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HomeMy WebLinkAboutAuthorizing City of South Bend Issue its Economic Development Revenue Bonds (Thomas W Mittler Project) $1,250,000.00 ORDINANCE No. 7462-85 Passed by the Common Council of the City of South Bend, Indiana May 28, 85 Ig Attest: �'"`� � `� City Clerk IRENE K. GAMMON Attest: President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana May 29 , 85 �9 tit ja.„_.e.„, 1.<„ City Clerk IRENE K. GAMMON Approved and signed by me 1 C2L L i 19 a 17/, l%2.�-- Mayor ORDINANCE NO. 7L-16d, - AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY" ) , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1985 (THOMAS W. MITTLER, D/B/A T.A.N.K.S. , PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS ($1,250,000 . 00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. WHEREAS, the City is a municipal corporation and po- litical 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 Thomas W. Mittler, d/b/a T.A.N.K.S. , and the Area Plan Commis- sion has commented favorably thereon; and WHEREAS, the Commission, after a public hearing held on May 3, 1985, has adopted a Resolution, which has been trans- mitted to this Council , (i) finding that the acquisition and construction by Thomas W. Mittler, d/b/a T.A.N.K. S . (the "Com- pany" ) of the proposed economic development facilities de- scribed in said Report will not have an adverse competitive effect on any similar facilities already constructed or operat- ing in or about the City, (ii) further finding 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, ( 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 Develop- ment Revenue Bond, Series 1985 (Thomas W. Mittler, d/b/a T.A.N.K. S. , Project) from the City to the bondholders, the Trust Indenture between the City and Valley American Bank and Trust Company (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 proisions of the Act, and that this Council adopt an ordi- nance 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 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 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, Mortage 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 (Thomas W. Mittler, d/b/a T.A.N.K. S. , Project) , in the aggregate principal amount of One -3- Million Two Hundred Fifty Thousand Dollars ($1 ,250, 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 aggregate principal amount of One Million Two Hundred Fifty Thousand Dollars ($1,250, 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 Bonds shall never constitute gen- eral 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 the date on which the Bonds are pur- chased; shall be dated as of the date on which the Bonds are purchased; shall be in the form of a Series 1985 Bond in the principal amount of $1 ,250 , 000 . 00, payable over 12 years, at a variable rate per annum equal to 70% of the national prime rate of interest, determined by reference to the prime rate of interest announced in The Wall Street Journal, rounded up to the nearest one-quarter of one percent as more particularly described in the Trust Indenture, except in the case of an Event of Taxability as defined in the Loan Agreement, in which -4- case the per annum interest rate shall equal said national prime rate of interest; 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 Revenue Bonds to Valley American Bank and Trust Company at a price not less than one hundred percent (100%) of the principal amount thereof, plus accrued interest, if any. 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 Bonds to Valley American Bank and Trust Company, 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 -5- 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 Econo- mic 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 / / Ala Am, ember FILED IN CLERK'S OFFICE MAY 81985 fRENE GgA4MON CITY CLERK, SO. BEND, IN 1st READING *C-•'/3-"'r' PUBLIC HEARING S_ 8_ 5 2nd READING NOT APPROVED REFERRED PASSED A k- -6- •SpUT 14AN N \ % � � CITY of SOUTH BEND r �VEACE Qi aj v � � y .w ROGER O. PARENT, Mayor • 1860' Economic Development Commission Alice Neddo Staff Administrator Jerry Hammes,President 230 W.Jefferson Boulevard Walter Szymkowiak,Vice President May 8 , 1985 P.O.Box 1677 Walter A.Mucha,Secretary South Bend,Indiana Kenneth P.Fedder,Counsel 46634-1677 Alice Neddo,Asst.Sec. (219)234-0051 Members of the South Bend Common Council County-City Building South Bend, IN 46601 Re : Thomas W. Mittler, d/b/a T.A.N.K. S. Project - Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission has received an application from Thomas W. Mittler, d/b/a T.A.N.K. S . for a revenue bond in the amount of $1, 250, 000. 00, for the acquisition of machinery and specialty gas cylinders , to be used in the business operation to be located at 3607 South Main Street, South Bend, Indiana. It is anticipated that the new business operation will create approximately 4-5 new jobs , with an estimated payroll of between $80, 000. 00-$100, 000 . 00. This ' :y a further development of the South Main Street area in the City o. South Bend, Indiana. • R-sprctfully, fr. -.4 NETH P . FEDDER A iorn-y for the South Bend Eco .' ic Development Commission KPF:ram Qlnmmtttrr itrport En to Qlnmmnn Qiounril of the atitg of*with tiruh: Your Committee of the Whole to whom was referred BILL NO. 46-85 A BILL AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY" ) , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1985 (THOMAS W. MITTLER D/B/A T.A.N.K.S, PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS ($1,250, 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 Joseph T. SergChair,nan FREE PRESS PUBLISHING CO.