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Home My WebLink AboutIssue its Economic Development Revenue Bonds (1818 Realty an Indiana Partnership Prohect $830,000.00ORDINANCE No. -7383 -84 Passed by the Common Council of the City of South Bend, Indiana Attest _ September 24 rq 84 4- IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana. i Approved and signed by Clerk of Common Council IRENE K. GAMMON �6 19 gy Clerk ORDINANCE NO. % R AMENDED AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY ") , TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1984 (1818 REALTY, AN INDIANA PARTNERSHIP PROJECT) , IN THE AGGREGATE PRINCIPAL AMOUNT OF EIGHT HUNDRED THIRTY THOUSAND DOLLARS ($830,000.00) AND APPROVING WHEREAS, the City is a municipal corporation and po- litical subdivision of the State of Indiana, and by virtue of Title 36, 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 1818 Realty and the Area Plan Commission has commented favorably thereon; and WHEREAS, the Commission, after a public hearing held on September 21, 1984, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition, expansion and construction by 1818 Realty (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 ject) from the City to the bondholders, The Trust Indenture between the City and 1st Source Bank (the "Trustee ") , and this Ordinance, presented to the Commission, and (v) recommending that this Council find that the proposed economic development revenue bond financing of such facilities will be of benefit to the health and welfare of the City and its citizens, and com- plies 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 Note, Economic Development Revenue Bonds and Trust Indenture attached hereto and incorporated herein by reference (two (2) copies of such loan to be evidenced by said Promissory Note, (iv) the repayment of said loan by the Company pursuant to said Loan Agreement, Mortage and Security Agreement, and said Promissory Note, 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 (1818 Realty, an Indiana Part- nership Project), in the aggregate principal amount of Eight Hundred Thirty Thousand Dollars ($830,000.00) for the purpose of procuring funds to loan to the Company in order to finance the acquisition, expansion and construction of such facilities, as more particularly set out in said Loan Agreement, Mortgage and Security Agreement, 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 Note in the principal amount of Eight Hundred Thirty Thousand Dollars ($830,000.00) 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 otherwise provided in said Trust Indenture. Said Economic Development 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 October 5, 1984; shall be dated as of October 5, 1984; shall have a final maturity date of October 5, 1994 with principal reduced quarterly, beginning on January 5, 1986; shall bear interest at a per annum rate of eleven percent ($5,000.00) or integral multiples thereof; 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 man- datory prepayment as provided therein. Section 6. The Mayor and /or the Clerk of the City are authorized and directed to sell said Economic Development Revenue Bonds to 1st Source Bank at a price not less than one hundred percent (100%) of the principal amount thereof, plus accrued interest. 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 lst Source Bank, 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- ment Revenue Bonds this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of said holders so long as any of the principal of said Econo- 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 COUNCIL M m er = CITY ®f SOUTH BEND ROGER O. PARENT, Mayor � d 0 QW�c�Eao�° 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 ANce Neddo Staff Administrator 230 W. Jefferson Boulevard P.O. Box 1677 South Bend, Indiana 46634 -1677 (219) 234 -0051 Re: 181.8 Realty, an Indiana Partnership, Project - Proposed Ordinance Dear Councilmen: On September 5, 1984, we filed with the Clerk a proposed Ordinance for an economic development bond for 1818 Realty, an Indiana Partnership, for a revenue bond in the amount of $1,500,000.00, to acquire, expand and equip manufacturing and office facilities for use by Wells Electronics in the 1700 -1800 block of South Main Street, South Bend, Indiana. The proposed Ordinance received a first reading on September 10th and was scheduled for public hearing on September 24, 1984. However, I have been informed by the applicant that the total amount of the proposed bond is now determined to be $830,000.00 and I am herewith filing with the City Clerk an Amended Ordinance to reflect the reduction in the revenue bond request to be at $830,000.00. The purpose of the project continues to remain for the benefit of business enterprise in the community, and the estimated 20 new jobs with an approximate payroll of $354,000.00 remains the same. Your favorable action on this Amended Ordinance will be appreciated. ,6t-f'orney for the South Bend Economic Development Commission R tit, net KPF : ram