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HomeMy WebLinkAboutApproving Economic Development Revenue Bonds South Bend Industrial Associates ProjectORDINANCE No 7396 -84 Passed by the Common Council of the City of South Bend, Indiana October 22, 19 84 IRENE K. GAMMON City Clerk Presented by me to the Mayor of the City of South Bend, Indiana Approved and signed by October 23, 19 84 of Common Council /'�- ��� s� `� City Clerk IRENE K. GAMMON Igo- ORDINANCE NO. AN ORDINANCE APPROVING THE FORM AND TERMS OF THE LOAN AGREEMENT, INDENTURE OF TRUST, AND'ECONOMIC DEVELOPMENT REVENUE BONDS,'AND AUTHORIZING THE EXE- CUTION THEREOF, AND APPROVING THE RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE SOUTH BEND INDUSTRIAL ASSOCIATES PROJECT. STATEMENT OF PURPOSE AND INTENT: The Common Council of the City of South Bend, Indiana, heretofore has created the South Bend Economic Development Commission (hereinafter referred to as the "Commission ") pursuant to the provisions of Indiana Code 36 -7 -12, as amended (hereinafter referred to as the "Act "). South Bend Industrial Associates, an Indiana limited partnership filed an application with the Commission to finance certain economic development facilities resulting in a substantial number of new jobs as well as other benefits, and in connection therewith, the Commission has prepared and placed on file a report containing the subject matter as specified in Section 23 of the Act and has forwarded copies thereof to the Chairman of the Area Plan Commission of St. Joseph County, Indiana, and to the Superintendent of the South Bend Community School Corporation, being the area in which the proposed facilities will be located, and has timely received favorable reports from each of them, and the Commission held a public hearing on the proposed financing of such economic development facilities in accordance with the Act after giving the required notice as provided in the Act, and adopted a resolution finding that such proposed financing complies with the purposes and provisions of all applicable Indiana statutes governing the issuance of Economic Development Revenue Bonds, including but not limited to the Act, and approving the form and terms of the Loan Agree- ment, Indenture of Trust, and Bonds, and further approving this form of Ordinance, authorizing the execution thereof, and further finding that such economic development facilities will not have an adverse competitive effect on similar facilities already constructed and opera- South Bend Industrial Associates Project and the issuance of the Economic Development Revenue Bonds pursuant thereto are hereby approved and adopted. Section 2. Said forms of Indenture of Trust.and Loan Agreement, together with the Note and Mortgage attached as an exhibit thereto, and the Economic Development Revenue Bonds which are on file with the Commission, are hereby incorporated by reference into this Ordinance, and said forms shall be inserted into the minutes of the Common Council of the City of South Bend, Indiana. Section 3. Said Loan Agreement and Indenture of Trust shall be executed on behalf of the City of South Bend, Indiana, by the Mayor and City Clerk of South Bend, Indiana, and sealed with the corporate seal of such City. Section 4. Said Economic Development Revenue Bonds, payable solely and only from the revenues derived from such Project pursuant to the aforementioned Loan Agreement and Indenture of Trust will not be in any respect a general obligation of the City, nor may the Bonds be paid in any manner from funds raised by taxation, and may be issued in an aggregate amount not to exceed $1,600,000.00, as registered bonds in denominations of $1,000.00 or multiples thereof payable in lawful money of the United States of America at the principal office of lst Source Bank in the City of South Bend, Indiana. Such Bonds shall be repayable with interest thereon at a rate not to exceed 12% per annum, over a term of not more than 15 years, and subject to redemption, all in accordance with the terms of said Bonds, Loan Agreement and Indenture of Trust. Such Bonds shall be dated as of the date of execution and delivery, and shall be executed on behalf of the City of South Bend, Indiana, by the manual signatures of the Mayor and City Clerk of the City, and sealed with the corporate seal of the City, and executed and delivered to the purchasers of the Bonds on or before December 31, Section 6. The Resolution of the South Bend Economic .Development Commission, passed on October 19, 1984, is hereby approved, and the Common Council of the City.of South Bend, Indiana, 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 the Act. Section 7. Pursuant to the provisions of Indiana 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 8. This Ordinance -shall be in full force and effect from and after its passage by the Common Council and.approval by the Mayor er of the CQWon Council JOSEPH V. SIMERI KEVIN J. BUTLER MF.r.AN E K. MORGAN BUTLER & SIMERI ATTORNEYS AT LAW 405 WEST WAYNE STREET SOUTH BEND, INDIANA 46601 219 233 -3303 October 17, 1984 South Bend Common Council 4th Floor, County -City Building South Bend, Indiana 46601 Ladies and Gentlemen: Re: South Bend Economic Development Revenue Bonds South Bend Industrial Associates Project Enclosed is a form of Bond Ordinance for the above project. We ask that this Ordinance be placed on your agenda for first reading at your meeting on October 22, 1984. The purpose of this Bond Project is to provide financing by the City of South Bend for development of 60,000 square feet of office, light industrial, warehouse, and storage space on property located in Phase III of the Airport Industrial Park. The cost of the Project will be approximately $2,000,000.00 and we anticipate that 38 new permanent jobs will be created with an annual payroll of approximately $500,000.00. Thank you for your consideration of this matter. Sincerely, Kevin J. Butler KJB:blb Enclosure cc: Mr. Kenneth P. Fedder Mr. John T. Phair