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HomeMy WebLinkAboutIssue its Economic Department Revenue Bond (Tripods Partnership) $1,300,000 ORDINANCE No. 7572-85 Passed by the Common Council of the City of South Bend, Indiana December 16, iq 85 Attest: l - City Clerk IRENE K. GAMMON c Attest: _ President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana December 17, ig 85 City Clerk IRENE K. GAMMON Approved and signed by me (4 i1i,&L 7,4 'go (44,7/ Mayor SUBSTITUTE BILL NO. 162 ORDINANCE NO. 7s 7 a-rS AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY") , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (TRIPODS PARTNERSHIP, AN INDIANA PARTNERSHIP PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION THREE HUNDRED THOUSAND DOLLARS ($1, 300, 000) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. STATEMENT OF PURPOSE AND INTENT: The City is a municipal corporation and political sub- division 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 Tripods Partnership (the "Company") and the Area Plan Commission has commented favorably thereon; and The Commission, after a public hearing held on Decem- ber 16, 1985, has adopted a Resolution, which has been trans- mitted to this Council, (i) finding that the acquisition and construction by the Company of the proposed economic develop- ment 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 Partnership Project) from the City to the bondholders, the Trust Indenture between the City and Valley American 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, and that such facilities are located in an "economic development target area" as defined by the Act. 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, Mortgage and Security Agreement and Promissory Note, Economic Development Revenue Bond and Trust Indenture attached hereto and incorporated herein by reference (two (2) copies of said Economic Development Revenue Bond to the Company for the acquisition and construction of such facilities, such loan to be evidenced by said Promissory Note, (iv) the repayment of said loan by the Company pursuant to said Loan Agreement and Mortgage and said Promissory Note, and (v) the securing of said Economic Development Revenue Bond under the terms of said Loan Agreement and Mortgage under said Trust Indenture. Section 5. The City shall issue its Economic Develop- ment Revenue Bond, Series 1985 (Tripods Partnership, an Indiana Partnership Project) , in the aggregate principal amount of One Million Three Hundred Thousand Dollars ($1, 300, 000. 00) for the purpose of procuring funds to loan to the Company in order to finance the acquisition and construction 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 payments made by the Company on its aforesaid Promissory Note in the principal amount of One Million Three Hundred Thousand Dollars ($1, 300, 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 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 dated as of December 1, 1985; shall have a final maturity date on or about December 1, 2000; shall bear interest at a variable per annum rate of seventy percent (70%) of the national prime rate, except in the case of an Event of Tax- ability as defined in the Loan Agreement, in which case the per annum interest rate shall be as set forth therein; shall be 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 the Clerk of the City are authorized and directed to sell said Economic Development Revenue 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. 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 Valley American 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 7 1st READING Z- PUBLIC HEARING ‘"X. t 9nrI 11FADING _t L ♦ ct!1—• BARNES & 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 I2021 95 -asoo 12191 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: Substitute Bill for City of South Bend Economic Development Revenue Bonds (Tripods Partnership 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 consists of the acquisition of real estate and construction of a medical office facility on the south side of LaSalle Street immediately east of the St. Joseph River. The original bill received first reading at the December 2 meeting of the Common Council. The substitute bill sets the amount of the Bond at $1, 300, 000 and also finalizes the financial terms of repayment. As you know, this project is related to the South Bend Orthopedic Associates, Inc. Project, which will be used to finance office equipment to be used in the facility. 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, BARN THORNBURG / 74-ter Richard W. Mor g RWM/cac Enclosure cc: Kenneth P. Fedder, Esq.