HomeMy WebLinkAboutLoan Agreement Economic Development Revenue Bond (J & G Realty & Insurance Co Project)ORDINANCE No. 7354 -84
Passed by the Common Council of the City of South Bend, Indiana
July 231 ,,, 84
IRENE K. GAMMON
City Clerk
of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
Approved and signed by
July 24, rg 84
City Clerk
IRENE K. GAMMON
9 ��
ORDINANCE N0.
AN ORDINANCE APPROVING THE FORM AND TERMS OF
A LOAN AGREEMENT, INDENTURE OF TRUST, MORTGAGE,
NOTE, AND ECONOMIC DEVELOPMENT REVENUE BOND, AND
AUTHORIZING THE EXECUTION THEREOF AND APPROVING
RESOLUTION NO. 8 - 84 OF THE SOUTH BEND
ECONOMIC DEVELOPMENT COMMISSION PERTAINING TO THE
J & G REALTY & INSURANCE CO. PROJECT
STATEMENT OF PURPOSE OF INTENT:
The Common Council of the City of South Bend, Indiana, heretofore has
created the South Bend Economic Development Commission (the "Commission ")
pursuant to the provisions of the Public Law No. 182 of the Acts of the General
Assembly of Indiana for 1973, as amended, being IC 36 -7 -12 (the "Act "), and
J & G Realty & Insurance Co. has filed an application with the Commission to
finance the construction of a new building to be leased to Slutsky Peltz
Plumbing & Heating Co., Inc. for use in the expansion of its business (the
"Facilities ") which will result in the creation of a substantial number of jobs
as well as other benefits, and
The Commission has prepared and placed on file a report containing the
subject matter as specified in IC 36 -7 -12 and has forwarded copies thereof to
the chairman of the Area Plan Commission and to the superintendent of the School
Corporation in the area in which the Facilities will be located, and has
received favorable reports from each of them, and
The Commission held a public hearing on the proposed financing of such
Facilities on July 6, 1984, after giving the required notice and did find that
the proposed financing complies with the purposes and provisions of the
applicable Indiana statutes, and the Commission did also find that the proposed
facility will not have an adverse competitive effect on similar facilities
already constructed and operating in the City of South Bend, Indiana, and
As required by IC 36- 1 -5 -4, two copies of the Loan Agreement, Indenture of
Trust, Mortgage, Note and Bond have been filed with the City Clerk and made
available for inspection by the public.
The Common Council of South Bend, Indiana, hereby finds that the
Facilities are economic development facilities as that phrase is used in the
Act; and that the construction of the Facilities will increase employment
opportunities and increase diversification of business, commerce and industry in
and near the city, will improve and promote the economic stability, development
and welfare of the area in and near the city, and will encourage and promote the
expansion of industry, trade and commerce in the area in and near the city, and
the location of other new commercial and business facilities in such area.
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South
Bend, Indiana, that:
Section 1. The form and terms of the Loan Agreement, Indenture of
Trust, Mortgage, Note, and Bond pertaining to the J & G Realty & Insurance Co.
2
project and the issuance of economic development revenue bonds pursuant thereto
are hereby approved.
Section 2. Said form of Loan Agreement, Indenture of Trust, Mortgage,
Note, and Bond are hereby incorporated by reference into this ordinance and said
forms shall be inserted into the minutes of the Common Council of South Bend,
Indiana, and shall be kept on file by the City Clerk of South Bend, Indiana.
Section 3. The said Loan Agreement, Indenture of Trust, Mortgage,
Note, and Bond shall be executed on behalf of the City and the Economic
Development Commission of the City of South Bend, Indiana, by the Mayor and City
Clerk and sealed with the corporate seal of such City.
Section 4. Said economic development revenue bonds, repayable solely
by J & G Realty & Insurance Co., the proceeds of which shall be used for the
construction and acquisition of the Facilities, may be issued in a total sum of
not to exceed $550,000 at an annual interest rate of ten percent (10 %) for a
period not to exceed twelve (12) years duration from the date of the issuance of
such bonds in accordance with the terms of said Loan Agreement, Indenture of
Trust, Mortgage, and Note, and that such bonds shall be executed on behalf of
the City and the Economic Development Commission of the City of South Bend,
Indiana, by the Mayor and City Clerk of South Bend, Indiana, and shall be sealed
with the corporate seal of said city.
Section 5. Resolution No. 8 - 84 of the South Bend Economic
Development Commission passed on July 6, 1984, is hereby approved and the Common
Council of the City of South Bend hereby finds that the proposed financing for
the issuance of the Economic Development Revenue Bonds would be of benefit to
the health and welfare of the City of South Bend and that it complies with the
purposes and provisions of IC 36 -7 -12 as amended and supplemented.
Section 5. This ordinance shall be in full force and effect from and
after its passage by the Common Council and approved by the Mayor.
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PUBLIC ;7-R
2nd READING
NOT APPROVE
REFERRER
PASSED '7 -fir _ mss!
ember of South Ben om on Council
FILED ID U N'S OFFICE
Irene Gammon
CITy CLERK, SOUTH BEND, IND.
Economic Development Commission
Jerry Hammes, President
Walter Szymkowiak, Vice President
Walter A. Mucha, Secretary
Kenneth P. Fedder, Councel
Alice Neddo, Asst. Sec.
July 3, 1984
CITY ®f SOUTH BEND
ROGER O PARENT, Mayor
Members of the Common Council
County -City Building
South Bend, IN 46601
Re: J & G Realty and Insurance Company
Dear Councilmen:
Alice Neddo
Staff Administrator
230 W. Jefferson Boulevard
P.O. Box 1677
South Bend, Indiana
46634 -1677
(219) 234 -0051
On May 23, 1984, J & G Realty and Insurance Company applied for
$550,000.00 of economic development bonds to finance the construction
of a new - economic development facility which will be leased to
Slutsky -Peltz Plumbing and Heating Company, Inc. for their use and
an expansion in their business.
In addition to the retention of approximately 40 jobs, it is
anticipated 5 new jobs will be created, with an estimated payroll
of between $60,000.00 - $100,000.00.
The new facility will be constructed on Parcels 6 and 8 of the
Sample - Monroe Redevelopment area.
The South Bend Common Council has previously passed an Inducement
Resolution on this project, and we are asking for your favorable
action on this funding Ordinance.
Respectfully,
EN . TH P" FEDDER
tt rney for the South Bend
c nomic Development Commission
KPF:ram
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