$4,000,000.00 Revenue Bonds Making a Loan to Health Quest Realty V

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ORDINANCE NO. 70 r; ON ORDINANCE AMENDING AN ORDINANCE ENTITLED: "AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE NOT EXCEEDING $4,000,000.00 OF REVENUE BONDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PURPOSE OF MAKING A LOAN TO HEALTH QUEST REALTY V, IN ORDER TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN ECONOMIC DEVELOP- MENT FACILITIES LOCATED IN ST. JOSEPH COUNTY, INDIANA, TO BE USED AND OCCUPIED BY FOUNTAIN - VIEW PLACE CORPORATION OF SOUTH BEND; AUTHOR- IZING EXECUTION OF A TRUST INDENTURE AND FI- NANCING AGREEMENT; PROVIDING FOR THE DELIVERY OF AN FHA - INSURED MORTGAGE NOTE AS SECURITY FOR SAID BONDS; AND AUTHORIZING THE TERMS AND SALE OF SAID BONDS ". The City of South Bend, Indiana, (hereinafter called the "City ") is a municipal corporation and political subdivi- sion of the State of Indiana, and by virtue of IC 36 -7 -12, as amended (hereinafter called the "Act ") is authorized and em- powered to adopt this ordinance to carry out its provisions; and Health Quest Realty II (formerly known as Health Quest Realty V), an Indiana general partnership (the "Developer ") has applied for financing of a project (the "Project "), consisting of the acquisition of approximately 12.17 acres of land on the East side of Ironwood approximately 1,500 feet North of the Intersection of Cleveland and Ironwood, St. Joseph County, Indiana, and the construction thereon and equipment of a build- ing for use as a nursing home, containing 144 skilled nursing and intermediate care beds; and Following a duly held public hearing, the South Bend Economic Development Commission adopted a resolution on August 14, 1981, finding that the proposed financing of the Project complies with the purposes and provisions of the Act, and the St. Joseph County Council adopted a resolution on August 11, 1981, consent- ing to the issuance of the Bonds referred to below; and The Project will provide additional employment oppor- tunities and diversification of economic development facilities in St. Joseph County and South Bend, Indiana; and On August 24, 1981, the Common Council of the City adopted Ordinance No. 6954 -81 (the "Bond Ordinance ") authoriz- ing the issuance by the City of its bonds pursuant to the Act to finance a portion of the costs of the Project, such bonds to be designated "City of South Bend, Indiana, Health Care Facilities Revenue Bonds, Fountainview Place of South Bend Issue (FHA Insured Project), Series "A" in the aggregate prin- cipal amount not exceeding $4,000,000.00, and at an interest rate not exceeding twelve percent (12 %) per annum (the "Bonds "); and Due to increases in market interest rates on obliga- tions such as the Bonds, the Developer has requested that the City amend the Bond Ordinance to provide for an increase in the principal amount of the Bonds and an increase in the interest rate thereon.