Loading...
HomeMy WebLinkAboutApproving Economic Development Revenue Bond St Joseph Station II ProjectORDINANCE No. 7281 -83 Passed by the Common Council of the City of South Bend, Indiana December 12, 10 83 City Clerk IRENE K. GAMMON of Common Council Presented by me to the Mayor of the City of South Bend, Ind*ana December 13 19 83 City Clerk IRENE K. GAMMON � n Approved and signed by me v rw —1 Ig 3 BILL NO. ORDINANCE NO. 7a8'/ - 047:3 AN ORDINANCE APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, MOR'T'GAGE AND SECURITY AGREEMENT, PROMISSORY NOTE, ECONOMIC DEVELOPMENT REVENUE BOND, TRUST INDENTURE, SURETY BOND AND OFFICIAL STATEMENT AND AUTHORIZING THE EXECUTION THEREOF AND APPROVING RESOLUTION NO. 83 -4 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE ST. JOSEPH STATION II 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, renovation and rehabilitation by St. Joseph Station II, an Indiana Limited Partnership, (the "Company ") , of the proposed economic development facilities described in said Report will not have an adverse competitive effect on any similar facil- ities 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) fur- ther 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 develop- ment revenue bond financing of such facilities, including the form and terms of the Loan Agreement, Mortgage and Security Agreement between the Company and the Citv, the Promissory Note from the Company to the City, the registered City of South Bend, Indiana, Economic Development Revenue Bonds, Series 1983 (St. Joseph Station II Project) , the Trust Indenture between the City and Valley American Bank and Trust Company (the "Trus- tee") , the Surety Bond from National Fire Insurance Company of Hartford to the Trustee, the Official Statement of the City and the Company relating to such Bonds, 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: LYE Section 1. This Council finds that the facilities described in said Report and in the attached Loan Agreement and Indenture 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, and that such facility is located in an established "economic development target area ", as defined in the Act. 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, Security Agreement, Promissory Note, Eco- nomic Development Revenue Bonds, Trust Indenture, Surety Bond, Reimbursement Agreement 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 Devel- opment Revenue Bonds, (iii) the loan of the net proceeds of said Economic Development Revenue Bonds to the Company for the acquisition, renovation and rehabilitation of such facilities, -3- 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 Promissory Note, and (v) the securing of said Economic Development Revenue Bonds by said Loan Agreement, Mortgage, Trust Indenture and Surety Bond. Section 5. The City shall issue its Economic Develop- ment Revenue Bonds, Series 1983 (St. Joseph Station II Pro- ject) , in the aggregate principal amount of Four Million Three Hundred Ninety Thousand Dollars ($4,390,000.00) for the purpose of procuring funds to loan to the Company in order to finance the acquisition, renovation and rehabilitation of such facili- ties, 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 Four Million Three Hundred Ninety Thousand Dollars ($4,390,000.00) 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, Surety Bond and Reimbursement Agreement. 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 -4- executed and delivered on or about December 21, 1983; shall be dated as of December 1, 1983; shall mature on December 1, 1993; shall bear interest at rates not to exceed ten and one -half percent (10 -1/2 %) 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 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 herein. Section 6. The Mayor and /or the Clerk of the City are authorized and directed to sell said Economic Development Reve- nue Bonds to Raffensperger, Hughes & Co., Inc., 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 aforemen- tioned 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 Raffensperger, Hughes & Co., Inc., -5- 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 Eco- nomic 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. FA71NG 2nd •READING 12 -14 - r 3 NO'f APPROVED REFERRED �} PASSED / ,.. / a - Y-3, c Q�rYU.. , cG..!✓ 1 qo�wx'm of-the-tom—m6.-a;fri-uhci-l'�-- W1 :fl FILED IN CLEFS OFFICE 1953 Irene Gammon CITY CLERK, WRI BEND, 1110. TommtUrr Atrvar# an #4e Tout wu fdounrd of t4r Ti#y of *onto &nb: Your Committee OF THE WHOLE to whom was referred 136 -83 A BILL 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 -4 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE ST. JOSEPH STATION II PROJECT. 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 BILL RAYMOND ZIELINSKI Chairman FREE !REEF FUBLISHme co.