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HomeMy WebLinkAboutIssue Economic Development Revenue Bond Series 1987 Kokoku Wire $3,200,000 Y • ORDINANCE No. 778987 Passed by the Common Council of the City of South Bend, Indiana August 10, 87 19 Attest: C "`"�"`�°"'�``r Cit y Clerk IRENE K. GAMMON Attest: /%•e %. � 1y/ • President o f Common Council Presented by me to the Mayor of the City of South Bend, Indiana August 11, 87 IQ City Clerk IRENE K. GAMMON Approved and signed by me Cwt-�e� // 8'/ G��t ig i%� Mayor ORDINANCE NO. 77g9?-e7 AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY") , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1987 (KOKOKU WIRE INDUSTRIES CORPORATION PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF THREE MILLION TWO HUNDRED THOUSAND DOLLARS ($3 , 200, 000 . 00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. WHEREAS, the City is a municipal corporation and political subdivision of the State of Indiana, and by virtue of Title 36, Article 7, Chapter 12, of the Indiana Code, as amended (the "Act") , is authorized and empowered to adopt this Ordinance and to carry out its provisions; and WHEREAS, the South Bend Economic Development Commis- sion (the "Commission") has rendered its report concerning the proposed financing of economic development facilities for Kokoku Wire Industries Corporation, a Delaware corporation, and the Area Plan Commission has commented favorably thereon; and WHEREAS, the Commission, after a public hearing held on June 19, 1987, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition and rehabilitation by Kokoku Wire Industries Corporation (the "Company" ) of the proposed economic development facilities described in said Report will not have an adverse competitive effect on any similar facilities already constructed or oper- ating in or about the City, (ii) further finding that the pro- posed economic development revenue bond financing of such facilities will be of benefit to the health and welfare of the City and its citizens, (iii) further finding that the proposed economic development revenue bond financing of such facilities complies with the purposes and provisions of the Act, (iv) approving the economic development revenue bond financing of such facilities, including the form and terms of the Loan Agreement between the Company and the City, the Promissory Note of Snlli-h • • the bondholders, The Trust Indenture between the City and Mitsubishi Bank and Trust Company of New York (the "Trustee" ) , and this Ordinance, presented to the Commission, and (v) recom- mending that this Council find that the proposed economic development revenue bond financing of such facilities will be of benefit to the health and welfare of the City and its citi- zens, and complies with the purposes and provisions of the Act, and that this Council adopt an ordinance approving such financ- ing; and WHEREAS, this Common Council at its regularly sched- uled meeting of July 13, 1987 passed Ordinance No. 7773-87 approving the issuance of the Bonds on or about July 22, 1987, and having been advised that said Bonds have not yet been issued and are now scheduled to issue on or about August 14 , 1987. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: Section 1. This Council finds that the facilities described in said report and in the attached Loan Agreement are "economic development facilities" within the meaning of the Act and that such facilities will not have an adverse competitive effect on any similar facilities already constructed or oper- ating in or about the City. Section 2 . This Council further finds that the pro- posed economic development revenue bond financing of such facilities will be of benefit to the health and welfare of the City and its citizens . Section 3 . This Council further finds that the pro- posed economic development revenue bond financing of such facilities complies with the purposes and provisions of the Act. Section 4 . This Council hereby approves the proposed economic development revenue bond financing of such facilities, reference (two (2) copies of which are on file in the Office of the Clerk of the City for public inspection) , (ii) the issuance and sale of said Economic Development Revenue Bond, (iii) the loan of the net proceeds of said Economic Development Revenue Bond to the Company for the acquisition and rehabilitation of such facilities, such loan to be evidenced by said Promissory Note, (iv) the repayment of said loan by the Company pursuant to said Loan Agreement, and said Promissory Note, and (v) the securing of said Economic Development Revenue Bond by said Loan Agreement, and said Trust Indenture.. Section 5 . The City shall issue its Economic Develop- ment Revenue Bond, Series 1987 (Kokoku Wire Industries Corpora- tion Project) , in the aggregate principal amount not to exceed Three Million Two Hundred Thousand Dollars ($3 ,200, 000 . 00) for the purpose of procuring funds to loan to the Company in order to finance the acquisition and rehabilitation of such facili- ties as more particularly set out in said Loan Agreement, which Economic Development Revenue Bond shall be payable as to prin- cipal, interest and premium solely from the payments made by the Company on its aforesaid Promissory Note in the principal amount of Three Million Two Hundred Thousand Dollars ($3,200, 000 . 00) which will be executed and delivered by the Company to evidence said loan, from other sources under said Loan Agreement and as otherwise provided in said Trust Inden- ture. Said Economic Development Revenue Bond shall never con- stitute a general obligation of, indebtednesses of, or charge against the general credit of the City. Said Economic Develop- ment Revenue Bond shall be executed by the manual or facsimile signatures of the Mayor and the Clerk of the City; shall be executed and delivered on or about August 14, 1987; shall be dated as of June 1, 1987; shall have a final maturity date on or about August 1, 1992; with principal payable at maturity; Thousand Dollars ($5, 000 . 00) or integral multiples thereof; shall be issued in registered form; shall be registrable as provided therein; shall be payable in the medium and at the place or places provided therein; and shall be subject to optional and mandatory prepayment as provided therein. Section 6 . The Mayor and/or the Clerk of the City are authorized and directed to sell said Economic Development Revenue Bonds at a price not less than one hundred percent (100%) of the principal amount thereof, plus accrued interest . Section 7 . The Mayor and the Clerk of the City are authorized and directed to execute and deliver the aforemen- tioned documents for and on behalf of the City after making such changes therein permitted by the Act as they deem neces- sary or proper, as evidenced by their execution of such docu- ments, and are further authorized and directed to execute and deliver such other documents for and on behalf of the City, and to take such other actions for and on behalf of the City, as they deem necessary or proper in connection with the consumma- tion of such financing. The Mayor and the Clerk of the City are authorized to arrange for the delivery of said Economic Development Revenue Bond to Mitsubishi Bank and Trust Company of New York, payment for which will be made to the Trustee for the account of the City. Section 8 . The provisions of this ordinance and the aforementioned documents shall constitute a contract binding between the City and the holders of said Economic Development Revenue Bond, and after the issuance of said Economic Develop- ment Revenue Bond this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of said holders so long as any of the principal of said Eco- nomic Development Revenue Bond or the interest thereon remains unpaid. Section 10 . This Ordinance shall replace and super- cede Ordinance No. 7773-87 and shall be in full force and effect from and after its passage by this Council and its sig- nature by the Mayor of the City. SOUTH BEND COMMON COUNCIL 1 embef