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HomeMy WebLinkAboutNo. 0070 authorizing the issuance of certain project temp. loan notes in connection with urban renewal project No. INDIANA R-29, providing for security for pmt. thereof and other purposes(herein and pro, aid by t went ") i Act of 1 amended, with res grant by RESOLUTION #70 RESOLUTION AUTHORIZING THE ISSUANCE OF CERTAIN PROJECT TEMPORARY LOAN NOTES IN CONNECTION WITH URBAN.RENEWAL PROJECT NO. INDIANA R -29 AND PROVIDING FOR THE SECURITY FOR THE PAYMENT THEREOF, AND FOR OTHER PURPOSES IEREAS the City of South Bend, Department of Redevelopment imetimes called the "Local Public Agency "), is duly authorized ;es to undertake and carry out a certain urban renewal or re- kt project of the character authorized by law with financial r United States of America (herein sometimes called the "Govern - the form of a Project Temporary Loan under Title I of the Housing �9 (Public Law 171 - 81st Congress, approved July 15, 1949), as ihich may be made by the Government to the Local Public Agency pct to the Prc':ect in accordance with a Contract for loan and and between the Local Public Agency and the Government; and WHEREAS, in order to enable the Local Public Agency.to obtain such financial aid, it is necessary for the Local Public Agency to authorize and, from time to time, issue certain obligations as hereinafter provided: THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commissio , Governing Body of the City of South Bend, Department of Redevelop nt as follows: S ction 1. That in order td provide funds to enable the Local Public Ag ney to defray expenses and costs in Connection with the under- taking an carrying out of the Project, and to refund, renew, extend, or substitut for any Project Temporary Loan Notes by this Resolution au- thorized o be issued, there are hereby authorized to be issued from time to t e, Project Temporary Loan Notes of the Local Public end y in an aggreg to principal amount outstanding at any one time (whether au- thorized y this Resolution or any other resolution authorizing the. issu- 7Tnr::� f Project Temporary Loan Notes in connection with the Projeci) of not to exceed One Million, Four Hundred Seventeen Thousand, Seventy Dollars (01,417,070.00). Temporary gether wi Temporary shall be any coin of the pa tender fo the Unite the Local Bend; sha !ction 2. That each such note shall be designated "Project Loan Note "; shall be payable, as to the principal thereof to- :h the interest thereon, upon demand, but solely from the Project Loan Repayment Fund hereinafter mentioned and not otherwise; sayable at the principal office of the Local Public Agency in )r currency of the United States of America which, on the date anent of ::lie principal then i-_�:L and the interest there m. is legal the payment of public and private debts; shall be payable to I States of America or order; shall be signed in the name of Public Agency by the Mayor or Acting Mayor of the City of South !1 have the offic:"1l seal of the Local Public Agency impressed - 1 - thereon bear in the Init to the G Note No. the "Lora but solel mentioned or order, and at su interest the oavme: attested by the City Clerk of South Bend, Indiana,, and shall t at the rate or rates as follows: Each such Project Temporary Loan Note delivered to and paid for by the Government during the period from September 6, 1963, to January 1, 1969 (herein called the "Initial Loan Period "), shall bear interest during the Initial Loan Period on the unrepaid principal amount thereof at the rate of Four per centum (4%) per annum; and From and after the expiration of the Initial Loan Period, each such Project Temporary Loan Note, whether delivered to and paid for by the Government prior to or after the expira- tion of the Initial Loan Period shall bear interest on the unrepaid principal amount therea7 at the rate per annum, which is and shall be the higher of (1) Four;, centum (4%) per annum, or (2) the rate, not to exceed, in any event, Six per centum (6%) per annum, which, subject to such limitation, shall be equal.to the average yield to maturity on all out- standing marketable obligations of the United States having a maturity of approximately five years from the first day of May or November, as the case may be, next preceding the expiration of the Initial Loan Period, as determined by the Housing and Home Finance Administrator, upon the advice of the Secretary of the Treasury of the United States of America, by estimating such average yield on the basis of daily closing market bid quotations or prices during the month of May or November, as the case may be, next precedg the expiration of the Initial Loan Period and by adjusting such estimated average yield to the nearest one - eighth of one per centum. ion 3. That each Project Temporary Loan Note issued during Loan Period, including a statement of the delivery thereof nment, shall be in substantially the following form: PROJECT TEMPORARY LOAN NOTE Project No. Indiana R -29 (herein called Public Agency), for value received, hereby promises to pay, from the Project Temporary Loan Repayment Fund hereinafter and not otherwise, upon demand, to the United States of America the sum of Dollars time to pay, but solely from said Fund and not otherwise, n said sum, from the date of the acceptance of delivery of and t for this Note, at the rate or rates as follows: - 2 - luring the period from the date of the acceptance of delivery of ,nd payment for this Note to January 1, 1969 (herein called the Initial Loan Period "), said principal sum shall bear interest in the unrepaid amount thereof at the rate of Four (4.096) per annum. From and after said date said principal sum shall bear , nterest on the unrepaid principal amount thereof at the rate ter annum (to be duly noted on behalf of the United States of ,merica on the reverse hereof) which is and shall be the higher if (a) Fourper -centum (4.096) per annum, or (b) the rate, not to xceed, in any event, Six per centum (6.096) per annum, which, object to such limitation, shall be equal to the average yield o maturity on all outstanding marketable obligations of the Inited States having a maturity of approximately.five years 'rom the first day of May or November, as the case may be, next receding the expiration of the Initial Loan Period, as determined ,y the Housing and Home Finance Administrator, upon the advice of he Secretary of the Treasury, by estimating such average yield n the basis of daily closing market bid quotations or prices ,uring the month of May or November, as the case may be, next pre - !eding the expiration of the Initial Loan Period and by adjusting uch estimated average yield to the nearest one - eighth of one per loth the principal of and interest on this Note are payable at the principal office of the Local Public Agency in South Bend, Indiana, in any a in or currency of the United States of America which, on the date of 1he payment of the principal of and interest on this Note, is legal to der for the payment of public and private debts. fyv is Note is issued pursuant to the provisions of (a) the Constitu on and laws of the State of Indiana including particularly Redevelo ent of Cities & Towns Act of 1953, Ch.. 176, as amended by Acts of 57, Ch. 173, & Acts of 1963, Ch. 318.;. (b) a Resolution duly adopted the Loc al Public Agency on the 19th day of September, 19639 providing for the issuance of Project Temporary Loan Notes (herein called the "basic Note Resolution "); and (c) a Resolution likewise adopted on the 19th day of September, 1963, providing for the issuance of this particular Note; and the proceeds hereof are to be used to de- fray exp tch es and costs involved in the Local Public Agency's undertaking and Carr out of a certain urban renewal or redevelopment Project of the char er authorized by said laws and designated Project No. Ind. R -29, wh is more fu lly identified in the basic Note Resolution. Said Project which this Note is issued is being assisted by the United States of America pursuant to Title I of the Housing Act of 1949 (Public Law 171 81st Congress, approved July 15, 1949, as amended and supple- mented) . and therein Agency, der the basic Note Resolution, 1 fund therein referred to as Fund" in which are required to scribed, as and when the same d this Note, together with all - 3 - there is established a separate the "Project Temporary Loan be deposited certain moneys, are received by the Local Public other notes issued pursuant to the basi and the Fund Laft tion for provisio of the p are issu or of a vision tutory, such to other t event, out of Note Resolution, constitute, as to both the principal thereof Lnterest thereon, an exclusive first lien and charge upon said ar provision therefrom in accordance with the basic Note Resolu- only certain costs therein mentioned, and, subject only to the i for such costs, said Fund is irrevocably pledged to the payment 7incipal of and interest on this Note and all other notes which ad as aforesaid. his Note shall not constitute a debt of indebtedness of the State town, city, county, municipality, or political entity or subdi- erein or thereof, within the meaning of any constitutional, sta- ocal law, or charter provision, and neither the State nor any , city, county, municipality, or political entity or subdivision, n the Local Public Agency, shall be liable hereon, and, in no all either this Note or the interest thereon be payable from or V funds or properties other than those of the Local Public Agency. T IS HEREBY CERTIFIED, RECITED, AND DECLARED that all acts, conditions, and things required to exist, happen, and be performed pre- cedent to and in the issuance of this Note do exist, have happened, and have been performed in due time, form, and manner as required'by law. N WITNESS WHEREOF, the Local Public Agency has caused this Note to be si ed in its name and its seal to be impressed hereon and attested, by its p oper officers thereunto duly authorized, and this Note to be dated th day of , 19 . By ATTEST: Delivery of this Note was accepted and payment therefor made.on the da of , 19 UNITED STATES OF AMERICA Housing and Home Finance Administrator By - 4 - the in subst the reei such not and by i centum ( fund whi Project the "Pro in a ban oration. Loan Rep Agency: ach such Project,Temporary Loan Note placed in the custody of nment for acceptance of delivery and payment therefor or issued t to the expiration of the Initial Loan Period shall be issued ntially the foregoing form, as modified by striking therefrom als pertaining to the interest rate or rates to be borne by each , commencing with the words "at the rate or rates as follows: ", serting in lieu thereof the following: "at the rate of Four per .0'06) per annum." ection 4. That there is hereby established a sepa;rate and special h is hereby desigr_•.`ed the "Project Temporary Loan] Repayment Fund; o. Indiana R -29 ", said Fund being,elsewhere herein referred to as ect Temporary Loan Repayment Fund ". Said Fund shall be maintained or banks which are members of the Federal Deposit Insurance Corp - The following moneys '_zhall be deposited in the Project Temporary yment Fund as and when such moneys are received b� the Local Public a) The proceeds of all sales of Project Land by the Local Public Agency; All payments which are made by the Government to the Local Public Agency on account of the Projec ^apital Grant; All lease proceeds which the Local Public Agency derives under leases by it of Project Land, but not beyond the date of the establishment by the Local Public Agency of a fund to secure the payment of a Project Definitive Loan which may be secured, in whole or in part, by a lien upon and pledge of such lease proceeds: Provided, That such lease proceeds shall not be deemed to include income derived by the Local Public Agency directly from its temporary operation of Project Land pending its preparation and ultimate sale, lease, or retention of Project Land; All moneys constituting compensation by the Local Public Agency for Project Land which it retains instead of selling or leasing; �} 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 Pro- ject 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; 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 com- prising 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 have been determined, - 5 - are provided with respect to the Project to meet the defi- ciency, if any, in Local Grants -in -.Aid in connection with the Project; g) 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; and ) The unexpended balance, if any, remaining or belonging in the Project Expenditures Account after all costs consti- tuting Item I of Gross Project Cost have been paid. Section S. That if any Project Land is leased, instead of sold, by the Local Public Agency, the reasonable and proper costs incurred from time to lime by the Local Public Agency during the period of such lease, which co is are for the Local Public Agency's maintenance, management, and administration during such period of Project Land so leased, may, to the extent necessary, be paid from those lease proceeds referred to as such in Section 4 hereof which are deposited in the Project Temporary Loan Repayment Fund, but from no other moneys therein. ection 6. That Project Temporary Loan Notes issued pursuant to the provisions of 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 Pro- ject Te orary Loan Repayment Fund after provision therefrom for only the cost mentioned in Section 5 hereof, which Fund, subject only to pro- vision a aforesaid, is hereby irrevocably pledged to the payment of the principa of and interest on such Project Temporary Loan Notes. Section 7. That the President or Vice President of the South Bend Redevelopment Commission is hereby authorized to file requisitions, together with necessary supporting documents, with the Government, from time to time as Project Temporary Loan or Project Capital Grant funds are required, requesting payments to be made on account of the Project Temporar Loan or the Project Capital Grant provided for in the said Contract for loan and grant, and to do and perform all other things and acts req fired to be done or performed in order to obtain such payments. ection S. That, when and as directed by further resolution or resolutions, the proper officers of the Local Public Agency shall prepare, execute, and deliver to the Government the Project Temporary Loan Notes hereby authorized and shall accept payment therefor from the Government. Loan No bursed grant, ction 9. That the proceeds of the sale of all Project Temporary issued pursuant to this Resolution shall be deposited and dis- y in accordance with the provisions of the Contract for loan and ess otherwise approved in writing by the Government. ection 10. That the Project (which is designated Project No. Indiana -29 and is herein called the "Projects`) includes and consists of all u-1: dertakings and activities of the Local Public Agency in the Project rea, in accordance with the Plan for the renewal or redevelop- ment of e Project Area, for the elimination and for the prevention of the deve opment or spread of slums and blight, and to the extent con- template by said Plan involves slum clearance and redevelopment and the carrying out of plans for a program of voluntary repair and rehabilitation of buildings or other improvements in the.�roject Area: Provided, That the Project shall not include the construction or improvement of any building contemplated by the Plan for the renewal or redevelopment of the Proj et Area. Section 11. That the land area of the Project (herein called the "Pro ect Area "), is situated within South Bend, St. Joseph County, State of Indiana, and the boundaries of the Project Area shall be as describe in the Contract for loan and grant. ection 12. That each of the following terms, when so used in this Res lution, shall, unless the context clearly indicates otherwise, have the eaning ascribed to it in this Section: 129 West The term "Contract" means that certain document, a counter- part of which is now on file with the Local Public Agency, designated Contract No. Indiana R -29 (LG), naming the Local Public Agency and the Government as the parties thereto, and providing for a Project Temporary Loan, A Project Defi- nitive Loan, and a Project Capital Grant to the Local Public Agency with respect to the Project. �) The term "Plan" means the urban renewal or redevelopment plan referred to in the said Contract for loan and grant. The terms "Local Grants -in- Aid ", "Gross Project Cost ", "Item I of Gross Project Cost ", "Net Project Cost ", "Pro- ject 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. 13. That this Resolution shall take effect immediately. opted at a regular meeting of the South Bend Redevelopment held on September 19, 1963, at the office of the Commission, olfax Avenue, South Bend, Indiana. - 7 -