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HomeMy WebLinkAboutIssue its Economic Development Revenue Bond (Allied Products Corp Project) $1,000,000.00 ORDINANCE No. 7574-85 Passed by the Common Council of the City of South Bend, Indiana December 16, x 85 Attest: City Clerk IRENE K. GAMMON Attest: i i /S--- Q{ - C`, �4' .c 1_ � President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana December 17, 19 85 w lt. City Clerk IRENE K. GAMMON Approved and sired by me 4.aeA.,70},L,77y19_ 3_c , -- ---7 , . , _ Mayor SUBSTITUTE BILL NO. 164 ORDINANCE NO. 7s-7 V-8J' AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY") , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (ALLIED PRODUCTS CORPORATION PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION DOLLARS ($1, 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 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 Allied Pro- ducts Corporation (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 rehabilitation for 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 Trust Indenture between the City and 1st Source Bank (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 Lease 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 Lease Agreement, related security documents, Economic Development Revenue Bond and Trust Indenture attached hereto and incorp- orated 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 lease of the economic development facilities to Economic Development Revenue Bond under the terms of said Lease Agreement and related security documents and under said Trust Indenture. Section 5. The City shall issue its Economic Develop- ment Revenue Bond, Series 1985 (Allied Products Corporation Project) , in the aggregate principal amount of One Million Dollars ($1, 000, 000. 00) for the purpose of procuring funds to finance the acquisition and rehabilitation of such facilities for lease to the Company, as more particularly set out in said Lease Agreement, which Economic Development Revenue Bond shall be payable as to principal and interest solely from the pay- ments made by the Company under said Lease 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 dated as of December 1, 1985; shall have a final maturity date of December 1, 1995 with principal reduced monthly beginning on July 1, 1986; shall bear interest at a variable per annum rate of 75% of the National Prime Rate (as defined in the Lease Agreement) , except in the case of an Event of Taxability as defined in the Lease 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; shall be issued in registered form; shall be registrable as provided therein; 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 the Clerk of the City are authorized and directed to sell said Economic Development 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 1st Source Bank, 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 sig- nature by the Mayor of the City. SOUTH BEND COMMON COUNCIL- i -I — ";- '-I -A?-----/ ;')k Me e BARNES a THORNBURG 600 1ST SOURCE BANK CENTER FEDERAL BAR BUILDING 1313 MERCHANTS BANK BUILDING 1815 H STREET, N.W. II SOUTH MERIDIAN STREET 100 NORTH MICHIGAN WASHINGTON,D.C.20006 INDIANAPOLIS, INDIANA 46204 12021 955-4500 13171638-1313 SOUTH BEND, INDIANA 46601 12191233-1171 305 FIRST NATIONAL BANK BUILDING 301 SOUTH MAIN STREET ELK HA RT,INDIANA 46516 TWX 810-341-3427 132.T LAW IND 12191 293-0681 TELECOPIER 12191 237-1125 TO CALL WRITER BY HAND DELIVERY 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 (Allied Products 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 consists of the acquisition of approximately 35 acres of real estate and 900, 000 square feet of building, located at 701 South Chapin Street. The original bill received first reading at the December 2 meeting of the Common Council. The substitute bill finalizes some of the financial terms of repayment. 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, BARNE & THORNBURG Ric and W. MorgarY RWM/cac Enclosure cc: Kenneth P. Fedder, Esq. 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 12021955-4500 (219) 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 MARK C. KRCMARIC BY HAND DELIVERY November 22, 1985 Mrs. Irene K. Gammon City of South Bend City Clerk County-City Building South Bend, Indiana 46601 Re: City of South Bend Economic Development Revenue Bond (Allied Products Corporation Project) Dear Mrs. Gammon: Enclosed is an original and one copy of the proposed ordinance for the above-referenced bond, which we ask that you place on the agenda of the Council for first reading at the December 2 meeting, with passage to follow at the December 16 meeting. Also enclosed is an original and one copy of an Inducement Resolution for this Project, which we ask that you place on the agenda for approval at the December 2 meeting of the Common Council. Very truly yours, BARNES & THORNBURG KtalAe- (114-4,(4- Mark C. Krcmaric MCK/cac Enclosure cc: Kenneth P. Fedder, Esq. BARNES a THORNBURG 1313 MERCHANTS BANK BUILDING 600 1ST SOURCE BANK CENTER FEDERAL BAR BUILDING II SOUTH MERIDIAN STREET 100 NORTH MICHIGAN IBIS H STREET, N.W. INDIANAPOLIS, INDIANA 46204 WASHINGTON,D.C.20006 13171638-1313 SOUTH BEND, INDIANA 46601 12021955-4500 1219) 233-1171 305 FIRST NATIONAL BANK BUILDING 301 SOUTH MAIN STREET ELKHART,INDIANA 46516 TWX 810-341-3427 138T LAW IND 12191 293-0681 TELECOPIER (219) 237-1125 MARK C. KRCMARIC BY HAND DELIVERY November 25, 1985 Mrs. Irene K. Gammon City of South Bend City Clerk County-City Building South Bend, Indiana 46601 Re: $1,000,000 City of South Bend Economic Development Revenue Bond (Allied Products Corporation Project) Dear Mrs. Gammon: This letter describes the proposed project with respect to the Ordinance and Inducement Resolution that were filed with your office on November 22, 1985. Allied Products Corporation, with corporate offices in Chicago, Illinois, proposes to purchase and rehabilitate the South Bend facility of White Farm Equipment Company, located at 701 South Chapin Street in the City of South Bend. The purchase and the bond financing are dependent upon approval by the Bankruptcy Court in White Farm Equipment Company's proceeding under the provisions of Chapter 11 of the United States Bankruptcy Code. Allied Products Corporation proposes to acquire this facility and to spend an amount equal to several times the purchase price to rehabilitate the facility. The property to be acquired consists of approximately 35 acres and several buildings totaling 900,000 square feet. The equipment is already owned by Allied Products Corporation. The project is expected to result in the preservation of approximately 10 jobs and the creation of approximately 100 jobs at the facility following completion of the project. 1st Source Bank has issued its commitment letter to purchase the bonds to finance the project. City of South Bend City Clerk November 25, 1985 Page 2 We respectfully request the Council 's favorable con- sideration of this project and the related Ordinance and Inducement Resolution, with passage of the Inducement Resolu- tion and first reading of the Ordinance on December 2, with passage of the Ordinance on December 16. Very truly yours, BARNES & THORNBURG. Mark C. Krcmaric MCK/cac BARNES 8c THORNBURG fInmmtttrr Erpnrt �!o tile fllmmntnn Qloon& of the fditg of*until lend: Your Committee of the Whole to whom was referred BILL NO. 164-85 A BILL AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY" ) , TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (ALLIED PRODUCTS CORPORATION PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION DOLLARS ( $1, 000,000. 00 ) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. Respectfully report that they have examined the matter and that in their opinion This bill should be recommended to the Council favorable, as amended, by substitution of a new bill. Joseph T. Serge Chairman FREE PRESS oFtaP, PUBLISHING CO.