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HomeMy WebLinkAboutAuthorizing Economic Development Revenue Bond (Park Center Associates Project)ORDINANCE No. 7345 -84 Passed by the Common Council of the City of South Bend, Indiana June 25, 19 84 Attests City Clerk IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana June 26, 19 84 Approved and signed by me Q 6 of Common Council City Clerk IRENE K. GAMMON 19 -3 ORDINANCE NO. 735/S 141 ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1984 (PARK CENTER ASSOCIATES PROJECT) AND ECONOMIC DEVELOPMENT REFUNDING REVENUE BOND, SERIES 1984 (PARK CENTER ASSOCIATES PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the South Bend Economic Development Commission has rendered its Project Report for the Park Center Associates Project regarding the financing of proposed economic develop- ment facilities for Park Center Associates and the South Bend Plan Commission has commented favorably thereon; and WHEREAS, the South Bend Economic Development Commission conducted a.public hearing on June 15, 1984, and also adopted a resolution on June 15, 1984, which Resolution has been trans- mitted hereto, finding that the financing of certain economic development facilities of Park Center Associates complies with the purposes and provisions of I.C. 36 -7 -12 and that such financing will be of benefit to the health and welfare of the City of South Bend and its citizens; and WHEREAS, the South Bend Economic Development Commission has heretofore approved and recommended the adoption of this form of Ordinance by this Common Council, has considered the issue of adverse competitive effect and has approved the forms of and has transmitted for approval by the Common Council the two Loan Agreement and Bond Purchase - Agreements, Mortgage and Security Agreements, Assignments of Rents and Leases and Notes; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA THAT: Section 1. It is hereby found that the financing of the economic development facilities referred to in the Loan Agreement and Bond Purchase Agreements approved by the South Bend Economic Development Commission and presented to this Common Council, the issuance and sale of revenue bonds, the loan of the proceeds of the revenue bonds to Park Center Associates for the acquisition and construction of such facilities and the equipping thereof, the payment of the. revenue bonds by the note payments of Park Center Associates under the Loan Agreement and Bond Purchase Agreements and Notes, the leasing of the facilities to Continental Carbonic Products, Inc., Moser - Schmidt Paper Company, Midway Dental Supply Company and Schnee Morehead, and the securing of said bonds by the mortgaging of such facilities to the Bondholder under the Loan Agreement and and Bond Purchase Agreements complies with the purposes and provisions of I.C. 36 -7 -12 and will be of benefit to the health and welfare of the City of South Bend and its citizens. Section 2. The facilities will consist of two office, light industrial, and warehouse buildings, each containing appro- ximately 27,200 square feet of net rentable area, together with off - street parking, and fixtures, furnishings and equipment. Section 3. At the public hearing held by the South Bend Economic Development Commission, the Commission considered whether the economic development facilities would have an adverse competitive effect on any similar facilities located in the City of South Bend, and found, based on special findings of fact set forth in the Resolution transmitted hereto, that the facilities would not have an adverse competitive effect. This Common Council hereby confirms the findings set forth in the Commission's Resolution, and concludes that the economic. development facilities will not have an adverse competitive effect on any other similar facilities in the City of South Bend, and the facilities will be of benefit to the health and welfare of the citizens of the City of South Bend. Section 4. The substantially final forms of the two Loan Agreement and Bond Purchase Agreements, Mortgage and Security Agreements, Assignments of Rents and Leases and Notes approved by the South Bend Economic Development Commission are hereby - 2 - approved (herein collectively referred to as the "Financing Agreement" referred to in I.C. 36- 7 -12), and'the Financing Agreement shall be incorporated herein by reference and shall be inserted in the minutes of the Common Council and kept on file by the Clerk. In accordance with the provisions of I.C. 36- 1 -5 -4, two (2) copies of the Financing Agreement are on file in the office of the Clerk for public inspection. Section 5. The City of South Bend shall issue its Economic Development Revenue Bond, Series 1984 (Park Center Associates Project), in the total principal amount of Nine Hundred Thousand Dollars .($900,000) and maturing not later than 30 years from the date of the first principal payment, and its Economic Development Refunding Revenue Bond, Series 1984 (Park Center Associates Project), in the total principal amount of Seven Hundred Thousand Dollars ($700,000) and maturing not later than 30 years from the date of the first principal payment. Said bonds are to be issued for the purpose of procuring funds to pay the costs of acquisition, construction and equipping of the economic development facilities as more particularly set out in the Loan Agreement and Bond Purchase Agreements incorporated herein by reference, which bonds will be payable as to principal, premium, if any, and interest from. the note payments made by Park Center Associates under the Loan Agreement and Bond Purchase Agreements and Notes. The bonds shall be issued in fully registered form in the denomination of $5,000 or integral multiples thereof and shall be redeemable as provided in the bonds. Payments of principal and interest are payable in lawful money of the United States of America at the principal office of the Bondholder or by check or draft mailed or delivered to the Bondholder. The bonds shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of the City of South Bend, nor are the bonds payable in any manner from-revenues raised by taxation. - 3 - Section 6. The Mayor and Clerk are authorized and directed to sell such bonds to the purchaser thereof at a rate of interest on the bonds not to exceed 11% per annum (except in the event interest on the bonds becomes taxable due to a Determination of Taxability, as defined in the bonds, and except in certain other events described in the bonds, in which case the interest on the bonds will increase as provided in the bonds, provided that the interest rate shall in no event exceed 25% per annum); and at a price of not'less than 100% of the principal amount thereof. Section 7. The Mayor and Clerk are authorized and directed to execute, attest, affix or imprint by any means the City seal to the documents constituting the Financing Agreement approved herein on behalf of the City and any other document which may be necessary or desirable to consummate the transaction, including the bonds authorized herein. The Mayor and Clerk are hereby expressly authorized to approve any modifications or additions to the documents constituting the Financing Agreement which .take place after the date of this Ordinance with the review and advice of the City Attorney; it being the express understanding of this Common Council that said Financing Agreement is in substantially final form as of the date of this Ordinance. The approval of said modifications or additions shall be conclusively evidenced by the execution and attesta- tion thereof and the affixing of the seal thereto or the imprinting of the seal thereon; provided, however, that no such modification or addition shall change the maximum principal amount of, interest rate on or term of the bonds as approved by the Common Council by this Ordinance without further considera- tion by the Common Council. The signatures of the Mayor and Clerk on the bonds may be either manual or facsimile signa- tures. The Clerk is authorized to arrange for delivery of such bonds to the Bondholder named in the Loan Agreement and Bond Purchase Agreements. The Mayor and Clerk shall execute and the - 4 - f Clerk shall deliver the bonds to the Bondholder within ninety days of the adoption of this ordinance. The bonds shall be originally dated as of June 1, 1984. Section 8. The provisions of this Ordinance and the Loan Agreement and Bond Purchase Agreements securing the bonds shall constitute a contract binding between the City of South Bend and the holder of the Economic Development Revenue Bond, Series 1984 (Park Center Associates Project) and the Economic Development Refunding Revenue Bond, Series 1984 (Park Center Associates Project), and after the issuance of said bonds, this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of such holders so long as any of said bonds or the interest thereon remains unpaid. Section 9. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. Passed and adopted this day of June, 1984. Attest: e r. — F %gyp JUN 2 0 1984 Irene summon ,c ��, uru PL:LiC FcAnING � � 6fND, IND. 2nd READING NOT APPROVED r v REFERRED PASSED (, . p,y SOUTH BEND COMMON COUNCIL Member of C ncil ,,. RZAC!; Economic Development Commission Jerry Hammes, President Walter Szymkowiak, Vice President Walter A. Mucha, Secretary Kenneth P. Fedder, Counsel Alice Neddo, Asst. Sec. June 20, 1984 CITY of SOUTH BEND Members of the Common Council County -City Building South Bend, IN 46601 ROGER 0. PARENT, Mayor Re; Park Center Associates - Proposed Ordinance Dear Councilmen; Alice Neddo Staff Administrator 230 W. Jefferson Boulevard P.O. Box 1677 South Bend, Indiana 46634.1677 (219) 234.0051 I am enclosing a copy of the March 30, 1984 Application submitted by Park Center Associates for Industrial Revenue Bonds in the amount of $1,650,000.00. I am further enclosing a copy of a June 15, 1984 Resolution of the Economic Development Commission recommending favorable action by the Council. The intent of the Bond issue is to refund a prior 1983 Bond issue and to also fund the purchase of land and the construction of an additional economic development facility of approximately 30,500 square feet located in the Monroe Park Redevelopment Area. The new facility will employ approximately 25 individuals, with an a oximate annual salary of $325,000.00. Re 6noic ll , trr KE . FEDDER FILED;�'S EEICE At for the South Bend Ec Development Commis sion KPF:ram enc . Irene Gammon CITY CLERK, SOUTH BEND, IND.