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HomeMy WebLinkAboutApproving Loan Agreement Economic Development Revenue Bonds The P James and M Maria Scheetz Project ORDINANCE No. 7517-85 Passed by the Common Council of the City of South Bend, Indiana September 23, 1985 Attest: City Clerk IRENE K. GAMMON C -� / Attest: .._ .__A_ / — _ y ��__ .`.._L_! 'resident of Common Council Af Presented by me to the Mayor of the City of South Bend, Indiana September 24, ig 85 .Y:4 City Clerk IRENE K. GAMMON Approved and signed by met 4=26( Ig it 7 �r/z),LA`J Mayor ORDINANCE NO. 75 /7-Z5--- AN ORDINANCE APPROVING THE FORM AND TERMS OF THE LOAN AGREEMENT, INDENTURE OF TRUST, AND ECONOMIC DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF, AND APPROVING THE RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE P. JAMES AND M. MARIA SCHEETZ PROJECT. STATEMENT OF PURPOSE AND INTENT: The Common Council of the City of South Bend, Indiana, hereto- fore has created the South Bend Economic Development Commission (hereinafter referred to as the "Commission") pursuant to the pro- visions of Indiana Code 36-7-12, as amended (hereinafter referred to as the "Act") . P. James and M. Maria Scheetz filed an application with the Commission to finance certain economic development facilities re- sulting in a substantial number of new jobs as well as other benefits, and in connection therewith, the Commission has prepared and placed on file a report containing the subject matter as specified in Section 23 of the Act and has forwarded copies thereof to the Chairman of the Area Plan Commission of St. Joseph County, Indiana, and to the Superintendent of the South Bend Community School Corpor- ation, being the area in which the proposed facilities will be located, and has timely received favorable reports from each of them, and the Commission held a public hearing on the proposed financing of such economic development facilities in accordance with the Act after giving the required notice as provided in the Act, and adopted a resolution finding that such proposed financing complies with the purposes and provisions of all applicable Indiana statutes governing the issuance of Economic Development Revenue Bonds, including but not limited to the Act, and approving the form and terms of the Loan Agreement, Indenture of Trust, and Bonds, and further approving this form of Ordinance, authorizing the execu- tion thereof, and further finding that such economic development facilities will not have an adverse competitive effect on similar facilities already constructed and operating in the City of South Section 1. The form and terms of the Loan Agreement, Indenture of Trust, and Economic Development Revenue Bonds pertaining to the P. James and M. Maria Scheetz Project and the issuance of the Economic Development Revenue Bonds pursuant thereto are hereby approved and adopted. Section 2 . Said forms of Indenture of Trust and Loan Agreement, together with the Note and Mortgage attached as an exhibit thereto, and the Economic Development Revenue Bonds which are on file with the Commission, are hereby incorporated by reference into this Ordinance, and said forms shall be inserted into the minutes of the Common Council of the City of South Bend, Indiana. Section 3. Said Loan Agreement and Indenture of Trust shall be executed on behalf of the City of South Bend, Indiana, by the Mayor and City Clerk of South Bend, Indiana, and sealed with the corporate seal of such City. Section 4 . Said Economic Development Revenue Bonds, payable solely and only from the revenues derived from such Project pursuant to the aforementioned Loan Agreement and Indenture of Trust will not be in any respect a general obligation of the City, nor may the Bonds be paid in any manner from funds raised by taxation, and may be issued in an aggregate amount not to exceed $575,000 . 00, as bonds in denomina- tions of $1,000. 00 or multiples thereof payable in lawful money of the United States of America at the principal office of St. Joseph Bank and Trust Company, South Bend, Indiana in the City of South Bend, Indiana. Such Bonds shall be repayable with interest thereon at a rate not to exceed 73% of the rate of interest charged to its prime customers by Citibank N.A. , New York, New York, adjusted monthly during the term of said Bonds, which Bonds mature on September 1, 2000 , all in accordance with the terms of said Bonds, Loan Agreement and Indenture of Trust. Such Bonds shall be dated as of the date of exe- cution and delivery, and shall be executed on behalf of the City of South Bend, Indiana, by the manual signatures of the Mayor and r, Fc� ('lorlr rF ---------i- ---, r . ,_ Section 5. The Mayor and City Clerk may approve changes and amend- ments to the Loan Agreement, Indenture of Trust, Economic Development Revenue Bonds, Note, Mortgage, and other related documents which do not affect terms contained in this Ordinance. - Section 6 . The Resolution of the South Bend Economic Development Commission, passed on July 19 , 1985 , is hereby approved, and the Common Council of the City of South Bend, Indiana, hereby finds that the proposed financing for the issuance of the Economic Development Revenue Bonds would be of benefit to the health and welfare of the City of South Bend, and that it complies with the purposes and provisions of the Act. Section 7. Pursuant to the provisions of Indiana Code 36-1-5-4 , two copies of all documents incorporated in this Ordinance by reference are on file in the office of the City Clerk for public inspection. Section 8 . This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor Afj‘ � - Jr , ember of the Co on Council BUTLER & SIMERI ATTORNEYS AT LAW 405 WEST WAYNE STREET SOUTH BEND, INDIANA 46601 JOSEPH V.SIMERI 219 233.3303 KEVIN J.BUTLER September 4 , 1985 South Bend Common Council c/o South Bend City Clerk 4th Floor, County-City Building South Bend, Indiana 46601 Re: City of South Bend Economic Development Revenue Bonds P. James and M. Maria Scheetz Project Gentlemen and Ladies: Enclosed for consideration by the Council is an Ordinance authorizing economic development revenue bonds related to the P. James and M. Maria Scheetz Project. The Economic Development Commission approved issuance of said bonds on July 19 , 1985. The Bonds will be used for the financing of the purchase of land and construction and equipping of improvements on real estate to be purchased by the applicant located on Technology Drive halfway between Brick Road and Clark Drive and described as Lot No. 3 of Landmark Business Park, pursuant to the pro- visions of Indiana Code 36-7-12, as amended. The site is 4 .8 acres and the building will be approximately 18,000 square feet. The property will be leased by the local ChemLawn franchise, Scheetz Enterprises, Inc. The cost of the project is estimated at $600,000.00 and we request the City issue and sell its bonds in the amount of $575,000.00 for this project. It is estimated that the new facility will provide approxi- mately 14 new permanent jobs in the South Bend area with an annual payroll of approximately $325,000.00. We would appreciate favorable Common Council action on this Ordinance. Sinc- -ly, 4111 WV"- Kevin J. Butler KJB:blb Enclosure Ql nmmtttn arport Uhl the Comm fitounrtt of the Qi of*until Brut: Your Committee of the Whole to whom was referred BILL NO. 111-85 A BILL APPROVING THE FORM AND TERMS OF THE LOAN AGREEMENT, INDENTURE OF TRUST, AND ECONOMIC DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF, AND APPROVING THE RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE P. JAMES AND M. MARIA SCHEETZ PROJECT. Respectfully report that they have examined the matter and that in their opinion This bill should be recommended to the Council favorable Joseph T. Serge Chairman FREE PRESS oReaGu PUBLISHING CO.