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HomeMy WebLinkAboutAuthorizing Issuance & Sale of $8,500,000.00 Economic Development Revenue Bonds Loan to Brick Road AssociatesORDINANCE No. 7418 -84 Passed by the Common Council of the City of South Bend, Indiana December 17, 19 84 Attest: T`"`" City Clerk IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana December 18, 1984 of Common Council 'A- °� y'�`�`` `� City Clerk IRENE K. GAMMON Approved and signed by me /'j Ut_- ORDINANCE NO. - 7y18 -Y4 AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $8,500,000.00 ECONOMIC DEVELOPMENT REVENUE BONDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PURPOSE OF MAKING A LOAN TO BRICK ROAD ASSOCIATES, IN ORDER TO FINANCE THE CONSTRUCTION AND EQUIPPING OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES LOCATED IN SOUTH BEND, INDIANA; AUTHORIZING EXECUTION OF A LOAN AGREEMENT; PROVIDING FOR THE DELIVERY OF A NOTE AND ASSIGNMENT THEREOF AS SECURITY FOR SAID BONDS; AUTHORIZING AN INDENTURE OF TRUST APPROPRIATE FOR THE PROTECTION AND DISPOSITION OF THE REVENUES FROM SUCH NOTE. STATEMENT OF PURPOSE AND INTENT The Common Council of the City of South Bend, Indiana, heretofore has created the South Bend Economic Development Commission pursuant to the provisions of I.C. 36- 7 -12 -1, et seq. The South Bend Economic Development Commission has found by a written Resolution that because of insufficient employment opportunities, insufficient tax base and insufficient diversification of economic development facilities in and near the City of South Bend, Indiana, the economic welfare of the City of South Bend would be benefited by construction of certain economic development facilities pursuant to a request made on November 5, 1981, by Brick Road Associates, and has further found by Resolution that the proposed financing complies with the purposes and provisions of I.C. 36- 7 -12 -1, as amended, and The South Bend Economic Development Commission has prepared a report estimating the public services which would be made necessary or desirable by the proposed project, the expenses thereof, and the total project costs of the proposed project and the number of jobs and estimated payroll on account of the construction of the proposed facilities relating to the proposed project, and such report having been submitted to the Chairman of the St. Joseph County Area Plan Commission and the Area Plan Commission's written comments, if any, having been made a part of UMM Mortgage, Note and Bonds and the issuance of Economic Development Revenue Bonds in accordance therewith, and The South Bend Economic Development Commission has transmitted this form of Ordinance to the City Clerk of the City of South Bend for presentation to the Common Council of the City of South Bend, Indiana, and The Common Council of the City of South Bend, Indiana, finds that the proposed development will be of public benefit to the economic welfare of the City of South Bend, Indiana, by tending to overcome the deficiencies previously found to exist and that such benefit is greater than the costs of the public facilities which would be required by the proposed project, NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: Section 1. The forms and terms of the Loan Agreement, Indenture of Trust, Security Agreement, Mortgage, Note and Economic Development Revenue Bonds pertaining to the Brick Road Associates facilities and the issuance of Economic Development Bonds pursuant thereto are hereby approved and adopted. Section 2. The form of Loan Agreement, Indenture of Trust, Security Agreement, Mortgage, Note and Economic Development Revenue Bonds are hereby incorporated by reference into this Ordinance and the forms shall be inserted into the records of the Common Council of the City of South Bend, Indiana, and shall be kept on file by the Clerk of the City of South Bend, Indiana. Section 3. The Loan Agreement, Indenture of Trust and Economic Development Revenue Bonds shall be executed on behalf of the City of South Bend, Indiana, by the Mayor and the Clerk - 3 - currency or its equivalent at the offices of Paine Weber Incorporated. The Bonds will be amortized over a period of twenty (20) years and bear interest at a rate of nine and three - quarters percent (9.75 %) per annum. The Bonds will be executed and delivered during regular business hours on or before December 31, 1984. The Bonds are redeemable at maturity or prior thereto on or after December 1, 1999, at par in accordance with the terms of Section 7.1 of the Loan Agreement. Such bonds shall be issued on behalf of the City of South Bend, Indiana, by the Mayor and Clerk of the City of South Bend, Indiana, and shall be sealed with the corporate seal of the City. Section 5. The Economic Development Revenue Bonds authorized by the Ordinance shall not be and shall never constitute an indebtedness of or a charge against the general credit or taxing power of the City of South Bend and shall not be in any respect a general obligation of the City, nor shall the bonds be paid in any manner from funds raised by taxation. The bonds shall be payable solely from revenues and receipts derived pursuant to the terms of the Loan Agreement and Indenture of Trust. Section 6. The Resolution of the South Bend Economic Development Commission passed on November 30, 1984, relating to the Brick Road Associates Project is hereby approved; and the Common Council of the City of South Bend 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 provisions of I.C. 36- 7 -12 -1, as amended and supplemented. Section 7. This Ordinance shall be in full force and PETER J. NEMETH .TAMES A. MASTERS JOHN M. MARNOCHA ANGELA E. RUSSO NEMETH & MASTERS ATTORNEYS AT LAW SUITE 511 NATIONAL BANK BUILDING 112 WEST JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601 November 14, 1984 The Honorable Beverlie Beck President South Bend Common Council 4th Floor County -City Building South Bend, IN 46601 Dear Mrs. Beck: TELEPHONE AREA CODE 219/234 -0121 On behalf of Brick Road Associates, we are submitting the attached proposed Ordinance seeking approval of the Common Council for the issuance of an Industrial Revenue Bond to facilitate the construction of a new Holiday Inn on the U.S. 31 by -pass between Brick Road and the Indiana Toll Road interchange. The South Bend Economic Development Commission previously approved an Inducement Resolution for this project on November 9, 1981 and the Common Council has approved Inducement Resolution No. 926 -81 for this project on November 9, 1981. We also are submitting the attached Petition for Real Property Tax Abatement Consideration in conjunction with this project. Our clients request your favorable action on the proposed Ordinance and Petition. Very truly yours, NEMETH & MASTERS , &4'6UV Peter J. emeth PJN /my Tommittu Report 0010 #lie (fommou Moundl of t4f ( ng of #01d4 feuh: Your Committee OF THE WHOLE to whom was referred 141 -84 A BILL AUTHORIZING THE ISSUANCE AND SALE OF $8,500,000.00 ECONOMIC DEVELOPMENT REVENUE BONDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PURPOSE OF MAKING A LOAN TO BRICK ROAD ASSOCIATES, IN ORDER TO FINANCE THE CONSTRUCTION AND EQUIPPING OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES LOCATED IN SOUTH BEND, INDIANA; AUTHORIZING EXECUTION OF A LOAN AGREEMENT; PROVIDING FOR THE DELIVERY OF A NOTE AND ASSIGNMENT THEREOF AS SECURITY FOR SAID BONDS; AUTHORIZING AN INDENTURE OF TRUST APPROPRIATE FOR THE PROTECTION AND DISPOSITION OF THE REVENUES FROM SUCH NOTE. Respectfully report that they have examined the matter and that in their opinion This bill should be recommended to the Council favorable as amended: by substitution of a new bill Joseph T. Serge Chairman FREE PRESS PUBLISHING CO.