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HomeMy WebLinkAboutIssue its 1985 Economic Development Revenue Bond (Frank Darnell Project) $2,400,000 ORDINANCE No. 7547-85 Passed by the Common Council of the City of South Bend, Indiana ___December 2, 19 85 Attest: City Clerk IRENE K. GAMMON Attest: vC �— /-e President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana December 3, 19 85 City Clerk IRENE K. GAMMON Approved and signed by me €C efl')/D E/ 4 � I•� Mayor ORDINANCE NO. 7,5"y AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY" ) , TO ISSUE ITS 1985 ECONOMIC DEVELOPMENT REVENUE BOND, (FRANK DARNELL PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF TWO MILLION FOUR HUNDRED THOUSAND DOLLARS ($2,400,000 ) 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 Frank D. Darnell, and the Area Plan Commission has commented favorably thereon; and The Commission, after public hearing held on November 15, 1985, has adopted a Resolution, which has been transmitted to this Council; (i) finding that the construction and acquisition by Frank D. Darnell ( "Mr. Darnell" ) 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, Mortgage and Security Agreement between the City and Frank D. Darnell, "Loan Agreement, " Promissory Note of Frank D. Darnell to the City, the Trust Indenture between the City and Valley American Bank and Trust Company ( "VAB" ) , the registered 1985 City of South Bend, Indiana Economic Development Revenue Bond ( "Bond" ) (Frank Darnell Project) from the City to the bondholder, a form of Lease, 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. 1. The Common Council has by separate resolution after a public hearing held on October 14, 1985 designated Lot 5, Landmark Business Park an Economic Revitalization Area. 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 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, Trust Indenture, Promissory Note, Bond, and a form of Lease 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 Bond; (iii) the loan of the net proceeds of said Bond to Frank Darnell for the construction of such facilities, such loan to be evidenced by said Promissory Note; (iv) the repayment of said loan by Frank Darnell pursuant to said Loan Agreement, Trust Indenture and said Promissory Note; and (v) the securing of said Bond by said Loan Agreement and said Trust Indenture. Section 5. The City shall issue its Bond in the aggregate principal amount of Two Million Four Hundred Thousand Dollars ($2,400, 000 ) for the purpose of procuring funds to loan to Frank Darnell in order to finance the construction of such facilities and acquisition of equipment and installation therein, as more particularly set out in said Loan Agreement and Trust Indenture, which Bond shall be payable as to principal and interest solely from the payments made by Frank Darnell on his aforesaid Promissory Note in the aggregate principal amount of Two Million Four Hundred Thousand Dollars ($2,400, 000 ) which will be executed and delivered by Frank Darnell to evidence said loan, from other sources under said Loan Agreement and as other- 2. wise provided in said Trust Indenture. Said Bond shall never constitute general obligations of, indebtedness of, or charges against the general credit of the City. Said Bond shall be executed by the manual or facsimile signatures of the Mayor and the Clerk of the City; shall be executed, delivered and dated on or about December 6, , 1985 shall be in the form of a 1985 Bond in the principal amount of Two Million Four Hundred Thousand Dollars ( $2 ,400,000) , payable over fifteen (15) years with interest at the per annum rate of 75% of the National Prime lending rate rounded up to the nearest one quarter percent (1/4%) , such rate to be adjusted quarterly except in the case of an Event of Taxability as defined in the Loan Agreement, or in the case of certain changes in the Corporate Tax Rate specified by the Internal Revenue Code of 1954, as amended, and supplemented, in which cases borrower shall pay such amounts, as more particularly described in the Loan Agreement and Trust Indenture; shall be issued in registered form; shall be registrable as provided herein; shall be payable in 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 Clerk of the City are authorized and directed to sell said Bond to Valley American Bank and Trust Company at a price not less than one hundred percent (100%) of the principal amount thereof, plus accrued interest, if any. Section 7 . The Frank Darnell facility to be located on Lot 5, Landmark Business Park will not have an adverse competitive impact on other facilities of the same kind already operating in the same market area and will contribute significantly to the creation of permanent job opportunities. Section 8. The Mayor and Clerk of the City are authorized and directed to execute and deliver the aforementioned documents for and on behalf of the City after making therein such changes permitted by the Act as they deem necessary or proper, as evidenced by their execution of such documents, 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 3 . actions for and on behalf of the City, as they deem necessary or proper in connection with the consummation of such financing. The Mayor and the Clerk of the City are authorized to arrange for the delivery of said Bond, and after the issuance of said Bond, this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of said holder so long as any of the principal of said Bond or the interest thereon remains unpaid. Section 10. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 11. 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 DEC2 1985 1st READING //-/69 PUBLIC HEARING I - - $S' -!!Pa g��.� 2nd READING - - J nor F`;CPV, S P +. s P•..° NOT APPROVED REFERRED PASSED \ • - $SJ 0.,p �.,�v�s-Y L 4 .