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HomeMy WebLinkAboutIssue its Economic Development Revenue Bonds (Aquarius Project) $750,000.00ORDINANCE No. 7407 -84 Passed by the Common Council of the City of South Bend, Indiana. December 3, 19 84 IRENE K. GAMMON Attest: Presented by me to the Mayor of the City of South Bend, Indiana December 4 ig 84 Approved and signed by mew City Clerk of Common Council IRENE K. GAMMON Clerk ORDINANCE NO. 7y/d Z - ee7l AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY "), TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1984 (AQUARIUS PROJECT)," IN THE AGGREGATE PRINCIPAL AMOUNT OF SEVEN HUNDRED FIFTY THOUSAND ($750,000.00) DOLLARS AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. STATEMENT OF PURPOSE OF INTENT 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 carry out its provisions; and The South Bend Economic Development Commission (the "Commission ") has rendered its report concerning the proposed financing of economic development facilities for Aquarius Tool and Mold, Inc., and the Area Plan Commission and South Bend Community School Corp. have commented favorably thereon; and The Commission, after a public hearing held on November 16, 1984, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition by Aquarius Tool and Mold, Inc. (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 (iv) approving the economic development revenue bond financing of such facilities, including the form and terms of the Loan Agreement and Security Agreement between the Company and the CITY, the election under I.R.C. §103(b)(6), the Promissory Note from the Company to the CITY, the registered City of South Bend, Indiana, Economic Development Revenue Bonds, Series 1984 (Aquarius 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 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 pro- visions of the Act, and that this Council adopt an ordinance 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 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 financinc of G„t-h 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, Security Agreement, Election under I.R.C. §103(b)(6), Promissory Note, Economic Development Revenue Bonds and Trust Indenture attached hereto and incorporated hereby by reference (two (2) copies of which are on file in the Office of 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 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, Security Agreement, and said Promissory Note; and (v) the securing of said Economic Development Revenue Bonds by said Loan Agreement, Security Agreement and said Trust Indenture. Section 5. The CITY shall issue its Economic Development Revenue Bonds, Series 1984 (Aquarius Project), in the aggregate principal amount of Seven Hundred Fifty Thousand Dollars ($750,000.00) for the purpose of procuring funds to loan to the Company in order to furnish the acquisition of such facilities, as more particularly set out in said Loan Agreement 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 Promissory Note in the principal amount of Seven Hundred Fifty Thousand Dollars ($750,000.00) which will be executed and delivered by the Company to evidence said loan, from other sources under said Loan Agree- ment and Security Agreement, and as nthPrw;cP nrnx74AcA 4" ��4A never constitute general obligations of, indebtedness 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 December 18, 1984; shall be dated as of December 18, 1984; shall have a final maturity date of December 18, 1994, with payments beginning on January 18, 1985; shall bear interest at ten per cent (10 %) per annum, except in the case of an Event of Taxability or Default, as defined in the Loan Agreement, in which case the per annum interest rate shall be the higher of ten per cent (10 %) or one per cent (1 %) over the prime rate on corporate loans recognized by Valley American Bank and Trust Company, adjusted monthly on the first business day of each month during any default period; shall be the denomination of Seven Hundred Fifty Thousand Dollars ($750,000.00); 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 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 per cent (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 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 consummation 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 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 Economic Development Revenue Bonds or the interest thereon remains unpaid. Section 9. Pursuant to the provisions of IND. 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 10. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 11. This Ordinance shall be in full force and effect from and after its passage by this Council and its signa- ture by the Mayor of the CITY. SOUTH BE D COMMON COUNCIL By J, -e � 0 Memb WILLIAM E. VOOR LLOYD M. ALLEN KENNETH P. FEDDER GEORGE E. HERENDEEN ANTHONY D. KOWALS LARRY L.AMBLER FRED R. HAINS DAVID M. McTIGUE VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS ATTORNEYS 8 COUNSELORS AT LAW 300 FIRST BANK BUILDING 205 WEST JEFFERSON BLVD. SOUTH BEND, INDIANA 46601 November 14, 1984 Members of the South Bend Common Council County City Building South Bend, IN 46601 AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. MCMICHAEL RE: Aquarius Tool and Mold, Inc. Project -- Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission has re- ceived an application for industrial revenue bond financing from Aquarius Tool and Mold, Inc, in the amount of $750,000.00, to which the South Bend Commission has passed an inducement resolu- tion and public hearing resolution and this council has passed an inducement resolution. The purpose of this bond is to acquire new economic development facilities to be located at 3063 Progress Drive, South Bend, Indiana and which hopefully will create in con- junction with an accompanying bond application for Automatic Molded Plastics, Inc. approximately 164new jobs with an es- timated payroll of $1,470,000.00. Your favorable action on this proposed ordinance will be appreciated. Resfectfully, K NE H P. FEDDER A for ey for the South Bend E orlmic Development Commission KPF /fg F1118 IN CL EIT Is WW NoV 1 4 1984 Irene ammo,,. SOUTH BEND, IND. T.arAndtI er Irpor# coo #lit Tomum TounrU of t4p OV of ovw4 wink: Your Committee OF THE WHOLE to whom was referred 134 -84 A BILL AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY "), TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1984 (AQUARIUS PROJECT), IN THE AGGREGATE PRINCIPAL AMOUNT OF SEVEN HUNDRED FIFTY THOUSAND ($750,000.00) DOLLARS 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 FAVORABLEt AS AMENDED: SUBSTITUTE PAGE 4 Joseph T. Serge Chairman FREE PRESS PUBLISHING CO.