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HomeMy WebLinkAbout$11,000,000 Multi Family Housing Revenue Bonds (The Raintree Point Apartments Project) ORDINANCE No. 7568-85 Passed by the Common Council of the City of South Bend, Indiana December 16, Iq 85 Attest: < City Clerk IRENE K. GAMMON .4, Attest: President of Common Council v' • I Presented by me to the Mayor of the City of South Bend, Indiana December 16, 19 85 City Clerk IRENE K. GAMMON Approved and signed by me " r Mayor ORDINANCE NO. 76- (® F' ._2's ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, RE : $11, 000, 000 CITY OF SOUTH BEND, INDIANA MULTI-FAMILY HOUSING REVENUE BONDS (THE RAINTREE POINT APARTMENTS PROJECT) 1985 SERIES THIS ORDINANCE AUTHORIZES : 1) THE ISSUANCE AND SALE OF MULTI-FAMILY HOUSING REVENUE BONDS IN THE PRINCIPAL AMOUNT OF ELEVEN MILLION DOLLARS ($11, 000, 000) TO FINANCE THE ACQUISITION AND CONSTRUCTION OF A RESIDENTIAL RENTAL MULTI-FAMILY HOUSING PROJECT TO BE LOCATED IN THE CITY OF SOUTH BEND, INDIANA; 2) THE EXECUTION AND DELIVERY OF THE INDENTURE OF TRUST SECURING THE BONDS , THE LOAN AGREEMENT, THE REGULATORY AGREEMENT, THE REMARKETING AGREEMENT AND THE BOND PURCHASE AGREEMENT; AND 3) OTHER MATTERS RELEVANT TO THE ISSUE OF THE BONDS , STATEMENT OF PURPOSES OF INTENT PREMISES The City of South Bend, Indiana (the "City") is empowered under 36-7-12-1 et seq of the State Statutes , as amended, (the "Act") to assist in the financing of economic development facilities through the issuance of its reserve bonds . Raintree Point Associates, Ltd. , an Indiana Limited Partnership (the "Sponsor") has proposed that the Sponsor construct a 204 unit multi-family residential rental housing project to be located in the City (the "Project") . As an inducement therefor, Sponsor has requested that the City assist in the financing of the Project . Under the proposal , the City would issue its multi- family housing revenue bonds in the aggregate principal amount of Eleven Million Dollars ($11, 000, 000) (the "Bonds") under the Act and would use the proceeds to loan funds to the Sponsor to defray the cost of the Project . The Economic Development Commission of the City (the "Commission") has conducted a public hearing to discuss the proposed financing of the Project . A resolution stating that the financing of the Project serves the purposes and meets the provisions of the Act and that such financing will be of benefit to the health and welfare of the citizens of the City was adopted by the Commission. The Commission' s resolution has been transmitted to the Common Council of the City (the "Council") . The Commission has also approved and recommended the adoption of this form of ordinance by the Council and has considered the issue of adverse competitive effect . The City' s participation in the financing of the Project is to enable the Sponsor to utilize applicable provisions of the United States Internal Revenue Code (the "Code") . Section 103 of the Code encourages the construction of certain facilities and thA The Sponsor has estimated Project costs to be not less than Eleven Million Dollars ($11, 000, 000) and has tentatively arranged the financial terms and sale of the Bonds in that amount to the Purchaser of the Bonds (the "Purchaser") . The City, the Sponsor and the Purchaser have completed negotiation and drafting of the Indenture of Trust (the "Indenture") , Loan Agreement, Regulatory Agreement, Remarketing Agreement and Bond Purchase Agreement and have previously submitted these documents to the Commission for review and action. The Commission has aproved the form of and has transmitted these documents to the Council . It is now appropriate for the City to act on the proposed documents and the proposed issuance and sale of the Bonds . NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: SECTION 1 . Determination of Necessity, The issuance of Bonds to assist in financing of the Project complies with the purposes and provisions of the Act and will be a benefit to the health and welfare of the citizens of the City. The Project constitutes an "economic development facility" under the Act and will consist of the acquisition and construction of a 204 -unit multi-family residential housing complex located on 7 . 5 acres , more of less , Parcel "A" in the East Bank Development Area. The issuance of the Bonds is necessary to induce the Sponsor to locate the Project in the City. SECTION 2 . Issuance of Bonds , Note and Obligation. The Bonds shall be issued by the City in the aggregate principal amount of Eleven Million Dollars ($11, 000, 000) . The Bonds shall be issued in fully registered form in denominations of $5 , 000 and integral multiples thereof, The Bonds shall bear interest at a rate to be determined upon the sale thereof, but in no event shall the interest rate on the Bonds prior to the Conversion Date (as defined in the Indenture) exceed ten percent (10%) per annum. From and after the Conversion Date, the Bonds shall bear interest at such rates as shall be determined in accordance with the applicable provisions of the Indenture, which provisions are hereby specifically approved by the City. The Bonds shall mature as provided in the Indenture. The Bonds shall be subject to redemption or prepayment prior to maturity as provided in the Indenture, The Bonds shall be a limited obligation of the City in accordance with the Indenture. SECTION 3 . Approval of Indenture, Loan Agreement, Regulatory Agreement , Remarketing Agreement and Bond Purchase Agreement . The form of Indenture on file with the Clerk of th i1 he "Clerk") is hereby approved. TheNational Bank of Commerce/ is er'eby appointed to act as Trustee under the Indenture and shall signify its acceptance of such duties by executing and delivering the Indenture. The forms of Loan Agreement, Regulatory Agreement, Remarketing Agreement and Bond Purchase Agreement on file with the Clerk are hereby approved. Two copies of each document are on file in the office of the Clerk for public inspection. SECTION 4. Execution and Delivery of Documents and Changes Therein. The Mayor of the City (the "Mayor") and. the Clerk are hereby authorized to execute and deliver the Indenture, Regulatory Agreement, Loan Agreement, Remarketing Agreement and Bond Purchase Agreement, all in substantially the forms approved, with such changes and insertions in such documents as may be necessary or desirable, permitted by the Act and otherwise by law, and not materially adverse to the City. The use by the Purchaser of the preliminary and final official statements in connection with tilt. Agreement, Upon compliance with the terms and conditions of the Bond Purchase Agreement, the Mayor and Clerk shall execute, seal and deliver the Bonds in substantially the form set forth in the Bond Form Appendix attached to the Indenture upon receipt by the Trustee of the proceeds therefor for deposit to the credit of various funds in accordance with the Indenture; provided that the Mayor and Clerk are hereby authorized and empowered to make such appropriate and consistent changes to the date of the Bonds and the dates of the maturities thereof so as to allow for delivery of such Bonds at any time prior to December 31, 1985 . The signatures of the Mayor and the Clerk on the Bonds at any time prior to December 13, 1985 , The signatures of the Mayor and the Clerk on the Bonds may be manual or facsimile signatures , SECTION 6 , Approval of Filings and Submissions With Other Governmental Agencies , The Mayor and the Clerk, members , staff and counsel for the City, or any of them, are authorized on behalf of the City to apply for such rulings, orders and approvals and file or submit such elections or other documents to any governmental agency, in order that the Bonds may be validly issued and the interest thereon be exempt from Federal income taxation, and execute such powers of attorney at may be appropriate in connection with the foregoing. SECTION 7 . Authorization of Other Documents , The Mayor and the Clerk, members , staff and counsel for the City, or any of them, are hereby authorized to execute and deliver such other certificates , documents , instruments and opinions and other papers as may be required by the Indenture, Regulatory Agreement, Loan Agreement, Remarketing Agreement or Bond Purchase Agreement or as may be necessary or convenient to effectuate the sale and delivery of the Bonds in accordance with the terms of the aforementioned documents . SECTION 8 . Conflict and Effectiveness . All ordinances and parts of ordinances or other proceedings of the Council in conflict herewith are repealed to the extent of such conflict . The Ordinance shall become effective upon adoption. SECTION 9 , Definitions . The words used herein and in the premises shall have, where not otherwise indicated, those meanings established in the Indenture by and between the City and the Trustee appointed in Section 3 above. SECTION 10. Ordinance. This Ordinance shall be in full force and effect from and after its passage by the Comwon Council and approval by the Mayor. 410 . .' M - - ember o thesuuuon Counci EILEO IN CLERK'S OFFICE CITY of SOUTH ;END X4 °'';'','I, ; 4�1 ROGER O. PARENT, Mayor M ',...,..•\PEACE i 11 A .V � % +;b • COUNTY-CITY BUILDING SOUTH BEND, INDIANA 46601 */868' 0 444 a•° Economic Development Commission November 13, 1985 Jerry Hammes,President Staff Administration Al E.Paszek,Vice President 401 East Colfax Avenue Walter A.Mucha,Secretary P.O.Box 1677 Kenneth P. Fedder,Counsel South Bend,Indiana Suzanne M.Rhadigan,Asst.Sec. 46634-1677 Members of the Common Council 219/234-0051 County-City Building South Bend, IN 46601 Re : The Raintree Point Apartment Project - Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission has received an application from Raintree Point Associates, Ltd. , an Indiana Limited Partnership, for the issuance of a multi-family housing revenue bond in the amount not to exceed $11, 000,000 to finance the cost of the acquisition, construction and equipping of a multi-family housing project to be located on approximately 7 . 5 acres of land in the East Bank Development Area. The Economic Development Commission, on November 1, 1985, passed an Inducement Resolution, a copy of which I am attaching herewith. It is anticipated upwards to 400 construction jobs are involved and, when the project is finally completed, we are looking at approximately 6 full and/or part-time jobs with an annual payroll of approximately $60, 000. This is new construction in the downtown corridor, Your favorable action on the passage of the Ordinance will be appreciated. Res\p-ectfully, • KENNETH P . FEDDER At oriiey for theSouth Bend FILED IA! j Economic Development Commission CLERKS OFFICE KPF:ram Ntiov 1 _ c attach. j W, 1 rene Ga�►r�© CITY CLERK,,SOUTH BEND on i ainmmittrr iarpnrt Oki the (inmmon (Boun% of t1le Quito of*nut!! limit: Your Committee of the Whole to whom was referred BILL NO. 136-85 A BILL OF THE CITY OF SOUTH BEND, INDIANA, RE: $11, 000, 000 CITY OF SOUTH BEND, INDIANA, MULTI-FAMILY HOUSING REVENUE BONDS (THE RAINTREE POINT APARTMENTS PROJECT) 1985 SERIES. Respectfully report that they have examined the matter and that in their opinion This bill should be recommended to the Council favorable, as amended: on page 2 change the bank to The National Bank of Commerce, Memphis, Tenn. Joseph T. Serge Chairman PREE PRESS PUBLISHING CO. II III � y RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION WHEREAS, I.C. 36-7-11.9-1, et seq. and I.C. 36-7-12 (the "Act") provides a method for the City of South Bend, St. Joseph County, Indiana (City) to assist in the development of residential real property for family units by enabling the City to issue its limited obligation revenue bonds to provide funds to housing sponsors for the acquisition and construction of such facilities; and WHEREAS, Clinton E. Hutchcraft or an entity to be formed by him (Raintree Point Associates, LTD. , an Indiana limited partnership (the "Housing Sponsor" ) has proposed the acquisition and construction of a residential family apartments facility (the "Project" ) , to contain approximately 204 living units, to be located in the City of South Bend, . Indiana; and WHEREAS, the Housing Sponsor has requested that the City, pursuant to the Act, issue its limited obligation revenue bonds for the purpose of financing the project, in a total amount not to exceed eleven million dollars ($11,000 ,000 .00) ; and WHEREAS, the City will examine and review the proposed financing of the Project and upon approval of the financing documents, the Economic Development Commission will approve the same by affixing the signatures of the President and Secretary thereto, and forward the same to the Common Council of the City of South Bend for its consideration and approval, and WHEREAS, the South Bend Economic Development Commission has determined that the Project and the financing thereof by limited obligation revenue bonds to be issued by the City will qualify under and further the intended purposes of the Act; NOW, THEREFORE, BE IT RESOLVED by the South Bend Economic Development Commission as follows: 1. It finds that in accordance with I.C. 5-3-1, notice of the public hearing on the project was duly published; 2 . The proposed financing of this project will be examined by the commission and counsel for the City, and upon approval of the proposed financing documents, in substantially final form, the same will be affixed with the signatures of the Commission President and Secretary, signifying such approval, and forwarded to the Common Council of South Bend for its approval by ordinance; 3 . The South Bend Economic Development Commission hereby finds that the project constitutes an appropriate project within the meaning of the Act and that the financing of the Project pursuant to the Act will serve to meet the housing needs of residents of the City by increasing the available housing stock for City residents and will therefore contribute to orderly economic growth by providing decent application of the Housing Sponsor for bond financing of the Project. 4 . The South Bend Economic Development Commission finds the project will have no adverse competetive effect on any similar facilities already under construction or in operation in the City. 5 . A copy of this resolution and submitted documents, upon approval by this Commission, shall be initialled by the Secretary and inserted in the minute book of this Commission and this Resolution and the proposed form of final ordinance and financing documents submitted shall be presented in their substantially final form by the Secretary of the Economic Development Commission to the Clerk for presentation to the Common Council. Adopted this 15th day of November, 1985. , President Sout Economic Development Commission •_• /CL _k -cretary