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HomeMy WebLinkAboutEconomic Development Cole Associates Inc ORDINANCE No. 7638-86 Passed by the Common Council of the City of South Bend, Indiana May 12 , 19 86 t. ^-e 1 ./1a— Attes _ �Y.�,z 1 City Clerk IRENE K. GAMMON Attest. � President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana May 13 , �9 86 c ,� — /74, City Clerk IRENE K. GAMMON Approved and signed by me % l S �9 e G ?7/ 71;ezedeJi-- Mayor ORDINANCE NO. -7(. 3g-irG. AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY") , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1986 (COLE ASSOCIATES, INC. PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500, 000. 00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. STATEMENT OF PURPOSE AND INTENT: 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 The South Bend Economic Development Commission (the "Commission") has rendered its report concerning the proposed financing of economic development facilities for Cole Associates, Inc. (the "Company") and the Area Plan Commission has commented favorably thereon; and The Commission, after a public hearing held on May 2, 1986, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition and construction by 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 operat- ing 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, Mortgage and Security Agreement between the Company St. Joseph Bank and Trust Company (the "Trustee") , and this Ordinance, presented to the Commission, and (v) recommending 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 citizens, and complies with the purposes and provisions of the Act, and that this Council adopt an ordinance approving such financing, 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, that such facilities are located in an "economic develop- ment target area" as defined in the Act, and that such facili- ties will not have an adverse competitive effect on any similar facilities already constructed or operating 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, including (i) the form and terms of the aforementioned Loan Agreement, Mortgage and Security Agreement, Promissory Note, Economic Development Revenue Bond and Trust Indenture attached hereto and incorporated herein by 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 be evidenced by said Promissory Note, (iv) the repayment of said loan by the Company pursuant to said Loan Agreement and said Promissory Note, (v) the securing of said Economic Development Revenue Bond under the terms of said Loan Agreement and under said Trust Indenture, and (vi) the deed from the City to the Company. Section 5. The City shall issue its Economic Develop- ment Revenue Bond, Series 1986 (Cole Associates, Inc. Project) , in the aggregate principal amount of One Million Five Hundred Thousand Dollars ($1,500, 000. 00) for the purpose of procuring funds to loan to the Company in order to finance the acquisi- tion and construction of such facilities, as more particularly set out in said Loan Agreement, which Economic Development Revenue Bond shall be payable as to principal and interest solely from the payments made by the Company on its aforesaid Promissory Note in the principal amount of One Million Five Hundred Thousand Dollars ($1,500, 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 Indenture. Said Economic Development Revenue Bond shall never constitute a general obligation of, indebtednesses of, or charge against the general credit of the City. Said Economic Development 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 May 15, 1986; shall be dated as of said date of execution and delivery; shall have a final maturity date of June 1, 2006 with principal reduced monthly beginning on July 1, 1987; shall bear interest at a fixed rate of eight percent (8%) per annum to and includ- ing May 31, 1993, thereafter, to and including May 31, 1998, a fixed rate of ninety-five percent (95%) of the Treasury Rate (as defined in the Loan Agreement) , and thereafter at a var- Agreement, in which case the per annum interest rate shall be as set forth therein; shall be in the denominations of Five 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 Bond to St. Joseph Bank and Trust Company 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 therein such changes 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 consum- mation 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 St. Joseph Bank and Trust Company, 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 Section 9. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 10. This Ordinance 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 Member :PR 2 3 1986 BARNES a THORNBURG 1313 MERCHANTS BANK BUILDING 600 1ST SOURCE BANK CENTER FEDERAL BAR BUILDING II SOUTH MERIDIAN STREET 100 NORTH MICHIGAN 1815 H STREET, N.W. INDIANAPOLIS, INDIANA 46204 WASHINGTON,D.C.20006 13171638-1313 SOUTH BEND, INDIANA 46601 (2021955-4500 1219) 233-1171 305 FIRST NATIONAL BANK BUILDING 301 SOUTH MAIN STREET ELKHART,INDIANA 46516 TWX 810-341-3427 B&T LAW IND 12191 293-0681 TELECOPIER 1219) 237-1125 TO CALL WRITER Mrs. Irene K. Gammon, City Clerk April 23, 1986 City of South Bend County-City Building South Bend, Indiana 46001 Re: Proposed Ordiance for $1,500, 000 City of South Bend Economic Development Revenue Bond (Cole Associates, Inc. Project) Dear Mrs. Gammon: Enclosed are two copies of a proposed ordinance, and the related bond documents, with respect to the Cole Associ- ates, Inc. Project. The Project consists of construction of an addition to the facility currently used by Cole Associates, Inc. at 2211 East Jefferson Street in the City of South Bend. It is presently anticipated that the Project will result in a minimum of 45 permanent new jobs with an annual payroll of approximately $1,125, 000. St. Joseph Bank and Trust Company has issued its commitment letter to purchase the bonds to finance this Project. The current Cole Associates facility was financed through a bond issued in 1977, pursuant to which the City owns the land and leases the facility to Cole Associates, Inc. As part of this financing, the City will deed to Cole Associates the real estate on which the building addition will be con- structed. The trustee of the 1977 bond issued has consented to this arrangement. We respectfully request the Council 's favorable action with respect to this Project, with first reading of the ordi- nance at the Common Council meeting on April 28, and passage at the meeting on May 12, 1986. The public hearing before the South Bend Economic Development Commission will be held on May 2, 1986. Very truly yours, BARNES & THORNBURG ire40‹, Richard W. Morgan APP 2 1980 MCK:RWM/cac I, y Enclosure cc: Kenneth P. Fedder, Es ii ' i (lnmmtttrt rpnrt 0/o the Comm Tomtit of tip Tity of*oath Reuel: Your Committee of the Whole to whom was referred BILL NO. 49-86 A BILL AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY" ) , TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1986 (COLE ASSOCIATES, INC. PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000.00) 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 PUBLISHING CO. _ - _ c _ • j