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HomeMy WebLinkAboutAuthorizing City of South Bend Issue its Economic Revenue Bond (3300 Sample Street Associates) $2,000,000.00 ORDINANCE No. 7461-85 Passed by the Common Council of the City of South Bend, Indiana May 28, Yq 85 Attest: 4City Clerk IRENE K. GAMMON Attest: � �� President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana May 29, ig 85 City Clerk IRENE K. GAMMON Approved and signed by me ` ��) (AA, i zg S /41 1, Mayor /I ORDINANCE NO. -7q(01 - 6,--, AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY" ) , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (3300 SAMPLE STREET ASSOCIATES, AN INDIANA PARTNERSHIP, PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF TWO MILLION DOLLARS ($2,000,000 . 00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. WHEREAS, the City is a municipal corporation and poli- tical subdivision of the State of Indiana, and by virtue of Title 35, 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 3300 Sample Street Associates, an Indiana partnership (the "Com- pany" ) and the Area Plan Commission has commented favorably thereon; and WHEREAS, the Commission, after a public hearing held on May 3 , 1985, has adopted a Resolution, which has been transmitted to this Council , ( i) finding that the acquisition and rehabilitation by 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 Company and the City, the Promissory Note from the Company to the City, the registered City of South Bend, Indiana, Economic Development Revenue Bond, Series 1985 (3300 Sample Street Associates, an Indiana Partnership Project) from the City to the bondholders, The Trust Indenture between the City and St . Joseph Bank and Trust Company (the "Trustee" ) , and this Ordi- nance, 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 com- plies 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 CITY 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 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. -2- 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 Development Revenue Bond, ( iii) the loan of the net proceeds of said Economic Development Revenue Bond to the Company for the acquisition and rehabilitation 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, Mort- gage and Security Agreement, and said Promissory Note, and (v) the securing of said Economic Development Revenue Bonds 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 (3300 Sample Street Associates, -3- an Indiana Partnership Project) , in the aggregate principal amount of Two Million Dollars ($2, 000 ,000 . 00) for the purpose of procuring funds to loan to the Company in order to finance the acquisition and rehabilitation 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 Two Million Dollars ($2, 000 , 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 Trust Indenture. Said Economic Development Revenue Bond shall never constitute a general obligation of, indebtednesses of, or charges 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 June 10 , 1985; shall be dated on or about June 10, 1985; shall have a final maturity date on or about June 10 , 2000 with principal reduced monthly, beginning on or about July 10 , 1985; shall bear inter- est at a fixed per annum rate equal to 8 . 875% for the first five years, and thereafter at a variable per annum rate equal to 75% of the Utility Bond Index as reported in The Wall Street Journal adjusted monthly on the 15th day of each month, except in the case of an Event of Taxability as defined in the Loan -4- ment, in which case the per annum interest rate shall equal one percent ( 1%) in excess of the New York City Prime Rate of interest adjusted monthly on the 10th day of each month, shall be in the denominations 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 pro- vided therein. Section 6 . The Mayor and/or the Clerk of the City are authorized and directed to sell said Economic Development Reve- nue Bond to St. ,Joseph 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 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 Bond to St . Joseph Bank and Trust Company, -5- 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 ewer / DATED: May , 1985 1st READINGi PUBLIC HEARING 2nd READING S" 9� - Y5- NOT APPROVED REFERRED PASSED .5'a rf-857 Ck4J71.,n Q-C, -6- i '-OvT ��°®s `' s �: \ /% xx ,; CITY of SOUTH BEND t `\\PEACE r V, e W ;�,%:a'"� ROGER O. PARENT, Mayor s ill4 ®® 2865/x+ Economic Development Commission Alice Neddo Staff Administrator Jerry Hammes, President April 24, 1985 230 W. Jefferson Boulevard Walter Szymkowiak, Vice President P.O.Box 1677 Walter A.Mucha, Secretary South Bend,Indiana Kenneth P. Fedder,Counsel Alice Neddo,Asst. Sec. 46634-1677 (219) 234-0051 Members of the South Bend Common Council County-City Building South Bend, IN 46601 Re : 3300 Sample Street Associates - Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission has received an application from 3300 Sample Street Associates , an Indiana Limited Partnership , for City of South Bend Economic Development Revenue Bonds in the amount of $2, 000, 000. 00, for the acquisition and rehabilitation of the former South Bend Toy Building located at 3300 Sample Street , South Bend, Indiana, for subsequent occupancy and lease to other industrial tenants . This is a utilization and upgrading of partially vacant premises , the expansion of the economic base to be derived by the City of South Bend. It is anticipated that upwards to 200 new jobs could be involved when the total project is completed, with an estimated payroll of approximately $300, 000. 00 . During the initial state of the renovation, it is anticipated that approximately 10-15 new jobs could be created. We would appreciate your favorable action on the passage of the Ordinpice. Re.,.ectful ly, / ad N TH P. FEDDER FILED IN CLERK'S OFFICE ttor4ey for the South Bend Lcono. is Development Commission APR 2 4 1985 KPF :ram IRENE GAN\MON CITY CLERK, SO. BEND, IN (IInmmttter Ljrur# coo the Qlnmmon (lounril of tfye Olit1 of*tun, Nettb: Your Committee of the Whole to whom was referred BILL NO. 32-85 A BILL AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY" ) , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (3300 SAMPLE STREET ASSOCIATES PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF TWO MILLION DOLLARS ($2, 000,000. 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 substitute bill. Joseph T. Serg&hairman FREE PRESS speca PUBLISHING CO.