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