Loading...
HomeMy WebLinkAboutApproving Economic Development Revenue Bond Martin's Realty Co ProjectORDINANCE No 7279 -83 Passed by the Common Council of the City of South Bend, Indiana December 5. �9 83 /'�� A""' IRENE K. GAMMON City Clerk Presented by me to the Mayor of the City of South Bend, Indiana December 6, 1983 of Common Council IRENE K. GAMMON Approved and signed by me F ig City Clerk ORDINANCE NO. -1%'' -° AN ORDINANCE APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, MORTGAGE AND SECURITY AGREEMENT, PROMISSORY NOTE, ECONOMIC DEVELOPMENT REVENUE BOND, TRUST INDENTURE, LETTER OF CREDIT AND OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION THEREOF AND APPROVING RESOLUTION NO. 83-5 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE MARTIN'S REALTY CO. PROJECT WHEREAS, the City of South Bend (the "City ") is a municipal corporation and political 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 provi- sions; and WHEREAS, the South Bend Economic Development Com- mission (the "Commission ") has prepared and placed on file a report containing the subject matter specified in Section 23 of the Act, and the Area Plan Commission and Superintendent of the School Corporation in the area in which the economic develop- ment facilities will be located have commented favorably there- on; and WHEREAS, the Commission, after a public hearing held on November 18, 1983, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition and construction, and equipping by Martin's Realty Co., an Indiana Partnership, (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 operating 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 Agreement, Mortgage and Security Agreement between the Company and the City, the Promissory Note from the Company to the City, the registered City of South Bend, Indiana, Economic Development Revenue Bonds, Series 1983 (Martin's Realty Co., an Indiana Partnership Project), the Trust Indenture between the City and Midwest Commerce Banking Corporation (the "Trustee "), the Letter of Credit from Arsenal Savings Association, F.A. to the Trustee, the Official Statement of the City and the Company relating to such Bonds, 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 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 described in said Report and in the attached Loan Agreement, -2- Mortgage and Security Agreement are "economic development facilities" within the meaning of the Act and that such facili- ties 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, Trust Indenture, Letter of Credit and Official Statement attached hereto and incorporated herein by reference (two (2) copies of which are on file in the Office of the Clerk of the City for public inspection), (ii) the issuance and sale of said Economic Development Revenue Bonds, (iii) the loan of the net proceeds of said Economic Development Revenue Bonds to the Company for the acquisition, construction and equipping 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 -3- 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, said Trust Indenture and said Letter of Credit. Section 5. The City shall issue its Economic Develop- ment Revenue Bonds, Series 1983 (Martin's Realty Co., an Indiana Partnership Project), in the aggregate principal amount of Nine Hundred Ten Thousand Dollars ($910,000.00) for the pur- pose of procuring funds to loan to the Company in order to finance the acquisition, construction and equipping of such facilities, as more particularly set out in said Loan Agree- ment, Mortgage and Security Agreement, which Economic Develop- ment Revenue Bonds shall be payable as to principal and inter- est solely from the payments made by the Company on its afore- said Promissory Note in the principal amount of Nine Hundred Ten Thousand Dollars ($910,000.00) which will be executed and delivered by the Company to evidence said loan, from other sources under said Loan Agreement, Mortgage and Security Agree- ment, and as otherwise provided in said Trust Indenture and said Letter of Credit. 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 December 15, 1983; shall be dated as of December 1, 1983; shall have maturities. from December 1, 1985 to December 1, 1998; -4- shall bear interest at rates not to exceed ten and one -half percent per annum; shall be in the denominations of Five Thousand Dollars ($5,000.00) and 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 provided herein. Section 6. The Mayor and /or the Clerk of the City are authorized and directed to sell said Economic Development Revenue Bonds to Raffensperger, Hughes & Co., Inc., at a price not less than one hundred percent (100 %) of the principal amount thereof, plus accrued interest, less an underwriter's discount not to exceed Fifty Thousand Dollars ($50,000.00). 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 necessary or proper, as evidenced by their execution of such documents, 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 con- summation 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 Raffensperger, Hughes & Co., Inc., payment for which will be made to the Trustee for the account of the City. 912 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 Economic Development Revenue Bonds or the interest thereon remains unpaid. Section 9. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 10. This Ordinance shall be in full force and effect from and after its passage by this Council and approval by the Mayor of the City. Meffiber of the Commo Council 7st READ, ?;, - 5-- jr,_ PUBLIC WEARING i - 5- -d 3 2nd READING; . �p - �5- - e 3 NOT APPROVED REFERRED PASSED - 5' e3l JERRY P. BELKNAP ROBERT P. JOHNSTONE ROBERT S. ASHBY TOM CHARLES HUSTON LOUIS A. HIGHMARK JAMES A. STRAIN JOHN W. HOUGHTON GEORGE H. BAKER WARREN E. MCGILL TONI SUE AX WARREN A. DEAHL R. MICHAEL PARKER JOHN L.CAREY •' NELSON J. VOGEL, JR. G EORGE J. ZAZAS ROGER W. BENKO THOMAS L. MURRAY DAVID R. MELTON JOHN R. HARMAN BRIAN J. LAKE HOWARD J.COFIELD BRYAN G.TABLER RICHARD M,TRECKELO DANIEL H. FITZGIBBON WILLIAM J. REINKE STEPHEN K.SMITH RICHARD E. DEER RICHARD W. MORGAN ED WARD J. GRAY MICHAEL R. FRUEHWALD ROBERT E. HIG HFIELD EDWARD O. DELANEY DANIEL W. RUDY CYM H.LOWELL JACK C. DUNFEE, JR. JERRY E. HYLAND HENRY J. PRICE SAMUEL S.THOMPSON HERBERT C. SNYDER, JR. BRUCE R. KARR JAMES A. MCDERMOTT DONALD E.KNEBEL SHIRLEY A.SHIDELER WAYNE C.KREUSCHER ROBERT H. REYNOLDS KRISTIN G. FRU EHWALD CHARLES E. BRUESS DANIEL W. MCGILL WILLIAM R.COFFEY KENT E.AGNESS BRUCE R. BANCROFT MICHAEL R.CONNER JOHN T. MULVIHILL CLAUDIA V.SWHIER FRANKLIN A. MORSE II ROBERT K. BELLAMY STEPHEN A.SEALL. CATHERINE L. BRIDGE GORDON S. ESLICK RICHARD D. CONARD RICHARD E.STEINSRONN LARRY J. STROBLE JOHN A. BURGESS MICHAEL ROSIELLO BARNES & THORNBURG SIXTH FLOOR,IST SOURCE BANK CENTER 100 NORTH MICHIGAN SOUTH BEND, INDIANA 46601 OF COUNSEL ALAN W. BOYD CHARLES M. WELLS THOMAS M. SCANLON JAMES F.THORNBURG FR ED ERIC D. ANDERSON LESTER IRONS LESTER M. PONDER DONALD D. EVENSON ■ THOMAS P.JENKINS EVERET F.5MITH PHILIP J. FACCENDA PERRY PALAN 6 TELEPHONE TELECOPIER STEPHEN W. LEE JAMES B. LOOTENS (219) 233-1171 (219) 237-1125 DAVID A. HAIST NANCY L. MARSHALL STANLEY C. FICKLE ANNE N. D.PREZ WILLIAM 1. KOHN RICHARD A.COHEN A. JAMES RICHARDSON EVICTOR INDIANO ERNESTJ.SZARWARK ALAN A. LE VIN TWX 810 -341 -3427 B &T LAW IND PAUL E. BECHER FRANK SULLIVAN, JR. JAMES E. MAHONEY KENNETH R.PETRINI DAVID M. POWLEN KENNETH H. INSKEEP EDWIN B. WAINSCOTT KATHLEEN K. BRICKLEY 1313 MERCHANTS BANK BUILDING MICHAEL P. LUCAS ALAN K. MILLS INDIANAPOLIS, INDIANA 46204 DAVID L.SWIDER JOSEPH W. RESONE (317) 638 -1313 RENEE R.MAWHINNEY MARCUS S. CHANDLER RYAN M. FOUNTAIN' EDWARD A. KEIRN DOUGLAS P. LONG TIMOTHY J. RIFFLE FIRST NATIONAL BANK BUILDING STEPHEN L. SMITH CAROL C. KAESEBIER 301 SOUTH MAIN STREET, SUITE 305 JOHN M. KYLE III TIMOTHY T. CASADY ELKHART, INDIANA 46516 JAMES A. COLES M ILDRED L. CALHOUN JANET D.NEUENSCHWANDER ANTHONY NIMMO (219) 293 -0681 JOHN C.ROTHHAAR STEVEN W.THORNTON DOUGLAS K. DIETER LY T. RICHARD RINEY SUITE 500 SAN DRAJ.LONG DOUGLAS E. STARKEY JOHN C.BINKLEY DOUGLAS D. SMALL 1815 H STREET, N. W. ROBERT J. SMITH, JR. PAULA M. TAYLOR WASHINGTON, D.C.20006 CONNIE M. MCKEAN HOWARD E.KOCHELL (202) 955-4500 BRUCE S. MARR RONALD E.CHRISTIAN JEFFREY J.TONNER MARK C. KRCMARIC GREGORY L. KELLY PATRICK J. O'NEIL MARK R. WENZEL . ADMITTED IN D.C. BUT NOT INDIANA TO CALL WRITER DIRECT November 30, 1983 Mrs. Irene K. Gammon, City Clerk 4th Floor, County -City Building South Bend, IN 46601 Re: City of South Bend Economic Development Revenue Bonds dated December 1, 1983 for the Martin's Realty Co., an Indiana partnership Project Dear Mrs. Gammon: The South Bend Economic Development Commission at its meet- ing of November 18, 1983 passed its resolution approving the form of financing documents for the Martin's Realty Co., an Indiana part- nership, bond issue. A copy of the Commission's Resolution No. 83- 5 is enclosed herewith. The facility to be financed by the bonds consists of the renovation and expansion of the shopping center located at the south- west corner of Elwood and Portage Avenues in South Bend, Indiana. The project will create between 50 and 60 new jobs within one year of completion of the facility. Transmitted with this letter is the form of ordinance we are requesting the Common Council pass authorizing the issuance of Mrs. Irene K. Gammon -2- November 30, 1983 the bonds. Also enclosed please find two sets of the basic bond documents. Very truly yours, BARNES THORNBURG Richard W. Morgan RWM:jj Encls. cc: Kenneth P. Fedder, Esq. BARNES & THORNBURG EXHIBIT "E" 1. The area for which abatement is requested contains five (5) buildings, all of which were constructed during the 1964 -1968 period, and only one of which has been improved since construction. This lack of periodic improvement characteristic of commercial structures in healthy environments, together with the lack of expansion during the last fifteen (15) years (despite the obvious presence of space for expansion) evidences the cessation of growth and deterioration of the area and the improvements thereon. 2. The economic situation of the residents of the surrounding neighborhoods further impedes normal growth and development. 3. The area in question is located in census area 65 which, according to recent census dates, has the following characteristics: (a) the area has a median family income of only $13,445 (b) the area suffers from higher than average unemployment (c) only 54.8% of the residents are high school graduates (d) mean public assistance in the area is $2,497 per year. 4. Adjacent census areas (62, 66, 67, 64) demonstrate similar economic patterns. 5. The property in question is adjacent to the Northwest neighborhood which, according to a Community Development Profile (May 1983): (a) has experienced an 18.3% population decline (1970 -1980) (b) has 46.7% of its households qualifying for section 8 assistance and 42% defined as "lower income" (c) has seen a vacancy rate increase from 5.9% in 1970 to 11.4% in 1980, and (d) has 9% of its commercial structure vacant.