04-27-76 Council Meeting Minutes

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REGULAR MEETING APRIL 27, 1976 RESOLUTIONS (CONTINUED) Council Member Dombrowski made a motion this resolution be adopted, seconded by Council Member Taylor. The resolution was adopted by a roll call vote of nine ayes (Council Members Serge, Szymkowiak, Miller, Taylor, Kopczynski, Adams, Dombrowski, Horvath and Parent). RESOLUTION NO. 519 -76 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, CONCERNING THE ACQUISITION, CONSTRUCTIONS AND LEASING OF AN ECONOMIC DEVELOPMENT FACILITY TO MC CORMICK AND COMPANY, INCORPORATED. WHEREAS, the City of South -Bend, Indiana (the "City ") , is authorized by IC, 18 -6 -4.5 (the "Act ") to issue revenue bonds for the financing of economic development facilities, the funds from said financing to be used for the acquisition, construction and equipping of said facilities, and said facilities to be leased to other persons; and WHEREAS, McCormick & Company, Incorporated ( "McCormick ") has advised the City that it proposes that the City acquire, construct and equip an economic- development facility and.-l- ease,1. the same to _McCormick, as lessee, said economic development facility to be a food processing facility consisting of approximately 50,000 square feet and certain equipment and machinery incidental to the processing and storage of the products, all located on a tract of approximately 8.44 acres in the Airport Industrial Park, South Bend, Indiana; and WHEREAS, McCormick has further advised the City that a determination by the City-to issue its revenue bonds under the Act to finance the acquisition, construction and equipping of the Project under contractual arrangements whereby the City would lease the Project to McCormick and McCormick would make rental payments sufficient to pay the principal of, premium, if any, and interest on such bonds, will constitute a substantial inducement to McCormick to proceed with negotiations for the acquisition of the land and construction of the building improvements and McCormick has agreed to pay or reimburse the costs of the City whether or not such bonds are issued; and WHEREAS, the diversification of economic development, increase in job opportunities and increase in tax base to be achieved by the acquisition, construction and equipping of the Project will be of public benefit to the health, safety and general welfare of the City and its inhabitan and WHEREAS, subject to all required approvals under the Act and the advice of the South Bend Economic Development Commission, it would appear that the financing of the Project will comply with the purposes and provisions of the Act; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana: 1. The Common Council finds and determines that the promotion of diversification of economic development and job opportunitities and increasing the tax base, in South Bend, Indiana, is desirable to preserve the health, safety and general welfare of the inhabitants of the City of South Bend; and that it is in the public interest that the City take such action as it law- fully may to encourage diversification of economic development and promotion of job, opportunities in the City. 2. The Common Council further finds andd-2�termines that the issuance and sale of revenue bonds of the City under the Act in an amount not to exceed $3,800,000.00 for the acquisition construction and equipping of the Project and the leasing of the Project to McCormick will serve the public purposes referred to above, in accordance with the Act. 3. In order to induce McCormick to proceed with negotiations for the acquisition, constructic and equipping of the Project, the Common Council hereby determines that (i) it will take or cause to be taken such actions pursuant to the Act as may be required to implement the aforesaid financ- ing, or as it may deem appropriate in pursuance thereof; provided that all of the foregoing shall be as authorized by law and is mutually acceptable to the City and McCormick; (ii) it will adopt such ordinances and resolutions and authorize the execution and delivery of such instruments and the taking of such action as may be necessary and advisable for the authorization, issuance and sale of said economic development bonds, subject to the City obtaining all approvals as may be required under the Act, including the advice of the South Bend Economic Development Commission. 4. All costs of the.Project incurred after this resolution, including reimbursement or re- payment to McCormick of moneys expended by McCormick for planning, engineering, interest paid during construction,.underwriting expenses, attorney and bond consel fees, acquisition, constructs( and equipping of the Project will be permitted to be included as part of the bond issue to finance said Project, and the City will thereafter lease the same to McCormick. 5. This resolution shall be in full force and effect from and after its passed and signing by the Mayor. /s/ c Christine Adams A public hearing was held at this time on the resolution. Mr. Peter Mullen, City Controller, said this resolution was an inducement for McCormick and Company to acquire and construct a facility in South Bend. He said that McCormick was one of the largest food processing companies in the United States. He said they will occupy 8.44 acres of land with food processing and storage facilities. He said the estimated cost was $3,800,000. He said that the Economic Development Commission passed an inducement resolution on April 16. Council Member�Szymkowiak made a motion this resoluti be adopted, seconded by Council Member Dombrowski. The resolution was adopted by a roll call vote of nine ayes (Council Members Serge, Szymkowiak, Miller, Taylor, Kopczynski, Adams, Dombrowski, Horvath and Parent). m