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HomeMy WebLinkAboutIssue its Economic Development Revenue Bonds (Crowe, Chizek & Co) $4,200,000.00ORDINANCE No. 7384 -84 Passed by the Common Council of the City of South Bend, Indiana. _ _ September 24, x9844 _ Attest: lC� City Clerk IRENE K. GAMMON Attest: Presented by me to the Mayor of the City of South Bend, Indiana. September 25, �9 84 A— Approved and signed by of Common Council City Clerk IRENE K. GAMMON 19 �� ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY "), TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1984 (CROWE, CHIZEK AND COMPANY PROJECT), IN THE AGGREGATE PRINCIPAL AMOUNT OF FOUR MILLION TWO HUNDRED THOUSAND DOLLARS ($4,200,000.00) AND APPROVING T1 TT T\ ]1 TTTTTl1TIT I9 Tl.T /' 11T" ATT\T AIIM /IT.T[T r. MTT TTT1nT1T M MTTTT "M/ WHEREAS, the City is a municipal corporation and poli- tical 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 Crowe, Chizek and Company and the Area Plan Commission has com- mented favorably thereon; and WHEREAS, the Commission, after a public hearing has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition by Crowe, Chizek and Company (the "Company ") of the proposed economic development facilities described in said Report will not have an adverse competitive effect on any similar facilities already con- structed or operating in or about the City, (ii) further find- ing that the proposed economic development revenue bond fi- nancing of such facilities will be of benefit 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, including the form and terms of the First Amendment to Loan Agreement First Amendment to Mort- "Trustee "), the Bond Purchase Agreement between City, Company and Harris Trust and Savings Bank, and this Ordinance, pre- sented 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 complies with the purposes and provisions 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 de- scribed in said report and in the attached First Amendment to Loan Agreement, First Amendment to Mortgage and the Bond Pur- chase 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 "First Amendment to Loan Agreement," "First Amendment to Mortgage," "Bond Purchase Agreement," "Election under IRC Section 103 (b)(6)," Economic Development Revenue Bonds, and "First Supplemental Indenture" of said loan by the Company pursuant to said First Amendment to Loan Agreement, and First Amendment to Mortage and (v) the se- curing of said Economic Development Revenue Bonds by said First Amendment to Loan Agreement, First Amendment to Mortgage, and First Supplemental Indenture. Section 5. The City shall issue its Economic Develop- ment Revenue Bonds,,Series 1984 (Crowe, Chizek and Company Pro- ject) , in the aggregate principal amount of Four Million Two Hundred Thousand Dollars ($4,200,000.00) for the purpose of procuring funds to loan to the Company in order to finance the acquisition of such facilities, as more particularly set out in said First Amendment to Loan Agreement and Bond Purchase Agree- ment, which Economic Development Revenue Bonds shall be payable as to principal and interest solely from the payments made by the Company in the principal amount of Four Million Two Hundred Thousand Dollars ($4,200,000.00) which will be executed and delivered by the Company to evidence said loan, from other sources under said First Amendment to Loan Agreement, First Amendment to Mortgage, and Bond Purchase Agreement, and as otherwise provided in said First Supplemental Indenture. Said Economic Development Revenue Bonds shall never constitute gene- ral 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 September 26, 1984; shall be dated as of the date of closing; shall have a final maturity date of June 1, 2000 with principal payable quarterly, beginning on December 1, 1986, in the interim; shall bear interest at a variable rate of approximately sixty -eight percent (68 %) of the of Five Thousand Dollars ($5,000.00) or integral multiples thereof; shall be issued in registered form; shall be regis- trable 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 provided therein. Section 6. The Mayor and /or the Clerk of the City are authorized and directed to sell said Economic Development Reve- nue Bonds to Harris Trust and Savings Bank at a price not less than one hundred percent (100 %) of the principal amount there- of, plus accrued interest. Section 7. The Mayor and the Clerk of the City are authorized and directed to execute and deliver the aforemen- tioned documents for and on behalf of the City after makinq 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 consumma- tion 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 Harris Trust and Savings 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 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 (ei4r � U BARNES & THORNBURG August 29, 1984 City Clerk City of South Bend, Indiana 4th Floor, County -City Building South Bend, Indiana 46601 Dear Ms. Gammon: Please accept for filing on behalf of Crowe, Chizek and Company, an Indiana partnership, the enclosed form of Ordinance. Please place the same on the agenda of the Council for a first reading on September 10, 1984, and a second reading on September 24, 1984. Your assistance in this regard is greatly appreciated. Sincerely yours, BARNES & THORNBURG Ernest J. Szarwark EJS:kav Enclosure cc: Richard W. Morgan, Esq. OF COUNSEL JERRY P.BEIKNAP TON] SUE AX ALAN W.BOYD LE STER M.PONDER JOHN W. HOUGHTON R. MICHAEL PARKER SIXTH FLOOR 1ST SOURCE BANK CENTER 1 CHARLES M. WELLS THOMAS L.MURRAY WARREN E.MCGILL NELSON J.VOGEL,JR. THOMAS M. SCANLON THOMAS P.JENKINS WARREN A. DEAHL ROGER W.BENKO 100 NORTH MICHIGAN JAMES F.THORNBURG EVERET F.SMITH JOHN L.CAREY DAVID R.MELTON FR EDERIC O.ANDERSON PHILIP J. FACCENDA GEORGE J. ZAZAS BRIAN J. LAKE L1 SOUTH BEND, INDIANA 46601 ROBERT S.ASHBY PERRY PALAN. JOHN R.HARMAN BRYAN G.TABLER LOUIS A. HIGHMARK A.JAMES RICHARDSON HOWARD J.COFIELO DANIEL H. FITZGIBBON RICHARD M.TRECKELO STEPHEN K.SMITH WI LOAM J. REINKE RICHARD W. MORGAN ERNEST J. SZARWARK KATHLEEN K. BRICKLEY RICHARD E. DEER MICHAEL R. FRUEHWALD TELEPHONE TELECOPIER PAUL E.BECHER ALAN K.MI LLS EDWARD J. GRAY EDWARD O. DCLANEY DAVID M. POWLEN JOSEPH W.REBONE ROBERT E.HIGHFIELO CYM H. LOWELL MICHAEL P. LUCAS RYAN M. FOUNTAIN DANIEL W.RUDY JERRY E.HYLAND (219) 233 -1171 (219) 237 -1125 RE NEE R.MAWHINNEY EDWARD A. KEIRN JACK C. DUNFEE,JR. DONALD D.EVENSON . MARCUS B.CHANDLER TIMOTHY J. RIFFLE HENRY J. PRICE SAMUEL S.THOMPSON DOUGLAS P. LONG CAROL C. KAESESIER HERBERT C.SNYDER,JR. DONALD E.KNEBEL JOHN M.KYLE III TIMOTHY T. CASADY JAMES A.MCDERMOTT WAYNE C.KREUSCHER 810-341 -3427 B &T LAW IND JAMES A.COLES JANET D.NEUENSCHWANDER SHIRLEY A.SHIDELER KRISTIN G. FRUEHWALD TWX 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.DIETERLY JOHN C.BINKLEY WILLIAM R.COFFEY MICHAEL R. CONNER 5 NDRAJ. LONG DOUGLAS D.SMALL BRUCE R. BANCROFT CLAUDIA V.SWHIER 1313 MERCHANTS BANK BUILDING CONNIE M.MCKEAN PAULA M.TAYLOR JOHN T. MULVIHILL ROBERT K.BELLAMY II SOUTH MERIDIAN STREET BRUCE S. MARR HOWARD E.KOCHELL FRANKLIN A. MORSE II CATHERINE L. BRIDGE INDIANAPOLIS, INDIANA 46204 JEFFREY J.TONNER RONALD E.CHRISTIAN STEPHEN A. SEALL RICHARD D.CONARD (317) 638 -1313 GREGORY L. KELLY MARK C. KRCMARIC GORDON S.ESLICK LARRY J.STROBLE JAMES B. LOOTENS B.BRIAN GILLENWATER RICHARD E.STEINBRONN MICHAEL ROSIELLO ANNE N.DLPREZ M.SUE MICHAEL JOHN A. BURGESS STEPHEN W.LEE 305 FIRST NATIONAL BANK BUILDING RICHARD A. COHEN ROLAND A. FULLER III ROBERT P.JOHNSTONE DAVID A. HAIST 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 ELKHART, INDIANA 46516 FRANK SULLIVAN,JR. RICHARD A. REZEK GEORGE H. BAKER (219) 293-0681 KENNETH R.PETRINI DAVID R. WARSHAUER KENNETH H.INSKEEP JAMES O. PERRIN SUITE 500 1815 H STREET, N.W. WASHINGTON, D. C. 20006 TO CALL WRITER DIRECT (2021 9S5 -4500 • ADMITTED IN D.C. BUT NOT INDIANA August 29, 1984 City Clerk City of South Bend, Indiana 4th Floor, County -City Building South Bend, Indiana 46601 Dear Ms. Gammon: Please accept for filing on behalf of Crowe, Chizek and Company, an Indiana partnership, the enclosed form of Ordinance. Please place the same on the agenda of the Council for a first reading on September 10, 1984, and a second reading on September 24, 1984. Your assistance in this regard is greatly appreciated. Sincerely yours, BARNES & THORNBURG Ernest J. Szarwark EJS:kav Enclosure cc: Richard W. Morgan, Esq.