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Home My WebLink About10127-11 Issuance Reveneu Bonds 2011 - $1,500,000 South Bend Career Academy ORDINANCE No . 1012?_�� Passed by the Common Council of the City of South Bend,Indiana October 24, 2011 � �-�-r`� Attest: �=°_-_ -�' ° - - City Clerk JO �Y VO DE �` Attest: President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 25, 2011 s.�:- _ . ,;. ��__�..� City Clerk JO N VOO DE �,\ Approved and signed by me o c t o b e r 2 5, 20 11 ORDINANCE NO. ��I'-< < AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,INDIANA,AUTHORIZING TI3E CITY OF SOUTH BEND TO ISSUE ITS ECONOMIC ll�VELOPMENT REVENUE BONDS OF 2011 AND APPROVING AND AUTHORIZING OTIIER ACTIONS IN RESPECT TI-IERETO $1,500,000 SOUTH BEND ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2011 (SOUTH BEND CAREER ACADEMY PROJECT) STATEMENT OF PURPOSE AND INTENT The South Bend Economic Development Commission (the "Commission") has previously conducted a public hearing and adopted a resolution on September 19, 2011, which resolution has been transmitted to this Common Council, finding that the financing of certain economic development facilities of South Bend Career Academy, Inc. ("Borrower") compliPs with the purposes and provisions of Indiana Code 36-7-11.9 and Indiana Code 36-7-12, each as amended (collectively, the "Act"); and that such financing will be of benefit to the health and welfare of the City of South Bend, Indiana ("City") and its citizens. The South Bend Redevelopment Commission ("Redevelopment Commission") has adopted a resolution on September 12, 2011 (the "Pledge Resolution") approving of a pledge of Pledged Tax Increment (as defined in the Pledge Resolution) to be used to pay debt service on the City's Economic Development Revenue Bonds of 2011 (South Bend Career Academy Project) ("Bonds"), to offset payments required to be made by the Borrower, to be issued by the City pursuant to this Ordinance. The Bonds are being issued to finance the construction of economic development facilities consisting of a 106,000 square foot charter school located at 3801 Crescent Circle in the Blackthorn office park on South Bend's northwest side ("Project"). The Commission has heretofore approved and recommended the adoption of this form of ordinance by this Common Council, has considered the issue of adverse competitive effect and has approved the forms of and has transmitted for approval by the Common Council the Bond Purchase and Loan Agreement (including form of Note and Bonds) among the Issuer, the Bonower and the purchaser of the Bonds. NOW, T�-IEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF TIIE CITY OF SOUTH BENll,INDIANA,AS FOLLOWS: Section I. It is hereby found that: (i) the financing of the Project referred to in the Loan Agreement approved by the Commission and presented to this Common Council; (ii) the issuance and sale of the City's Economic Development Revenue Bonds of 2011 ("South Bend Career Academy Project) ("Bonds"); (iii) the loan of the proceeds of the Bonds to the Borrower for the acquisition, construction, installation and equipping of the Project; and (iv) the payment of the Bonds by the note payments of the Borrower under the Loan Agreement and Note, offset by the pledge of the Pledged Tax Increment, would be of benefit to the health and general welfare of the City. Section IL The economic development facilities will consist of the Project. Section III. At the public hearing held before the Commission, the Commission considered and determined that the Project would not have an adverse competitive effect on any similar facilities located in the City as required by IC 36-7-12-21. The Commission also considered whether the Project would be of benefit to the public health and welfare of the City and found that financing the Project would be of benefit to the public health and welfare of the City and the Common Council hereby confirms both findings. : Section IV. The substantially final forms of the Bond Purchase and Loan Agreement (including form of Note and Bonds), approved by the Commission are hereby approved (collectively, "Financing Agreements," referred to in IC 36-7-11.9 and -12), and the Financing Agreements shall be incorporated herein by reference and shall be inserted in the minutes of the Common Council and kept on file by the Clerk. In accordance with the provisions of IC 36-1-5- 4, two (2) copies of the Financing Agreements are on file in the office of the Clerk for public inspection. Section V. The City may issue its Bonds, maturing no later than December 31, 2015, in the aggregate principal amount not to exceed $1,500,000. The Bonds are to be issued for the purpose of procuring funds to pay the costs of acquisition, construction, installation and equipping of the Project, all as more particularly set out in the Bond Purchase and Loan Agreement, which Bonds will be payable from note payments made by the Borrower under the Bond Purchase and Loan Agreement and Note, offset by Pledged Tax Increment, or as otherwise provided in the above described Bond Purchase and Loan Agreement (including form of Note and Bonds), and the payment of certain costs of issuance and the funding of a debt service reserve, if necessary. The Bonds shall be issued in fully registered form in $5,000 denominations and integral multiples thereof. Payments on the Bonds are payable in lawful money of the United States of America by check mailed or delivered to the registered owners or by wire transfer as provided in the Bond Purchase and Loan Agreement. The Bonds shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of the City as described in the Bond Purchase and Loan Agreement. Section VI. The Mayor and the Controller are authorized and directed to sell the Bonds to the purchaser thereof at a price not less than 97% of the principal amount thereof and shall accrue interest at a rate not to exceed 4%per annum. Section VII. The Mayor, Controller and Clerk are authorized and directed to execute, attest, affix or imprint by any means the City seal to the documents constituting the Financing Agreements approved herein on behalf of the City and any other document which may be necessary or desirable to consummate the transaction, including the Bonds authorized herein. -2- The Mayor and the Controller are herebv expressly autl-iorized to approve any modifications or additions to the documents constituting the Financing Agreements which take place after the date of this Ordinance with the review and advice of the Corporation Counsel; it being the express understanding of this Common Council that the terms of the Financing Agreements are in substantially final form as of the date of this Ordinance. The approval of said modifications or additions shall be conclusively e�idenced by, the execution and attestation thereof and the affixing of the seal thereto or the imprinting of the seal thereon; provided, however, that no such modification or addition shall change the maximum issued amount or maturity amount of, interest rate on or term of the Bonds as approved by the Common Council by this Ordinance without further consideration by the Common Council. The signatures of the Mayor, Controller and Clerk on the Bonds may be either manual or facsimile signatures. The Controller is authorized to arrange for delivery of such Bonds to the bond purchaser named in the Bond Purchase and Loan Agreement (including form of Note and Bonds). Payment for the Bonds will be made to the bond purchaser named in the Bond Purchase and Loan Agreement (including form of Bonds.The Bonds shall be originally dated as of the issue date. Section VIIL The provisions of this Ordinance and the Bond Purchase and Loan Agreement (including form of Note and Bonds) securing the Bonds shall constitute a contract binding between the City and the holders of the Bonds, and after the issuance of the Bonds, this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of such holders so long as the Bonds or the interest thereon remains unpaid. Section IX. This Ordinance shall be in full force and effect from an fter its passage and approval by the Mayor. - Mem er, South Bend Common Council Attes�� ;_,._. ....� ��"'----� `�-�ity Cl rk Presented by me to the Mayor of the City of South Bend on the �S�'` day of ��.,�� , 2011, at��'-�3 o'clock Q .m. �G�� City Cl i �i� �� Approved and signed by me on the 2� day of c'.%��{-�--- , 2011, at Z:e i o'clock m. ' � _�.��=/�.,� � � ,�.,. ,, d �,.v._�� Mayor, City o outh Bend � '� �' � �'� ��`�'�' �`'`�� 1 st READING �� ..�C�-��` _. _ ._ PUBLIC HE�R.ING �,0-Z��l� �� ,w � �� 6 3 rd READING t(�_2,,``�_�� NOT APPRQV� -3 - , REFERRED �� o�,'�°"��i�;�a�� PA55�� ;0-L�'1,--t! C�°��:.�e.o�g��a��«��6�� TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 64-11 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE CITY OF SOUTH BEND TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS OF 2011 AND APPROVING AUTHORIZING OTHER ACTIONS IN RESPECT THERETO � $1,500,000 SOUTH BEND ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2011 SOUTH BEND CAREER ACADEMY PROJECT Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with no recommendation due to no quorum. This bill was heard by the Community & Economic Development Committee. Timothy Rouse Chairperson, Committee of the Whole � .A�.l`�1�D�T�.��JN PARTT�I�I�� J 212 West lOth Street, Suite D440 Indianapolis, Indiana 46262 September 13, 2011 John Voorde, City Clerk Office of the Clerk South Bend, Indiana 227 West Jefferson Blvd., Suite 400 S South Bend, Indiana 46601 RE: $1,500,000 SOUTH BEND ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2011 (SOUTH BEND CAREER ACADEMY PROJECT) Dear Clerk, Attached please find the following documents related to the above referenced bond issue: 1. Resolution of the Common Council of the City of South Bend, Indiana, for consideration and approval at the Council's October 10,2011 meeting; and 2. Special Ordinance of the Common Council of the City of South Bend, Indiana,to be considered for first reading at the Council's October 10, 2011 meeting and for final approval at the Council's October 24,2011 meeting. The South Bend Economic Development Commission has approved a preliminary and final resolution approving issuance of the Bonds. The South Bend Redevelopment Commission has approved a pledge of tax increment financing revenue to repayment of the Bonds as reflected in the Resolution and Ordinance. Please contact me if you have any questions. Sincerely, ��✓2-__ • Jonathan R. Ande F90�C, It'1 1:��'� �� t .��r��r:.F ,: cc: Ken Fedder, Attorney for South Bend EDC p a Larry Garatoni ,� :;��r� d � ��i "` � � F � Charles Goetz � � . � .� ,.,�� ,�� >� �' ��. ��`�"��.��.,� �. .e �f•��D,rN __ �.�.:�,�.�� (T)317.822.9126/ (F)317.489.3393 �1 www.andersonpartnersllc.com {AP.00005125.DOC}