Subject: 21317/IDB/ChattBakeryProject/PymtsInLieuOfTaxes
Date: Thu, 30 May 1996 12:56:28 -0500


                  
                  
                  
                                RESOLUTION NO. 21317
                  
                  
                  
                   A RESOLUTION TO MAKE CERTAIN FINDINGS RELATING
                   TO THE CHATTANOOGA BAKERY, INC. PROJECT, TO
                   DELEGATE CERTAIN AUTHORITY TO THE INDUSTRIAL
                   DEVELOPMENT BOARD OF THE CITY OF CHATTANOOGA,
                   AND TO AUTHORIZE THE MAYOR TO ENTER INTO AND
                   EXECUTE AN AGREEMENT FOR PAYMENTS IN LIEU OF
                   AD VALOREM TAXES.
                  
                             _________________________
                  
                  
              WHEREAS, pursuant to Tennessee Code Annotated ("T.C.A."),
         Section 7-53-305(b) the City of Chattanooga, Tennessee (the
         "City") is permitted to delegate to the Industrial Development
         Board of the City of Chattanooga (the "Corporation") the
         authority to negotiate and accept payments in lieu of ad 
valorem
         taxes from lessees of the Corporation upon a finding by the 
City
         that such payments are deemed to be in furtherance of the
         Corporation's public purposes; and,
              WHEREAS, Chattanooga Bakery, Inc. ("Chattanooga Bakery") 
is
         contemplating the acquisition and installation of new equipment 

         for its bakery in Chattanooga, and, because of the substantial
         economic benefits to Chattanooga and Hamilton County resulting
         from the project, has asked the Corporation and the City to
         approve payments in lieu of ad valorem taxes; and
              WHEREAS, the City has determined that payments in lieu of
         ad valorem taxes from such a project would be in furtherance of 

         the Corporation's public purposes as set forth within Chapter 
53
         of Title 7 of the Tennessee Code Annotated;
0C
                                 NOW, THEREFORE,
              BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
         CHATTANOOGA, TENNESSEE, that we do hereby find that
         the Chattanooga Bakery, Inc. project referenced above is in the 

         best interest of the City of Chattanooga, Tennessee, and that
         payments in lieu of ad valorem taxes derived therefrom would be 

         in furtherance of the Corporation's public purposes; and
              That having made such a finding in this instance, we do
         hereby delegate to the Corporation the authority to negotiate
         and accept payments in lieu of ad valorem taxes from 
Chattanooga
         Bakery, it being further noted that this delegation is for this 

         purpose and this project only; and
              That, the Mayor is hereby authorized to enter into an
         Agreement for Payments In Lieu Of Ad Valorem Taxes in the form
         attached hereto, with such changes thereto as the Mayor shall
         approve.
        
         ADOPTED:  March 25, 1997
        
         :kac