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HomeMy WebLinkAboutIssue its Economic Development Revenue Bond (Wechter & Wechter) $400,000.00 ORDINANCE No. 7536-85 Passed by the Common Council of the City of South Bend, Indiana October 2 8,�9 85 Attest: 'l�- City Clerk IRENE K. GAMMON Attest: '_ ��� �'� President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 29, ig 85 4 M City Clerk IRENE K. GAMMON Approved and signed by me ° ig� Q4Azuj Mayor ORDINANCE NO. 7,5';y64,5- AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY") , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (WECHTER AND WECHTER, AN INDIANA PARTNERSHIP PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF FOUR HUNDRED THOUSAND DOLLARS ($400, 000. 00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. WHEREAS, 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 empowerd to adopt this Ordinance and to carry out its provisions; and WHEREAS, the South Bend Economic Development Commis- sion (the "Commission") has rendered its report concerning the proposed financing of economic development facilities for Wechter and Wechter, an Indiana partnership, and the Area Plan Commission has commented favorably thereon; and WHEREAS, the Commission, after a public hearing held on October 4, 1985, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition and rehabilitation by Wechter and Wechter, an Indiana partner- ship (the "Company") of the proposed economic development facilities described in said Report will not have an adverse competitive effect on any similar facilities already con- structed 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 The Trust Indenture between the City and Valley American Bank and Trust Company (the "Trustee") , and this Ordinance, pre- sented 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 proisions 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, Mortgage and Security 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 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, Promissory Note, 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, Mort- gage and Security Agreement, and said Promissory Note, and (v) the securing of said Economic Development Revenue Bond by said Loan Agreement, Mortgage and Security Agreement and said Trust Indenture. Section 5. The City shall issue its Economic Develop- ment Revenue Bond, Series 1985 (Wechter and Wechter, an Indiana Partnership Project) , in the aggregate principal amount of Four Hundred Thousand Dollars ($400, 000.00) for the purpose of pro- curing funds to loan to the Company in order to finance the acquisition and rehabilitation of such facilities, for lease to Mid West Sales and Service, Inc. , as more particularly set out in said Loan Agreement, Mortgage and Security 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 Four Hundred Thousand Dollars ($400, 000. 00) which will be executed and delivered by the Company to evidence said loan, from other sources under said Loan Agreement, Mortgage and Security 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 executed and delivered on or about October 29, 1985; shall be dated as of said date of execution and delivery; shall have a final maturity date on or about October 29, 1997 with principal reduced monthly, beginning on November 29, 1985; shall bear interest at a variable rate per annum equal to 75% of the base rate on corporate loans at large money center defined in the Loan Agreement, in which case the per annum interest rate shall be a variable rate, adjusted semiannually, equal to four percent (4%) in excess of the coupon equivalent yield on 26 week U.S. Treasury bills; shall be in the denomi- nations 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 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 afore- mentioned 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 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 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 signature by the Mayor of the City. SOUTH BEND COMMON COUNCIL 41./ -- AL-r - M- :er — , BARNES & THORNBURG 600 1ST SOURCE BANK CENTER OF COUNSEL JOHN W.HOUGHTON PERRY PALLN" ALAN W.BOYD LESTER M.PONDER THOMAS P.WARREN E.MCGILL NELSON J.VOGEL,JR. 100 NORTH MICHIGAN THOMAS CHARLES H.SCANLON EVERET F.S M H INS WARREN A.DEAHL JOHN A.DOUGLAS' JOHN L.CAREY ROGER W.BENKO JAMES F.THORNBURG PHILIP J.FACCENDA GEORGE J.ZAZAS DAVID R.MELTON FREDERIC D.ANDERSON A.JAMES RICHARDSON JOHN R.HARMAN BRIAN J.LAKE SOUTH BEND, INDIANA 46601 JERRY P.BELKNAP STEVEN R.LAMMERT HOWARD J.COFIELD BRYAN G.TABLER ROBERT S.ASHBY PETER J.RUSTHOVEN RICHARD M.TRECKELO DANIEL H.FITZGIBBON (219) 233-1171 LOUIS A.HIGHMARK WILLIAM J.REINKE STEPHEN K.SMITH RICHARD E.DEER RICHARD W.MORGAN EDWARD J.GRAY MICHAEL R.FRUEHWALD ROBERT E.HIGHFIELD EDWARD 0.DELANEY TWX 810-341-3427 B&T LAW IND MARCUS B.CHANDLER JANET D.NEUENSCHWANDER DANIEL W.RUDY CYM H.LOWELL DOUGLAS P.LONG STEVEN W.THORNTON JACK C.DUNFEE.JR. SAMUEL S.THOMPSON TELECOPIER (219) 237-1125 JOHN M.KYLE III DOUGLAS D.SMALL HERBERT C.SNYDER.JR. DONALD E.KNEBEL JAMES A.COLES PAULA M.TAYLOR JAMES A.MCDERMOTT WAYNE C.KREUSCHER MILDRED L.CALHOUN HOWARD E.KOCHELL SHIRLEY A.SHIDELER KRISTIN G.FRUEHWALD PAUL K.BROOKS* RONALD E.CHRISTIAN ROBERT H.REYNOLDS DANIEL W.MCGILL DOUGLAS K.DIETERLY MARK C.KRCMARIC CHARLES E,BRUESS KENT E.AGNESS SANDRA J.LONG B.BRIAN OILLENWATER* WILLIAM R.COFFEY MICHAEL R.CONNER CONNIE M.MCKEAN M.SUE MICHAEL JERRY E.HYLAND CLAUDIA V.SWHIER JEFFREY J.TONNER DAVID F.HAMILTON BRUCE R.BANCROFT ROBERT K.BELLAMY GREGORY L.KELLY J.A.WHITHER JOHN T.MULVIHILL CATHERINE L.BRIDGE ANNE N.DEPREZ MICHAEL GRAY BANTA FRANKLIN A.MORSE II RICHARD D.CONARD RICHARD A.COVEN ROLAND A.FULLER III STEPHEN A.SEALL LARRY J.STROBLE 1313 MERCHANTS BANK BUILDING ALAN A.LEVIN NANCY L.ICKLER GORDON S.ESLICK MICHAEL ROSIELLO 11 SOUTH MERIDIAN STREET FRANK SULLIVAN.JR. RICHARD A.REZEK RICHARD E.STEINBRONN STEPHEN W.LEE INDIANAPOLIS, INDIANA 46204 KENNETH R.PETRINI DAVID R.WARSHAUER DONALD D.EVENSONG DAVID A.HAIST (317)638-1313 KENNETH H.INSKEEP JAMES 0.PERRIN JOHN A.BURGESS STANLEY C.FICKLE KATHLEEN K.BRICKLEY NEAL J.PATTERSON ROBERT P.JOHNSTONE WILLIAM I.KOHN ALAN K.MILLS LYNN C.TYLER TOM CHARLES HUSTON ERNEST J.SZARWARK 305 FIRST NATIONAL BANK BUILDING JOSEPH W.REBON% LU CAROLE KING JAMES A.STRAIN PAUL E.BECHER 901 SOUTH MAIN STREET RYAN M.FOUNTAIN DAVID THUMA GEORGE H.BAKER DAVID M.POWLEN ELKHART.INDIANA 46516 EDWARD A.KEIRN TIMOTHY J.PEADEN TONI SUE AX MICHAEL P.LUCAS TIMOTHY J.RIFFLE JACK M.FREEDMAN R.MICHAEL PARKER RENEE R.MAWHINNEY (219)293-0681 CAROL C.KAESEBIER MARGARET E.PIETY TIMOTHY T.CASADY FEDERAL BAR BUILDING 1815 H STREET.N.W. WASHINGTON.D.C.20006 (202)955-4500 TO CALL WRITER *ADMITTED IN D.C.BUT NOT INDIANA October 23 , 1985 HAND DELIVERED Mrs . Irene K. Gammon, Clerk City of South Bend 4th Floor, County-City Building South Bend, IN 46601 Re: Application of Monte Wechter and Betty M. Wechter for the Issuance of City of South Bend Economic Development Revenue Bonds Dear Mrs . Gammon: Enclosed is an ordinance for consideration by the Common Council at its meeting of October 28 , 1985, approving the form and terms of the Economic Development Revenue Bonds to be issued on behalf of Monte Wechter and Betty M. Wechter in the principal amount of $400, 000 to finance the acquisition and rehabilitation of a warehouse and distribution facility located at 917 South Chapin Street, South Bend, Indiana, for lease to Mid West Sales and Service, Inc . The Council has previously passed an inducement resolution for this project. The bonds are anticipated to be issued on October 29 , 1985 . Ken Fedder has previously provided the Council with the original application containing the employment and detailed description of the Mrs. Irene K. Gammon -2- October 23 , 1985 project. Also filed with this letter are two copies of the basic bond financing documents that are to be kept in your office for inspection by any interested parties. Very truly yours, BARNES & THORNBURG 06.4gAZe-c.).)114^-14-1c. Richard W. Morgan dr RWM:jj Encls . cc : Kenneth P. Fedder, Esq. Frederick C. Boynton, Esq. BARNES Sc THORNBURG