HomeMy WebLinkAbout8448-93 Authorizing the City of South Bend Economic Development Reveune Refunding Bonds (First Bank Center Project) $8,030,384.77 ORDINANCE NO. - 9 3
AN ORDINANCE authorizing the City of South Bend,
Indiana to issue its Economic Development Revenue
Refunding Bonds (First Bank Center Project) in
the aggregate principal amount not exceeding
other
$8,030,384.77 and approving and authorizing
actions in respect thereof.
STATEMENT OF PURPOSE AND INTENT:
The City is a municipal Corporation and political
subdivision of the State of Indiana, and by virtue of Title
amended Article 7"ACT") , is authorized 2and empowered nto adopt
this Or (the "ACT") , out its provisions.
this Ordinance and to carry
The South Bend Economic Development Commission, after a
resolution on November this,Comm neCouncil
rendiugitn wh of certain existing economic
finding that the refinancing First Bank
development North Michigan Street
in South (the "Project") and owned by First
in South Bend, Indiana (
Bank Center Limited Partnership, a Minnesota limited partner-
ship (the "Partnership") and leased to 1st Source tCorpo-uance
ration, an Indiana corporation ("1st Source") by
of revenue bonds of the City of South Bend will be of benefit
of South Bend and its
to the general welfare of the City purposes South provisions of
citizens and complies with thiemented and amended, including
Indiana Code 36-7-12, as supplemented and
Indiana Code 36-7-11.9 and 5-1-5
(the "Act") ;
The South Be�esolutioncadoptedp Commission
November19s1 has
1993 , the
approved by such
following:
(1) Bond Trust Indenture (the "Indenture") , in-
cluding the form of bonds therein, betwe
ienItheaCitylof,
South Bend and NBD Bank, N.A. ,
Indiana (the "Bond Trustee") ;
(2) Loan Agreement (the "Loan Agreement") between
the City of South Bend and the Partnership, and recog-
nizing the issuance of the Note of the Partnership to
the City;
(3) Bond and Note Purchase Agreement among the
City of South Bend, the Partnership and Allstate Life
Insurance Company, Northbrook, Illinois; and
(4) This Bond Ordinance;
such documents being mhereinafterrreferred d to the collectively as
"Financing Financing Ag
NOW, THEREFORE, BE IT ORDAINED BY THE COMIONACOU,NCILLOF
THE CITY OF SOUTH BEND, ST. JOSEPH COUNTY,
LOWS:
Section 1. It is hereby foundo atdt the in refifincifl of
the Project as more specifically pr
Agreements and previously approved by the South Bend Economic
Development Commission and presented to thiss ommon ton ouncil,ty
the issuance and sale of revenue refunndinan of the net pro-
of South Bend pursuant to the Act,
ceeds thereof to the Partnership for thenpurposthe ofrtheypre-
payment of existing bonds of the tCity,eandeford ed repayment
of said loan by the Partnership will be of
by the Loan therwelfareand
of theNote City the
of SouthPartnership
and its
citizens to and provisions of the
citizens and complies with the purposes
Act.
Section 2. The forms of the Financing Agreements
approved by the South Bend Economic Development Commission
are hereby approved and all keptmontfileebynthepClerk
herein by reference a nd shall
Section 3. The City of South Bend shall issue pursuant
to the Act its Economic Development Revenue Refunding Bonds
(First Bank Center Project) in an aggregate principal amount
$8,030,384 .77 (the "Bonds") for the purpose of
not exceeding $8, in order to refi-
nance funds to loan to the Partnership in in the Lean
the Project, as more particularly principal, oan-
Agreement, which Bonds will be payable as to by
pre-
mium, if any, and interest solely from
the Partnership pursuant to the Loan Agreement and its Note
in the aggregate principal amount of the Bonds whiche will and be
executed and delivered by the Partnership to
secure said loan, and as otherwise provided in the above-
described Indenture. The Bonds shall aturelatesuchjtimes,
shall bear interest at 5.52 % per
such redemption provisions in the Indenture executed other ct to such
forth
provisions as are set general obligation of, an
The Bonds shall never constitute a g
indebtedness of, or charge against the general credit of the
City of South Bend, Indiana.
Section sell the Mayor ods Clerk are pursuant
directed Bond to and to the Bond and Note Purchase Agreement, and at a price of
100% of the principal amount thereof.
Section 5. The Mayor and Clerk are authorized Fandncing
directed to execute the documents constituting
2
•
Agreements which require their signature, and their execution
is hereby confirmed on behalf of the City of South Bend and
any other documents which may be necessary or desirable to
consummate the transaction, including the Bonds authorized
herein. The Clerk is authorized to arrange for the deliveryr
of such Bonds to the purchasers thereof upon payment
which will be made to the Trustee. The Mayor and Clerk may
by their execution of the Financing Agreements and the Bonds
approve chances therein without further approval of this
Common Council or the South Bend Economic Development Commis-
sion if such changes do not effect the f terms-set2forth in
Sections 27 (a) (1) through 27 (a) (10) of
Section 6. This Common Council further finds that the
refinancing of the Project will not have an adverse com-
petitive impact on other facilities of the same kind already
operating in the same market area, that the refinancing will
help retain existing employment and will be of benefit to the
health and general welfare of the City.
Section 7 . The City of South Bend hereby calls the
Prior Bonds (as defined in the Indenture) for redemption on
the respective dates set forth in the Indenture as executed
and requests the trustee for the Prior Bonds to give notice
ticee
of such redemption in the manner set forth in the app
Indenture securing the Prior Bonds.
Section 8. The provisions of this Ordinance and the
Indenture securing the Bonds shall constitute a contract
binding between the City of South Bend and the owners of the
Bonds, and, except as provided in the Indenture or Loan
Agreement, after the issuance of said Bonds this Ordinance
shall not be repealed or amended in any respect which would
adversely affect the right of such owners so long as any of
said Bonds or the interest thereon remains unpaid.
Section 9. This Ordinance shall constitute the approval
of the Bonds pursuant to Section 147 (f) of the Internal
Revenue Code of 1986.
Section 10. This Ordinance shall be in full force and
effect from and after compliance with procedures required by
the Act.
•mbe f•f Common Council
Filed in Clerk's Office
NOV 2 3 1993
1st READING 1/-a 9-93 3
PUBLIC HEARING (� _ 3 ..93 IRENE 0111�ANInN
CITY CLERK,80.BEND,IN.
3 rd READING + a_ 3_4
NOT APPROVED
REFERRED
PASSED \ 3"Ct