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HomeMy WebLinkAboutAuthorizing Economic Development revenue Bonds Lock Joint Tube Company Inc $1,250,000.00ORDINANCE No. 7284 -83 Passed by the Common, Council of the City of South Bend, Indiana _December 30, rg83 IRENE K. GAMMON City Clerk of Common Council Presented by me to the Mayor of the City of South Bend, Indiana December 30. �9 83 IRENE K. GAMMON Approved and signed by me D'. SgD, '.v '0.'' 1993 I? Clerk ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS FOR THE LOCK JOINT TUBE COMPANY, INC. 1983 PROJECT IN THE AGGREGATE PRINCIPAL AMOUNT OF $1,250,000.00 AND APPROVING BOND DOCUMENTS AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THEREOF. WHEREAS, the City of South Bend, Indiana, (the "City ") , is a municipal corporation and political subdivision of the State of Indiana, and by virtue of IC 26- 7 -12 -1 through IC 36 -7 -12 37, (the "Act ") , is authorized and empowered to adopt this Ordinance and to carry out its provisions; and WHEREAS, the South Bend Economic Development Commission, (the "Commission ") , has rendered its favorable report with respect to the Lock Joint Tube Company, Inc. 1983 Project concerning the construction of a raw materials warehouse building for the produc- tion of welded steel tubing on the real estate owned by Lock Joint Tube Company, Inc., an Indiana corporation, (the "Developer "), situated at 1400 Riverside Drive, South Bend, Indiana, 46624, and the acquisition of one complete Turek & Heller tube mill consisting of a Guild welder and Inductroweld Unit and an Alpha Cutoff, which such building and equipment constitute economic development facil- ities; and WHEREAS, the Commission, after a public hearing held on December 29, 1983, has adopted a resolution, (the "Resolution ") , which has been transmitted to this Council (i) finding that the acquisition and construction of such economic development facilities for the use of Developer will not have an adverse competitive effect on any similiar facilities already constructed or operating in or about the City, (ii) further finding that the financing and acquisi- tion of such economic development facilities for such Lock Joint Tube Company, Inc. 1983 Project as described in such Resolution will be a benefit to the health and welfare of the City and its citizens; (iii) further finding that the financing and acquisition of such economic development facilities complies with the purposes and pro- visions of the Act; (iv) approving the financing and acquisition of such economic facilities together with the form and terms of the Loan Agreement to be executed by the City and the Developer, the Bond to be issued by the City, the Mortgage and the Security Agree- ment to be executed by the Developer, and the Bond Purchase Agree- ment to be executed by the City and American Fletcher National Bank Trust Company of Indianapolis, Indiana, (all of which are referred to as the "Bond Documents "), which Resolution also approves the form of this Ordinance which was recommended by such Resolution to be adopted by this Council; (v) approving the issuance by the City of Industrial Development Revenue Bonds for such Lock Joint Tube Com- pany, Inc. 1983 Project [herein sometimes referred to as "Economic Development Revenue Bonds" and sometimes referred to as "Bond" or "Bonds "] repayable in installments with interest and in accordance with other terms as referred to in the Bond Documents, and that this Council adopt this Ordinance approving such financing. NOW, THEREFORE, BE IT ORDERED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: Section 1. This Council finds that the facilities des- cribed as economic development facilities in the report of the Commission and such Bond Documents constitutes "economic development facilities" within the meaning of the Act and that such facilities will not have an adverse competitive effect on any similar facili- ties already constructed or operating in or about the City. Section 2. This Council further finds that Economic Development Revenue Bond financing of such economic development facilities and such Lock Joint Tube Company, Inc. 1983 Project will be a benefit to the health and welfare to the City and its citizens and complies with the purposes and provisions of the Act. Section 3. This Council hereby approves the Economic Development Revenue Bond financing of such economic development facilities for such Lock Joint Tube Company, Inc. 1983 Project including (i) the form and terms of the aforementioned Loan Agree- ment, Bond Purchase Agreement, Note, Mortgage, Security Agreement, and Economic Development Revenue Bonds, and all related instruments concerning the financing of such economic development facilities; (ii) the issuance and sale of the Economic Development Revenue Bond or Bonds as referred to in such Bond Documents; (iii) the loan of the net proceeds from the sale of such Economic Development Revenue Bond or Bonds to the Developer for the acquisition and construction of such economic development facilities in accordance with the terms of the Bond Documents; (iv) the repayment of such loan by the Developer pursuant to the Loan Agreement, Note, Mortgage, Security Agreement, and other instruments relating to such financing; and (v) the securing of the performance of terms of such Bond Documents and the repayment of such Economic Development Revenue Bond or Bonds by the execution and delivery by the Developer of the Mortgage and Security Agreement, which constitutes a part of such Bond Docu- ments. Section 4. The City shall issue its Economic Development Revenue Bonds relating to such Lock Joint Tube Company, Inc. 1983 Project in the aggregate principal amount of One Million Two Hundred and Fifty Thousand Dollars, ($1,250,000.00) , for the purposes of procuring financing and funds to loan to the Developer in order to finance the acquisition and construction of such economic develop- ment facilities as more particularly described in the Bond Documents evidenced by such Loan Agreement and Note and secured by such Mort- gage and Security Agreement and payable, together with interest thereon from the date of issuance (computed on the basis of a three hundred sixty (360) days year) on the principal amount balance remaining from time to time unpaid, adjusted daily, and.calculated at seventy -five percent (75 %) of the prime rate recognized by American Fletcher National Bank and Trust Company of Indianapolis, Indiana each day, which such principal plus interest shall be pay- able in installments of Thirty -one Thousand Two Hundred Fifty Dollars ($31,250.00) plus interest on or before the lst day of February, 1984, and on or before the lst day of each consecutive three (3) months thereafter until the lst day of November, 1994, when all unpaid principal and interest shall be due and payable, but not less than the Relative Bond Interest Rate as described in such Bond Documents. Such Economic Development Revenue Bond or Bonds shall never constitute general obligations of, indebtedness of, or charges against the general credit of the City. Such Economic Development Revenue Bond or Bonds shall be executed by the manual or facsimile signature of the Mayor and Clerk of the City; shall be executed and delivered on or about December 30, 1983; shall have maturities from February 1, 1984 to November 1, 1984; shall bear interest at rates not to exceed the rates described in such Bond Documents which shall not be less than the Relative Bond, Interest Rate as described in such Bond Documents; shall be in a denomination of either one bond for $1,250,000.00 or such other denominations which does not exceed such amount in the aggregate; shall be issued in registered form; shall be registerable as provided in the Bond Documents; shall be payable in the medium and at the place or places provided in such Bond Documents, and shall be subject to optional and mandatory prepayment as provided in such Bond Documents. Section 5. The Mayor and Clerk of the City are hereby authorized to execute and file on behalf of the City of South Bend, Indiana the statement required pursuant to Section 103 (b) (6) (D) of the Internal Revenue Code, as amended, and regulations issued pur- suant thereto, with the Director of the Regional Services Center of -2- the Internal Revenue Service where Lock Indiana corporation, files its federal the issuance of such Economic DevelopmE elect to have the provisions of said Internal Revenue Code, as amended, be Economic Development Revenue Bonds. Joint Tube Company, Inc., an income tax returns prior to !nt Revenue Bonds in order to Section 103(b) (6) (D) of the applicable to this issue of Section 6. The Mayor and the Clerk of the City of South Bend, Indiana are authorized to execute and deliver such Economic Development Revenue Bond or Bonds as herein authorized, together with such Loan Agreement, Bond Purchase Agreement, and any other instrument required or deemed by them advisable after making therein such changes permitted by the Act as they may deem advisable by the execution of such instruments, Bond Documents, and they are further authorized and directed to deliver such other instruments for and on behalf of the City as they may deem necessary or proper in connec- tion with the consummation of such financing. Section 7. The provisions of this Ordinance and the afore- mentioned Bond Documents shall constitute a contract binding between the City and the holder or holders of such Economic Development Revenue Bonds, and after the issuance of such Economic Development Revenue Bonds, this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of any such holder or holders so long as any part of the principal or interest of such Economic Development Revenue Bonds remains unpaid. Section 8. Two copies of the Bond Documents have been duly filed in the Office of the Clerk of the City and are available for public inspection and are incorporated in this Ordinance in accord- ance with IC 36- 1 -5 -4. Section 9. All ordinances or parts of ordinances conflict- ing herewith are hereby repealed. Section 10. This Ordinance shall be in full force and effect from and after its passage by this Council and its approval by the Mayor of the City of South Bend, Indiana. 1110W .- the on Council iF FILED IN CLE ��'S OFFB E ?9813 PUTSUC Irene Gammon 2nd U. AD;;NG /,g _ �, CITY CLERK, SOUTH BEND, IND. NOT APPROVED REFERRED PASSED, -3- BARNES & THORNBURG December 13, 1983 Mrs. Irene K. Gammon City Clerk of South Bend South Bend, Indiana 46601 Re: Lock Joint Tube Company, Inc. Economic Development Bond Issue Dear Mrs. Gammon: I deliver to you herewith the following respecting the above matter in order that such may be placed on the agenda of the meeting of the Common Council of the City of South Bend, of which I understand is scheduled for December 30, 1983 to wit: 1. Four copies of a proposed form of Ordinance for enactment confirming and authorizing the closing of such bond issue. 2. Two copies of a form of Loan Agreement with the Note and Mortgage attached as exhibits thereto. 3. Two copies of the Bond Purchase Agreement which. includes the form of bond to be used at Section 204 (pages 8- 11, inclusive). SIXTH FLOOR, 1ST SOURCE BANK CENTER OF COUNSEL 100 NORTH MICHIGAN JERRY P. BELKNAP ROBERT P. JOHNSTONE ALAN W. BOYD LESTER M. PONDER ROBERT S.ASHSY TOM CHARLES HUSTON SOUTH BEND, INDIANA 46601 CHARLES M. WELLS DONALD D.EVENSON +k 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. MCGILL 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. SENKO THOMAS L. MURRAY DAVID R. MELTON STEPHEN W.LEE JAMES B. LOOTENS JOHN R. HARMAN BRIAN J. LAKE (219) 233 -1171 (219) 237 -11255 DAVID A. HAIST NANCY L. MARSHALL HOWARD J. COFI ELI) BRYAN G.TABLER 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 EVICTOR INDIANO RICHARD E. DEER RICHARD W. MORGAN TWX 810 -341 -3427 B &T LAW IND ERNEST J.SZARWARK ALAN A. LEVIN EDWARD J. GRAY MICHAEL R. FRUEHWALD PAUL E. BECH ER FRANK SULLIVAN.JR. ROBERT E. HIGHFIELD EDWARD 0. DELANEY JAMES E. MAHONEY KENNETH R. PETRINI DANIEL W. RUDY CYM H. LOWELL DAVID M. POWLEN KENNETH H.INSKEEP JACK C. DUNFEE.JR. JERRY E. HYLAND EDWIN B. WAINSCOTT KATHLEEN K. BRICKLEY HENRY J. PRICE . SAMUEL S.THOMPSON 1313 MERCHANTS BANK BUILDING MICHAEL P. LUCAS ALAN K. MILLS HERBERT C. SNYDER.JR. BRUCE R. KARR INDIANAPOLIS, INDIANA 46204 DAVID L.SWIDER JOSEPH W. REBONE JAMES A. MCDERMOTT DONALD E.KNEBEL (317) 638 -1313 RENEE R.MAWHINNEY RYAN M.FOUNTAIN + SHIRLEY A. SHIDELER WAYNE C.KREUSCHER MARCUS B.CHANDLER EDWARD A. KEIRN ROBERT H. REYNOLDS KRISTIN G. FRUEHWALD DOUGLAS P. LONG TIMOTHY J. RIFFLE CHARLES E. BRUESS DANIEL W. MCGILL FIRST NATIONAL BANK BUILDING STEPHEN L. SMITH CAROL C. KAESEBIER WILLIAM R.COFFEY KENT E.AGNESS 301 SOUTH MAIN STREET.SUITE 305 JOHN M.KYLE III TIMOTHY T. CASADY BRUCE R. BANCROFT MICHAEL R. CONNER ELKHART, INDIANA 46516 JAMES A. COLES 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. DIETERLY T. RICHARD RINEY GO RDON S. E5LICK RICHARD O.CONARD SUITE 500 SAN ORA 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 CONNIE 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 13, 1983 Mrs. Irene K. Gammon City Clerk of South Bend South Bend, Indiana 46601 Re: Lock Joint Tube Company, Inc. Economic Development Bond Issue Dear Mrs. Gammon: I deliver to you herewith the following respecting the above matter in order that such may be placed on the agenda of the meeting of the Common Council of the City of South Bend, of which I understand is scheduled for December 30, 1983 to wit: 1. Four copies of a proposed form of Ordinance for enactment confirming and authorizing the closing of such bond issue. 2. Two copies of a form of Loan Agreement with the Note and Mortgage attached as exhibits thereto. 3. Two copies of the Bond Purchase Agreement which. includes the form of bond to be used at Section 204 (pages 8- 11, inclusive). Mrs. Gammon December 13, 1983 Page Two On behalf of our office, Lock Joint Tube Company, Inc. and American Fletcher National Bank and Trust Company of Indianapolis, Indiana, the Purchaser of the bond involved, we express our apprecia- tion for the consideration of the Council in calling the special meeting on December 30, 1983 for the consideration of this ordinance. If you need any additional information in this regard, please advise. Very truly yours, BA ES & THORNBURG f 0 Warren E. c 11 WEM /sh Enclosures cc: Mrs. Alice Mr. Carter Mr. Steven Mr. Robert Mr. Charle Neddo B. Tharp J. Liebold E. Stachowiak s M. Boynton BARNES 8, THORNBURG