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HomeMy WebLinkAboutIssue ite Economic Development Revenue Bonds Series 1984 (Mittler Supply Inc Project) $1,800,000.00ORDINANCE No. 7392 -84 Passed by the Common Council of the City of South Bend, Indiana _ October 22, r9 84 Attest:`" l\ �' yL�`�"J City Clerk IRENE K. GAMMON of Common Council Presented by me to the Mayor of the City of South Bend, Indiana Approved and signed by October 23, rg 84 �' , / / °.vim•— c�v City Clerk IRENE K. GAMMON 9�� ORDINANCE NO. 7_? 3 � I_ 8 AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY "), TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1984 (MITTLER SUPPLY, INC. PROJECT), IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION EIGHT HUNDRED THOUSAND DOLLARS ($1,800,000.00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO_ WHEREAS, the City is a municipal corporation and po- litical 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 Mittler Supply, Inc. and the Area Plan Commission has commented favorably thereon; and WHEREAS, the Commission, after a public hearing held on October 5, 1984, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition and construction by Mittler Supply, Inc. (the "Company ") of the proposed economic development facilities described in said Report will not have an adverse competitive effect on any simi- lar 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 Aareement. MnrtaaaP am to the bondholders, The Trust Indenture between the City and Valley American Bank and Trust Company (the "Trustee ") , and this Ordinance, presented to the Commission, and (v) recommend- ing that this Council find 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, and complies with the purposes and proisions 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, Mortgage 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 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, Mortgage and Security Agreement, Promissory Notes, Economic Development Revenue Bonds and Trust Indenture attached hereto and incorporated herein by reference (two (2) copies of to be evidenced by said Promissory Notes, (iv) the repayment of said loan by the Company pursuant to said Loan Agreement, Mortage and Security Agreement, and said Promissory Notes, and (v) the securing of said Economic Development Revenue Bonds by said Loan Agreement, Mortgage and Security Agreement and said Trust Indenture. Section 5. The City shall issue its Economic Develop- ment Revenue Bonds, Series 1984 (Mittler Supply, Inc. Project), in the aggregate principal amount of One Million Eight Hundred Thousand Dollars ($1,800,000.00) for the purpose of procuring funds to loan to the Company in order to finance the acquisi- tion and construction of such facilities, as more particularly set out in said Loan Agreement, Mortgage and Security Agree- ment, 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 Notes in the aggregate principal amount of One Million Eight Hundred Thousand Dollars ($1,800,000.00) which will be executed and delivered by the Company to evidence said loan, from other sources under said Loan Agreement, Mortgage and Security Agreement, and as other- wise provided in said Trust Indenture. Said Economic Develop- ment Revenue Bonds shall never constitute general obligations of, indebtednesses 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 the date on which the Bonds are purchased; shall be dated as of the date on which the Bonds are purchased; shall be in the form of a Series 1984 A Bond, a Series 1984 B Bond and a Series 1984 C Bond in the principal amounts of $100,000.00, Event of Taxability as defined in the Loan Agreement, in which case the per annum interest rate shall equal said national prime rate of interest; 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 pro- vided 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 percent (100 %) of the principal amount thereof, plus accrued interest, if any. Section 7. The Mayor and the Clerk of the City are authorized and directed to execute and deliver the afore- mentioned 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 consum- mation 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- 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 CO'TCIL BARNES 8, THORNBURG Ms. Irene Gammon City Clerk's Office 4th Floor County -City Building South Bend, Indiana 46601 Dear Ms. Gammon: Enclosed herein is a copy of a form of ordinance approving the issuance by the City of South Bend, Indiana, of $1,800,000 in industrial development bonds for the Mittler Supply, Inc. project. Also enclosed herein are two copies of the forms of documents to which reference is made in said forms of ordinance. We request that you place this matter on the agenda of the City Council for a first reading on October 8, 1984, and a second reading on October 22, 1984. This bond will finance a $400,000 expansion to its existing building on South Main Street in South Bend, Indiana, the acquisition of a computer costing approximately $100,000, and the acquisition of approximately $1,300,000 worth of gas cylinders for use in connection with its business. It is anticipated that this project will result in the development of nine new jobs with an annual payroll increase in the neighborhood of $175,000. Your favorable approval of this project is respectfully requested. OF COUNSEL JERRY P.BELKNAP TONI SUE AX ALAN W.BOYD LE TER M. PONDER JOHN W. HOUGHTON R. MICHAEL PARKER SIXTH FLOOR, 1ST SOURCE BANK CENTER CHARLES M. WELLS THOMAS L. MURRAY WARREN E.MCGILL NELSON J.VOGELIJR. THOMAS ..SCANLON THOMAS P.JENKINS WARREN A. DEAHL ROGER W. BENKO 100 NORTH MICHIGAN JAMES F.THORNBURG EVERET F.SMITH JOHN L.CAR EY DAVID R. MELTON FREDERIC D.ANDERSON PHILIP J. FACCENDA GEORGEJ.ZAZAS BRIAN J. LAKE SOUTH BEND INDIANA 46601 ROBERT S.ASHBY PERRY -LAN. JOHN R. HARMAN BRYAN G.TABLER LOUIS A. HIGHMARK A.JAMES RICHARDSON HOWARD J.COFIELD DANIEL H. FITZGIBBON RICHARD M.TRECKELO STEPHEN K.SMITH WILLIAM J.REINKE RICHARD W. MORGAN ERNEST J.SZARWARK KATHLEEN K. BRICKLEY RICHARD E. DEER MICHAEL R. FRUEHWALO PAUL E. BECHER ALAN K.MILLS EDWARD J.GRAY EDWARD O. DELANEY TELEPHONE TELECOPIER DAVID M. POWLEN JOSEPH W. REBONE ROBERT E.HIGHFIELD CYM H. LOWELL MICHAEL P. LUCAS RYAN M.FOUNTAIN . DANIEL W.RUDY JERRY E.HYLAN0 RENEE R.MAWHINNEY EDWARD A. KEIRN JACK C.DUNFEEIJR. DONALD D.EVENSON. (219) 233 -1171 (219) 2.37-11255 M ARCUS B.CHANDLER TIMOTHY J. RIFFLE HENRY J. PRICE - SAMUEL S.THOMPSON DOUGLAS P. LONG CAROL C. KAESEBIER HERBERT C. SNYOER,JR. DONALD E.KNEBEL JOHN M.KYLE III TIMOTHY T. CASADY JAMES A.MCDERMOTT WAYNE C. KREUSCHER JAMES A. COLES JANET D.NEUENSCHWANDER SHIRLEY A. SHIDELER KRISTIN G.FRUEHWALD TWX 810-341-3427 B &T LAW IND MILDRED L.CALHOUN ANTHONY NIMMO ROBERT H. REYNOLDS DANIEL W. MCGILL JOHN C.ROTHHAAR STEVEN W.THORNTON CHARLES E.BRUESS KENT E.AGNESS DOUGLAS K.OIETERLY JOHN C.BINKLEY WILLIAM R. COFFEY MICHAEL R. CONNER SAN DRA J. LONG DOUGLAS D. SMALL BRUCE R.BANCROFT CLAUDIA V.SWHIER 1313 MERCHANTS BANK BUILDING CONNIE M.MCKEAN PAULA M.TAYLOR JOHN T. M U LVIHILL ROBERT K.BELLAMY II SOUTH MERIDIAN STREET BRUCE B. MARR HOWARD E.KOCHELL FRANKLIN A. MORSE 11 STEPHEN A.SEALL CATHERINE L.BRIDGE RICHARD O.CONARD INDIANAPOLIS INDIANA 46204 , JEFFREY J.TONNER GREGORY L. KELLY RONALD E.CHRISTIAN MARK C.KRCMARIC GORDON S.ESUCK LARRY J.STROBLE (317) 638 -1313 JAMES B.LOOTENS S. BRIAN GILLENWATER M RICHARD E.STEINBRONN MICHAEL ROSIELLO ANNE N.DEPREZ ..SUE MICHAEL JOHN A.BURGESS STEPHEN W.LEE RICHARD A.COHEN ROLAND A. FULLER III ROBERT P.JOHNSTONE DAVID A. HAIST 305 FIRST NATIONAL BANK BUILDING E.VICTOR INDIANO JAMES MCNEAL TOM CHARLES HUSTON STANLEY C. FICKLE 301 SOUTH MAIN STREET ALAN A. LEVIN NANCY L.ICKLER JAMES A.STRAIN WILLIAM I. KOHN ELK HART,INDIANA 46516 FRANK SU RICHARD REZEK GEORGE H. BAKER 12191 293-0681 R. FETIJR. KENNETH R.PETRINI DAVID HAU ER KENNETH H.INSKEEP JAMES O. PERRIN 0.PER IN SUITE 500 1815 H STREET, N.W. TO CALL WRITER DIRECT WASHINGTON, D. C. 20006 •ADMITTED IN D. C. BUT NOT INDIANA (202) 9$5-4500 Ms. Irene Gammon City Clerk's Office 4th Floor County -City Building South Bend, Indiana 46601 Dear Ms. Gammon: Enclosed herein is a copy of a form of ordinance approving the issuance by the City of South Bend, Indiana, of $1,800,000 in industrial development bonds for the Mittler Supply, Inc. project. Also enclosed herein are two copies of the forms of documents to which reference is made in said forms of ordinance. We request that you place this matter on the agenda of the City Council for a first reading on October 8, 1984, and a second reading on October 22, 1984. This bond will finance a $400,000 expansion to its existing building on South Main Street in South Bend, Indiana, the acquisition of a computer costing approximately $100,000, and the acquisition of approximately $1,300,000 worth of gas cylinders for use in connection with its business. It is anticipated that this project will result in the development of nine new jobs with an annual payroll increase in the neighborhood of $175,000. Your favorable approval of this project is respectfully requested. Ms. Irene Gammon Page 2 Thank you for your kind cooperation and assistance in this matter. Sincerely yours, BARNES & THORNBURG C'4i Ernest S: rwark EJS:kav Enclosures cc: Kenneth Fedder, Esq. BARNES & THORNBURG TommUttr Irport Xv toe Townwn Tonnrd of tot Tug of #antis Jenl: Your Committee OF THE WHOLE to whom was referred 108 -84 A BILL AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY ") TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1984 (MITTLER SUPPLY, INC. PROJECT), IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION EIGHT HUNDRED THOUSAND DOLLARS ($11800,000.00) 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 FAVORABLE. Joseph Serge Chairman FREE PRESS PUBLISHING CO.