11-09-81 Council Meeting Minutes

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223 REGULAR MEETING NOVEMBER 9 1981 RESOLUTION NO. 926 -81 AN INDUCEMENT RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA, REGARDING THE ISSUANCE OF ECONOMIC DEVELOPMENT BONDS FOR THE CONSTRUCTION OF A HOLIDAY INN MOTEL. 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 y the acquisition of economic development facilities in the City pursuant to the provisions of Indiana Code 18 -6 -4.5 (the "Act "); and WHEREAS, Brick Road Associates proposes to acquire economic development facilities to be located in the City as defined in the Act if the City will finance costs of such economic development facilities pursuant to the Act; and WHEREAS, the South Bend Economic Development Commission has received notice of an application by Brick Road Associates for the issuance of City of South Bend Economic Development Bonds in an amount not to exceed Ten Million ($10,000,000.00) Dollars repayable over a designated period 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 construct a Holiday Inn, resulting in the creation of approximately one hundred fifteen (115) additional employees with an annual payroll of approximately Six Hundred Fiften Thousand ($650,000.00) Dollars per year. NOW, THEREFORE, the Common Council of the Clty of South Bend, Indiana, 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 Ten Million ($10,000,000.00) Dollars of its revenue bonds, which bonds will not be general obligations of th ecity 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 and will comply with the purposes and provisions of the Act. 3. Brick Road Associates may proceed with financing efforts for this project 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 or agents, shall not incur any liability if for any reason the proposed issuance of such bonds is not consummated. This inducement resoluton shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. /s/ Lewis A. McGann Member of the Common Council A public hearing was held on the resolution at this time. Peter J. Nemeth, attorney representing the petitioners, indicated this proposed new Holiday Inn would be constructer on the U.S. 31 bypass between Brick Road and the Indiana Toll Road interchange. He indicated that due to the uncertain nature of the current financial market, the developer: are seeking Council approval for the purpose of assisting them in obtaining financing for this project. Dominic DaCasta, 754 Cottage Grove, spoke against this resolution. Council Member Szymkowiak made a motion to adopt this resolution, seconded by Council Member Voorde. The resolution was adopted by a roll call vote of nine ayes. BILLS, FIRST READING BILL NO. 125 -81 A BILL TRANSFERRING $306,691.71 FROM THE CUMULATIVE CAPITAL IMPROVEMENT FUND TO THE POLICE DEPARTMENT WITHIN THE GENERAL IMPROVEMENT FUND OF THE CITY OF SOUTH BEND, INDIANA. This bill had first reading. Council Member Taylor made a motion to set this bill for public hearing and second reading November 23, seconded by Council Member Beck. The motion carried. BILL NO. 126 -81 A BILL APPROPRIATING $43,445.00 TO THE BUREAU OF SEWERS BUDGET LINE ITEM 260 CONTRACTUAL SERVICES FROM THE SEWAGE WORKS DEPRECIATION FUND FOR EMERGENCY SEWER REPAIRS ON SAMPLE STREET AT THE RAILROAD CROSSING EAST TO THE FIRE STATION. This bill had first reading. Council Member Taylor made a motion to set this bill for public hearing and second reading November 23, seconded by Council Member Beck. The motion carried.