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<br />REGULAR MEETING
<br />OCTOBER 6, 1975
<br />Be it remembered that the Common Council of the City of South Bend met in the Council Chambers of
<br />the County -City Building on Monday, October 6, 1975, at 7:04 p.m., Council President Roger 0.
<br />Parent presiding. The meeting was called to order and the Pledge to the Flag was given.
<br />ROLL CALL PRESENT: Councilmen Serge, Szymkowiak,
<br />Miller, Taylor, Kopczynski, Horvath,
<br />Nemeth, Newburn and Parent.
<br />ABSENT: None.
<br />Councilman Taylor made a motion to resolve into the Committee of the Whole, seconded by Councilman
<br />Kopczynski. The motion carried.
<br />COMMITTEE OF THE WHOLE MEETING
<br />Be it remembered that the Common Council of the City of South Bend met in the Committee of the
<br />Whole on Monday, October 6, 1975, at 7:05 p.m., with nine members present. Chairman Odell Newburn
<br />presided.
<br />ORDINANCE AN ORDINANCE APPROVING THE FORM AND TERMS
<br />OF LEASE AND TRUST INDENTURE AND INDUSTRIAL
<br />DEVELOPMENT REVENUE BONDS, AND AUTHORIZING
<br />THE EXECUTION THEREOF, PERTAINING TO NORMAN
<br />F. ERNSBERGER- LAVERN D. JESSUP;, A GENERAL
<br />PARTNERSHIP.
<br />This being the time heretofore set for public hearing on the above ordinance, proponents and
<br />opponents were given an opportunity to be heard. Mr. Richard Morgan, 645 First Bank Building,
<br />made the presentation for the ordinance. He indicated that he was the attorney representing the
<br />partnership in the proposed bond issue. He filed an amended lease and trust indenture which con-
<br />tained a few minor changes and the insertion of the lease terms and commencement date. The bond
<br />would allow for construction of an addition to the facility in the Airport Industrial Park where
<br />Capitol_ Tooling was located. The amount of the issue was $250,000 and the bonds were to be pur-
<br />chased by the St. Joseph Bank and Trust Company at a 7% per annum rate. He stated that 100 person
<br />were employed and an increase of approximately 30% would be realized; the annual payroll was in th
<br />amount of $1 and 3/4 million and would be increased by 30 to 35 %. The addition to the building wal
<br />approximately 21,000 square feet, and the land was properly zoned for this particular use and
<br />utilities were already present in the park. Mr. Morgan indicated that the Industrial Foundation
<br />had approved of the expansion. He briefly itemized the proposed amendments to the lease and trust
<br />indenture as follows:
<br />In Section 2.1, the bonds were changed to indicate that they would be serial bonds.
<br />On page 3, the following sentences were inserted: Said bonds shall be in full
<br />registered form, in the denomination of Five Thousand Dollars ($5,000.00) each, shall
<br />be dated as of the first day of the month in which delivered to the purchasers, shall
<br />bear interest at the rate or rates per annum set forth on Exhibit "B" attached hereto
<br />and made a part thereof by reference, payable semi- annually on the dates set forth
<br />on said Exhibit "B ". Said bonds shall mature annually on the dates and in the amounts
<br />set forth on said Exhibit "B Said bonds shall be in substantially the form set forth
<br />on Exhibit "C" attached hereto and made a part hereof by reference, and by such incorpora-
<br />tion herein all of the terms and conditions contained in said form of bond are made a
<br />part of this agreement. The principal of and interest on said bonds shall be payable
<br />from the Bond Fund hereinafter referred to, and shall be secured solely by the rentals,
<br />revenues and receipts derived by the Lessor from the lease, sale or other disposition of
<br />the Leased Premises (and if required the guaranty of Guarantor), which rentals, revenues
<br />and receipts are hereby pledged to the payment of the principal of and interest on the _
<br />bonds. Said bonds shall not in any way constitute a general obligation of the Lessor
<br />nor a pledge or lien against any property, funds or revenues of the Lessor other than
<br />the rentals, revenues and receipts pledged by this agreement.
<br />In Section 3.1, the date of January, 1976, was inserted.
<br />In Section 3.2, the rent payments were established in installments of $2,247.07 per
<br />month for a total of $404,473.00.
<br />Councilman Taylor made a motion to amend the lease and trust indenture accordingly, seconded by
<br />Councilman Horvath. The motion carried. Councilman Horvath then made a motion that the ordinance
<br />be recommended favorably to the Common Council, seconded by Councilman Taylor. The motion carried
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