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HomeMy WebLinkAboutCC-10-21-85 O'Malia's Bakery INDUCEMENT RESOLUTION OF COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA RESOLUTION approving the finding of the Carmel Economic Development Commission with respect to the issuance of revenue bonds in an amount not exceeding One Million Dollars ($1,000,000.00) for financing of certain economic development facilities to be undertaken by O'Malia Investment Co., and of Carmel, Indiana, to final action by authorizing and committing the City to proceed with such project, subject this Common Council with respect to the terms and conditions of such financing. RESOLUTION NO. 85- October 21, 1985 WHEREAS, the City of Carmel, Indiana ("City"), is authorized by IC 36-7-12 ("Act") to issue revenue bonds for the purpose of financing the acquisition, installation, construction and equipping of economic development facilities; WHEREAS, the City has been advised that there is under consideration a proposal of O'Malis Investment Co. (the "Company"), to acquire, construct, install and equip in the City a central bakery which will consist of real estate improvements on real property currently owned by the Company that is adjacent to and immediately south of 130 South Rangeline Road in Carmel, together with machinery and equip- ment necessary and incident to the operation of a bakery (the "Project"); WHEREAS, the Company has proposed that the City issue its revenue bonds under the Act to finance the acquisi- tion, installation, construction and equipping of the Project under a finanacing agreement whereby the proceeds of such bonds would be utilized to acquire, install, construct and equip the Project and the Company would make payments sufficient to pay the principal of, premium, if any, and interest on such bonds; and the Company has further advised the City that a determination by the City to accept such a proposal for financing the Project will constitute a substantial inducement to the Company to proceed with the Project; WHEREAS, the Company has Submitted evidence and testified regarding the competitive impact of the Project on other facilities of the same or similar kind already con- structed or operating in the City; WHEREAS, it is estimated that the Project will result in approximately 50 new jobs at the end of one year and approximately 55 new jobs at the end of three years with estimated annual payrolls of $269,704 after one year and $296,674 after three years; WHEREAS, the Carmel Economic Development Commission has rendered a report concerning the proposed financing of economic development facilities for the Company, which report incorporates findings of fact of the Commission regarding the competitive impact of the Project on facilities of the same or similar kind already constructed or operating in the City and the Carmel Plan Commission has been given an opportunity to comment thereon; --2-- WHEREAS, if the City issues the proposed financing of economic development facilities for the Company, such financing shall not in any respect be a general obligation of, an indebtedness of, or constitute a charge against the general credit of the City; WHEREAS, the Carmel Economic Development Commission has given its approval to such financing of the Project; and WHEREAS, subject to the required approvals under the Act, it appears that the financing of the Project will be of public benefit to the health, prosperity, economic stability and general welfare of the City and its citizens: NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Carmel, Indiana: Section 1. The Common Council finds, determines, ratifies and confirms that the acquisition, construction, installation and equipping of the Project is desirable to better the health, prosperity, economic stability and general welfare of the City and its citizens, that the Project complies with the purposes and provisions of the Act, and that it is in the best interest that the City take such action as it lawfully may to encourage the Company to acquire, construct, install and equip the Project. Section 2. The Common Council further finds, determines, ratifies and confirms that the issuance and sale of revenue bonds of the City under the Act, and the use of the net proceeds derived therefrom to finance the acquisition, -3- construction, installation and equipping of the Project, will enable the Project to be acquired, constructed, installed and equipped and thereby serve the public purposes referred to above in accordance with the Act. Section 3. In order to induce the Company to proceed with the acquisition, construction, installation and equipping of the Project, the Common Council hereby undertakes that: (i) It will authorize and issue one or more series of revenue bonds of the City pursuant to the Act, in an aggregate principal amount not exceeding One Million Dollars ($1,000,000), to finance the costs of the Project, including reimbursement or repayment to the Company for planning, engineering, underwriting and attorney and bond counsel fees, and will enter into a financing agreement to use the net proceeds of such bonds to acquire, construct, install and equip the Project and lease or sell the Project to the Company for specific rent or purchase price payments sufficient to pay the principal of, premium, if any, and interest on such bonds, or to lend such net proceeds to the Company to enable the Project to be acquired, constructed, installed and equipped and repay the loan in installments sufficient to pay the principal of, premium, if any, and interest on such bonds; -4- (ii) It will adopt such ordinances and resolu- tions and authorize the execution and delivery of such instruments and the taking of such actions as may be necessary or advisable for the authorization, issuance and sale of such bonds; and (iii) It will take or cause to be taken such other actions as may be required to implement the aforesaid or as it may deem appropriate in pursuance thereof, provided that all of the foregoing shall be authorized by law and mutually acceptable to the City and the Company. Section 4. It is hereby recognized that the issuance and sale of revenue bonds by the City under the Act for the purposes set forth herein shall be subject to the City's obtaining such approvals as may be required under the Act. Section 5. To the extent permitted by the Act, such changes may be made in the Project as are deemed necessary or desirable, or as may be required in light of then existing regulations or technology, or both, provided that after such changes the Project will continue to constitute economic development facilities within the meaning of the Act and any other applicable laws or regulations. Section 6. The Project will contribute significantly to the creation of permanent new job opportunities in the City. -5- Section 7. The evidence submitted by the Company regarding the competitive impact of the Project on other facilities of the same or similar kind already constructed or operating in the City, such evidence being embodied in the Findings of Fact Regarding Competitive Impact of Project of O'Malia Investment Co., attached to the Report of the Carmel Economic Development Commission, establishes that the Project will not have an adverse competitive impact on other facilities of the same or similar kind already constructed or operating in the City. Section 8. This Resolution and effect immediately upon required by law. Adopted this 21st shall be in full force compliance with the procedures day of October, 1985. [ SEAL ] ATTEST -6-