Loading...
HomeMy WebLinkAboutIssue its Economic Development Revenue Bond (Automatic Real Estate Project) $750,000.00 (Automiatic Equipment Project) $2,250,000.00 ORDINANCE No. 7537-85 Passed by the Common Council of the City of South Bend, Indiana October 2 8,19--85- Attest: City Clerk IRENE K. GAMMON Attest. � \, L ' President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana Ortnb r 99, 19 R5 City Clerk IRENE K. GAMMON Approved and signed by me C) -9 z9 S i" Mayor 4 ORDINANCE NO. 7,5'.3 7- "°' AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY" ) , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (AUTOMATIC REAL ESTATE PROJECT) , " IN THE AGGREGATE PRINCIPAL AMOUNT OF SEVEN HUNDRED FIFTY THOUSAND ($750, 000. 00) DOLLARS, TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (AUTOMATIC EQUIPMENT PROJECT) " , IN THE AGGREGATE PRINCIPAL AMOUNT OF TWO MILLION TWO HUNDRED FIFTY THOUSAND ($2, 250, 000. 00) DOLLARS, AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. STATEMENT OF PURPOSE OF INTENT The CITY is a municipal corporation and political subdivi- sion of the State of Indiana, and, by virtue of Title 35, Article 7 , Chapter 12, of the Indiana Code, as amended (the "Act" ) , is autho- rized and empowered to adopt this Ordinance and carry out its pro- visions; and The South Bend Economic Development Commission (the "Com- mission" ) has rendered its report concerning the proposed financing of economic development facilities for Automatic Molded Plastics, Inc. , and the Area Plan Commission and South Bend Community School Corp. have commented favorably thereon; and The Commission, after a public hearing held on October 18, 1985, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition by Automatic Molded Plastics, Inc. (the "Company" ) of the proposed economic development facilities described in said Report will not have an adverse competi- tive 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 pro- bond financing of such facilities, including the form and terms of the Loan Agreement; Real Estate Promissory Note to CITY from the Company; the Equipment Promissory Note to the CITY from the Company; Indenture of Trust between the CITY and St. Joseph Bank and Trust Company (the "Bank" ) ; Leasehold Mortgage between the Company and the CITY; Security Agreement between the Company and the CITY; the fully registered City of South Bend, Indiana, Economic Development Revenue Bond, Series 1985, (Automatic Equipment Project) , from the CITY to the bondholders, in the amount of Two Million Two Hundred Fifty Thousand and No/100 Dollars ($2,250, 000. 00) ; the fully regis- tered City of South Bend, Indiana, Economic Development Revenue Bond, Series 1985 (Automatic Real Estate Project) , from the CITY to the bondholders, in the amount of Seven Hundred Fifty Thousand and No/100 Dollars ($750, 000. 00) ; the election under I .R.C. §103 (b) (6) ; 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 pur- poses 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 de- scribed 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 com- plies 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 Agree- ment; Real Estate Promissory Note to CITY from the Company; the Equipment Promissory Note to the CITY from the Company; Indenture of Trust between the CITY and St. Joseph Bank and Trust Company (the "Bank") ; Leasehold Mortgage between the Company and the CITY; Security Agreement between the Company and the CITY; the fully registered City of South Bend, Indiana, Economic Development Reve- nue Bond, Series 1985, (Automatic Equipment Project) , from the CITY to the bondholders, in the amount of Two Million Two Hundred Fifty Thousand and No/100 Dollars ($2, 250, 000 . 00) ; the fully registered City of South Bend, Indiana, Economic Development Revenue Bond, Series 1985 (Automatic Real Estate Project) , from the CITY to the bondholders, in the amount of Seven Hundred Fifty Thousand and No/100 Dollars ($750, 000 .00) ; the election under I.R.C. §103 (b) (6) attached hereto and incorporated herein by this 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 Bonds; (iii) the loan of the net proceeds of said Economic Development Revenue Bonds to the Company for the acquisition of such facilities, such loan to be evidenced by said Promissory Notes; (iv) the repayment of said loan by the Company pursuant to said Loan Agree- ment, Security Agreement, and Promissory Notes; and (v) the securing of said Security Agreement and said Indenture of Trust. Section 5. The CITY shall issue its Economic Development Revenue Bond, Series 1985, (Automatic Real Estate Project) , in the aggregate principal amount of Seven Hundred Fifty Thousand Dollars ($750, 000. 00) and its Economic Development Revenue Bond, Series 1985, (Automatic Equipment Project) in the aggregate principal amount of Two Million Two Hundred Fifty Thousand Dollars ($2, 250, 000. 00) for the purpose of procuring funds to loan to the Company in order to fur- nish the acquisition of such facilities, as more particularly set out in said Loan Agreement and Security Agreement, which Economic Develop- ment Revenue Bonds shall be payable as to the principal and interest solely from the payments made by the Company on its aforesaid Promis- sory Notes in the principal amounts of Seven Hundred Fifty Thousand Dollars ($750, 000. 00) and Two Million Two Hundred Fifty Thousand Dollars ($2, 250, 000. 00) which will be executed and delivered by the Company to evidence said loan, from other sources under said Loan Agreement and Security Agreement, and as otherwise provided in said Indenture of Trust. Said Economic Development Revenue Bonds shall never constitute general obligations of, indebtedness of, or charges against the general credit of the CITY. Said Economic Development Revenue Bonds 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 November 6, 1985; shall be dated as of November 6, 1985; payments on the Automatic Real Estate Project shall begin on December 1, 1985; shall bear interest at the rate of seventy-five per cent (75%) of the prime rate published by Citibank, N.A. , New York, New York, but one per cent (1%) in excess of the Citibank prime rate after maturity or default, adjusted monthly on the first busi- ness day of each month and be the denomination of Seven Hundred Fifty Thousand dollars ($750, 000 . 00) ; and payments on the Automatic Equipment Project shall begin on December 1, 1985, bear interest at the rate of seventy-five per cent (75%) of the prime rate published by Citibank, N.A. , New York, New York, but one per cent (1%) in excess of the Citibank prime rate after maturity or default, ad- justed monthly on the first business day of each month, and be the denomination of Two Million Two Hundred Fifty Thousand Dollars ($2, 250, 000. 00) ; shall be issued in registered form; shall be regis- trable 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 Bonds to St. Joseph Bank and Trust Company at a price not less than one hundred per cent (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 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 direct 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 consummation of such financing. The Mayor and the Clerk of the City are authorized to arrange for the delivery of said Economic Development Revenue Bonds to St. Joseph Bank and Trust Company, pay- ment for which will be made to the Trustee of 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 Bonds, 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 Bonds or the in- terest thereon remains unpaid. Section 9 . Pursuant to the provisions of IND. 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 pub- lic inspection. 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 By i' ' / - a- Membe ht READING 1 a - a. % - &S— Pi!RI it «. JONES, OBENGHAIN, FORD, PANKOW & LEWIS ATTORNEYS AND COUNSELLORS 1800 VALLEY AMERICAN BANK BUILDING G. BURT FORD POST OFFICE BOX 4577 JAMES H. PANKOW THOMAS F. LEWIS,JR. SOUTH BEND, INDIANA 40634 TIMOTHY W.WOODS* TELEPHONE AND TELECOPIER JOHN R.OBENCHAIN (219)233-1194 ROBERT W. MYSLIWIEC* ROBERT M. EDWARDS,JR. RAPICOM JOHN B. FORD (219)233-8957 MARK J. PHILLIPOFF' JOHN W.VAN LAERE*/** FRANCIS JONES SUSAN ROGERS HANSON ROLAND OBENCHAIN MILTON A.JOHNSON `ALSO ADMITTED IN MICHIGAN "ALSO ADMITTED IN ILLINOIS OF COUNSEL October 23 , 1985 Mrs. Beverlie J. Beck President South Bend Common Council Fourth Floor County-City Building South Bend, Indiana 46601 Re: Request for Ordinance regarding Automatic Molded Plastics, Inc. Dear Mrs. Beck and Members of the South Bend Common Council: Automatic Molded Plastics, Inc. ("Automatic") hereby requests the South Bend Common Council for an Ordinance authori- zing the City of South Bend, Indiana (the "City") , to issue its "Economic Development Revenue Bonds, Series 1985 (Automatic Real Estate. Project) " , in the aggregate principal amount of $750 ,000.00; to issue its "Economic Development Revenue Bonds, Series 1985 (Automatic Equipment Project) " , in the aggregate principal amount of $2, 250,000. 00 and approving and authorizing certain actions with respect thereto. This Council passed an Inducement Resolution on September 9 , 1985, in regards thereto and an Amended Inducement Resolution on October 14, 1985. The South Bend Economic Development Commis- sion gave the project a favorable report after the public hearing held on October 18, 1985. We tender herewith a form of said Ordinance. Very truly yours, JONES, OBENCHAIN, FORD, PANKOW & LEWIS JWV:brk ohn W. Van Laere Enc. cc: Mr. Kenneth P. Fedder Mr. Hugh W. Silberman Mr. Larry Deskovich All w/Enc.