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HomeMy WebLinkAboutNo. 0132 authorizing issuance of certain project temp. loan notes in connection with urban renewal project INDIANA R-57, providing for the security for payment thereof and for other purposesRESOLUTION NO. 132 RESOLUTION AUTHORIZING THE ISSUANCE OF CERTAIN PROJECT TEMPORARY LOAN NOTES IN CONNECTION WITH URBAN RENEWAL PROJECT NO. INDIANA R -57 AND PROVIDING FOR THE SECURITY FOR THAT PAYMENT THEREOF, AND FOR OTHER PURPOSES WHEREAS, the City of South Bend, Department of Redevelopment, (herein sometimes called the "Local Public Agency ") is duly authorized and proposes to undertake and carry out a certain urban renewal or redevelopment project of the character authorized by law with financial aid by the United States of America (herein sometimes called the "Government ") in the form of a Project Temporary Loan under Title I of the Housing Act of 1949, as amended (42 U.S.C. 1450 et seq.), which may be made by the Government to the Local Public Pgency with respect to the Project in accordance with a Contract for a loan nd grant by and between the -.,oval Public Agency and the Government; and WHEREAS, in order to enable the Local Public Agency to obtain such fi- nancial aid, it is necessary for the Local Public Agency to ,aiathorize and, from time to time, issue certain obligations as hereinafter provided: NO ; THEREFORE, BE IT RESOLVED by South Bend Redevelopment Commission, Governi.g Body of the City of South Bend, Department of Redevelopment as follows carryin for any issued, ject Te princip Resolut Tempora Million ($2,483 Se Loan No interes Repayme at the of the princip of publ America by the 1 officia. the Cit at the payment Lion 1. That in order to provide funds to enable the Local Public o defray expenses and costs in connection with the undertaking and out of the Project, and to refund, renew, extend; or substitute Project Temporary Loan Notes by this Resolution authorized to be there are hereby authorized to be issued, from time to time, Pro - porary Loan Notes of the Local Public Agency in an aggregate 1 amount outstanding at any one time (whether authorized by this on or any other resolution authorizing the issuance of Project y Loan Notes in connection with the Project) of not to exceed Two Four Hundred Eighty -Three Thousand, Eight Hundred Eight Dollars 808.00) . tion 2. That each such note shall be Designated "Project Temporary e", shall be payable, as to the principal thereof together with the thereon, upon demand, but solely from the Project Temporary Loan t Fund hereinafter mentioned and not otherwise; shall be payable rincipal office of the Local Public Agency in any coin or currency nited States of America which, on the date of the payment of the 1 thereof and the interest thereon, 4L legal tender for the payment c and private debts; shall be payable to the United States of or order; shall be signed in the name of the Local Public Agency ,..,/or or Acting Mayor of the City of South Bend, ::. i. ; shall have the seal of the Local Public Agency impressed thereon and attested by Clerk of the City of South Bend, Indiana; and shall bear interest ate or rates as follows: ,ing the period from the date of the acceptance of delivery of and for each such note through June 30, 1971, (herein called the "Initial -1- Loan Pei thereof From an( principc of the 1 itially Loan Pei become E dance w: six per (a. (b: Sei ing a s- stantia. Res of ut: subsequ face th, Loan Pe: period, Sei fund wh: Project the "Pr( in a bai tion. TI iod ") said principal sum shall bear interest on the unrepaid amount at the rate of Four and Three - Eighths per centum (4 3/8%) per annum. after said date each such note shall bear interest on the unrepaid 1 amount thereof at the rate per annum (to be duly noted on behalf nited States of America on the reverse thereof) which shall be in- determined and become effective on the expiration of the Initial iod, and shall be redetermined at 5 -year intervals thereafter, and ffective, with respect to said unrepaid principal amount, in accor- th the following formula: The redetermined rate shall not exceed centum (60/6) per annum, but otherwise shall be the higher of: The "going federal "ratett determined pursuant to the provisions of Title t of the Housing Act of 1949, as amended through September 2 1964, and effective January l or July 1, as the case may bei following the expiration of the Initial Loan Period, or, in the case of subsequent redeterminations of the rate, the January 1 or July 1, as the case May be, con- stituting the fifth anniversary of the effective date of the latest redetermined rate; or 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 the fifth anniversary of the latest redetermined rate), of ap- proximately 5 years, as determined by the Secretary of Housing and Urban Development, upon the advice of the Secretary of the Treasury, such average yield to be esti- mated 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 fifth anniversary of the latest redetermined rate) and adjusted to the nearest 1/8 of 1 percent. tion 3. That each such Project Temporary Loan Note issued, includ- atement of the delivery thereof to the Government, shall be in sub - ly the form of "Exhibit A" attached hereto and made a part of this on: Provided, That each Project Temporary Loan Note bearing a date nt to the expiration of the Initial Loan Period shall state on its applicable interest rate and shall define therein the term "Initial iod" by use of a date which shall be the end of the pertinent 5 -year both as authorized and as required by this Resolution. tion 4. That there is hereby established a separate and special ch is hereby designated the "Project Temporary Loan Repayment Fund; No. Indiana R -5711, said Fund being elsewhere herein referred to as ject Temporary Loan Repayment Fund ". Said Fund shall be maintained ik or banks which are members of the Federal Deposit Insurance Corpora - e following moneys shall be deposited in the Project Temporary Loan -2- Repayment Fund as and when such moneys are received by the Local Public Agency: (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 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 Tempo- rary 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 1 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 have been determined, are 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 Govern- ment takes up and pays for such Project Temporary Loan Notes; (g) All income derived from the investment of moneys deposited 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 constituting Item 1 of Gross Project Cost have been paid. Section 5. That Project Temporary Loan Notes issued pursuant to the pro- visions Df this Resolution shall, as to both the principal thereof and the interest thereon, constitute an exclusive first lien and charge upon the funds which, by the terms of this Resolution, comprise the Project Temporary Loan Repaymen Fund; which Fund is hereby irrevocably pledged to the payment of the principa of and interest on such Project Temporary Loan Notes. Sec ion 6. That the Executive Director is hereby authorized to file requi- sitions, together with necessary supporting documents, with the Government, from tim to time as Project Temporary Loan or Project Capital Grant funds are required requesting payments to be made on account of the Project Temporary Loan or he Project Capital Grant provided for in the said Contract for loan and grant, and to do and perform all other things and acts required to be done or perfo med in order to obtain such payments. -3- tions, and del ized an tion 7. That, when and as directed by further resolution or resolu- he proper officers of the Local Public Agency shall prepare, execute, ver to the Government the Project Temporary Loan Notes hereby author - shall accept payment therefor from the Government. Section 8. That the proceeds of the sale of all Project Temporary Loan Notes issued pursuant to this Resolution shall be deposited and disbursed only in accordance with the provisions of the Contract for loan and grant, unless otherwise approved in writing by the Government: Section 9. That the Project (which is designated Project No. Indiana R -57 and is herein called the "Project") includes and consists of all undertakings and act vities of the Local Public Agency in the Urban Renewal Area, in accor- dance w th the Plan for the renewal or redevelopment of the Urban Renewal Area, for the elimination and for the prevention of the development or spread of slums a d blight, and, to the extent contemplated by said Plan, involves slum clearan e and redevelopment, and the carrying out of plans for a program of repair �nd rehabilitation of buildings or other improvements. Section 10. That the land area of the Project (herein called the "Urban Renewal Area ") is situated within the City of South Bend, Indiana, and the boundaries of the Urban Renewal Area shall be as described in the Contract for loan and grant. Se tion 11. That each of the following terms, when so used in this Resolut on; shall, unless the context clearly indicates otherwise, have the meaning ascribed to it in this Section: (a) The term "Contract" means that certain document, a counterpart of which is now on file with the Local Public Agency, designated Contract No. Indiana R -57 (LG), naming the Local Public Agency and the Government as the parties thereto, and providing for a Project Temporary Loan, a Project Definitive Loan, and a Project Capital Grant to the Local Public Agency with respect to the Project. (b) The term "Plan" means the urban renewal or redevelopment plan referred to in said Contract for loan and grant. (c) The terms "Local Grants -in -Aid ", "Gross Project Cost ", "Item 1 of Gross Project Cost ", "Net Project Cost ", "Project Land ", "Project Temporary Loan ", "Project Definitive Loan", "Project Capital Grant ", "Project Expenditures Account ", "fair value ", "land ", and "redevelopment ", and derivatives thereof, have the same meanings, respectively, attributed to said terms in the Contract for loan and grant. Section 12. That this Resolution shall take effect immediately. ed this 5th day of May, 1966. -4-