Authorizing the Issuance and Sale not Exceeding $4,000,000.00 Revenue Bonds - Health Quest Realty V

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ORDINANCE NO. (�QSy -8 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 FOUNTAINVIEW PLACE CORPORATION OF SOUTH BEND; AUTHORIZING EXECUTION OF A TRUST INDENTURE AND FINANCING 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 subdivision of the State of Indiana, and by virtue of IC 18 -6 -4.5 as amended (hereinafter called the "Act ") is authorized and empowered to adopt this ordinance (the "Bond Ordinance ") to carry out its provisions; and Health Quest Realty V, an Indiana general partnership (the "Developer ") has applied for financing of a project (the "Project "), consisting of the ac- quisition 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 building for use as a nursing home, containing 144 skilled nursing and inter- mediate care beds; and The Developer intends to lease the Project to Fountainview Place Corporation of South Bend, and Indiana corporation (the "User "), pursuant to a lease agreement between the Developer and the User (the "Lease "); and certain management services for the Project will be provided by Health Quest Corporation, an Indiana corporation ( "Health Quest ") pursuant to a Management Agreement between the User and Health Quest (the "Management Agreement "); and The Project will provide additional employment opportunities and di- versification of economic development facilities in St. Joseph County and South Bend, Indiana; and The plan of financing proposed by the Developer contemplates that the City of South Bend would provide financing for the Project through the issuance of its bonds designated "City of South Bend, Indiana, Health Care Facilities Revenue Bonds, Fountainview Place of South Bend, Issue (FHA Insured Project), Series A" in an aggregate principal amount not exceeding $4,000,000.00, and at an interest rate not exceeding twelve percent (12 %) per annum (the "Bonds "); and The Bonds are to be issued under a Trust Indenture (the "Indenture ") between the City and St. Joseph Bank and Trust Company, as trustee (the "Trustee "); and the proceeds of the Bonds are to be loaned to the Developer for payment of costs of the Project pursuant to a Financing Agreement between the Town and the Developer (the "Financing Agreement "); and The Project is to be constructed by Health Quest Development Corporation, an Indiana corporation (the "Contractor ") pursuant to a Construction Contract - Cost Plus with the Developer, in accordance with the plans and specifications prepared by, and construction of the Project is to be supervised by, Korbuly- Graf, Inc. Architects, of South Bend, Indiana, pursuant to an agreement with the Developer; and The loan to be made to the Developer pursuant to the Financing Agree- ment is to be effected by the disbursement of funds from the proceeds of the Bonds by the Trustee and such funds are to be advanced to the Developer pursuant to a Building Loan Agreement between the Developer and the Trustee (the "Building Loan Agreement "); and a Construction Loan Disbursement Agreement (the "Disburse- ment Agreement ") among the Trustee, the Developer, the Contractor, Blyth, Eastman, Paine Webber Health Care Funding, Inc. (the "Servicer ") and Pioneer Title In- surance Company; and