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HomeMy WebLinkAboutAuthorizing City Issue Economic Development Revenue Bonds (Mittler Supply Inc) $400,000.00 ORDINANCE No. 7463-85 Passed by the Common Council of the City of South Bend,Indiana May 28, 85 r9 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 19 4s2-7-t-e- City Clerk IRENE K. GAMMON Approved and signed by me / 19 E s- L 77A b1/42� Mayor ORDINANCE NO. 143 - ?-5- AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY" ) , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1985 (MITTLER SUPPLY, INC. PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF FOUR HUNDRED THOUSAND DOLLARS ($400 ,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 Mittler Supply, Inc . 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 construction by Mittler Supply, Inc . (the "Company" ) of the proposed economic development facilities described in said Report will not have an adverse competitive effect on any simi- lar facilities already constructed or operating in or about the City, ( ii) further finding that the proposed economic develop- ment revenue bond financing of such facilities will be of bene- fit 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, includ- ing the form and terms of the Supplemental Loan Agreement, Mortgage and Security Agreement between the Company and the City, the Series 1985 Promissory Notes from the Company to the City, the registered City of South Bend, Indiana, Economic Development Revenue Bonds, Series 1985 (Mittler Supply, Inc . Project) from the City to the bondholders , the Supplemental 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 Supplemental Loan Agreement, Mortgage and Security Agreement are "economic devel- opment 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 Supple- mental Loan Agreement, Mortgage and Security Agreement, Series 1985 Promissory Notes, Economic Development Revenue Bonds and Supplemental 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 Bonds , (iii) the loan of the net proceeds of said Economic Development Revenue Bonds to the Company for the acquisition and construction of such facilities, such loan to be evidenced by said Promissory Notes, ( iv) the repayment of said loan by the Company pursuant to said Supplemental Loan Agreement, Mort- age and Security Agreement, and said Promissory Notes, and (v) the securing of said Economic Development Revenue Bonds by said Supplemental Loan Agreement, Mortgage and Security Agreement and said Supplemental Trust Indenture. -3- Section 5 . The City shall issue its Economic Develop- ment Revenue Bonds, Series 1985 (Mittler Supply, Inc . 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 Supplemental Loan Agreement, Mortgage and Security Agreement, which Economic Development Revenue Bonds shall be payable as to principal and interest solely from the payments made by the Company on its aforesaid Series 1985 Promissory Notes in the aggregate principal amount of Four Hundred Thou- sand Dollars ($400,000 . 00) which will be executed and delivered by the Company to evidence said loan, from other sources under said Supplemental Loan Agreement, Mortgage and Security Agree- ment, and as otherwise provided in said Supplemental Trust Indenture. 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 the date on which the Bonds are purchased; shall be dated as of the date on which the Bonds are purchased; shall be in the form of a Series 1985 A Bond and a Series 1985 B Bond in the principal amounts of $150 , 000 . 00 and $250 , 000 . 00 , respectively, payable over 5 years and 15 years, respectively, all at a variable rate per annum equal to 70% of the national prime rate of interest, rounded up -4- to the nearest one-quarter of one percent as specified in the Supplemental Trust Indenture, determined by reference to the prime rate of interest announced in The Wall Street Journal , except in the case of an Event of Taxability as defined in the Supplemental Loan Agreement, Mortgage and Security Agreement in which 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 pay- able in the medium and at the place or places provided therein; and shall be subject 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 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 -5- 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 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 . The Supplemental Loan Agreement, Mortgage and Security Agreement and the Supplemental Trust Indenture supplement a Loan Agreement, Mortgage and Security Agreement and a Trust Indenture approved by Ordinance Number 7392-84 , and provide for the issuance of additional Notes and additional Bonds as defined in such earlier documents and are issued in conformity with such earlier documents regarding the issuance of such. They also correct a scrivner ' s error in the computa- tion of interest which appeared in such earlier documents . Section 10 . All ordinances or parts of ordinances in conflict herewith are hereby repealed. -6- Section 11 . 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 4, , , /c......1.- 7..; C---' ..0_,4L/ tdiember FILED IN CLERK'S OFFICE MAY 8 1985 IRENE GAMMON CITY CLERK, SO. BEND, IN 1s? READ:NG .C"' /3—y PUBLIC HEARING 5-4 8- Y T 2nd READING_5-- L- 3-� NOT APPROVED REFERRED PASSED 5- y-e-5-- -7- pr'' ,'' CITY of SOUTH BEND L� \�EACE� , el / w ® ROGER O. PARENT, Mayor 0® 1865`o® ®®®eao®® Economic Development Commission Alice Neddo Staff Administrator Jerry Hammes,President May 8 1985 230 W.Jefferson Boulevard Walter Szymkowiak,Vice President y , 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 : Mittler Supply, Inc . Project - Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission, during 1984, requested, and the Common Council by Ordinance authorized, a revenue bond issue for Mittler Supply, Inc . The financing documents for the original bond transaction authorized the City of South Bend to issue additional revenue bonds if it were deemed necessary. It has now been ascertained that, because of cost overrun on the original project, an additional $400, 000. 00 is necessary. The Proposed Ordinance is to authorize the City of South Bend to issue the additional revenue bonds in the amount of $400, 000. 00 . Your .vorable action on this Ordinance would be greatly appreciated. R- speptfully, 1 41. KE +!,- ' . FEDDER At, orne for the South Bend Ecr • e is Development Commission KPF :ram , tinmmtttrt Sport can the Tom= Qlounril of the CV of*oath Ernd: Your Committee of the Whole to whom was referred BILL NO. 47-85 A BILL AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY" ) , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1985 (MITTLER SUPPLY, INC. PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF FOUR HUNDRED THOUSAND DOLLARS ( $400,000. 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. Serge Chairman FREE PRESS ea1031 PUBLISHING CO.