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Home My WebLink AboutIssuse its Economic Development Revenue Bond (O'Brien Corporation Project) ORDINANCE No. 7569-85 Passed by the Common Council of the City of South Bend, Indiana_ December 16, rq 85 Attest: °A-e---e A , City Clerk IRENE K. GAMMON Attest: ,&-CA-A6-4. 0 , _ �, President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana December 17, �9 85 4-t.e......._e_ AT- Yja2--,--,-,,,,,,--- City Clerk IRENE K. GAMMON Approved and signed by me 6QJOA / 7 I 9 Pd11/34—M-----ayor SUBSTITUTE BILL NO. 139 ORDINANCE NO. 75'69. 2 C AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY") , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (O'BRIEN CORPORATION PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF TWO MILLION DOLLARS ($2 , 000, 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 The O'Brien Corporation (the "Company") and the Area Plan Commission has commented favorably thereon; and The Commission, after a public hearing held on December 6, 1985, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition and rehabilitation 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 fac4tes 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 Development Revenue Bond (O'Brien Corporation Project) from the City to the bondholders, The Trust Indenture 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 are "economic development facilities" within the meaning of the Act, and that such facilities will not have an adverse competi- tive 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 and Promissory Note, related security documents, 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, and (v) the securing of said Economic Development Revenue Bond under the terms of said Loan Agreement and under said Trust Indenture. Section 5. The City shall issue its Economic Develop- ment Revenue Bond, Series 1985 (O'Brien Corporation Project) , in the aggregate principal amount of Two Million Dollars ($2, 000, 000. 00) for the purpose of procuring funds to loan to the Company in order to finance the acquisition and rehabilita- tion 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 pay- ments made by the Company on its aforesaid Promissory Note in the principal amount of Two Million Dollars ($2, 000, 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 obli- gation 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 20, 1985; shall be dated as of said date of execution and delivery; shall have a final matur- ity date on or about December 20, 2000 with principal reduced monthly beginning on or about January 20, 1986; shall bear interest at a variable per annum rate of seventy-five percent (75%) of the national prime rate, but not be exceed 11.75% during the first 10 years, 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 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 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 • 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 em erg--- E 1st PEANNG It I I -it ,s 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 !, .3171638-1313 SOUTH BEND, INDIANA 46601 12021955-4500 !, (219) 233-1171 305 FIRST NATIONAL BANK BUILDING 301 SOUTH MAIN STREET !, ELK HA RT,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: Substitute Bill for City of South Bend Economic Development Revenue Bonds (O'Brien Corporation Project) Dear Mrs. Wisniewski: Enclosed is the original bill, and an original and twelve lined copies of the substitute bill for the above- referenced project. The project relates to the renovation of a portion of The O'Brien Corporation's existing laboratory, office and manufacturing facility and the acquisition of manufacturing and laboratory equipment for the Company's facility at 2001 West Washington Street in South Bend. The original bill received first reading at the November 18 meeting of the Common Council. The substitute bill finalizes the financial terms of repayment, and also changes the trustee and bond purchaser from 1st Source Bank to St. Joseph Bank and Trust Company. We request that this substitute bill be placed on the agenda for passage at the December 16 meeting of the Common Council. We are very appreciative of your cooperation and assistance. Very truly yours, BARNES THORNBURG ,„ejej-2A-1-1-ei Richard W. Morg RWM/cac Enclosure cc: Kenneth P. Fedder, Esq. i