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HomeMy WebLinkAboutApproving Economic Development Reveune Bonds Inland Distributing Corp Project ORDINANCE No. 7442-85 Passed by the Common Council of the City of South Bend,Indiana April 29, rq 85 Attest: Cit y Clerk IRENE K. GAMMON Attest: ,.'_ ♦��_ ' • Ai President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana April 30, 19 85 City Clerk IRENE K. GAMMON Approved and signed by me /(1//1,4,7 Mayor ORDINANCE NO. 7 /� AN ORDINANCE APPROVING THE FORM AND TERMS OF THE LOAN AGREEMENT, INDENTURE OF TRUST, AND ECONOMIC DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXE- CUTION THEREOF, AND APPROVING THE RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE INLAND DISTRIBUTING CORPORATION PROJECT. STATEMENT OF PURPOSE AND INTENT: The Common Council of the City of South Bend, Indiana, heretofore has created the South Bend Economic Development Commission (hereinafter referred to as the "Commission") pursuant to the provisions of Indiana Code 36-7-12 , as amended (hereinafter referred to as the "Act") . Inland Distributing Corporation, an Indiana corporation filed an application with the Commission to finance .certain economic development facilities resulting in a substantial number ofnew jobs as well as other benefits, and in connection therewith, the Commission has pre- pared and placed on file a report containing the subject matter as specified in Section 23 of the Act and has forwarded copies thereof to the Chairman of the Area Plan Commission of St. Joseph County, Indiana, and to the Superintendent of the South Bend Community School Corporation, being the area in which the proposed facilities will be located, and has timely received favorable reports from each of them, and the Commission held a public hearing on the proposed financing of such economic development facilities in accordance with the Act after giving the required notice as provided in the Act, and adopted a resolution finding that such proposed financing complies with the purposes and provisions of all applicable Indiana statutes governing the issuance of Economic Development Revenue Bonds, including but not limited to the Act, and approving the form and terms of the Loan Agree- ment, Indenture of Trust, and Bonds, and further approving this form of Ordinance, authorizing the execution thereof, and further finding that such economic development facilities will not have an adverse competitive effect on similar facilities already constructed and opera- ting in the City of South Bend, Indiana. NOW, THEREFORE, BE IT ORDAINED BY THE Common Council of the City of South Bend, Indiana _ that . Inland Distributing Corporation Project and the issuance of the Economic Development Revenue Bonds pursuant thereto are hereby approved and adopted. Section 2 . Said forms of Indenture of Trust and Loan Agreement, to- gether with the Note and Mortgage attached as exhibits thereto, and the Economic Development Revenue Bonds which are on file with the Commission, are hereby incorporated by reference into this Ordinance, and said forms , shall be inserted into the minutes of the Common Council of the City of South Bend, Indiana. Section 3. Said Loan Agreement and Indenture of Trust shall be exe- cuted on behalf of the City of South Bend, Indiana, by the Mayor and City Clerk of South Bend, Indiana, and sealed with the corporate seal of such City. Section 4 . Said Economic Development Revenue Bonds, payable solely and only from the revenues derived from such Project pursuant to the aforementioned Loan Agreement and Indenture of Trust will not be in any respect a general obligation of the City, nor may the Bonds be paid in any manner from funds raised by taxation, and may be issued in an aggregate amount not to exceed Six Hundred Twenty-Five Thousand Dollars ($625,000 . 00) , as fully registered bonds in denominations of One Thousand Dollars ($1, 000. 00) or multiples thereof payable in lawful money of the United States of America at the principal office of St. Joseph Bank and Trust Company in the City of South Bend, Indiana. Such Bonds shall be re- payable with interest thereon at a rate not to exceed the higher of 80% of the four year U.S . Treasury Note rate of interest or 75% of the rate of interest charged to its prime customers by Citicorp of New York in effect during the term of the Bonds, over a term of not more than 15 years, and subject to redemption, all in accordance with the terms of said Bonds, Loan Agreement and Indenture of Trust. Such Bonds shall be dated as of the date of execution and delivery, and shall be executed on behalf of the City of South Bend, Indiana, by the manual signatures of the Mayor and City Clerk of the City, and sealed with the corporate seal of the City, and executed and delivered to the purchasers of the Bonds on or before July 1, 1985. Section 6 . The Resolution of the South Bend Economic Development Commission, passed on April 19 , 1985 , is hereby approved, and the Common Council of the City of South Bend, Indiana, hereby finds that the proposed financing for the issuance of the Economic Development Revenue Bonds would be of benefit to the health and welfare of the City of South Bend, and that it complies with the purposes and pro- visions of the Act. Section 7. Pursuant to the provisions of Indiana Code 36-1-5-4 , two copies of all documents incorporated in this Ordinance by reference are on file in the office of the City Clerk for public inspection. Section 8 . This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor leMber of the CO on Council ky -a 9- FILED IN CLERK'S OFFICE 1st READING__ t1_�n /04....4,011114v.*:-A-st -SpvT�it ;,Eg:`\\ .x • CITY ®f SOUTH It END - '.0 \�EACE�,iel 1 �o W ;` " ,",7471 ROGER O. PARENT, Mayor Economic Development Commission Alice Neddo Jerry Hammes, President Staff Administrator April 24, 1985 230 W. Jefferson Boulevard Walter Szymkowiak, Vice President Walter A.Mucha,Secretary P.O.Box 1677 Kenneth P Fedder,Counsel South Bend,Indiana Alice Neddo, Asst. Sec. 46634 1677 (219)234-0051 Members of the South Bend Common Council County-City Building South Bend, IN 46601 Re : Inland Distributing Corporation - Proposed Ordinance Dear Councilmen : The South Bend Economic Development Commission has received an application from Inland Distributing Corporation for a City of South Bend Economic Development Revenue Bond in the amount of $85 , 000. 00, to aquire , remodel , expand and equip manufacturing and office facilities for use by Inland Distributing Corporation, located at 1145 Prairie Avenue, South Bend, Indiana. This is the expansion of a business enterprise in the South Bend Community. It is anticipated that the 5 new jobs created will have an approximate payroll of $100, 000 . 00 . We request your favorable action on the passage of the Ordinance. Rstspectfull ,p. • if gkNliTH ' PER A to • ey for the South Bend E.o.omic Development Commission KPF :ram FILED IN CLERK'S OFFICE APR 2 1985 IREI Gq 1ON CITY CLERK, SO. BEND, IN