Authorizing the Issuance of $1,550.000 Economic Development Revenue Bonds - Columbia Place Associates Project

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8 BILL NO. ORDINANCE NO. (, 0(l AN ORDINANCE AUTHORIZING THE ISSUANCE OF $1,550,000 ECONOMIC DEVELOPMENT REVENUE BONDS (COLUMBIA PLACE ASSOCIATES PROJECT), SERIES 1981; CONFIRMING THE SALE THEREOF; AUTHORIZING THE LOAN OF THE PROCEEDS OF SAID BONDS TO COLUMBIA PLACE ASSOCIATES; AND A MORTGAGE, LOAN AND SECURITY AGREEMENT, A TRUST INDENTURE, AND A BOND PURCHASE AGREEMENT IN CONNEC- TION THEREWITH. STATEMENT OF PURPOSE AND INTENT: The City of South Bend, Indiana (the "City ") , as an Indiana city, is authorized and empowered by the provisions of Indiana Code 18- 6 -4.5, as amended (the "Act "), to finance the cost of economic development facilities. The City is further authorized to issue revenue bonds payable from the revenues and receipts derived by.the City from agreements with the users of such facilities and secured by a pledge of said revenues and receipts. The City proposes to issue $1,550,000 aggregate principal amount of Economic Development Revenue Bonds (Columbia Place Associates Pro- ject) Series 1981 ( "Series 1981 Bonds ") , and lend the proceeds thereof to Columbia Place Associates, an Indiana limited partnership (the "Part- nership") pursuant to a Mortgage, Loan and Security Agreement (the "Loan Agreement ") dated as of May 1, 1981, in order to provide funds (1) to acquire a site and construct an office building thereon, and (ii) to pay necessary expenses incidental thereto (the "Project "). By a resolution,adopted on January 26, 1981, the City has expressed its intention to finance the Project by the issuance of Economic Development Revenue Bonds. It has been determined that the estimated amount necessary to accomplish said purposes will require the issuance, sale, and delivery of the Series 1981 Bonds in the aggregate principal amount of $1,550,000 as hereinafter provided. The Economic Development Commission, after notice and hearing, as required by the Act, has approved the proposed financing by a reso- lution adopted on April 3, 1981, and has transmitted it to this Common Council. Raffensperger, Hughes & Co., Inc., Indianapolis, Indiana (the "Underwriter ") has submitted to the City its proposal (the "Bond Pur- chase Agreement ") for the purchase of all of the Series 1981 Bonds by the Underwriter. The officers of the City have caused to be prepared and presented to this Common Council the following instruments with respect to the Series 1981 Bonds: (1) The Trust Indenture (the "Indenture ") dated as of May 1, 1981, between the City and First Bank and Trust Company of South Bend, South Bend, Indiana (the "Trustee") securing the Series 1981 Bonds; (2) The Loan Agreement; (3) The Bond Purchase Agreement; and (4) The form of Official Statement relating to the Series 1981 Bonds (the "Official Statement ").