04-14-14 Common Council Meeting Minutes

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REGULAR MEETING APRIL 14, 2014 This project would bring 50 new jobs to the plant, unlike other bonds the city is not liable of the bonds. The resolution proposes a max bond amount of $25 million dollars to proceed to the completion we would return to the Council a detailed bond, we ask for your favorable recommendation. Councilmember Henry Davis, Jr- what time frame are you looking at for the bonds? Petition in the next couple of months. Councilmember White- As a matter of public record for the sake of our guest there is absolutely no liability on the city's part should the company default. Petitioner if in fact the bonds were issued and they were a default there is no pledge of revenue from the city. Councilmember White since this is a for -profit company seeking a non -profit status that is allowable by law? Petitioner - the federal government has provided certain types of financing permitted to be issued on a tax basis, the portions of the facility that the equipment will be devoted to meets solid waste requirements, federal IRS will be provided on a tax exempt basis and to encourage this type of facility. Councilmember Henry Davis, Jr. - there was a national publication that there is a company invested in ethanol, could this have an adverse effect on a bylaw? Petitioner - the city has no revenue impact, many bonds are sold with a line of credit, the legal term it is a conduit, and the city is just lending its name on it. In investing in Ethanol that is inaccurate, having that plant in operation has numerous benefits to the city. Is there a cap on economic bonds such as these or are we able to extend more? Petitioner - the state does have a cap and the credit line of the company, to complete the process the company would request an allocation from a finance authority. There is a number on that cap. It is per state, not per city. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of or in opposition to this Resolution, Councilmember Dieter made a motion to adopt this Resolution. Councilmember Schey seconded the motion which carried and the Resolution was adopted by a roll call vote of nine (9) ayes. BILL NO. 14 -33 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3201 WEST CALVERT STREET TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR NOBLE AMERICAS SOUTH BEND ETHANOL LLC 23