$1,300,000.00 Economic Development Revenue Bonds - Simon Bros. Inc

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"Project ") to be acquired and constructed with the proceeds of the Economic Development Revenue Bonds herein authorized are "economic development facilities" as that phrase is used in the Act; that acquisition and construction of the Project will increase employ- ment opportunties and increase diversification of industry in and near the City, will improve and promote the economic stability, development and welfare of the area in and near the City and will encourage and promote the expansion of industry, trade and commerce in the area in and near the City and the location of other new industries in such area; and that the public benefits to be accomp- lished by this Bond Ordinance, in tending to overcome insufficient employment opportunities and insufficient diversification of industry, are greater than the cost of public services (as that phrase is defined in the Act) which will be required by the Project. Section 2. Authorization of Economic Development Revenue Bonds. In order to pay a portion of the cost of acquiring and constructing the Project, there are hereby authorized to be issued, sold and delivered $1,300,000 aggregate principal amount of Economic Development Revenue Bonds, Series A (Simon Bros., Incorporated Project) of the City (the "Series A Bonds "). Any additional costs of the Project will be paid for by the Company unless paid for with the proceeds of additional parity bonds (the "Additional Bonds ") as identified in the Indenture. Section 3. Terms for the Series A Bonds. The total principal amount of Series A Bonds that may be issued is hereby expressly limited to $1,300,000; provided that Additional Bonds may be issued upon the terms and conditions and for the purposes provided in the Indenture and in the Loan Agreement. The Series A Bonds shall be represented by one Bond in fully registered form, which shall be dated as of the first day of the month in which delivered and paid for, shall become due and payable in 144 consecutive monthly installments, including both principal and interest at the rate of 7 -3/4% per annum, consisting of (1) 143 equal monthly installments of $13,894.30 commencing on the first day of the month following issuance of the Series A Bonds and (2) a final installment of $13,893.56 payable 12 years from date. Principal and interest and premium, if any, shall be payable at the principal office of the Trustee in South Bend, Indiana. The Series A Bonds shall bear interest at an increased rate upon the occurrence of an Event of Taxability, as defined in the Loan Agreement, shall be executed, shall be in such form, shall have such redemption provisions, and shall be subject to such other terms and conditions as set forth in the Indenture. The Series A Bonds and the interest thereon do not and shall never constitute an indebtedness of or a charge against the general credit or taxing power of the City, but are limited obligations of the City payable solely from revenues and other amounts derived from the Loan Agreement and shall be secured as provided in the Indenture. Forms of the Loan Agreement and the Indenture are before this meeting and are by this reference incorporated in this Bond Ordinance, and the City Clerk is hereby directed to insert them into the minutes of the Common Council and to keep them on file. Section 4. Sale of the Series A Bonds. The Mayor, City Clerk and City Controller of the City are hereby authorized and -2-