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HomeMy WebLinkAbout1980-R-11 INDUCEMENT RESOLUTION OF COMMON COUNCIL OF JE~'FERSONVILLE A PROPOSAL FOR A GENERAL RESOLUTION approving the finding of the Jeffersonville Economic Development Commission with respect to the issuance of revenue bonds in an amount not exceeding Seven Hundred Fifty Thousand Dollars ($750,000) for financing of certain economic development facilities to be undertaken by Riverview Hotel, Inc., an Indiana corporation, and authorizing and committing the City to proceed with such project, subject to final action by this Council with respect to the terms and conditions of such financing. GENERAL RESOLUTION NO.~__ ,1980 WHEREAS, the City of Jeffersonville, Indiana ("City"), is authorized by lC 18-6-4.5 ("Act") to issue revenue bonds for the purpose of financing the acquisition, installation and construction of economic development facilities; WHEREAS, the City has been advised that there is under con- sideration a proposal of Riverview Hotel, Inc., an Indiana corpora- tion ("Company"), to acquire, construct and equip in Jeffersonville, Indiana, a building with related facilities on real estate located at the intersecDion of Spring, Chestnut and Pearl Streets in Jeff- ersonville (the "Project"), all as described in Exhibit A hereto; I~HEREAS, the Company has proposed that the City issue its revenue bonds under the Act to finance the acquisition, construction and equipping of the Project under a financing agreement whereby the proceeds of such bonds would be utilized to acquire, construct and equip the Project and the Company would make payments sufficient to pay the principal of, premium, ir 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 Project will con- stitute 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 agree- ment consummated; WHEREAS, the Jeffersonville Economic Development Commission has given its approval to such financingsof the Project, on the basis that the Project will cause additional employment opportu- nities in Jeffersonville, Indiana, and will be of public benefit to the health, prosperity, economic stability and general welfare of the City and its inhabitants; 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 inhabitants: NOW THEREFORE, BE IT RESOLVED by the Common Council of the City of Jeffersonville, Indiana: Section 1. The common Council finds and determines that the acquisition, construction and equipping of a hotel~ and other facilities in Jeffersonville, Indiana, by the acquisition, construc- tion and equipping of the Project is desirable to better the health prosperity, economic stability and general welfare of the City and its inhabitants, tt~at the'Project complies with the purposes and provisions of the Act, and that it is in the public interest that the City take such action as it lawfully may to encourage the Company to acquire, construct and equip the hotel and related facilities. Section 2. that Act, the The Common Council further finds and determines the issuance and sale of revenue bonds of the City under the and the use of the net proceeds derived therefrom to finance acquisition, construction and equipping of the Project, will enable the Project to be constructed 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 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 Seven th~ndred Fifty ThousandDollars ($750,000) to finance the costs of the Project, including reimbursement or repay- ment to the Company of any moneys expended by the Company for plan- ning, 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 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 it to acquire, construct and equip the Project and repay the loan in installments sufficient to pay the princi- pal of, premium, if any, and interest on such bonds; (ii) It will adopt such ordinances and resolutions and autho- rize the execution and delivery of such instruments and the taking of such actions as may be necessary or advisable for the authori- zation, 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 fourth 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. This Resolution shall be in full force and effegt immediately upon compliance with the procedures required by law. Adopted this ~ day of (SEAL) Attest :~~ City- Clerk ,19so v ( ' ~ - Mayor~ EXHIBIT A DESCRIPTION OF THE PROJECT The Project involves the acquisition, construction and equip- ping of a hotel complex of approximately 22~000 square feet, together with related facilities, on real estate located at the intersection of Spring, Chestnut and Pearl Streets in Jeffersonville. The building will be used as a hotel and commercial development.