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HomeMy WebLinkAboutAuthorizing Issue its Economic Development Revenue Bonds (Dafir Realty Co) $900,000.00ORDINANCE No. 7352 -84 Passed by the Common Council of the City of South Bend, Indiana July 23, r9 84 Attest: �-- � �--��� City Clerk IRENE K. GAMMON IMP W1W J , t of Common Counc-0 Presented by me to the Mayor of the City of South Bend, Indiana Jul 24 ig 84 IRENE K. GAMMON Approved and signed by Clerk ORDINANCE NO. 73Sa -1?4 AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY "), TO ISSUE ITS "ECONCMIC DEVELOPMENT REVENUE BONDS, SERIES 1984 (DAFIR REALTY CO., AN INDIANA PARTNERSHIP PROJECT), IN THE AGGREGATE PRINCIPAL AMOUNT OF NINE HUNDRED THOUSAND DOLLARS ($900,000.00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. WHEREAS, the City is a municipal corporation and po- litical 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 provisions; and WHEREAS, the South Bend Economic Development Commis- sion (the "Commission ") has rendered its report concerning the proposed financing of economic development facilities for Dafir Realty Co. and the Area Plan Commission has commented favorably thereon; and WHEREAS, the Commission, after a public hearing held on July 6, 1984, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition and construction by Dafir Realty Co. (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 1984 (Dafir Realty Co., an Indiana Partnership Project) from the City to the bondholders, The Trust Indenture between the City and Valley American Bank and Trust Company (the "Trustee "), and this Ordinance, presented to the Commis- sion, and (v) recommending that this Council find 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 complies with the purposes and proisions 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, Mortgage and Security Agreement 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. 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 and Trust Indenture 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 -2- the acquisition and construction 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 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 and said Trust Indenture. Section 5. The City shall issue its Economic Develop- ment Revenue Bonds, Series 1984 (Dafir Realty Co., an Indiana Partnership Project), in the aggregate principal amount of Nine Hundred Thousand Dollars ($900,000.00) for the purpose of pro- curing funds to loan to the Company in order to finance the acquisition and construction of such facilities, 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 Nine Hundred Thousand Dollars ($900,000.00) 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. 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 August 15, 1984; shall be dated as of August 1, 1984; shall have a final maturity date of August 1,.1999 with principal reduced monthly, beginning on September 1, 1984; in the interim; shall bear interest at a rate of ten percent (10 %) per annum, except in the case of an Event of Taxability as defined in the Loan Agreement, in which case the per annum interest rate shall be a variable rate not to exceed fifteen percent (15 %) or be less than eleven percent (11 %); shall be in -3- the denominations of Five Thousand Dollars ($5,000.00) or inte- gral 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 therein. Section 6. The Mayor and /or the Clerk of the City are authorized and directed to sell said Economic Development Revenue Bonds to Valley American Bank and Trust Company at a price not less than one hundred percent (1000) 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 afore- mentioned 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 Valley American Bank and Trust Company, 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 Econo- mic Development Revenue Bonds or the interest thereon remains unpaid. MIC 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 its siq- nature by the Mayor of the City. PUBLIC NOT APPROVED REFERRED PASSED 7 - a,3 _ op SOUTH BEND COMMON COUNCIL Member -5- FW 11 CLEMIS OFFICE {.f ARM IreneGammon Economic Development Commission Jerry Hammes, President Walter Szymkowiak, Vice President Walter A. Mucha, Secretary Kenneth P. Fedder, Counsel Alice Neddo, Asst. Sec. June 26, 1984 Members of the Common County -City Building South Bend, IN 46601 CITY of SOUTH BEND ROGER Q PARENT, Mayor Council Re; Aucilla Plastics, Inc,, DAFIR Realty Company, an Proposed Ordinance Dear Councilmen; Alice Neddo Staff Administrator 230 W. Jefferson Boulevard P.O. Box 1677 South Bend, Indiana 46634.1677 (219) 234 -0051 an Indiana Corporation, and Indiana Partnership project - I am enclosing a copy of the combined application submitted by Aucilla Plastics, Inc. and DAFIR Realty Company, for Industrial Revenue Bonds in the amount of $1,600,000.00, DAFIR Realty Company is requesting $900,000.00 for the purchase of equipment in the facility to be located in Phase IV of the Airport Industrial Park. The new facility, which will house the equipment when completed, contemplates approximately 1624 new jobs, ' wit h an estimated payroll of between $300,000.00 and $500,000.00. Resplectfully, x : N P. FEDDER 't or ey for the South Bend Ec mic Development Commission KPF ;ram enc, FILED ID CLEFZI 'S OFFICE .._r;ti + Irene Gammon CITY CLERK, SOUTH BEND, IND. (10MMUttr Irvart (To toe (famum ( 0umil of t4r Tug of ftd411rnd: Your Committee OF THE WHOLE to whom was referred 68 -84 A BILL AUTHORIZING THE CITY OF SOUTH BEND, INDIANA (THE "CITY "), TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1984 (DAFIR REALTY CO., AN INDIANA PARTNERSHIP PROJECT), IN THE AGGREGATE PRINCIPAL AMOUNT OF NINE HUNDRED THOUSAND DOLLARS ($900,000.00) AND APPROVING AND AUTHORIZING CERTAIN ACTIONS WITH RESPECT THERETO. Respectfully report that they have examined the matter and that in their opinion THIS BILL SHOULD BE RECOMMENDED TO THE COUNCIL FAVORABLE, AS AMENDED: ON PAGE 3: Change the following: on or about July -- ,1984; shall be dated as of July 1, 1984; shall have a final maturity date of July 1, 1999 with principal reduced monthly, beginning on August 1, 1984 TO on or about August 15, 1984; shall be dated as of August 1, 1984; shall have a final maturity date of August 1, 1999 with princiapl reduced monthly, beginning on September 1, 1984 JOSEPH T. SERGE Chairman FREE PRESS PUBLISHING CO.