12-17-79 Council Meeting Minutes

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REGULAR MEETING DECEMBER 17, 1980 i 11 REGULAR MEETING RECONVENED (CONTINUED WHEREAS, to induce Raitt Corporation to construct such economic development facilities unde an arrangement whereby United Air Lines and Towne Air Freight, Inc., shall be principal users, the South Bend Economic Development Commission on December 7, 1979 approved the application of Raitt Corporation for issuance of up to Five Hundred Fifty Thousand ($550,000.00) Dollars of Industrial Development Bonds repayable with interest thereon at a rate not in excess of eleven (11 %) percent per annum over a period of twenty (20) years and also adopted an Inducement Resolution relating to that bond issue; and WHEREAS, it is apparent that such Raitt Corporation Project will preserve jobs and increase job opportunities and commercial diversification in South Bend, Indiana, resulting in a benefit to the welfare of the public in the City of South Bend, Indiana, and St. Joseph County, Indiana. NOW, THEREFORE, BE IT RESOLVED, that in order to.encourage, induce and solicit the applica- tion by Raitt Corporation for an.amount not exceeding Five Hundred Fifty Thousand ($550,000) Dollars of Industrial Develpment Bonds to be issued by the City of South Bend, Indiana repayable with interest thereon at a rate not in excess of eleven (11 %) percent per annum over a period of twenty(20) years after the issue date for the construction of such economic development facilities, the City of South BEnd shall proceed to cooperate with and take any action as may be necessary in drafting of documents or the performance of such other acts as will facilitate the issuance of such Industrial Development Bonds by the City of South Bend,.Indiana, to provide funds to be used toward the payment of the costs for thelacquisition and construction of such economic development facilities; and BE IT FURTHER RESOLVED, that any costs or expenses incurred in connection with such Raitt Corporation Project shall be included in the project costs and "reimbursed from the proceeds of the Industrial Development Bonds to be issued with respect thereto; and BE IT .FURTHER RESOLVED, that the liability and obligation of the South Bend Economic Develop- ment Commission 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 neither the South Bend Economic Development Commission nor the City of South Bend, Indiana, or its officers or agents, shall 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/ Mary Christine Adams Member of the Common Council A public hearing was held on the resolution at this time. Mr. Richard Mintz, attorney represent- ing Raitt, indicated that they planned to build an air freight facility at the Michiana Regional Airport. He said this facility will be rented to United Air Lines and Towne Air Freight. He said they were presently conducting their operations in temporary quarters off the airport property, and in oder for them to operate at maximum effectiveness, it was necessary for them to be located on airport property. He said if immediate action is not taken, construction cannot begin until spring. Council Member Adams made a motion to adopt this resolution, seconded by Council Member Dombrowski. The resolution was adopted by a roll call vote of nine ayes. RESOLUTION NO. 743 -79 A RESOLUTION APPROVING THE FINDINGS OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION WITH RESPECT TO THE ISSUANCE OF REVENUE BONDS IN AN AMOUNT NOT EXCEEDING FIVE HUNDRED THOUSAND DOLLARS ($500,000) FOR FINANCING THE INCREASED COSTS OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES TO BE UNDERTAKEN BY EXPRESS FREIGHT LINES, INC., AND AUTHORIZING AND COMMITTING THE CITY TO PROCEED WITH SUCH PROJECT, SUBJECT TO FINAL ACTION BY THIS COUNCIL WITH RES- PECT TO THE TERMS AND CONDITIONS OF SUCH FINANCING AND THE OB- TAINING OF ALL APPROVALS AS MAY BE REQUIRED UNDER I.C. 16- 6 -4.5. WHEREAS, the City of South Bend, Indiana ( "City "), is authorized by IC 18 -6 -4.5 ( "Act ") to issue revenue bonds for the purpose of financing the acquisition, installation, and con- struction of economic development facilities; WHEREAS, the City has issued $1,000,000 of its Economic Development Mortgage Revenue Bonds (Express Freight Lines, Inc., Project) to finance a portion of the cost of a truck terminal and related facilities described in Exhibit A hereto to be located in St. Joseph County, Indiana (the "Project "); WHEREAS, Express Freight Lines, Inc., a Wisconsin corporation (the "Company "), now expects to incur increased costs in connection with the acquisition, installation and construction of the Project; WHEREAS, the Company has proposed that the City issue its revenue bonds under the Act to finance the increased costs of the acquisition, installation and construction of the Project under a financing agreement whereby the proceeds of such bonds would be utilized to pay the increased costs of the Project and the Company would.make payments sufficient to pay the principal of, premium, if any, and interest on such bonds; the Company has further advised the City that a determination by the City to accept such a proposal for financing the increased costs of the Project will constitute a substantial inducement to the Company to proceed with the Project; and.the Company has agreed to pay the costs of the City whether or not such revenue bonds are issued and the financing agreement consummated;