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HomeMy WebLinkAboutApproving the Form & Terms Economic Development Revenue Bonds Relating to the 227 Main St Associates ProjectORDINANCE No. 7309 -84 Passed by the Common Council of the City of South Bend, Indiana Atte. March 12 19 84 City Clerk IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Ind'ana March 13 �9 84 of Common Council IRENE K. GAMMON Approved and signed by me r/ ��' ! 3 19 y l Clerk ORDINANCE NO. 23,09-84 AN ORDINANCE APPROVING THE FORM AND TERMS OF THE LOAN AGREEMENT, INDENTURE OF TRUST, AND ECONOMIC DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXE- CUTION THEREOF, AND APPROVING THE RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE 227 MAIN STREET ASSOCIATES PROJECT. STATEMENT OF PURPOSE AND INTENT: The Common Council of the City of South Bend, Indiana, heretofore has created the South Bend Economic Development Commission (hereinafter referred to as the "Commission ") pursuant to the provisions of Indiana Code 36 -7 -12, as amended (hereinafter referred to as the "Act "). 227 Main Street Associates filed an application with the Commis- sion to finance certain economic development facilities resulting in a substantial number of new jobs as well as other benefits, and in connection therewith, the Commission has prepared and placed on file a report containing the subject matter as specified in Section 23 of the Act and has forwarded copies thereof to the Chairman of the Area Plan Commission of St. Joseph County, Indiana, and to the Superintendent of the South Bend Community School Corporation, being the area in which the proposed facilities will be located, and has timely received fav- orable reports from each of them, and the Commission held a public hearing on the proposed financing of such economic development facili- ties in accordance with the Act after giving the required notice as provided in the Act, and adopted a resolution finding that such pro- posed financing complies with the purposes and provisions of all applicable Indiana statutes governing the issuance of Economic Develop- ment Revenue Bonds, including but not limited to the Act, and approving the form and terms of the Loan Agreement, Indenture of Trust, and Bonds, and further approving this form of Ordinance, authorizing the execution thereof, and further finding that such economic development facilities will not have an adverse competitive effect on similar facilities already constructed and operating in the City of South Bend, Indiana. 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, and Economic Development Revenue Bonds pertaining to the 227 Main Street Associates Project and the issuance of the Economic Development Revenue Bonds pursuant thereto are hereby approved and adopted. Section 2. Said forms of Indenture of Trust and Loan Agreement, together with the Note and Mortgage attached as an exhibit thereto, and the Economic Development Revenue Bonds which are on file with the Commission, are hereby incorporated by reference into this Ordinance, and said forms shall be inserted into the minutes of the Common Council of the City of South Bend, Indiana. Section 3. Said Loan Agreement and Indenture of Trust shall be executed on behalf of the City of South Bend, Indiana, by the Mayor and City Clerk of South Bend, Indiana, and sealed with the corporate seal of such City. Section 4. Said Economic Development Revenue Bonds, payable solely and only from the revenues derived from such Project pursuant to the aforementioned Loan Agreement and Indenture of Trust will not be in any respect a general obligation of the City, nor may the Bonds be paid in any manner from funds raised by taxation, and may be issued in an aggregate amount not to exceed $650,000.00, as interest -only bonds in denominations of $1,000.00 or multiples thereof payable in lawful money of the United States of America at the principal office of 1st Source Bank in the City of South Bend, Indiana. Such Bonds shall be re- payable with interest thereon at a rate not to exceed 9 1 /4o per annum, over a term of not more than 3 years, and subject to redemption, all in accordance with the terms of said Bonds, Loan Agreement and Inden- ture of Trust. Such Bonds shall be dated as of the date of execution and delivery, and shall be executed on behalf of the City of South Bend, Indiana, by the manual signatures of the Mayor and City Clerk of the City, and sealed with the corporate seal of the City, and executed and delivered to the purchasers of the Bonds on or before July 1, 1984. Section 5. The Mayor and City Clerk may approve changes and amend- ments to the Loan Agreement, Indenture of Trust, Economic Development Revenue Bonds, Note, Mortgage, and other related documents which do not affect terms contained in this Ordinance. Section 6. The Resolution of the South Bend Economic Development Commission, passed on March 2, 1984 , is hereby approved, and the Common Council of the City of South Bend, Indiana, 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 pro- visions of the Act. Section 7. The Bonds are issued to provide interim financing for the economic development facilities, and it is the intent of the City and of 227 Main Street Associates that, prior to maturity, the Bonds will be redeemed by the issuance of refunding bonds pursuant to Section 30 of the Act. Section 8. Pursuant to the provisions of Indiana Code 36- 1 -5 -4, two copies of all documents incorporated in this Ordinance by reference are on file in the office of the City Clerk for public inspection. Section 9. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. Member of the on Council isr i � —ADINI 3 PUBLIC HEARING 2nd READING NOT APPROVED REFERRED PASSED WILLIAM E. VOOR LLOYD M. ALLEN KENNETH P. FEDDER GEORGE E.HERENDEEN ANTHONY D. KOWALS LARRY L. AMBLER FRED R.HAINS DAVID M. MCTIGUE March 7, 1984 VOOR, ALLEN, FEDDER, HERENDEEN & KOWALS ATTORNEYS 8 COUNSELORS AT LAW 300 FIRST BANK BUILDING 205 WEST JEFFERSON BLVD. SOUTH BEND, INDIANA 46601 Members of the South Bend Common Council County -City Building South Bend, IN 46601 AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. McMICHAEL Re: 227 Main Street Associates Project - Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission received an application from 227 Main Street Associates for a revenue bond issue in the amount of $650,000.00 for the purchase of land, and the renovation, restoration and equipping of improvement located at 223 -227 South Main Street, South Bend, Indiana. For purposes of further information, we are attaching copies of the application of December 30, 1983. We would request your favorable action on the passage of the funding ordinance to approve this downtown renewal project. Resp'Octfull 7TH P' FEDDER rney for the South Bend onomic Development Commission KPF:ram