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HomeMy WebLinkAboutIssue its Economic Development Revenue Bond (Container Services Corp) $800,000.00 Amended ORDINANCE No. 7584-85 Passed by the Common Council of the City of South Bend, Indiana December 16,�9 85 Attest: City Clerk IRENE K. GAMMON Attest: President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana _ December 17, i9 85 City Clerk IRENE K. GAMMON Approved and signed by me /7Gi 19 g-S tt,�'' ._ Mayor • AMENDED ORDINANCE NO. 7584-85 AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY") , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (CONTAINER SERVICE CORPORATION PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF EIGHT HUNDRED THOUSAND DOLLARS ($800, 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 Container Service Corporation, a Michigan corporation (the "Company") and the Area Plan Commission has commented favorably thereon; and The Commission, after a public hearing held on November 15, 1985, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition 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 operating in or about the City, (ii) further finding 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, (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 and Security Agreement between the Company and the • between the City and 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 and Security Agreement are "economic development facilities" within the meaning of the Act, and that such facilities 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 proposed 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 proposed 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 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 Development Revenue Bond, (iii) the loan of the net proceeds of Company pursuant to said Loan Agreement and Security Agreement, and said Promissory Note, and (v) the securing of said Economic Development Revenue Bond by said Loan Agreement and Security Agreement and said Trust Indenture. Section 5. The City shall issue its Economic Develop- ment Revenue Bond, Series 1985 (Container Service Corporation Project) , in the aggregate principal amount of Eight Hundred Thousand Dollars ($800, 000. 00) for the purpose of procuring funds to loan to the Company in order to finance the acquisi- tion of such facilities, as more particularly set out in said Loan Agreement and Security Agreement, which Economic Develop- ment 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 Eight Hundred Thousand Dollars ($800, 000. 00) which will be executed and delivered by the Company to evidence said loan, from other sources under said Loan Agreement and Security 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 December 17, 1985; shall be dated as of said date of execution and delivery; shall have principal reduced monthly; shall bear interest at a variable per annum rate of seventy-five percent (75%) the prime rate of interest publicly announced by Citibank, N.A. , adjusted monthly, except in the case of an Event of Taxability as defined in the Loan 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; • 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 of said holders so long as any of the principal of said Economic Development Revenue Bond or the interest thereon remains unpaid. 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 signature by the Mayor of the City. SOUTH BEND COMMON COUNCIL Member -"� .. 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 (219) 237-1125 BY HAND DELIVERY TO CALL WRITER December 11, 1985 Mrs. Mary Beth Wisniewski Deputy Clerk City of South Bend, Indiana County-City Building South Bend, Indiana 46601 Re: Amended Ordinance for City of South Bend Economic Development Revenue Bonds (Container Service Corporation Project) Dear Mrs. Wisniewski: Enclosed is a copy of the ordinance which was passed at the December 2 meeting of the Common Council, as well as twelve copies of an amended ordinance. This project relates to the financing of equipment to be used by Container Service Corporation in a new facility in the Airport Industrial Park to be constructed for Harrison Management Company. The ordinance which was passed on December 2 specified an interest rate of 75%, which was amended from the floor to 78%. The bond purchaser is offering the more favorable rate, so the enclosed amended ordinance sets the rate back to 75%. The amended ordinance also changes the date of execution and delivery of the Bonds from December 13 to December 17. We ask that the amended ordinance be placed on the agenda for passage at the December 16 meeting of the Common Council, so that this Bond issue may close before year-end. Very truly yours, BARNES & HO BURG Richard W. Mor RWM/cac Enclosure cc: Kenneth P. Fedder, Esq.