HomeMy WebLinkAboutNo. 0151 to amend resolution authorizing the issuance of certain project temporary loan notes in connection with urban renewal Project No. IND R-29and
tim
Loa
as
bei
WHE
of
Ren
the
Sou
Dep
be!
-`
RESOLUTION NO. ' . l S'/
RESOLUTION TO AME14D A RESOLUTION AUTHORIZING THE
ISSUANCE OF CERTAIN PROJECT TRMPORARY LOAN NOTES IN
CONNECTION WITH URBAN RENEWAL PROJECT NO. Ind. R -29
AND PROVIDING3 FOR THE SECURITY FOR THE PAYMENT THEREOF,
AND FOR OTHER PURPOSES.
EAS, the United States of America (herein called the "Government ")
the City of South Pend, Department of Redevelopment (herein some -
s called the "Local Public Agency "), have entered into a certain
and Capital Grant Contract dated September 6, 1963, and identified
ontract No. Ind. R -29 (L3), (said Contract as hereto amended
g herein called the "Existing Contract "); and
EAS, A Resolution entitled "Resolution Authorizing the Issuance
ertain Project Temporary Loan Notes in Connnection with Urban
wal Project No. Ind. R -29 and Providing for the Security for
Payment Thereof, and for other purposes" was duly adopted by the
h Bend Redevelopment Commission Governing Body of the South Bend,
rtment of Redevelopment on September 19, 1963 (said Resolution
�e herein called the "Basic Note Resolution "); and
WHEREAS,
it is necessary that the Basic Note Resolution be amended
so
that the provisions thereof will be responsive to and consistant
- witli
the provisions of the Existing Contract as amended by First
Amendatory
Contract amending Loan and Capital Grant Contract No.
Ind
R -29 (LG).
NOW
THEPFFORE, BE IT RESOLVED BY THE South Bend Redevelopment
Commission
Governing Body of the City of South Bend, Department of
Redevelopment
as follows:
Section 1. That the Basic Note Resolution be amended as follows:
(a) By deleting Sections 1 through 6 and substituting the
fol
axing Sections 1 through 5 in lieu thereof:
"Section 1. That in order to provide funds to enable the
Local
Public Agency to defray epenses and costs in connection with
the
undertaking and carrying out cf the Project, and to refund, renew,
extend,
or substitute for a_-zy Project Temporary Loan Notes by this
Resolution
authorized to be issued, here are hereby authorized to
"- be
issued, from tire to ti: -Ie Project Te:iporary Loan Notes of the Local
Pub
is Agency in an agregate principal amount outstanding at any one
l% tim
(whether authorized by this Resolution or any other resolution
aut
orizing the issuance of project Temperary Loan Notes in connection
witi
the Project) of not to exceed One Million Three Hundred Fifty
Ei
t Thousand Nine Hundred Seventeen Dollars ($1,358,917.00).
"Section 2. That each such note shall be designated "Project
Temporary Loan Note "; shall be payable, as to the principal thereof
together with the interest thereon, upon demand, but solely from
thE Project Temporary Loan Repayment Fund hereinafter mentioned
an not otherwise; shall be payable at the principal office of the
Lo al Public Agency in any coin or currency of the United State of
Am rica which, on the date of the payment of the principal thereof
an the interest thereon, is legal tender for the payment of public
an private debts; shall be payable to the United States of America
or order; shall be signed in the name of the Local Public Agency by
the Mayor or Acting Mayor; shall have the official seal of the Local
Public Agency impressed thereon and attested by the City Clerk; and
shall bear interest at the rate or rates as follows:
r"
of
During the period from the date of the acceptance of delivery
and payment for each such note through December 31, 1971 (herein
call
inte
Seve
date
amou
of t
be i
the
inte
unre
The
but
clu
be
a p
Loa
Loa
and
dat
as
spe
Rep
her
Sai
the
sha
as
d the "Initial Loan Period "), said principal sum shall bear
est on the unrepaid amount thereof at the rate of Four and
- Eights per centum (4 -7/8 %) per annum. From and after said
each such note shall bear interest on the unrepaid principal
t thereof at the rate per annum (to be duly noted on behalf
e United States of America on the reverse thereof) which shall
itially determined and become effective on the expiration of
nitial Loan Period, and shall be redetermined at 5 -year
vals thereafter, and become effective, with respect to said
aid principal amount, in accordance with the following formula:
edetermined rate shall not exceed six pereentum (6% -per annum,
therwise shall be the higher of:
(a) The "going Federal rate" determined pursuant to the
provisions of Title I of the Housing Act- of 1949, as amended
through September 2, 1964, and effective January 1 or July
1, as the case may be, following the expiration of the
Initial Loan Period, or, in the case of subsequent re-
determinations of the rate, the January 1 or July 1, as
the case may be, coati.tuting the fifth anniversary of the
effective date of the latest redetermined rate; or
(b) A rate per annum equal to the average yield to maturity on
all outstanding obligations of the United States having a
maturity from the May 1 or November 1, as the case may be,
next preceding the date of the expiration of the Initial
Loan Period (or, in the case of subsequent redeterminations
of the rate, from the May 1 or November 1, next preceding
the January 1 or July 1, as the case may be, constituting
tie fifth anniversary of the latest redetermined rate),
of approximately 5 years, as determined by the Administrator,
upon the advice of the Secretary of the Treasury, such
average yield to be estimated on the basis of daily closing
market bid quotations or prices for the month of May or
November, as the case may be, next preceding the date of
the expiration of the Initial Loan Period (or, in the case
of subsequent redeterminations of the rate, for the month
of May or November, as the case may be, next preceding the
January 1 or July 1, constituting the fitht:anniversary of the
latest redetermined rate), and adjusted to the nearest
1/8 of 1 per cent.
"Section 3. That each Project Temporary Loan Note issued, in-
Ing a statement of the delivery thereof to the Government, shall
i substantially the form of "Exhibit All attached hereto and made
�t of this Resolution: Provided, That each Project Temporary
Note bearing a date subsequent to the expiration of the Initial
Period shall state on its face the applicable interest rate
,hall.define therein the term "Initial Loan Period" by use of a
which shall be the end of the pertinent five year period, both
ithorized and required by this Resolution.
"Section 4. That there is hereby established a separate and
al fund which is hereby designated the "Project Temporary Loan
ment Fund; Project No. Ind. R -2911, said Fund being elsewhere
n referred to as the "Project Temporary Loan Repayment Fund ".
Fund shall be maintained in a bank or banks which are members of
ederal Deposit Insurance Corporation. The following moneys
be deposited in the Project Temporary Loan Repayment Fund
d when such moneys are received by the Local Public Agency:
-2-
to
1
No.
con,
Age
for
el ii
slug
invi
(a) The proceeds of all sales of Project Land by the Local
Public Agency, excluding such proceeds as may arise from
the sale of Project Land after such Project Land has
been leased;
(b) All moneys constituting compensation by the Local Public
Agency for Project Land which it retains instead of
selling or leasing, excluding the moneys which may arise
from the retention of Project Land after such Project
Land after such Project Land has been leased;
(c) All payments which are made by the Government to the
Local Public Agency on account of the Project Capital
Grant;
(d) All moneys which may be provided by the Local Public
Agency from sources other than the Government or from
the proceeds of a Project Definitive Loan, if any, to
compensate the Project Temporary Loan Repayment Fund
for the fair value imputed to Project Land which is
leased by the Local Public Agency rather than sold by
it for cash;
(e) All such Local Grants -in -Aid in the form of deficiency
cash grants as, after the Gross Project Cost and the
Net Project Cost have been determined and the payment
of all costs comprising Item I of Gross Project Cost
has been duly made or provided for and all other Local
Grants -in -Aid applicable to the Project which have been
provided with respect to the Project to meet the deficiency,
if any, in Local Grants -in -Aid in connection with the
Project;
(f) All accrued interest, if any, which is paid to the Local
Public Agency on Project Temporary Loan Notes at the
time when the Government takes up and pays for such
Project Temporary Loan Notes;
(g) All income derived from the investment of moneys de-
posited in the Project Temporary Loan Repayment Fund; and
(h) The unexpended balance, if any, remaining or belonging
in the Project Expenditures Account after all costs con-
stituting Item I of Gross Project Cost have been paid.
"Section S. That Project Temporary Loan Notes issued pursuant
e provisions of this Resolution shall, as to,both the principal
of and the interest thereon, constitute an exclusive first
and charge upon the funds which, by the terms of this Resolution,
ise the Project Temporary Loan Repayment Fund; which Fund is
y irrevocably pledged to the payment of the principal of and
est on such Project Temporary Loan Notes."
(b) By renumbering Sections 7, 8 and 9 as Sections 6, 7 and
8, respectively; and
(c) By deleting Sections 10 and 11 and substituting the
following Sections in lieu thereof:
"Section 9. That the Project (which is designated Project
Ind. R -29 and is herein called the "Project ") includes and
ists of all undertakings and activities of the Local Public
cy in the Urban Renewal area, in accordance with the Plan
the renewal or redevelopment of the Urban Renewal Area, for the
ination and for the prevention of the development or spread of
s and blight, and, to the extent contemplated by said Plan,
Ives slum clearance and redevelopment., the carrying out of
s for a program of repair and rehabilitation of buildings or
r improvements, and the carrying out of plans for a program of
enforcement in the Urban Renewal Area.
"Section 10. That the land area of the Project (herein called
the "Urban Renewal Area ") is situated within City of South Bend,
County of St. Joseph, State of Indiana, and the boundaries of the
Urban Renewal Area shall be as described in the Contract for loan
and grant."
(d) By renumbering Section 12 as Section.11.
Section 2. That this Resolution shall take effect immediately.
z��