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HomeMy WebLinkAboutIssue its Economic Development Revenue Bonds (Teachers Credit Union Project) $5,130,000.00 ORDINANCE No. 7538-85 Passed by the Common Council of the City of South Bend, Indiana November 18,19 85 Attest: ' Cit y Clerk IRENE K. GAMMON Attest: JA_ —/%. President of Common Council jopp, s.r.- Presented by me to the Mayor of the City of South Bend, Indiana November 18 119 85 City Clerk IRENE K. GAMMON Approved and signed by me j Ig (j) {/1 ami(JA/ ' Mayor ORDINANCE NO. 2w2 V-45- AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY") , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS (TEACHERS CREDIT UNION PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF FIVE MILLION ONE HUNDRED THIRTY THOUSAND DOLLARS ($5, 130, 000. 00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. STATEMENT OF PURPOSE AND INTENT: The City is a municipal corporation and poli- tical 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 empowered to adopt this Ordinance and to carry out its provisions. The South Bend Economic Development Commission (the "Commission") has rendered its report concerning the proposed financing of economic development facilities for Teachers Credit Union and the Area Plan Commission has commented favorably thereon. The Commission, after a public hearing held on September 6, 1985, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the construction by Teachers Credit Union (the "Company") of the proposed eco- nomic 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 the Loan Agreement between the Company and the the City to the bondholders, The Trust Indenture between the City and St. Joseph Bank and Trust Company (the "Trustee") , the Letter of Credit from U.S. Central Credit Union to the Trustee and related documents, 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. The proposed economic development facilities are located in an economic development target area. 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 Loan Agreement are "eco- nomic 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 operat- ing 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, Promissory Note, Economic Development Revenue Bonds, Trust Indenture, Letter of Credit, Bond Purchase Agreement and 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 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 said Promissory Note, and (v) the securing of said Economic Development Revenue Bonds by said Loan Agreement, said Trust Indenture and said Letter of Credit. Section 5. The City shall issue its Economic Develop- ment Revenue Bonds (Teachers Credit Union Project) , in the aggregate principal amount of Five Million One Hundred Thirty Thousand Dollars ($5,130,000. 00) for the purpose of procuring funds to loan to the Company in order to finance the construc- tion of such facilities, as more particularly set out in said Loan Agreement which Economic Development Revenue Bonds shall be payable as to principal and interest solely from the pay- ments made by the Company on its aforesaid Promissory Note in the principal amount of Five Million One Hundred Thirty Thousand Dollars ($5, 130,000.00) 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 and said Letter of Credit. Said Economic Development Revenue Bonds shall never constitute general obligations of, indebtednesses 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 December 10, 1985; shall be dated as of December 1, 1985; shall have annual serial maturities from December 1, 1986 to December 1, 1999; shall bear interest at fixed per annum rates not to exceed eight and eight tenths percent (8.80%) , shall be redeemed in the case of an Event of 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. Maturities, interest and price are as set forth below: Principal Stated Price as Year Amount Interest Percent of Par 1986 365,000 5. 00 99.759 1987 365,000 5.75 99.535 1988 365,000 6.40 99.731 1989 365,000 6.90 99. 656 1990 365,000 7. 10 99.586 1991 365, 000 7. 30 99.522 1992 365,000 7.50 99.464 1993 370, 000 7.75 99.414 1994 365, 000 8. 00 99.369 1995 370, 000 8.25 99.664 1996 365, 000 8.40 99.294 1997 370, 000 8.50 98.893 1998 365, 000 8.75 99. 617 1999 370,000 8.80 99.208 Section 6. The Mayor and/or the Clerk of the City are authorized and directed to sell said Economic Development Reve- nue Bonds to PaineWebber, the Underwriter, at a price as set forth in Section 5 hereof, plus accrued interest, less an underwriter's discount not to exceed 1. 675%. 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 consumma- tion 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 PaineWebber, payment for which 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, and after the issuance of said Economic Develop- ment 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 Eco- nomic Development Revenue Bonds 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 Member / 1st READING 7-8-i? s ' PUBLIC HEARING /1_ _�� 2nd READING 11— �,- ,p NOT APPROVED REFERRED PASSED -1! , r— Gt—rrc� i flnmmtttn &rpnrt MI the Cullman Qlonnrit of the fditg of*mill ilend: Your Committee of the Whole to whom was referred BILL NO. 75-85 A BILL AUTHORIZING THE CITY OF SOUTH BEND INDIANA (THE "CITY" ) , TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS (TEACHERS CREDIT UNION PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF FIVE MILLION ONE HUNDRED THOUSAND DOLLARS ($5,100, 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 Chairman Joseph T. Serge FREE PRESS aBleaRo PUBLISHING CO. BARNES a 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 13, 1985 Mrs. Irene K. Gammon City of South Bend City Clerk Fourth Floor County-City Building South Bend, Indiana 46601 Re: City of South Bend Economic Development Revenue Bonds (Teachers Credit Union Project) Dear Mrs. Gammon: Enclosed is an original and ten copies of the final, amended ordinance for the Teachers Credit Union Project, which we ask that you place on the agenda for public hearing and passage at the November 18 meeting of the Common Council. This ordinance has already had first reading, and enclosed are ten copies of the form of ordinance that received first reading, with changes from the final ordinance highlighted. Also enclosed are two sets of the final financing documents for this project. Thank you for your continued cooperation and assis- tance. Very truly yours, BARNES & THORNBURG 74,k /eL,,..(.1, Mark C. Krcmaric MCK/cac Enclosure cc: Kenneth P. Fedder, Esq. (w/encl. )