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HomeMy WebLinkAboutIssue its Economic Development Revenue Bond (Murphy Motor Freight Lines Inc Project) $1,000,000.00 ORDINANCE No. 7444-85 Passed by the Common Council of the City of South Bend, Indiana May 13, 'Q85 Attest: 41,-R---e-- .,-..,—,-,-.... ) City Clerk IRENE K. GAMMON .. _______President of Common Council --...,- Presented by me to the Mayor of the City of South Bend, Indiana May 14, ig 85 4-e-,_e- (\---- -)L2-2----,-1---0---,-/ City Clerk IRENE K. GAMMON Approved and signed by me Aer--,, / il ig.EL v2 Mayor ORDINANCE NO. 74/,/e/_ 26' AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY" ) , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (MURPHY MOTOR FREIGHT LINES, 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 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 Murphy Motor Freight Lines, Inc . (the "Company" ) 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 by the Company of the proposed economic development facilities 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 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 Loan Agreement 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 (Murphy Motor Freight Lines, Inc . Project) from the City to the bondholders, the Bond Purchase Agreement between the City, the Company and The First National Bank of Saint Paul (the "Bond Purchaser" ) , 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. -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 and Security Agreement, Promissory Note, Economic Development Revenue Bond and Bond Purchase Agreement 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 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 and Security Agreement, and said Promissory Note, and (v) the securing of said Economic Development Revenue Bonds by said Loan Agreement and Security Agreement and said Bond Purchase Agreement . Section 5 . The City shall issue its Economic Develop- ment Revenue Bond, Series 1985 (Murphy Motor Freight Lines, Inc . Project) , in the aggregate principal amount of One Million -3- Dollars ($1 , 000,000 . 00) for the purpose of procuring funds to loan to the Company in order to finance the acquisition of such facilities, as more particularly set out in said Loan Agreement 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 therein. Said Economic Development Revenue Bond shall never constitute a gen- eral 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 May 23 , 1985; shall be dated on or about May 23, 1985; shall have a final maturity date of on or about May 23, 1990 with principal reduced monthly, beginning on or about June 23, 1985; shall bear interest at a variable per annum rate equal to 80% of the Reference Rate publicly announced by The First National Bank of Saint Paul , Saint Paul , Minnesota (the "Reference Rate" ) , except in the case of a Determination of Taxability as defined in the Loan Agreement, in which case the per annum interest rate shall equal two percent per annum in excess of the Reference Rate; shall bear additional interest equal to one and sixteen hundreths percent -4- ( 1 . 16%) per annum of the original principal amount of said Bond payable in six (6) consecutive, equal installments on principal payment dates commencing in June, 1985; shall be in the denomi- nations of Five Thousand Dollars ($5, 000 . 00) or integral mul- tiples 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 sub- ject 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 Reve- nue Bond to The First National Bank of Saint Paul, Saint Paul , Minnesota 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 The First National Bank of Saint Paul , Saint Paul , Minnesota. -5- 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 Eco- nomic 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 , - 1 Member 9-ey- 2nd READING .S= 13-ess- NOT APPROVED REFERRED PASSED __l2_p -6-