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HomeMy WebLinkAboutApproving the form and Terms of the Loan Agreement Economic Development Revunue Bonds Matthew R & Lynn H Dee Project ORDINANCE No. 7543-85 Passed by the Common Council of the City of South Bend, Indiana November 18, 19.__85 Attest: City Clerk IRENE K. GAMMON Attest: AAA :�` ■tt_ __ ~ i. ht. President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana November 19, 1g RS K City Clerk IRENE K. GAMMON Approved and signed by me \- 9 19 8 S k(12-7 / jor ://11 ORDINANCE NO. 7„1-' ,/,?_ 8:::c AN ORDINANCE APPROVING THE FORM AND TERMS OF THE LOAN AGREEMENT, INDEN- TURE 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 MATTHEW R. AND LYNN H. DEE PROJECT. STATEMENT OF PURPOSE AND INTENT: The Common Council of the City of South Bend, Indiana, heretofore has created the South Bend Economic Development Commission (hereinafter referred to as the "Commission") pursuant to the provisions of Indiana Code 36-7-12 , as amended (hereinafter referred to as the "Act") . Matthew R. and Lynn H. Dee filed an application with the Commis- sion to finance certain economic development facilities resulting 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 Corporation, being the area in which the proposed facilities will be located, and has timely received favor- able reports from each of them, and the Commission held a public hearing on the proposed financing of such economic development facil- ities 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 De- velopment 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 execution 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 Bend, Indiana. NOW, THEREFORE, BE IT ORDAINED BY THE Common Council of the City of South Bend, Indiana, that: Section 1. The form and terms of the Loan Agreement, Indenture of Trust, and Economic Development Revenue Bonds pertaining to the Matthew R. and Lynn H. Dee 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 -2- in any manner from funds raised by taxation, and may be issued in an aggregate amount not to exceed $600 ,000 . 00, as registered bonds in denominations 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 9 .25% during the first 5 years and 80% of the rate charged to its prime customers by Citibank, N.A. , New York, New York, over a term of not more than fifteen (15) years , and subject to redemption, 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 execution and delivery, and shall be executed on behalf of the City of South Bend, Indiana, by the manual signatures of the Mayor and City Clerk of the City, and sealed with the corporate seal of the City, and executed and delivered to the purchasers of the Bonds on or before December 31, 1985. Section 5. The Mayor and City Clerk may approve changes and amendments to the Loan Agreement, Indenture of Trust, Economic De- velopment 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 November 15 , 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 pro- visions of the Act. -3- Section 7. Pursuant to the provisions of Indiana Code 36-1-5-4 , two copies of all documents incorporated in this Ordinance by refer- ence 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. i.�� e':er of the Co ro Council FILED IN CLERK'S OFFICE NOV 1 31985 1st READING //-/d''cPc5 PUBLIC HEARING //-/J-s - IRENE GAMMON 2nd READING /i 1 p-�'g CITY CLERK, SS"O.VB►EVN{BEND, IN NOT APPROVED REFERRED PASSED C ! -/ _ -4-