9645-05 Authorizing the city to issue its adjustable rate demand for the Stanley Clark School

Home Browse Search

acquisition, construction, development and equipping of the Projects will be of benefit to the health, prosperity, economic stability, general welfare and public interest of the City and its citizens and complies with the purposes and provisions of the Act. SECTION II. This Common Council hereby 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 construction of the Projects, will enable the Projects to be constructed and thereby serve the public purposes referred to above in accordance with the Act. SECTION III. The Projects will contribute significantly to the creation of permanent job opportunities in the City. SECTION IV. The evidence submitted by the Borrower regarding the adverse competitive impact of the Projects on similar facilities already constructed or operating in the City, such evidence being embodied in the "Findings of Fact of South Bend Economic Development Commission Regarding The Stanley Clark School Project" attached to the Report of the Commission, establishes that the Projects will not have an adverse competitive impact on similar facilities already constructed or operating in the City. SECTION V. The proposed financing and the form of the Financing Documents approved by the Commission are hereby approved and all such documents shall be incorporated herein by reference and shall be inserted in the minutes of the Common Council and kept on file by the Clerk. SECTION VI. The City shall issue the Bonds in one (1) or more series in an aggregate principal amount not to exceed Fifteen Million and 00/100 Dollars ($15,000,000.00) designated as the "City of South Bend, Indiana, Adjustable Rate Demand Economic Development Revenue Bonds, Series 200_ (The Stanley Clark School Project)" (with such blank to be filled in with the year in which each series of Bonds is issued) (the "Bonds"). The proceeds of the Bonds, net of expenses in connection with or on account of the issuance of the Bonds, shall be loaned to the Borrower pursuant to the Loan Agreement. The Bonds will be secured by a letter of credit obtained by the Borrower and will be payable as to principal, premium, if any, and interest thereon solely from payments made by the Borrower under the Borrower's Notes (as defined herein) or from any other collateral of the Borrower pledged for such purpose. The Bonds shall be issued as fully registered bonds and shall mature, be dated, be subject to redemption and be payable in the medium and at the place or places and in the manner provided in the Financing Documents approved by this Ordinance and incorporated herein by reference. The Mayor is hereby authorized to negotiate, execute and deliver the Bond Purchase Agreement on behalf of the City for each series of Bonds with such changes as may be necessary to distinguish each series of Bonds. The Mayor is authorized and directed to sell the Bonds in one (1) or more series on behalf of the City upon such terms as may be set forth in the Bond Purchase Agreement at a rate of interest on the Bonds which rate may be a variable rate set forth in the Financing Documents and incorporated herein by reference, but in no event shall the interest rate on the Bonds exceed ten percent (10.0%) per annum, and at a price equal to not less BDDBOI 4206748v1 - 3 -