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Home My WebLink AboutIssue its Economic Development Revenue Bond Series 1985 (Harrington Project) $400,000.00 ORDINANCE No. 7544-85 Passed by the Common Council of the City of South Bend, Indiana November 18, rq 85 Attest: 7c.: City Clerk IRENE K. GAMMON -0 .t / Attest: 4,0:-.1.4 _ _ A,- �.�� President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana November 19, 85 z -'" City Clerk IRENE K. GAMMON r Approved and signed by me �G�-e�� ,, L �9 e S er ,/ ,A6 , E Mayor ORDINANCE NO. 7:5-V 54-A-',5-- AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY") , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (HARRINGTON PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF FOUR HUNDRED THOUSAND DOLLARS ($400, 000. 00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. STATEMENT OF PURPOSE AND INTENT: 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 empowered to adopt this Ordinance and to carry out its provisions; and The South Bend Economic Development Commission (the "Commission") has rendered its report concerning the proposed financing of economic development facilities for John F. Harrington and Tracey S. Harrington and the Area Plan Commission has commented favorably thereon; and The Commission, after a public hearing held on Octo- ber 4, 1985, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition and construction by John F. Harrington and Tracey S. Harrington (the "Company") of the proposed economic 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, Mortgage and Security Agreement between the comnanv and 1st Source Bank (the "Trustee") , 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, 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, that such facilities are located in an "economic development target area" as defined in the Act, and that such facilities will not have an adverse competitive effect on any similar facilities already con- structed 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 (Harrington Project) , in the aggregate principal amount of Four Hundred Thousand Dollars ($400, 000. 00) for the purpose of procuring funds to loan to the Company in order to finance the acquisition and construction of such facilities, 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 Hun- dred 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 Agree- ment, and as otherwise provided in said Trust Indenture. Said Economic Development Revenue Bond shall never constitute a gen- eral 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 November 20, 1985; shall be dated as of said date of execution and delivery; shall have a final matur- ity date on or about November 20, 2000 with principal reduced monthly, beginning on or about December 20, 1985; shall bear interest at a fixed per annum rate of ten and one-half percent (10-1/2%) , except in the case of an Event of Taxability as defined in the Loan Agreement, in which case the per annum registrable as provided therein; shall be payable in the medium and at the place or places provided therein; and shall be sub- ject 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 1st Source Bank 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 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 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 1st Source Bank, 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 Revenue Bond, and after the issuance of said Economic Develop- ment Revenue Bond 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 Econo- mic 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 sig- nature by the Mayor of the City. SOUTH BEND COMMON COUNCIL Member FILED IN CLERK'S OFFICE 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 (2021955-4500 (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 Bond (Harrington Project) Dear Mrs. Gammon: Enclosed is an original and one copy of an ordinance for the above-referenced bond issue, which we ask that you place on the agenda for the City Council meeting on November 18, 1985. It is our intention to ask the Council to suspend the rules and pass the ordinance on the evening of the 18th so that closing may take place that week. Also enclosed are two copies of the basic financing documents. Thank you for your continued cooperation and assis- tance. Very truly yours, BARNES & THORNBURG 716_4/c 4 Mark C. Krcmaric MCK/cac Enclosures cc: Kenneth P. Fedder, Esq. (w/encl. )