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Home My WebLink AboutAuthorizing Assignment of the STC Recycling Inc Boliden Metech Inc ORDINANCE No. 7617-86 Passed by the Common Council of the City of South Bend, Indiana April 1 , 86 - rq Attest: K City Clerk IRENE K. GAMMON Attest: % , .r /_ 'resident o f Common Council Presented by me to the Mayor of the City of South Bend, Indiana _ April 2, 86 z9 City Clerk IRENE K. GAMMON Approved and signed by me 0/2/1,-P �9 4'46 //7/e-t-dor ORDINANCE NO. 7�/7- , AN ORDINANCE AUTHORIZING ASSIGNMENT OF THE STC RECYCLING, INC. PROJECT SERIES B ECONOMIC DEVELOPMENT REVENUE BONDS OF THE CITY OF SOUTH BEND, INDIANA, TO BOLIDEN METECH, INC. STATEMENT OF PURPOSE AND INTENT The Common Council of the City of South Bend, Indiana, heretofore has created the South Bend Economic Development Commission pursuant to the provisions of I .C. 36-7-12-1, et seq. On August 29 , 1983 , the City of South Bend, Indiana, issued certain Economic Development Bonds to STC Recycling, Inc. to finance construction and leasehold improvements at the STC Recycling, Inc. facility located at 445 N. Sheridan, South Bend, Indiana in the original principal amount of Two Hundred Twenty- nine Thousand, Two Hundred Fourteen Dollars ($229 ,214.00) . Boliden Metech, Inc. , a Delaware corporation, has made an application to the South Bend Economic Development Commission for assignment of said bond (STC Recycling, Inc. Project, Series B Bond) and proposes to fully assume the obligation of STC Recycling, Inc. under said bond. The South Bend Economic Development Commission has found by a written Resolution that because of insufficient employment opportunities, insufficient tax base and insufficient diversification of economic development facilities in and near the City of South Bend, Indiana, the economic welfare of the City of South Bend would be benefited by assignment of the STC Recycling, Inc. Project Series B Bond to Boliden Metech, Inc. and has further found by Resolution that the proposed assignment complies with the purposes and provisions of I .C. 36-7-12-1, as amended. The South Bend Economic Development Commission has prepared a report estimating the public services which would be made • -2- Area Plan Commission and the Area Plan Commission' s written comments, if any, having been made a part of their records. The South Bend Economic Development Commission has approved the assignment of bonds and has further approved the form of Ordinance authorizing the assignment of Economic Development Revenue Bonds in accordance therewith. The South Bend Economic Development Commission has transmitted this form of Ordinance to the City Clerk of the City of South Bend for presentation to the Common council of the City of 'South Bend, Indiana. The Common Council of the City of South Bend, Indiana, finds that the proposed assignment will be of public benefit to the economic welfare of the City of South Bend, Indiana, by tending to overcome the deficiencies previously found to exist and that such benefit is greater than the costs of the public facilities which would be required by the proposed project. NOW, THERFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: Section 1. The assignment of the STC Recycling, Inc. Project Series B Economic Development Revenue Bond to Boliden Metech, Inc. is hereby approved and adopted. Section 2. The form of Loan Agreement, Indenture of Trust, Security Agreement, Mortgage, Note and Economic Development Revenue Bonds heretofore issued to STC Recycling, Inc. on August 29 , 1983 are hereby incorporated by reference into this Ordinance and the forms shall be inserted into the records of the Common Council of the City of South Bend, Indiana, and shall be kept on file by the Clerk of the City of South Bend, Indiana. Section 3. The STC Recycling, Inc. Series B Economic Development Revenue Bonds as assigned to Boliden Metech, Inc. by this Ordinance shall not be and shall never constitute an • -3- payable solely from revenues and receipts derived pursuant to the terms of the Loan Agreement and Indenture of Trust. Section 4. The Resolution of the South Bend Ecomonic Development Commission passed on February 21, 1986, approving the assignment of the STC Recycling, Inc. Project Series B Bond to Boliden Metech, Inc. is hereby approved; and the Common Council of the City of South Bend hereby finds that the assignment of the economic development revenue bonds would be of benefit to the health and welfare of the City of South Bend and that it complies with the purposes and provisions of I .C. 36-7-12-1, as amended and supplemented. Section 5. This Ordinance shall be in full force and effect from and after its passage, due attestation and approval by the Mayor. ember of the f mon Council CITY of SOUTH BEND 0ovT8 . , ROGER O. PARENT, Mayor iyd . t a'`, f'sue COUNTY-CITY BUILDING SOUTH BEND, INDIANA 46601 7)7:si ii Economic Development Commission Jerry Hammes.President Februar 25, 1986 Staff Administration Al B. Paszek,Vice President y 401 East Colfax Avenue Walter A.Mucha,Secretary Rs�a a� P.O. Box 1677 J � ' 3 t �u gam' Kenneth P. Fedder,Counsel South Bend,Indiana Suzanne M.Rhadigan,Asst. Sec. 46634 1677 Members of the Common Council FEB 2 6 1986 219/234-0051 County-City Building South Bend, IN 46601 IRENE GAMMON CITY CLERK, SO, BFI',,... Re: Proposed Ordinance Authorizing Assignment of STC Recycling, Inc. Bond Dear Councilmen: On January 24 , 1986, the Economic Development Commission received an application from Boliden Metech, Inc . requesting our assistance on a Bond Assignment. I am enclosing a copy of that letter for your information. The Economic Development Commission, on February 21, 1986, passed a Resolution authorizing the Assignment, a copy of which I am also enclosing herewith. • We would appreciate your passage of the Ordinance authorizing this Assignment. Re- •ectfully, E NE- 1.1 P. FEDDER At orn-y for the South Bend E •no sic Development Commission KPF:ram enc. • 1 • • • , 't boliden metech, Inc. P.O. Box 500 • 1 Main Street • Mapleville, Rhode Island 02839 • Phone: (401)568-0711 • Intl Telex:6814037 January 24, 1986 Mr. Jerry Hammes President FEB 2 6 1986 South Bend Economic Development Commission 401 East Colfax Avenue P.O. Box 1677 IRENE GAMMON' ON', Southbend, Indiana . 46634-1677 CLERK, SO, BFI`"' Re: Assignment of Series B Bond of STC Recycling, Inc. Dated: August 29, 1983 Dear Mr. Hammes: As Vice President and Treasurer of Boliden Metech, Inc. , I am requesting that the South Bend Economic Development Commission grant Boliden Metech, Inc. 's Application for an assignment of the above-captioned bond. In order to establish an historical background to this request, I offer the following summary: STC Recycling, Inc. (STC) , a Deleware corporation, was the successful user of the above-noted bond. This bond was approved and issued on August 29, 1983 by the City of South Bend. STC operated a precious metals reclamation facility in St. Joseph's County for approximately one year. Although the bond is current, the facility operated by STC is idle and has no employment. Boliden Metech, Inc. (Boliden) , a Delaware corporation, has operating facilities in Providence, Rhode Island and Gilroy, California. Boliden has purchased 100% of the stock of STC Recycling, Inc. and intends to merge STC into Boliden with Boliden as the surviving entity. Boliden will reopen the South Bend facility and operate it in essentially the same manner as STC. Additionally, Boliden currently anticipates employing approximately 20 individuals with a payroll budget of $400,000.00. i °oliden metech, inc. - -2- Thanking you for your consideration in this matter, I remain, Sincerely, Boliden Metech, Inc. By `0�2 itet Robert Maori, Vice President I 1