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HomeMy WebLinkAboutAuthorizing Issue its Economic Development Revenue Bonds (Curtis Products Inc Project) $1,300,000.00ORDINANCE No 7367 -84 Passed by the Common Council of the City of South Bend, Indiana August 27, 19 84 \ e"'`— Attest: rC City Clerk IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Ind'ana August 28, �9 84 K of Common Council IRENE K. GAMMON Approved and signed by me b 19 �l City Clerk ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY "), TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1984 (CURTIS PRODUCTS, INC. PROJECT), IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION THREE THOUSAND DOLLARS ($1,300,000.00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS KITH 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 Curtis Products, Inc. and the Area Plan Commission has com- mented favorably thereon; and WHEREAS, the Commission, after a public hearing held on August 3, 1984, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition, expansion and construction by Curtis Products, Inc. (the "Company ") of the proposed economic development facilities described in said Report will not have an adverse competitive effect on any similar facilities already constructed or oper- ating in or about the City, (ii) further finding 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, (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 Loan from the City to the bondholders, The Trust Indenture between the City and St. Joseph Bank and Trust Company (the "Trustee "), and this Ordinance, presented to the Commission, and (v) recom- mending 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 citi- zens, 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 Note, Economic Development Revenue Bonds and Trust Indenture attached the acquisition, expansion and construction of such facilities, 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 . (Curtis Products, Inc. Proj- ect), in the aggregate principal amount of One Million Three Thousand Dollars ($1,300,000.00) for the purpose of procuring funds to loan to the Company in order to fiDance the acquisi- tion, expansion and construction of such facilities, as more particularly set out in said Loan Agreement, Mortgage and Se- curity 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 One Million Three Thousand Dollars ($1,300,000.00) 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 September 10, 1984; shall be dated as of September 10, 1984; shall have a final maturity date of September 10, 1999 with principal reduced monthly, beginning on October 10, 1984; be in the denominations of Five Thousand Dollars ($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 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 St. Joseph Bank and Trust Company 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 Iona aS anv of +-hc r,rinr+ir l ..-P a r____ 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 r FILED IN CLEFS OFFICE AUG 1984 Irene Gammon CO CLERK, WO BEND, IND, Economic Development Commission Jerry Hammes, President Walter Szymkowiak, Vice President Walter A. Mucha, Secretary Kenneth P. Fedder, Counsel Alice Neddo, Asst. Sec. August 8, 1984 CITY of SOUTH BEND ROGER O. PARENT, Mayor Members of the South Bend Common Council County -City Building South Bend, IN 46601 Re: Curtis Products, Inc. - Proposed Ordinance Dear Councilmen: Alice Neddo Staff Administrator 230 W. Jefferson Boulevard P.O. Box 1677 South Bend, Indiana 46634 -1677 (219) 234.0051 The South Bend Economic Development Commission has received an application from Curtis Products, Inc,, for a Revenue Bond in the amount of $1,200,000,00, to finance the purchase of the real estate and building located within the Monroe -- Sample Street Redevelopment. This is the expansion of an existing business enterprise in the community,with an anticipated 15 new jobs to be created, with $100,000.00 payroll. The passage of the funding Ordinance will permit the project to be completed with an anticipated closing some time in early September, 1984. Your favorable action on this Ordinance will be greatly appreciated. ectfull FE TH P . - FEDDER At to ney for the South Bend Ec omic Development Commission FILED M CLERK'S OFFICE KPF : ram 1 °$4 Irene Gammon CITY CLERK, SOUTH BEND, IND. ToutmtUrr Irvart 0010 tot Taummn Mounru of tier (fit; of #.vW4 jimb: Your Committee OF THE WHOLE to whom was referred 95 -84 A BILL AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY "), TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1984 (CURTIS PRODUCTS, INC. PROJECT), IN THE AGGREGATE PRINCIPAL AMOUNT OF ONE MILLION THREE HOUSAND DOLLARS ($1,300,000.00) 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, AS AMENDED, BY SUBSTITUTION OF A NEW PAGE 3. JOSEPH T. SERGE Chairman FRE[ PRESS PUBLISHING CO.