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HomeMy WebLinkAboutIssuance of $985,000.00 Revenue Bonds Center City Housing ProjectORDINANCE No. 7387 -84 Passed by the Common Council of the City of South Bend, Ind! A October 8, 19 84 Ir IRENE K. GAMMON City Clerk Presented by me to the Mayor of the City of South Bend, Ind'ana of Common Council 4.e-� G� City clerk IRENE K. GAMMON Approved and signed by me y C/� eI Ig � r' BILL NO. CITY OF SOUTH BEND, INDIANA ORDINANCE NO. 743 $'!7- AN ORDINANCE AMENDING ORDINANCE NUMBER 7361 -84, BEING AN ORDINANCE AUTHORIZING THE ISSUANCE OF $985,000.00 ECONOMIC DEVELOPMENT REVENUE BONDS CENTER CITY HOUSING PROJECT) OF THE CITY OF SOUTH BEND, INDIANA FOR THE PURPOSE OF FUNDING A LOAN TO CENTER CITY HOUSING, AN INDIANA LIMITED PARTNERSHIP, IN ORDER TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN REAL ESTATE AND ECONOMIC DEVELOPMENT FACILITIES LOCATED WITHIN ST. JOSEPH COUNTY, INDIANA, FOR USE BY CENTER CITY HOUSING: AUTHORIZING EXECUTION OF THE LOAN AGREEMENT, AN INDENTURE OF TRUST APPROPRIATE FOR THE PROTECTION AND DISPOSITION OF THE REVENUES FROM THE FINANCING AGREEMENT: AND AUTHORIZING THE TERMS AND SALE OF SAID BONDS WHEREAS, the City of South Bend, Indiana, (hereinafter called the "City ") is a municipal corporation and political subdivision of the State of Indiana and by virtue of Indiana Code, Title 36, Article 7, Chapter 12 (hereinafter called the "Act ") is authorized and empowered to acquire economic development facilities as those words are defined in the Act and to make direct loans to Users for the acquisition and construction of economic development facilities to overcome insufficient employment opportunities and insufficient diversification of industry in and near the City and to promote the general economic welfare of the area in and near the City and to issue its economic development revenue bonds to pay all costs of acquisition or construction of such economic development facilities, including engineering, legal fees, and all other expenses relating thereto during construction, including the costs of issuing the bonds and to secure said bonds pursuant to a Loan Agreement and Trust Indenture; and, WHEREAS, Center City Housing, an Indiana Limited WHEREAS, the User has agreed to acquire and construct economic development facilities within the limits of the County of St. Joseph in the State of Indiana and thereby create new employment opportunities and provide diversifica- tion of economic development in the City, and make payments pursuant to the Loan Agreement evidencing its loan obligations in an amount or amounts sufficient to pay the principal of, premium, if any, and interest on the economic development revenue bonds hereinafter authorized; and WHEREAS, the Common Council of the City, (the "Common Council "), has heretofore, by Ordinance enacted pursuant to the Act created the South Bend Economic Development Commission (the "Commission ") and the members of the Commission have been duly appointed and qualified pursuant to law and the Commission has organized and undertaken the duties imposed upon it by the Act and has found by written resolution that because of existing insufficient employment opportunities and insufficient diversification of industry, the economic welfare of the City would be benefited by financing the acquisition of economic development facilities for and on behalf of the User; and WHEREAS, the Commission has, by such resolution, ap- proved a report estimating the public services which would be made necessary or desirable, the expense thereof, the number of jobs, the estimated payroll on account of the acquisition of the economic development facilities and the cost of the economic development facilities and has submitted such report to the Area Plan Commission of St. Joseph County, Indiana, and to the Superindentent of the school corporation where the facilities will be located; and, terms of the economic development revenue bonds proposed to be issued by the City for the purpose of funding a direct loan from the City to the User to finance the cost of acquisition of such facilities, the Loan Agreement, and Indenture of Trust, which resolution and other instruments and information pertaining to the proposed financing have been transmitted to the Common Council of the City by the Secretary of the Commission; and, WHEREAS, pursuant to the Act, this Common Council has adopted a resolution finding that the proposed financing of the acquisition of such economic development facilities by the User will be of benefit to the economic welfare of the City of South Bend and to the County of St. Joseph, approving the proposed financing and authorizing the issuance by the City of $985,000 principal amount of economic development revenue bonds, (Center City Housing Project) (the "Bonds ") payable solely from the sources, having such terms and provisions and secured as provided by an Indenture of Trust (hereinafter called the "Indenture ") between the City and First Community Mortgage Corporation of Mishawaka, Indiana (the "Trustee "), and a Loan Agreement among the City of South Bend, Center City Housing and First Community Mortgage Corp. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section 1. Public Benefits: The Common Council of the City hereby finds and determines that the real estate, interests in real estate, other improvements thereon and other machinery and equipment, to be acquired and constructed with the proceeds of the bonds herein authorized are welfare of the City and will encourage and promote the expansion of industry, trade and commerce in the City and the location of other new economic development facilities in such area. Section 2. Findings: The Common Council hereby finds that this Ordinance (the "Bond Ordinance ") is of public benefit to the economic welfare of the City and County by tending to overcome the deficiencies previously found to exist, to -wit: insufficient employment opportunities and insufficient diversification of economic development, and that such benefit is greater than the cost of public facili- ties (as that phrase is defined in the Act) which will be required by the Project and further that the proposed financ- ing will be of benefit to the welfare of the City and com- plies with the purposes and provisions of the Act. Section 3. Authorization of $985,000 Economic Develop- ment Revenue Bonds: In order to pay the cost of acquiring and constructing the Project, there are hereby authorized to be issued, sold and delivered $985,000 aggregate principal amounts of the Bonds. It is hereby recognized that pursuant to the terms of the Agreement, any balance of the cost of the Project will be paid for by the User unless paid for out of the proceeds of additional parity bonds (the "Additional Bonds ") as identified in the Indenture. Section 4. Definitions: In addition to the words and terms defined in this Bond Ordinance, the words and terms used in this Bond Ordinance shall have the meanings set forth in the Indenture and Agreement unless the context or use indicates another or different meaning or intent and the form of the Bonds and the forms of the Agreement and Indenture, limited to $985,000 provided, however, may be issued as hereinafter provided. Bonds will be such as are set forth in terms are adopted herein by reference Indenture. The Bonds are limited obligations that Additional Bonds The terms of the the Indenture and such and by approval of the of the City, payable solely from payments of principal, premium, if any, and interest made by the User pursuant to the Loan Agreement, except to the extent that the principal of, premium, if any, and interest the Bonds may be paid out of money attributable to Bond proceeds or from temporary investments, or from other moneys, if any, accruing to the Trustee for the benefit of the bondholders. The Loan Agreement shall equally and ratably secure all outstanding Bonds, except that so long as there is no event of default under the Agreement, payments by the User shall be used by the Trustee to make like payment of principal of, or premium or interest on, the Bonds. By the Indenture, the City will assign to the Trustee the City's rights under the Agreement, including the right of the City to receive payments thereunder, all as security for the payment of the Bonds. The Bonds will be secured as provided in the Agreement and Indenture and the terms of said instruments are adopted herein by reference and by approval of the instruments. The Loan Agreement and documents executed thereunder will constitute the sole security for the Bonds. The Bonds and the interest thereon shall be a valid claim of the respective holders only against the Bond Fund created under the Indenture and other moneys held by the Trustee. The City will have no ownership interest in the Project. conditions provided in the Indenture and the Agreement. All Additional Bonds shall be of the same rank as the original Bonds, but shall bear such date or dates, bear such interest rate or rates, have such maturity dates, redemption dates and redemption premiums, and be issued at such prices as shall be approved in writing by the City and the User. Prior to the issuance, sale or delivery of any such Additional Bonds, the Common Council shall adopt and approve an appropriate resolution or resolutions and ordinance or ordinances authorizing execution and delivery of a supplement to the Agreement and a Supplemental Indenture and the issuance of such additional Bonds. Section 7. Sale of the Bond: The Mayor and the Clerk of the City are hereby authorized and directed to sell the Bonds at a price of par, plus accrued interest from the date of the bonds to the date of delivery and payment therefore. Section 8. Indenture: In order to secure the payment of the principal of and interest on the Bonds, the Mayor and Clerk shall execute, acknowledge and deliver in the name and on behalf of the City, an Indenture of Trust, herein identi- fied as and called the "Indenture ", in the final form submit- ted to the Common Council, which is hereby approved in all respects; and the Clerk is hereby directed to insert a copy thereof in the form submitted to this meeting and approved hereby, in the minutes of this Common Council and to certify thereon that the same is the form of Indenture so submitted to this Common Council and approved by this Bond Ordinance and identified herein as the Indenture and to keep such Indenture on file. Said Indenture contains provisions authorized and permitted by the Act, and this Bond Ordinance construct the Project and the payment by the User of an amount sufficient to pay the principal of and premium, if any, and interest on the Bonds, the Mayor and Clerk shall execute, acknowledge and deliver in the name and on behalf of the City a Loan Agreement herein identified as and called the "Agreement ", in the final form submitted to this Common Council, which is hereby approved in all respects; and the Clerk is hereby directed to insert a copy thereof, in the form submitted to this meeting and approved hereby, in the minutes of this Common Council and to certify thereon that the same is the form of Agreement submitted to this Common Council and approved by the Bond Ordinance and identified herein as the "Agreement" and to keep such Agreement on file. Said Agreement contains provisions authorized and permitted by the Act. Section 10. General: The Mayor and Clerk be, and they each hereby are, authorized and directed, in the name of and on behalf of the City to execute any and all 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 out the purposes of this Bond Ordinance (including the preambles hereto), the acquisition and construction of the Project by the User, the issuance and sale of the Bonds, and the securing of the Bonds under the Indenture. Section 11. Two copies of each of the above described Loan Agreement and Indenture of Trust are on file in the office of the City Clerk for Public Inspection. Section 12. Effective Date: This Bond Ordinance shall be in full force and effect from and after its passage and CITY ®f SOUTH BEND v ROGER O. PARENT, Mayor Economic Development Commission Jerry Hammes, President Walter Szymkowiak, Vice President Walter A. Mucha, Secretary Kenneth P. Fedder, Counsel Alice Neddo, Asst. Sec. Members of the South Bend Common Council County -City Building South Bend, IN 46601 September 19, 1984 Re: Center City Housing Project - Proposed Ordinance Dear Councilmen: Alice Neddo Staff Administrator 230 W. Jefferson Boulevard P.O. Box 1677 South Bend, Indiana 46634 -1677 (219) 234 -0051 On July 17, 1984, I filed with the Council a proposed Ordinance for a bond issue in the amount of $985,000.00 for the acquiring, rehabilitation and installing of a 70 unit multi - family housing project, to be located in South Bend, Indiana. The Ordinance received a first reading and was passed subsequently as Ordinance No. 7361 -84. We are enclosing herewith a new Ordinance, which is entitled Amended Ordinance No. 7361 -84, on the basis of a change in the final financing documents and the parties involved therewith. All the public benefits to be derived from the passage of this Ordinance will remain the same, and the estimated 20 jobs with a payroll of $250,000.00 will remain in place. We would request your favorable action on the passage of this new Ordinance. Res0ectf H P. FEDDER ey for the South Bend is Development Commission KPF:ram enc. F/IED C,Er � SOFICE !N yd t� Irene Gammon SOOTyBEN