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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. ml 5 /JG37 15, -. 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 1051� J v6l- `.' G e ®�eO���'�p� �1ORA