HomeMy WebLinkAboutAuthorizing Issurance and Sale $6,500,000 Multi Family Housing Revenue Bonds Maple Lane Associates Phase VIIIORDINANCE No. 7408-$4
passed by the Common Council of the City of South Bend, Indiana
December 3. iq 84
City Clerk
IRENE K. GAMMON
presented by me to the Mayor of the City of South Bend, Ind*--na
Approved and signed by
December 4 i9 84
of Common Council
City Clerk
IRENE K. GAMMON
10gq
f�' fj/�' t--
J
ORDINANCE NO."
$6 ORDINANCE AUTHORIZING HOUSING REVENUE BONDS NOF THEECIOTY
$6,500,000 MULTI-FAMILY
OF SOUTH BEND, INDIANA FOR THE PURPOSE OF MAKING A LOAN
TO MAPLE LANE ASSOCIATES, PHASE VIII IN ORDER TO FINANCE
THE ACQUISITION, CONSTRUCTION AND INSTALLATION OF CERTAIN
ECONOMIC DEVELOPMENT FACILITIES LOCATED IN THE CITY OF
SOUTH BEND, ST. JOSEPH COUNTY, INDIANA; AUTHORIZING
EXECUTION OF p° LOAN
ASSIGNMENTE THEREOF PROVIDING
SECURITY FOR DELIVERY FOR SAID
OF A NOTE AND
BONDS; AUTHORIZING AN INDENTURE OF TRUST APPROPRIATE FOR
D DISPOSITION OF THE REVENUES FROM SUCH
THE PROTECTION AN
NOTE; AUTHORIZING A DECLARATION OF RESTRICTIVE COVENANTS
AND REGULATORY AGREEMENT; AND AUTHORIZING THE TERMS AND
SALE OF SAID BO AP AND T
AGREEMENT; AND PROVING THE OF ETERMSN OF THE MORTGAGE CHTHE
ASSIGNMENT OF RENTS AND LEASES AND RELATED MATTERS.
STATEMENT OF PURPOSE AND INTENT
The City of South Bend, Indiana (hereinafter called the
"Issuer ") is a municipal corporation and political subdivision of
the State of Indiana and by virtue of Indiana Code 36 -7 -12, as
amended (hereinafter call the
"Bond)Ordinance'r)zand ato cand eout
to adopt this ordinance
its provisions; and
Maple Lane Associates, Phase VIII (the "Borrower") is by
limited partnership duly organized and existing
Wallace F.
virtue of the larles G.IClarka ashits sole generals partners, with
Holladay and Ch
its principal office in South Bend, Indiana, and duly qualifie to
conduct business in the State of Indiana; and
The Borrower intends to and has entered into contracts
to acquire, construct and install certain economic development
facilities within the corporate limits Of the City
complex fw with South related
Indiana, constituting a 96 garages and 230 uncovered parking
improvements, including pool facility (the "Project "),
spaces, a clubhouse and swimming p
and the Issuer is willing ortionsof the costs and expenseslof
revenue bonds to finance p
such acquisition, construction and installation; and
It is estimated ttthe issuance of,thecmultig
costs relating to the preparation and
family housing revenue bonds, will be in excess of $6,500,000; an
2.4(b)
The South Bend Economic Development Commission has
performed all action required of it by the Act preliminary to the
adoption by the Common Council of this Bond Ordinance, and has
approved and forwarded to this Common Council the forms of (1)
Bond Purchase Agreement (the "Bond Purchase Agreement ") dated as and
of > December 15, 1984 among the Issuer, he Borrower r, the ale tal of
Holding Corporation (the "Purchaser ") P Indenture of Trust
the Bonds by the Issuer to the Purchaser, (2)
(the "Indenture ")
dated as of December 15, 1984, between the
Issuer and St. Joseph Bank and Trust Company. conta principal
ing he
offices in South Bend, Indiana (the "Tru( tee"), Agreement (the
form of multi - family housing revenue bond,
"Loan Agreement ") dated as of December 15, 1984, between the
Issuer and the Borrower, containing. a form of Note from the
Borrower to the Issuer, which shall be endorsed to the Trustee,
(4) Declaration of Restrictive Covenants and Regulatory Agreement
( the "Regulatory Agreement") dated as of December 15, 198
, amond
the Issuer, the Borrower and the Trustee, (5) Mortgage
Security Agreement (the "Mortgage ") dated as of December 15, 1984,
from the Borrower to the Trustee, (6) Assignment of Rents and
Leases (the "Assignment of Rents and Leases ")
dated as of
December 15, 1984, from the Borrower to the Trustee, and (6) this
t forth above hereinafter
Bond Ordinance (all of
d "Bon the doc ntnts se
collectively ca
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS:
Section 1. Findings; Public Benefits. The Common
Council of the uer hereby finds and determines that the Project
to be acquired, constructed and installed with the proceeds of the
Multi- Family Housing Revenue Bonds herein authorized are "economic
development facilities" as that phase is used in the Act; that
acquisition, construction and installing of the Project will
increase employment opportunities and increase diversification of
ill
economic development facilities in and near the development wand
improve and promote the economic stability,
welfare of the area in and near the Issuer and will encourage and
promote the expansion of industry, trade and commerce in the area
in and near the Issuer and the location of other new industries in
such area; and that the public benefits to be accomplished by this
Bond Ordinance, in tending to overcome insufficient employment
opportunities and insufficient diversification of industry, are
greater than the cost of public services (as that phrase is
defined in the Act) which will be required by the Project. The
issuance of t Bons id s of Indiana Code 362 h reof, comply with
the purpose an p
Section 2. Authorization portion of t:
Revenue Bonds. In order to pay a p
acquiring, constructing and installing the Project,
hereby authorized to be issued, sold and delivered
of Multi -Famil
-2-
l Housin
e cost o
there are
$6,500,000
aggregate principal amount of Multi- Family Housing Revenue Bonds
(Maple Lane Associates Project) of the Issuer (the "Bonds "). Any
additional Costs of the Project will be paid for by the Borrower.
Section 3. Terms for the Bonds. The total principal
amount of Bonds that may be issued is hereby expressly limited to
istered
$6,500,000. The Bonds (a) shall be issued in shall beelettered
form (without coupons) in any denomination, (b)
and numbered R -1 and upward, (c) shall be executed by the official
manual signatures of the Mayor and the Clerk of the thereon, and
the corporate seal shall be impressed or printed
shall be dated as of the date of issue and delivery, and (e) shall
have a final maturity of December 1, 2009 (a term of approximately
25 years).
The Bonds shall be due and payable as follows:
Commencing on the first day of the month following the
date hereof and on the first day of each month thereafter to and
including Decmber 1, 2009
shall Abe an payable, subjecgtu to the following:
at the Adjuste
(a) subject to the provisions of clause (c) below, the
amount of such monthly installment shall not exceed an amount
equal to 1/12 times 10 -1/4% times the outstanding principal
amount hereof (the "Initial Monthly Installment "); provided,
however, that the Issuer may at its option pay any or all
accrued interest above and beyond the Maximum Monthly
Installment;
(b) if the Initial Monthly Installment is insufficient
to pay the interest accrued at the Adjusted Rate, then the
difference between the amount of the Initial Monthly
Installment and the interest accrued shall constitute
deferred interest ( "Deferred Interest ") and
forshall bear
day
interest, to the extent legally enforceable,
until paid hereon shall be added d oc the amoundt Interest of interest
interest t payment date;
accrued on the next monthly pay
(c) if the total amount
anun timef exceed rten percent Interest (10%ed
interest thereon shall at y
of the original principal amount hereof, then commencing on
the first (1st) day of the next calendar month following, the
monthly installment payable hereon shall be equal to interest
at the Adjusted Rate so that the total amount of Deferred
Interest and interest thereon shall not exceed ten percent
(100) of the original principal amount hereof, said monthly
installments to continue in the amount of interest at the
Adjusted Rate
stallment,s at which time the provisions h Initial
of clause
Monthly In
(d) below shall be applicable;
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(d) if at any time there is outstanding any unpaid
Deferred Interest the AdjustedtRate risna described any ime less than
(b) above, and i per annum, the amount of
ten and one - fourth percent (10 -1/4 %) the
the monthly installments Monthly never
Installment,continue
and peach n such
amount of the Init .first to Deferred
monthly installment shall be applied such
Interest and interest thereon, and if sufficient he p balance
Deferred Interest and interest thereon,
shall be applied to accrued interest. When all such Deferred
Interest and intonthl thereon installments hall been
reduced the
amount of the m Y
accrued interest only at the Adjusted Rate. The Iss e of hthe
not be deemed to be indefault of each ymonthly installment
deficiency between the p a y ment
and the actual amount of interest accrued on such date at the
Adjusted Rate; and
(e) the outstanding principal amount hereof and any
other amounts due hereon, monthlyoi the extent nstallment not
as paid
forthlabovem
a portion of each
shall be due and payable on December 1, 2009.
The "Adjusted Rate" shall be equal to 10 -1/4% from the
date of issuance and delaaeusted on d a 1quarterlyDbasi�s, commencing
and thereafter shall be 7
January 1, 1985, and on each April 1, July 1, October 1 and
January 1 thereafter,
to a rate equal to 75% (the "Index
Percentage ") of the rate on new issue long -term A -rated utility
s
bonds as reported by Salomon Brothers, last lfull calendar „week
Market Round -up report
prior to the week in which the applicable quarter begins. In the
event Salomon Brothers. or frequency successor no longer hat so
said report or the reporting
determination cannot be mkee aateeoflsimila�vbondsewh�ch ismthen
report indicating the ma the
in use and is mutually ratheprabeeadjustment. no nod event shall
Borrower shall be used
the Adjusted Rate exceed the
d maximum should interest
may be borne by the Bonds,
entitled (but for this limitation) then holders the Adjusted dau major ty in to
a rate which would be
aggregate principal amount of the Bonds outstanding shall have the
option to either (1) accept the maximum rate permissible by law,
or (2) declare the Bonds immediately due and payable in full, in
accordance with Paragraph 11(d) hereof, or (3) require that the
amount of any such excess over the maximum rate p mi s bamountlof
be paid and applied to the reduction of the principal
the Bonds.
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Under certain circumstances set forth in the Indenture
relating to taxability for federal income tax purposes
on the Bonds, the interesetr forth in ethenandenturebandn in increased
according to a formula s be entitled to additional
Bonds, and the holders h Bonds may of
interest and other payments.
Books for the registration and transfer of the Bonds
shall be kept by the Tr ein aPrincipal co or nCurrencys in n he premium,
United
if any, shall be payable y payment date is legal
a
States of America which, at the respective
ivate debts, at the prin-
tender for the payment of public and d p
cipal office of the Trustee in South Bend, Indiana.
The Bonds shall be in such
ro,, and shall be subject
optional and mandatory redemption provisions,
to such other terms andconditions as set froth in the
d the interest thereon do not and shall
Indenture. The Bonds or a against th
never constitute an indeb°tWed= eof the Issuer, hthe charge the f Ste
general credit or taxing p political subdivision thereof,
Joseph, the State of Indiana or any from
but are limited obligations of the Issuer payable solel Loan
revenues and other amounts derived from the Note, the
Agreement and the Assignm t °I and Form s of d shall the Loan
secured as provided The Indenture.
Agreement, the Indenture, the Bond Purchase Agreement, the
Mortgage, the Assignment of Rents and Leases and the Regulatory
Agreement are before this meeting and are by this reference
incorporated in this Bond 1 Ord n minutes d l f the common Clerk hereby
directed to insert them o
to keep them on file.
Section 4. Sale of the Bonds. The Mayor and the City
Clerk of the Issuer are hereby authorized
Pu Purchaser its to
designated
Bonds to or upon t g ursuant to the Bond Purchase
affiliates and registered assigns, p
Agreement at a price of $6,500,000, 1000 of par value.
Section 5. Bond Purchase Agreement. In order to
the commitment o Bonds s the Mayor and tithe °CityaCle�
provide for k
the Purchaser to purchase
shall execute and deliver Purchase Agreement o subsea tia lyalthef form the
Issuer, a Bond Purc 9 roved in all
submitted to this Common Council, which is hereby app
respects.
Section 6. Indenture. In order to secure the payment
of the principal of and interest on the Bonds, the Mayor and City on
Clerk shall execute, acknowledge nn n ren deliver, of Tru t in in the name substantially d the
behalf of the Issuer,
form submitted to this Common Council, which is hereby approve in
all respects.
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Loan A reement. In order to provide for
Section 7. 9
the loan of -the proceeds of the Bonds to acquire, construct and
install the Project and the payment by the Borrower of an amount
sufficient to pay the principal of and premium, if any, and
interest on the Bonder inethe nameaandConYbehalf of Issuer
acknowledge and deli
Loan Agreement in substantially the form submitted to this Common
Council, which is hereby approved in all respects.
Section 8. Regulatory Agreement. In order to reserve
20% of the -units in the Project f ° the °Internal Tenants
Code of
required by Section 103(b)(12)(C)
1954, as amended, the in the r name and City
on behalf ofathe Issuer ea
acknowledge and de liver
Regulatory Agent in substantially the form submitted to this
Common Council, which is approved in all respects.
Section 9. Acceptance of Note. In connection with the
such onds te Noe of
Bonds, the Issuer accepts as shall rbey in r substantiallyh the t form
the Borrower. The e
attached as Exhibit B the.Loan The Mayor and City
Clerk shall endorse t he Note
Section 10. Additional Approval. The forms of the
anthe As nm atn d Leases be this
Mortgage d signed by P ries other thanthe Issuerin
meeting, to be
connection with the issuance of the Bonds and the with security
therefor, are hereby approved in form and content,
changes and revisions as may be necessary and agreed upon by the
parties thereto.
Section 11. Execution. The Common Council understands
the that there may be v too the actual forms issuance documents of the Bonds•
Common Council prior Y
Execution and sealing by Mayor and the City Clerk of the Bonds,
he Indentur, the Bond Purchase e en , t endorsement• byt theL Mayor a d •the
the Regulatory Agreement
constite conclusive evide of
City Clerk of the e Mote shall 11 changes utor revisions therein from
their approval o Y and
the forms of such documents before this meeting.
Section 12. TEFRA Hearing. The Issuer hereby approves
and confirms and consents to the location and time of the public
to be held on November 30 , 1984 (and the published
notice with respect th
hearing b
ereto) y the Economic Development
Commission, such hearing
Codebeing
ofheld
1954to The comply
Mayortissauthorized(to
of the Internal Revenue
approve this Bond Ordinance after such public hearing.
Section 13. General. The Mayor and the City Clerk and
other officials and emp n °the name and on each
Issuer,
authorized and directed,
to execute any and all agreements, documents, and instruments,
perform any and all acts, approve any and all matters, and do any
and all things deemed by them, or any of them, to be necessary or
desirable in order to
carry hist Bond orrdinancelt(including intent,
conditions and purposes o
the
preambles hereto
and documents
onstruction Band installation, of the
financing of the acquisition,
Project by the Borrower, ele of the Bonds, an
the securing of the Bon ds under
ies of Bond Documents. As required by
Section 14. Co
Indiana Code 36- 1-5 -4, the City e the
Cle k, a B and a ailableefor public
file in the office
inspection.
Section 15. EffectimmediatelyT upon Bits adoptionebyhthe
be in full force and approval the Mayor.
Common Council and app Y
e er of the Cad on Council
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