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HomeMy WebLinkAboutSM 02-06-62SOUTH BEND REDEVELOPMENT COMMISSION Special Meeting 6 February 1962 10 :30 A.M. Redevelopment Commission Office 129 West Colfax Avenue This kmeeting was called to order by Mr. James G. Louis, President. Commissioners present and answering to roll call: Abs Staf I. Mr. James G. Louis, President Mr. Clyde E. Williams, Sr., Vice President Mr. Fred J. Helmen, Secretary Mr. Virgil A. Place Mr. Frank G. Koczan Mr. Henry Sucher, Executive Director Mr. Howard Bellinger, Assistant Director Mr. Edward Bielicki, Relocation Supervisor Mr. Frederick K. Baer, LPA Attorney ESOLUTION NO. 42 RESOLUTION AUTHORIZING THE SALE, ISSUANCE AND DELIVERY OF PRELIMINARY LOAN NOTES IN THE AGGREGATE PRINCIPAL AMOUNT OF $879,000, THE EXECUTION OF REQUISITION AGREEMENT NO. 1, AND THE EXECUTION AND DELIVERY OF PROJECT TEMPORARY LOAN NOTE NO. 2, IN CONNECTION WITH PROJECT NO. IND. R -7. WHEREAS, City of South Bend, Department of Redevelopment (herein called the "Local Public Agency ") has entered into a contract dated as of the 17th day of August, 1960, numbered Contract No. Ind. - 7(LG), (which, together with any supplements thereto or amendments, modifications or waivers of any provisions thereof, is herein called the "Loan and Grant Contract "), with the United States of America-(herein called :the "Government ") acting by and through the Housing and-,:Home Finance Administrator��providing, in part, for a:Pro,ject Temporary Loan•by, the Government to the Local Public Agency under Title I of the Housing Act of 1949-(Public Law 171- -1- I. 4,-SOLUTI0N NO 42 - Continued 81st Congress, approved July 15, 1949), as amended, in an amount outstanding at any one time not to exceed $2,527,500.00 to aid the Local Public Agency in its undertaking and carrying out of a certain urban renewal project (herein called the "Project ") desig ated Project No. Ind. R -7 and which is more fully identi- fied rin the Loan and Grant Contract; and WHEREAS, pursuant to advertisement for the receipt of proposals for the purchase of Preliminary Loan Notes (First Series A), herein sometimes called "Preliminary Loan Notes ", of the Local Public Agency aggregating $879,000, which appeared in a Notice of Sale published in the January 19, 1962 issue of the South Bend Tribune and Record in the City of South Bend, Indiana, and in the January 16, 1962 issue of The Daily Bond Buyer in the City of New York, proposals for the purchase of said notes in the form approved by the Local Public Agency were received, opened, and canvassed at the time and place provided by said advertise- ment, to wit: At 129 West Colfax Avenue in the City of South Bend, Indiana, at 1:00 o'clock, P.M., E.S,.T.,, January 30, 1962, which propo als are as follows: Name Df Bidder Interest Principal Rate Amount Salom n Bros. & Hutzler 1.67 $879,000 New Y rk 5, New York Morga Guaranty Trust 1.65 879,000 Compa y of New York and C. J. Divine & Co. Bank f America N.T. & S.A. 1.64 879,000 and T e First National City Bank f New York Chemi al Bank New York 1.63 879,000 Trust Company and can s which under is de Premium $35.00 15.00 19.00 23.00 aHEREAS, the interest cost at which the Local Public Agency X11 the Preliminary Loan Notes is lower than the interest rate the Government is required to charge the Local Public Agency the terms of the Loan and Grant Contract, and the Government 3irous of cooperating with the Local Public Agency in its -2- I. ESOLUTION NO. 42 - Continued ende vor to sell said Preliminary Loan Notes in order to reduce carr ing charges and other costs of the Project. BE IT RESOLVED BY THE CITY OF SOUTH BEND REDEVELOPMENT SSION'AS FOLLOWS: Section 1. The aforesaid publication of the Notice of Sale and he form and contents thereof as so published, are hereby, in all iespects, approved, ratified and confirmed. Section 2. In order to provide funds to defray expenses incurred or to be incurred in the Local Public Agency's under- taking and carrying out of the Project, or to retire, refund, renew or extend its outstanding notes issued in connection therewith, the Local Public Agency hereby determines to borrow the sum of Eight Hundred Seventy Nine Thousand Dollars ($879,000.00) and issue its negotiable Preliminary Loan Notes therefor in aggr gate principal amount equal to said sum. Section 3. The Local Public Agency hereby ratifies and approves the form of the proposal hereinafter in this Section 3 enumerated, for the purchase of the designated principal amount of t e Preliminary Loan Notes, which proposal the Local Public Agency hereby determines will provide the lowest interest cost and is therefore hereby accepted, and said Preliminary Loan Notes are lereby awarded to said purchaser, as follows: Prinipal Interest Rate Purchaser Amou c t $879, Febri Seri( to b( prop( shall shall as tc folk 000 1.63 Chemical Batik New :.York Trust Company 30 Broad Street New York 15, New York Section 4. Each such note shall be dated the 20th day of ary, 1962; shall be designated "Preliminary Loan Note (First s "A ") "; shall be payable, as to both principal and interest, arer, on the 24th day of August, 1962; and, pursuant to the sal for the purchase of said notes, hereinabove accepted, bear_the_.rate ofz-interest per annum,- payable at maturity, bear the numbers, be in the denominations,-and.-be payable :.both principal-.-;and-,interest at the-bank or-trust_ company as WS: a. -3- I. �ESOLUTION NO. 42 - Continued Purchaser Numbers Denominations Interest Payable At (Inclusive) „ Rate Chemical Bank 1 -3 $100,000 1.63 Chemical Bank New New Nork Trust 4 -9 50,000 York Trust Company Company 10 -16 25,000 30 Broad Street 17 -22 10,000 New York 15, N.Y. 23 -29 5,000 30-38 1,000 None of the Preliminary Loan Notes shall be valid until after the bank or trust company at which it is payable shall have signed the zgreement, appearing on each such note, to act as paying agent thereof. Each of the Preliminary Loan Notes shall be signed in the name of the Local Public Agency by.the Mayor of the City of Soutl Bend and shall have the corporate seal of said city impress- ed t ereon and attested by the Clerk of the City of South Bend they of, and said officers are hereby authorized and directed to cauSE said notes to be properly executed. Section 5. Each of the Preliminary Loan Notes shall be issued in substantially the form ofthe note hereto attached and marked Exhibit "A ". Section 6. The Agreement entitled "Requisition Agreement No. " (herein called the "Requisition Agreement "), which has been executed by the officers of the Local Public Agency, and has leen presented to and read before the meeting, and the execu- tion thereof, are hereby fully ratified, confirmed, and approved. Said Requisition Agreement, when executed by the Government, is hereby declared to be and is hereby assigned by the Local Public Agency for the benefit of the holder or holders from time to time Of the Preliminary. Loan Notes, and the proceeds of the Project Temporary Loan Note executed pursuant to Section 7 hereof are hereby irrevocably pledged first, to the payment, at maturity, Of the princ,ipal.of and interest on the Preliminary Loan Notes issu d. pursuant. to _this. Resolution. Section 7. The Mayor and Clerk of the City of South Bend are_ ereby authorized and directed to prepare and execute the Project Temporary Loan Note described in -the. Requisition Agree- ment (the issuance of which has heretofore been authorized by a Resolution Authorizing the Issuance of Certain Project Temporary I. RIESOLUTION NO. 42 - Continued Loan Notes in Connection:with:Project:No Ind. R -7 and Providing for the Security for the Payment Thereof,_.and for Other Purposes, duly - adopted by the:Local Public.-Agency on the 4th day of August, 1960);: in the - -principal amount of Nine--Hundred Thousand Dollars ($900,000.00). Said note shall be designated "Project Temporary Loan Note "; shall be numbered Number 2; shall be dated the 20th -day cf February,.1962; shall.- -bear interest from the date of the acceptance of the Local Public Agency's delivery thereof and the payment therefor by the Government; shall bear a- statement at the foot thereof in substantially the following form: "Delivery of this note was accepted and payment therefor made on the day of , 19 and beh be and UNITED STATES OF AMERICA Housing and Home Finance Administrator By (Title) hall not be valid until said_ statement-is, duly- executed,'on f of the Government. .Said Project Temporary Loan Note shall livered by the City Controller to the Government to be held aid for by the Government in accordance with the terms and tions cD ntained in said Requisition --Agreement. Section 8. The proceeds derived from the sale of the Pre- liminary Loan Notes, together with such amount of other appro- priate funds of the Local Public Agency as may be necessary, shall be applied, simultaneously with the receipt of said proceeds, as follows: First: To the payment and discharge of the principal of and interest on the following Project Temporary Loan Notes of the Local Public,Agency "issued. -pursuant. to ..the Loan and:�Gr.ant = Contract- and _held or to be held by the Government for its own use and benefit on the date of the Preliminary Loan Notes herein authorized: No. Date Principal Amount 1 11 -16 -61 $425,000 -5- I. SOLUTION NO. 42 - Continued:_ Seconds Any balance of such proceeds shall be deposited :yin -.:the appropriate account or fund established pursuant to': the Loan -.arid ;Grant Contract .and-. shall. be used only in accordance with the provisions of the Loan and Grant Contract. Section 9 The-City,-Controller is hereby authorized and directed to send immediately a letter to each paying agent for the reliminary_.Loan.Notes in substantially the form of -.the Letter of Instructions hereto attached and marked Exhibit "B" and to transmit the Preliminary Loan Notes to said paying agent for delivery and payment in accordance with the ter;ms:of said letter. Section 10. This Resolution shall take effect immediately. The above resolution was introduced by Mr. Clyde E. Williams, Said Resolution was then read in full and discussed and considered. Mr. Fred J. Helmen then moved the adoption of the Resolution as intr duced and read. Mr. Clyde E. Williams seconded the motion, and on roll call,.the following voted "Aye ": Mr. James G. Louis, Mr. Clyde E. Williams, Mr. Fred J. Helmen and "none "voted "Nay ". The:, resi.dent_thereupon:.declared the motion.carried and= the,_.. Resolution adopted-ad introduced.sand read.. Meeti g adjourned 11 :40 a.m.._. _. s G. s, President. -6- MEMORANDUM ON BID OPENING Redevelopment Commission Office 129 West Colfax Avenue On January 30, 1962, at the hour of 12 :05 p.m. Central Standard Time, same being 1:05 p.m. Eastern Standard Time, the following pers ns convened: Mr. Edwin L. Davies, Controller, City of South Bend Mr. enry'Sucher, Director, Department of Redevelopment, City of South Bend Mr. Frederick K. Baer, Attorney for the Redevelopment Commission and as spectator: Mr. Edgar Seybold, South Bend Civic Planning Association, Inc. The rpose of the gathering was to open bids on the sale of $879,000 Preliminary Loan Notes, First Series A, by the Redevelop - ment Commission of South Bend, Indiana. Proof Notes was made of publication of the sale of said Preliminary Loan as follows: The Daily Bond Buyer on January 16, 1962 The South Bend Tribune on January 19, 1962 The Record on January 19, 1962 Affidavits of publication were submitted by the publishers of each ewspaper. The following bids were received: Morgan Guaranty Trust Company, 140 Broadway, New York 15,_N.'_Y. Letter and bid dated January 25, 1962, supplemented by telegram dated January 30, 1962. Interest rate of 1.65 per cent per annum and $15.00 premium. Chemical Bank New York Trust Co., Municipal Bond Department, 30 Broad Street, New York 15, N. Y. Letter and bid dated January 17, 1962, and supplemented by telegram dated January 30, 1962, Interest rate of 1.63 per cent per annum and premium of $23. Sal Bid Jan and on Brothers & Hutzler, 60 Wall Street, New York 5, N.Y. ated January 25, 1962, supplemented by telegram dated ry 30, 1962. Interest rate of 1.67 per cent per annum remium of $35. Bank of America, National Trust and Savings Association, 300 Montgomery Street, San Francisco 20, California. Letter date January 25, 1962, supplemented by telegram dated January 29, 1962. Interest rate of 1.64 per cent per annum and premium of $19. The base Manhattan Bank, 1 Chase Manhattan Plaza, New York 15, N.Y. Letter received January 22, 1962, stating that if bank prop ses to bid they will send wire. No wire received. Cont No i Me tal Illinois National Bank and Trust Company of Chicago. est or premium stated in form of proposal submitted. adjourned 12:30 p.m. Henr� Sucher, Exec tiVe Director rederick K. Baer, Attorney