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HomeMy WebLinkAboutAuthorizing the City to Issuse its Economic Development Revenue Bond (Data Link Systems Inc) $1,000,000.00 ORDINANCE No. 7490-85 Passed by the Common Council of the City of South Bend, Indiana July 22, rq 85 Attest: City Clerk IRENE K. GAMMON Attest: -Z,CicevJ e_- ` President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana July 23, ig 85 4L —e % ,, City Clerk IRENE K. GAMMON Approved and signed by me ! � � 19 //7-. i ,-K 'I/L/ Mayor ORDINANCE NO. 7P10 - 8`S AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY") , TO ISSUE ITS "ECONOMIC" DEVELOPMENT REVENUE BOND, SERIES 1985 (DATA-LINK SYSTEMS, INC. PROJECT) IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION DOLLARS ($1,000,000.00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. WHEREAS, the City is a municipal corporation and political 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 empowered to adopt this Ordinance and to carry out its provisions; and WHEREAS, the South Bend Economic Development Commission (the "Commission") has rendered its report concerning the proposed financing of economic development facilities for Data-Link Systems, Inc. , (the "Company") and the area Plan Commission has commented favorably thereon; and WHEREAS, the Commission, after a public hearing held on July 19, 1985, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the addition 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 (Data-Link Systems, Inc. , Project) from the City to the bondholders, The Trust Indenture between the City 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 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. Section 2 . This Council further finds 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. Section 3 . This Council further finds that the proposed 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, Mortgage 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 Development Revenue Bond, Series 1985 (Data-Link Systems, Inc. Project) , in the aggregate principal amount of One Million Dollars ($1,000,000.00) for the purpose of procuring funds to loan to the Company in order to finance the addition to the Company' s existing plant and equiping same, 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 One Million Dollars ($1,000,000.00) 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 August 1, 1985; shall be dated on or about August 1, 1985; shall have a final maturity date on or about August 1, 1997 with principal reduced monthly, beginning on or about September 1, 1985; shall bear interest computed on the basis of a 360 day year, twelve 30-day months on the principal balance thereon remaining unpaid at the per annum rate of eighty percent (80%) of the national prime rate at 1st Source Bank, South Bend, Indiana, at the date of August 1, 1985 and continuing at the rate of eighty percent (80%) of such national prime rate as of the first day of each quarter thereafter, not to be less, however, than seven percent (7%) per annum or to be more than eleven percent (11%) per annum, shall be in the denominations of Five Thousand Dollars ($5,000.00) or integral multiples thereof; shall be issued in registered from; 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 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 aforementioned documents for and on behalf of the City after making therein such changes permitted by the Act as they deem necessary or proper, as evidenced by their execution of such documents, and are further authorized and directed to execute and deliver such other documents for ana 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 consummation 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 Development 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 Economic 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 signature by the Mayor of the City. SOUTH BEND COMMON COUNCIL MEMBER DATED THIS day of , 1985. 10 READING 7 dJ FILED IN CLERK'S OFFICE PUBLIC-HEARING 7- as_8 S 2nd READING 7—Q — L. ; '; i NOT APPROVED REFERRED bane Gammon PASSED a e'er CLERK,SOUTH BEND,IND. o' •'', al' 'd Sl� I E. .;�\ 'j.x '/ CITY of SOUTH It END 0 V \�PEAOE,.. : / o® w,. _ ,� ,,/ ROGER O. PARENT, Mayor \"t:vctt:"-.i..8".:.--:6..5:>,...H.:=4:41 Economic Development Commission Alice Neddo Staff Administrator Jerry Hammes,President July 1 1985 230 W. Jefferson Boulevard Walter Szymkowiak,Vice President ' 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: Data-Link Systems , Inc . Project - Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission has received an application from Data-Link Systems, Inc. for a revenue bond in the amo . t of $1, 000, 000. 00 for the expansion and equipment for use by Data -Link Systems , Inc . , located at 1818 Commerce Drive, South E,en,, Indiana. The economic development facility ensures that Data-Link Systems , Inc . will remain in the City, resulting in the creation of 30 jobs with an annual payroll of approximately $750, 000. 00. We would appreciate your favorable action on the passage of the Ordinance . Re • ctfully, f 1 ;r � .. K0 t1 NE ,H P . FEDDER At orn-y for the South Bend EcAno ►'c Development Commission FILED IN CLERK'S OFFICE KPF :ram JUL 2 c Lrene Gammon CITY CLERK,SOUTH BEND,IND.