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HomeMy WebLinkAboutRefunding Bonds Series 1987 Maple Lane Associayes Project ORDINANCE No. 7813-87 Passed by the Common Council of the City of South Bend, Indiana October 26, i9 87 Attest::..-., — , City Clerk IRENE K. GAMMON ( ' / 1 / o Attest. President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 27, ig 87 City Clerk IRENE K. GAMMON Approved and signed by me ig — Mayor ORDINANCE NO. 77/ 3 Pk 7 AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA, TO ISSUE ITS "CITY OF SOUTH BEND, INDIANA, VARIABLE RATE DEMAND MULTI-FAMILY HOUSING REFUNDING BONDS, SERIES 1987 (MAPLE LANE ASSOCIATES PROJECT) " , LOAN THE PROCEEDS THEREOF TO MAPLE LANE ASSOCIATES-PHASE VIII, AN INDIANA LIMITED PARTNERSHIP, AND AUTHORIZING AND APPROVING OTHER ACTIONS IN RESPECT THERETO STATEMENT OF PURPOSE AND INTENT: The City of South Bend, Indiana (the "City") , is a muni- cipal corporation and political subdivision of the State of Indiana and by virtue of IND. CODE § 36-7-11.9 and IND. CODE §§ 36-7-12-1 et seq. , as amended (the "Act") , is authorized and empowered to adopt this ordinance (the "Bond Ordinance") and to carry out its provisions. Maple Lane Associates-Phase VIII, an Indiana limited part- nership (the "Borrower") financed acquisition, construction and equipping of certain multi-family housing facilities (the "Project") located within the City pursuant to the issuance of the City of South Bend, Indiana Multi-Family Housing Revenue Bonds (Maple Lane Associates Project) dated December 14, 1984 and issued in the original aggregate principal amount of $6, 500, 000 .00 (the "1984 Bonds") . The Borrower has duly filed its application with the City for the issuance of bonds ("Bonds") to refund the outstanding principal amount of the 1984 Bonds (the "Refunding") . The Borrower desires to transfer the Project to Maple Lane Partners, an Indiana limited partnership of which Borrower is the sole general partner, after completion of the Refunding. The 1984 Bonds were issued pursuant to IND. CODE §§ 36-7- 12-1 et sea. , as amended, as in effect at the time of issuance of the 1984 Bonds . The Borrower has forwarded to this Common Council the forms of (1) a Loan Agreement dated as of October 1, 1987 (the "Loan Agreement") , between the City and the Borrower, providing for Trust Company, South Bend, Indiana, as Trustee (the "Trustee") providing for the issuance of the Bonds by the City, the terms applicable thereto and the security for the Bonds and for the assignment of the City' s rights under the Loan Agreement; (3) the form of the Bonds (as set forth in the Indenture) ; (4) the Bond Purchase Agreement dated as of October 27, 1987 (the "Purchase Agreement") , among Continental Illinois National Bank and Trust Company of Chicago ("Continental") , the City and the Borrower, providing for the sale of the Bonds; (5) the Amended Declaration of Restrictive Covenants and Regulatory Agreement, dated as of October 30, 1987, among the City, the Trustee and the Borrower; and (6) the Assignment and Assumption of Obliga- tions Agreement, dated as of October 30, 1987 (the "Assumption Agreement") , from the Borrower to Maple Lane Partners, an Indiana limited partnership (the foregoing documents are hereinafter referred to, collectively, as the "Loan Documents" and are incorporated hereby by this reference) . NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: Section 1. Findings; Public Benefits. The Common Council of the City hereby finds and determines that the Refunding would be of benefit to the health and general welfare of the City and would comply with the Act. Section 2 . Authorization of the Bonds . This Common Coun- cil hereby approves the Refunding and the transfer of the Project and the assignment and assumption of obligations related to the Bonds pursuant to the Assumption Agreement. In order to pay a portion of the cost of the Refunding, the Bonds are hereby authorized to be issued, sold and delivered. Any additional costs of the Refunding will be paid for by the Borrower. Section 3 . Terms of the Bonds. The Bonds shall be in the form set forth in the Indenture and shall (i) be in the aggre- at or prior to the closing date by the manual or facsimile signatures of the Mayor and Clerk of the City, and bear an original impression or facsimile of the seal of the City, (iv) bear interest from the date thereof at a variable or fixed rate determined in accord with the Indenture not to exceed fifteen percent (15%) per annum, (v) be payable as to interest prior to the Conversion Date (as defined in the Indenture) on the first business day of each month commencing December 1, 1987 and after the Conversion Date on the first day of April and October of each year, (vi) mature on October 1, 2009, (vii) be issuable in $100, 000 denominations or any multiple thereof prior to the Conversion Date and thereafter in $5,000 denominations or any multiple thereof, (viii) be issued only in fully registered form, (ix) be payable through such medium and at such places as provided therein, (x) be subject to optional and mandatory tender and redemption as provided in the Loan Documents, and (xi) be secured by a mortgage and a letter of credit issued by Continental . The Bonds and the interest thereon do not and shall never constitute an indebtedness of, or a charge against the general credit or taxing power of, the City, but are limited obligations of the City payable solely from revenues and other amounts derived from the Loan Documents. Forms of the Loan Documents are by this reference incorporated in this Bond Ordinance. Capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Indenture. Section 4 . Sale of the Bonds. The Mayor and the Clerk are hereby authorized and directed to issue and sell the Bonds to Continental as the original purchaser thereof pursuant to the Indenture and the Purchase Agreement in substantially the forms submitted to this Common Council, which are hereby approved in all respects. The purchase price to be paid for the Bonds, and the sa 1 e and delivery of the Bonds . nursuant to the Purchase Borrower and the payment, by the Borrower, of amounts suffi- cient to pay the principal of, premium, if any, and interest on the Bonds, the Mayor and (where noted in the Loan Documents) the Clerk shall execute and deliver in the name of and on behalf of the City, the Loan Documents in substantially the forms submitted to this Common Council, which are hereby approved in all respects, and pursuant thereto shall loan the proceeds of the sale of the Bonds to the Borrower to effect the Refunding. Section 6 . Execution. The Mayor and the Clerk are hereby authorized to execute and deliver, on behalf of the City, any necessary amendment to the Loan Documents to effectuate the Refunding and the intent and purpose hereof. The Mayor and Clerk are hereby authorized, without further approval of the Common Council or the City' s Economic Development Commission to approve such changes in the Loan Documents as may be permitted by Act, such approval to be conclusively evidenced by their execution thereof. Section 7. General. The Mayor and the Clerk are each hereby authorized and directed, in the name and on behalf of the City, to execute any and all agreements, documents, and instruments, perform any and all acts, approve any and all matters, and do any and all things deemed by them, or either of them, to be necessary or desirable in order to carry out and comply with the intent, conditions and purposes of this Bond Ordinance (including the preambles hereto and the documents mentioned herein) , the issuance and sale of the Bonds, and the securing of the Bonds under the Loan Documents. Section 8. Binding Effect. The provisions of this Bond Ordinance and the Loan Documents to which the City is a party shall constitute a binding contract between the City and the holders of the Bonds, and after issuance of the Bonds this Bond nrAinanrc shall nn4- he rcncalcrI nr amantiarl in anv racnarF thiih Section 9. Repeal. All ordinances or parts of ordinances in conflict herewith are hereby repealed, including Ordinance No. 7798-87 passed by the Common Council on September 14, 1987. Section 10. Effective Date. This Bond Ordinance shall be in full force and effect immediately upon its adoption by the Common Council and approval by the Mayor. Section 11. Inspection Copies. Two copies of the Loan Documents incorporated into this Bond Ordinance were duly filed in the office of the Clerk of the City and are available for public inspection in accordance with IND. CODE § 36-1-5-4 . SOUTH BEND COMMON COUNCIL litio-do Lib .)11.41 AL41 jlemberf 4001� - _ KRAMER, BUTLER, SIMERI, KONOPA AND LADERER ATTORNEYS AT LAW ONE MICRIANA SQUARE 100 EAST WAYNE STREET SOUTH BEND, INDIANA 46601 F.RICHARD KRAMER P.C. 219 233-3303 JOSEPH V.SIMERI KEVIN J.BUTLER ROBERT J.KONOPA LEWIS C.LADERER,JR. MICHAEL C.MURPHY MARK D.BOVERI REBECCA HOYT FISCHER October 21 , 1987 South Bend Common Council 4th Floor, County-City Building South Bend, Indiana 46601 Attention: Ms. Irene K. Gammon South Bend City Clerk Ladies and Gentlemen: Re: South Bend Economic Development Commission Revenue Bonds Maple Lane Associates-Phase VIII Project Enclosed is the proposed Bond Ordinance for the above project which we ask that the Common Council have introduced at its meeting on October 26 , 1987. We ask that said Ordinance be given a first reading by the Common Council at that time and will request that the Council suspend its rules and provide for the second reading of the Ordinance on that same date. The Bond Ordinance will authorize the issuance and sale of bonds in the amount of $6 ,500,000 for the above project. The proceeds will provide for the financing of the refunding and redemption of the $6, 500, 000 Multi-Family Housing Revenue Bonds (Maple Lane Associates Project) issued by the City in 1984. The apartment project has been completed and is fully occupied. We thank you for your consideration of this matter. Ver - . y yours, A \ KelANI J. Butler KJB:blb Enclosure cc: Mr. Kenneth P. Fedder Mr. John T. Phair