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HomeMy WebLinkAboutApproving Economic Development Revenue Bond Jefferson Boulvard Partnerhip ProjectORDINANCE No. 7282 -83 Passed by the Common Council of the City of South Bend, Indiana December 12 19 83 IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana Approved and signed by Clerk of Common Council IRENE K. GAMMON l 19� Clerk ORDINANCE NO. 7a Pa -eS AN ORDINANCE APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, MORTGAGE AND SECURITY AGREEMENT, PROMISSORY NO'T'E, ECONOMIC DEVELOPMENT REVENUE BOND, TRUST INDENTURE AND LETTER OF CREDIT, AUTHORIZING THE EXECUTION THEREOF AND APPROVING RESOLUTION NO. 14 -83 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE JEFFERSON BOULEVARD PARTNERSHIP 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 December 12, 1983, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition and renovation by Jefferson Boulevard Partnership, an Indiana Limited Partnership, (the "Company "), of the proposed economic development facility 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 facility 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 facility complies with the purposes and provisions of the Act, (iv) further finding that the facility is located in an economic development target area of the City, (v) approving the economic development revenue bond financing of such facil- ity, including the form and terms of the Loan Agreement, Mort- gage and Security Agreement between the Company and the City, the Promissory Note from the Company to the City, the regis- tered City of South Bend, Indiana, Economic Development Revenue Bonds, Series 1983 (Jefferson Boulevard Partnership Project), the Trust Indenture between the City and lst Source Bank (the "Trustee "), the Letter of Credit from lst Source Bank to the Trustee and this Ordinance, presented to the Commission, and (vi) recommending that this Council find that the proposed eco- nomic development revenue bond financing of such facility 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 facility described in said Report and in the attached Loan Agreement, -2- Mortgage and Security Agreement is an "economic development facility" within the meaning of the Act and that such facility will not have an adverse competitive effect on any similar facility 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 facility will be of benefit to the health and welfare of the City and its citizens. Section 3. This Council further finds that the facil- ity to be financed from the proposed economic development reve- nue bond financing is located in an economic development target area of the City. Section 4. This Council further finds that the pro- posed economic development revenue bond financing of such facility complies with the purposes and provisions of the Act. Section 5. This Council hereby approves the proposed economic development revenue bond financing of such facility, including (i) the form and terms of the aforementioned Loan Agreement, Mortgage and Security Agreement, Promissory Note, Economic Development Revenue Bonds, Trust Indenture and Letter of Credit 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 and renovation of such facil- ity, such loan to be evidenced by said Promissory Note, (iv) -3- 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, said Trust Indenture and said Letter of Credit. Section 6. The City shall issue its Economic Develop- ment Revenue Bonds, Series 1983 (Jefferson Boulevard Partner- ship Project) , in the aggregate principal amount of One Million Seven Hundred Thousand Dollars ($1,700,000.00) for the purpose of procuring funds to loan to the Company in order to finance the acquisition and renovation of such facilities, as more par- ticularly 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 One Million Seven Hundred Thousand Dollars ($1,700,000.00) 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 and said Letter of Cred- it. Said Economic Development Revenue Bonds shall never con- stitute general obligations of, indebtednesses of, or charges against the general credit of the City. Said Economic Develop- ment 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 during regular business hours on or about December 28, 1983; shall be dated as of December 15, -4- 1983, maturing on December 15, 1993, shall bear interest at the rate of ten percent (10 %) per annum, and shall be issued in registered form; shall be registrable as provided therein; shall be payable in the medium and at the place or places pro- vided therein; and shall be subject to optional and mandatory prepayment as provided herein. 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 consumma- tion of such financing. 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. -5- 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. FILED IN CLEFS WICE -1983 Irene Gammon CITY UERK, SOUTH BEND, IND. 1st REAMNG, /--I- /-;? -Je3 NwillUC _e3 2nd READING., p,'OT APPROVED REFERRED PASSED �/ Q -6- BARNES & THORNBURG SIXTH FLOOR, 1ST SOURCE BANK CENTER December 7, 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 Jefferson Boulevard Partnership, an Indiana limited Partnership Project Dear Mrs. Gammon: The South Bend Economic Development Commission at its meeting of December 12, 1983 will pass its resolution approving the form of financing documents for the Jefferson Boulevard Part- nership, an Indiana limited partnership, bond issue. A copy of the Commission's Resolution is enclosed herewith. The facility to be financed by the bonds consists of the renovation of the office building located at the northwest corner of Main Street and Jefferson Boulevard, in South Bend, Indiana. The project will create approximately 50 to 100 new jobs. Transmitted with this letter is the form of ordinance we are requesting the Common Council pass authorizing the issuance 100 NORTH MICHIGAN OF COUNSEL JERRY P.BELKNAP ROBERT P. JOHNSTONE SOUTH BEND, INDIANA 46601 ALAN W. BOYD LESTER M. PONDER ROBERT S.ASHBY TOM CHARLES HUSTON CHARLES M. WELLS DONALD D. EVENSON . LOUIS A. HIGHMARK JAMES A. STRAIN THOMAS M. SCANLON THOMAS P.JENKINS JOHN W. HOUGHTON GEORGE H. BAKER JAMES F.THORNBURG EVERET F. SMITH WARREN E. MCG ILL TONI SUE AX FREDERIC D. ANDERSON PHILIP J. FACCENDA WARREN A. DEAHL R. MICHAEL PARKER LESTER IRONS PERRY PALAN > JOHN L.CAREY NELSON J.VOGEL.JR. TELEPHONE TELECOPIER GEORGE J. ZAZAS ROGER W. BENKO THOMAS L.MUR RAY OAVID R. ME LTON (215) 233 -1171 (219) 237 -1125 STEPHEN W. LEE JAMES B. LOOTEN5 JOHN R. HARMAN BRIAN J. LAKE DAVID A. HAIST NANCY L. MARSHALL HOWARD J. COFIELD BRYAN G.TASLER STANLEY C. FICKLE ANNE N. DEPREZ RICHARD M.TRECKELO DANIEL H. FITZGIBBON WILLIAM I. KOHN RICHARD A. COHEN WILLIAM J. REINKE STEPHEN K. SMITH A.JAMES RICHARDSON E. VICTOR INDIANO RICHARD E. DEER RICHARD W. MORGAN TWX 810 -341 -3427 BST LAW IND ERNEST J.SZARWARK ALAN A. LEVIN EDWARD J. GRAY MICHAEL R. FRUEHWALD PAUL E. BECHER FRANK SULLIVAN,JR. ROBERT E.HIGHFIELD EDWARD O. DELANEY JAMES E. MAHONEY KENNETH R.PETRINI DANIEL W. RU DY CYM H. LOWELL DAVID M. POWLEN KENNETH H. INSKEEP JACK C. OUNFEE,JR. JERRY E. HYLAND 1313 MERCHANTS BANK BUILDING EDWIN B. WAINSCOTT KATHLEEN K. BRICKLEY HENRY J. PRICE SAMUEL S.THOMPSON INDIANAPOLIS, 46204 MICHAEL P. LUCAS ALAN K. MILLS HERBERT C. SNYDER� JR. JAMES A. Mc D ERMOTT BRUCE R. KARR DONALD E.KNEBEL (317) 638 -1313 DAVID L.SWIDER RENEE R. MAWHINNEY JOSEPH W. REBONE RYAN M. FOUNTAIN + S HIRLEY A.SHIDELER WAYNE C. KREUSCHER MARCUS B. CHANDLER EDWARD A. KEIRN ROBERT H. REYNOLDS KRISTIN G. FRUEHWALD FIRST NATIONAL BANK BUILDING DOUGLAS P. LONG TIMOTHY J. RIFFLE CHARLES E. BRUESS DANIEL W. MCGILL 301 SOUTH MAIN STR EET�SUITE 305 STEPHEN L. SMITH CAROL C. KAESEBIER WILLIAM R.COFF EY BRUCE R. BANCROFT KENT E.AGNESS MICHAEL R. CONNER ELKHART, INDIANA 46516 JOHN M. KYLE III JAMES A. COLES TIMOTHY T. CASADY JANET D. NEUENSCHWANDER JOHN T. MULVIHILL CLAUDIA V. SWHIER (219) 293 -0681 MILDRED L.CALHOUN ANTHONY NIMMO FRANKLIN A. MORSE II ROBERT K. BELLAMY JOHN C. ROTH HAAR STEVEN W.THORNTON STEPHEN A. SEALL CATHERINE L. BRIDGE DOUGLAS K. DIETER LY T. RICHARD RINEY GORDON S. ESLICK RICHARD D.CONARD SUITE 500 SANDRA J. LONG JOHN C.BINKLEY RICHARD E.STEINBRONN LARRY J. STROBLE 1815 H STREET, N. W. DOUGLAS E. STARKEY DOUGLAS D. SMALL JOHN A. BURGESS MICHAEL ROSIELLO WASHINGTON, D. C.20006 ROBERT J.SMITH.JR. PAULA M. TAYLOR ;202. 955 -4500 CONNEE M. MCKEAN HOWARD E.KOCHELL BRUCE B. 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 December 7, 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 Jefferson Boulevard Partnership, an Indiana limited Partnership Project Dear Mrs. Gammon: The South Bend Economic Development Commission at its meeting of December 12, 1983 will pass its resolution approving the form of financing documents for the Jefferson Boulevard Part- nership, an Indiana limited partnership, bond issue. A copy of the Commission's Resolution is enclosed herewith. The facility to be financed by the bonds consists of the renovation of the office building located at the northwest corner of Main Street and Jefferson Boulevard, in South Bend, Indiana. The project will create approximately 50 to 100 new jobs. Transmitted with this letter is the form of ordinance we are requesting the Common Council pass authorizing the issuance Mrs. Irene K. Gammon -2- December 7, 1983 of the bonds. Also enclosed please find two sets of the basic bond documents. Very truly yours, BARNES & THORNBURG l � Richard W. Mor RWM:jj Encls. cc: Kenneth P. Fedder, Esq. BARNES $ THORNBURG