in an amount of approximately $2,400,000 (or such lesser amount as may be agreed upon), which bonds will not be general obligations of the City but will be payable sole 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 and will comply with the purposes and provisions of the Act. 3. The Company may proceed with acquisition and construction of the economic development facilities in reliance with this resolution. 4. The liability and obligation of the South Bend Economic Development Com- mission, 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 or 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/ John Voorde Member of the Common Council A public hearing was held on the resolution at this time. Kenneth Fedder, attorney for the Economic Development Commission, indicated that Dayton- Hudson intented to repair, remodel and fix -up the three Ary -way stores located in the City. Paul Mirch, Northern District Manager for Dayton- Hudson, spoke regarding the upgrading of these stores. Council Member Serge made a motion to adopt this resolution, seconded by Council Member Szymkowiak. The resolution was adopted by a roll call vote of eight ayes. RESOLUTION NO. 896 -81 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DE- VELOPMENT TO PARTICIPATE IN THE SMALL RENTAL REHABILITATION DEMONSTRATION PROJECT. WHEREAS, the United States Department of Housing and Urban Development has ini- tiated a demonstration project to provide assistance to cities seeking to design pro- grams to rehabilitate small rental properties; and WHEREAS, the City of South Bend, in accordance with its Housing Assistance Plan, recognizes the need to develop such programs;