R2001-149 AN INDUCEMENT RESOLUTION IN CONNECTION WITH INDUSTRIAL DEVELOPMENT

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RESOLUTION NO. R2001-149 �I'! AN INDUCEMENT RESOLUTION OF THE CITY OF DECATUR, �' ILLINOIS IN CONNECTION WITH INDUSTRIAL DEVELOPMENT -BONDS FOR DECATUR FOUNDRY.INC. - WHEREAS, the City of Decatur, Illinois (the "Municipality"), anticipates issuing up to $3,000,000 aggregate principal amount of industrial development revenue bonds (howsoever actually styled, the "Bonds") under The Industrial Project Revenue Bond Act (65 ILCS 11-74-1 et. seq.), as supplemented and amended, including by the Municipality's home rule power and authority (collectively, the "Act"), to finance the acquisition, construction and installation of manufacturing facilities to be owned and operated by Decatur Foundry, Inc. (including other related parties or any entity formed by it, the prospective "Borrower"), to be located at 900 East Division Street, in Decatur, Illinois (the"Project"). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DECATUR, MACON COiINTY, ILLINOIS, as follows: Section 1. As an inducement to the Borrower to undertake the Project, the Municipality hereby declares its intent to issue the Bonds to finance the project, all at the Borrower's cost and expense and pursuant to documentation acceptable to the Municipality in its sole discretion. Section 2. In the event the Borrower should advance its own funds for qualifying Project costs the Municipality hereby declares its intent to reimburse such qualifying costs out of Bond proceeds, if, as and when received, and not otherwise. This declaration of intent to reimburse is made in connection with section 1.150-2 of the Income Tax Regulations. Section 3. The Municipality will cooperate with the Borrower related to issuance of the Bonds, but only on terms and conditions acceptable to the Municipality, as determined in its sole discretion, and at the Borrower's expense. The Municipality makes no representation as to whether Bonds can be or will in fact be issued or qualify as tax-exempt bonds under Sections 103 and 141, et seq., of the Internal Revenue Code of 1986, as amended (the"Code"), risks of which the Borrower by the Municipality's adoption of this resolution assents. The Bonds may be initially issued in"tazable"form, convertible to "taz-ezempt" form. Section 4. T'he Municipality represents that it presently has no cap allocation in 2001 available under Section 146 of the Code. The Municipality will cooperate with the Borrower in obtaining a cap allocation under Section 146 of the Code, including through the Municipality, home rule units or the State of Illinois, as the case may be. The Municipality makes no representation that a sufficient cap allocation is or will be available, a risk of which the Borrower by the Municipality's adoption of this resolution assents.