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HomeMy WebLinkAboutAuthorizing the Assignment Economic Development Brett S. Morse Project ORDINANCE No. 7649-86 Passed by the Common Council of the City of South Bend, Indiana June 10 , Iq 86 Attest: ' J City Clerk IRENE K. GAMMON Attest: President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana June 11, 1986 City Clerk IRENE K. GAMMON Approved and signed by me 941,-1,1 I/ 19e G #21-2 4/41 Mayor i • ORDINANCE NO. 76, (/ot _ v„ AN ORDINANCE AUTHORIZING THE ASSIGNMENT OF THE CITY OF SOUTH BEND, INDIANA, ECONOMIC DEVELOPMENT REVENUE BOND (BRETT S. MORSE PROJECT) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. STATEMENT OF PURPOSE AND INTENT: The City of South Bend, Indiana (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 Ordi- nance and to carry out its provisions ; and The National Bank of South Bend, as Trustee , contracted with T. Brooks Brademas for the sale of certain real property located at 712 North Niles Avenue , South Bend, Indiana, pursuant to an Agreement for Sale and Transfer of Real Property Interest dated March 21 , 1986 (the "Agreement") ; and Brademas has agreed to assume the obligations of Brett S. Morse and/or Morse Electric Company, Inc. under the terms of the Mortgage on the real estate in exchange for an assignment of all of the rights , title , interest , duties and responsibilities of Brett S. Morse and/or Morse Electric Company, Inc. under the Bond, the Lease Agreement, the Indenture of Trust Agreement and the Mortgage Agreement, all dated as of March 2 , 1978 (the transaction between the National Bank and Trust Company of South Bend and T. Brooks Brademas described herein shall hereinafter be referred to as the "Assignment") ; and The South Bend Economic Development Commission (the "Commission") has rendered its report concerning the proposed Assignment; and The Commission, after public hearing held on March 16 , 1986 , has adopted a resolution, which has been transmitted to this Council , (i) finding that the proposed Assignment will be of benefit to the health and welfare of the City and its citizens , (ii) further finding that the proposed Assignment complies with the purposes and provisions of the Act, (iii) approving the Assignment and the form and terms of the Assignment Agreement , and (iv) recommending that this Council adopt an ordinance approving the Assignment. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: Section 1 . This Council finds that the proposed Assignment will be of benefit to the health and welfare of the City and its citizens . Section 2. This Council further finds that the proposed Assign- ment complies with the purposes and provisions of the Act. Section 3. This Council hereby approves the proposed Assignment including the form and terms of the Assignment Agreement (two (2) copies of which are on file in the office of the Clerk of the City for public inspection) . Section 4 . The Mayor and the Clerk of the City are authorized and directed to execute and deliver the Assignment Agreement for and on behalf of the City after making therein such changes permitted by the Act as they may deem necessary or proper , as evidenced by their execution of such documents , 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 consummation of the Assignment. Section 5 . All ordinances or parts of ordinances in conflict herewith are hereby repealed. ° • Section 6 . This Ordinance shall be in full force and effect from and after its passage by this Council and its signature by the Mayor of the City. SOUTH BEND COMMON COUNCIL / — _ Aiwaz Mem,er Ar 1st READING kCs* o? 2 ° PUBLIC HEARING [ — z 2nd READING (9 0 _ NOT APPROVED REFERRED PASSED ( 4z, KRAMER & MURPHY PROFESSIONAL CORPORATION ATTORNEYS AT LAW SUITE 200 F. RICHARD KRAMER 205 W.JEFFERSON BLVD. MICHAEL C.MURPHY SOUTH BEND, INDIANA 46601 219-233-8275 REBECCA HOYT FISCHER May 21 , 1986 South Bend Common Council 4th Floor County-City Building South Bend, IN 46601 Hand Delivered RE: Brett S. Morse Project Assignment Members of the Council: Enclosed please find a form of Ordinance for your May 27 , 1986 meeting. On or about March 21 , 1986 , the National Bank of South Bend, as Trustee in the Brett S. Morse Project , contracted with T. Brooks Brademas for the sale of certain real property located at 712 N. Niles Avenue , South Bend, Indiana. This property is encumbered by a mort- gage used to secure the Brett S. Morse Project South Bend Economic Development Revenue Bonds in the original principal amount of $340 ,000 (Ordinance No. 6239-77) . Currently, there is an outstanding balance due on these bonds and the mortgage of $267 ,005 .04 . Mr. Brademas has agreed to assume the obligations of Brett S . Morse and/or Morse Electric Company, Inc. under the terms of the mortgage in exchange for an assignment of all of the rights , title , interest, duties and responsibilities of Brett S. Morse and/or Morse Electric Company, Inc. under the Bond, the Lease Agreement , the Indenture of Trust Agreement and the Mortgage Agreement , all dated as of March 2 , 1978 . As a condition of the sale , it is necessary to obtain the ap- proval of the City of South Bend to the assignment. As you would expect, the National Bank of South Bend, as Trustee and Bondholder, consents to such an assignment. I am enclosing a copy of the Agreement by which the National Bank and the City of South Bend will consent to this assignment for filing. Thank you very much for your attention to this matter. Very iru y your , /Phi' (- Michael C. Murphy \ MCM:bm Enclosure cc: T. Brooks Brademas Kenneth P. Fedder, Esq. ASSIGNMENT AGREEMENT PARTIES: T. Brooks Brademas ("Brademas") National Bank as Trustee under the Indenture of Trust Agreement dated March 2, 1978 between the City of South Bend, Indiana, the South Bend Economic Development Commission, Brett S. Morse , and the National Bank & Trust Company, of South Bend, Indiana ("Trustee") National Bank as Bondholder of the City of South Bend Economic Revenue Bond, Brett S. Morse Project, in the original principal amount of $340,000 ("Bondholder") City of South Bend, Indiana ("City") PURPOSE: The purpose of this agreement is to permit the sale of the Real Estate ("Real Estate") described in the Agreement for Sale and Transfer of Real Property Interest dated March 21 , 1986 , between the Natioanl Bank & Trust Company of South Bend and Brademas , by assigning to Brademas all of the rights , duties , liabilities, title and interest of Brett S. Morse and/or Morse Electric Company, Inc. (both of which shall hereinafter be referred to as "Morse") under the City of South Bend Economic Development Revenue Bond, Brett S. Morse Project ("Bond") and under the terms and conditions of the Lease Agreement (the "Lease") , the Indenture of Trust Agreement (the "Trust Indenture") and the Mortgage Agreement (the "Mortgage"Z all dated March 2, 1978 , and providing for the consent of the Trustee, the Bondholder and the City for such assignments. DATE: , 1986 AGREEMENT In consideration of the mutual promises contained herein, and as part of the Agreement for Sale and Transfer of Real Property Interest dated March 21 , 1986 between Brademas and the National Bank & Trust Company of South Bend, the parties agree as follows: 1. Assignment. National Bank hereby assigns all of its right, title , and interest in and to the Real Estate described in Exhibit A to the Agreement for Sale and Transfer of Real Property Interest, which right, title and interest includes , but is not limited to, all of the right, title and . interest of Morse in and to said Real Estate pursuant to the terms of the Lease. 2. Assumption. Brademas agrees to assume all of the obligations of Morse under the terms of the Bond, the Lease, the Trust Indenture and the Mortage. - 3. Consent of Trustee. Trustee hereby consents to the above described assignments . 4 . Consent of Bondholder. Bondholder hereby consents to the above described assignments. 5 . CONSENT OF CITY. The City hereby consents to the above described assignments . Dated this day of , 1986 "BRADEMAS" T. Brooks Brademas "TRUSTEE" Attest: National Bank & Trust Company of South Bend by: its "BONDHOLDER" Attest: National Bank & Trust Company of South Bend By: its Attest: "City" City of South Bend, Indiana Roger O. Parent, Mayor Q nmmW##rr apart (III the Tom= (I[OUtutl of Or QItt IIf 0outlt Your Committee of the Whole to whom was referred BILL NO. 62-86 A BILL AUTHORIZING THE ASSIGNMENT OF THE CITY OF SOUTH BEND, INDIANA, ECONOMIC DEVELOPMENT REVENUE BOND (BRETT S. MORSE PROJECT) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. Respectfully report that they have examined the matter and that in their opinion This bill should be recommended to the Council favorable. Ann B. Puzzello Chairman FREE PRESS 4310 PUBLISHING CO.