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HomeMy WebLinkAboutApproving the Resolution of the South Bend Economic Development Commission Relating S J Enterprises Project ORDINANCE No. 7579-85 Passed by the Common Council of the City of South Bend, Indiana December 16, ig 85 l �'Attest: City Clerk IRENE K. GAMMON i Attest:` _ Y - - , �i President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana December 17 , 19 85 -.4.-Z- City Clerk IRENE K. GAMMON i Approved and signed by me L i _.I_'1 : ig8S f1 Mayor ORDINANCE NO. 757 -,,s AN ORDINANCE APPROVING THE FORM AND TERMS OF THE LOAN AGREEMENT, INDENTURE OF TRUST, AND ECONOMIC DEVELOPMENT REVENUE BONDS , AND AUTHORIZING THE EXE- CUTION THEREOF, AND APPROVING THE RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE S . J. ENTERPRISES PROJECT. STATEMENT OF PURPOSE AND INTENT: The Common Council of the City of South Bend, Indiana, heretofore has created the South Bend Economic Development Commission (hereinafter referred to as the "Commission") pursuant to the provisions of Indiana Code 36-7-12 , as amended (hereinafter referred to as the "Act") . S. J. Enterprises filed an application with the Commission to finance certain economic development facilities resulting in a substan- tial number of new jobs as well as other benefits , and in connection therewith, the Commission has prepared and placed on file a report containing the subject matter as specified in Section 23 of the Act and has forwarded copies thereof to the Chairman of the Area Plan Commission of St. Joseph County, Indiana, and to the Superintendent of the South Bend Community School Corporation, being the area in which the proposed facilities will be located, and has timely received favor- able reports from each of them, and the Commission held a public hearing on the proposed financing of such economic development facilities in accordance with the Act after giving the required notice as provided in the Act, and adopted a resolution finding that such proposed financing complies with the purposes and provisions of all applicable Indiana statutes governing the issuance of Economic Development Revenue Bonds, including but not limited to the Act, and approving the form and terms of the Loan Agreement, Indenture of Trust, and Bonds, and further • approving this form of Ordinance, authorizing the execution thereof, and further finding that such economic development facilities will not have an adverse competitive effect on similar facilities already con- structed and operating in the City of South Bend, Indiana. NOW, THEREFORE, BE IT ORDAINED BY THE Common Council of the City of South Bend, Indiana, that: Section 1. The form and terms of the Loan Agreement, Indenture of Trust, and Economic Development Revenue Bonds pertaining to the S. J. Enterprises Project and the issuance of the Economic Development Revenue Bonds pursuant thereto are hereby approved and adopted. Section 2 . Said forms of Indenture of Trust and Loan Agreement, together with the Note and Mortgage attached as an exhibit thereto, and the Economic Development Revenue Bonds which are on file with the Commission, are hereby incorporated by reference into this Ordinance, and said forms shall be inserted into the minutes of the Common Council of the City of South Bend, Indiana. Section 3. Said Loan Agreement and Indenture of Trust shall be executed on behalf of the City of South Bend, Indiana, by the Mayor and City Clerk of South Bend, Indiana, and sealed with the corporate seal of such City. Section 4 . Said Economic Development Revenue Bonds, payable solely and only from the revenues derived from such Project pursuant to the aforementioned Loan Agreement and Indenture of Trust will not be in any respect a general obligation of the City, nor may the Bonds be paid in any manner from funds raised by taxation, and may be issued in an -2- aggregate amount not to exceed Five Hundred Five Thousand Dollars ($505, 000. 00) , as registered bonds in denominations of $1,000 . 00 or multiples thereof payable in lawful money of the United States of America at the principal office of St. Joseph Bank and Trust Company, South Bend, Indiana in the City of South Bend, Indiana. Such Bonds shall be repayable with interest thereon at a rate of 78% of the rate charged to its prime customers by Citibank, N.A. , New York, New York, over a term of not more than fifteen (15) years, and subject to re- demption, all in accordance with the terms of said Bonds , Loan Agree- ment and Indenture of Trust. Such Bonds shall be dated as of the date of execution and delivery, and shall be executed on behalf of the City of South Bend, Indiana, by the manual signatures of the Mayor and City Clerk of the City, and sealed with the corporate seal of the City and executed and delivered to the purchasers of the Bonds on or before February 28, 1986. Section 5. The Mayor and City Clerk may approve changes and amend- ments to the Loan Agreement, Indenture of Trust, Economic Development Revenue Bonds, Note, Mortgage, and other related documents which do not affect terms contained in this Ordinance. Section 6 . The Resolution of the South Bend Economic Development Commission, passed on December 16,1985, is hereby approved, and the Common Council of the City of South Bend, Indiana, hereby finds that the proposed financing for the issuance 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 the Act. -3- Section 7 . Pursuant to the provisions of Indiana Code 36-1-5-4 , two copies of all documents incorporated in this Ordinance by reference are on file in the office of the City Clerk for public inspection. Section 8 . This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. le er of the Co #r Council 1s! READING ( l'•1" t PUBLIC HEARING 1.1..16• g 2nd READING a. t Is - p r NOT APPROVED REFERRED PASSED 'Z -16 -W -4 0•-�.�..,d,� -4- BUTLER & SIMERI ATTORNEYS AT LAW 405 WEST WAYNE STREET SOUTH BEND,INDIANA 46601 JOSEPH V.SIMERI 219 233-3303 KEVIN J.BUTLER November 26 ,1985 South Bend Common Council c/o South Bend City Clerk 4th Floor, County-City Building South Bend, Indiana 46601 Gentlemen and Ladies: Re: South Bend Economic Development Revenue Bonds Series 1985 (S. J. Enterprises Project) Enclosed is the proposed Bond Ordinance for the above project which we ask that the Common Council have introduced at its meet- ing on December 2 , 1985. We will be requesting a suspension of rules at that meeting. The Resolution and Bond Ordinance will authorize the issuance and sale of bonds in the amount of $505,000 .00 for the above pro- ject. The proceeds will provide for the financing of the purchase of land and improvements and equipping real estate at 1134 Lincoln- way East and 1320 North Ironwood Drive, South Bend, Indiana. The project will provide for approximately 12 new permanent jobs for the South Bend area with an additional annual payroll of approxi- mately $180 ,000 .00. We thank you for your consideration in this matter. Since . :\ -- Kevin J. Butler KJB:blb Enclosures cc: Mr. David Kuyers Mr. Louis C. Chapleau Mr. Kenneth P. Fedder