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HomeMy WebLinkAboutApproving Economic Development revenue Bond & Trust Indenture Relating to the Metal Resources Corporation ProjectORDINANCE No. 7342 -84 Passed by the Common Council of the City of South Bend, Indiana June 11, �9 84 Ij City Clerk IRENE K. GAMMON of Common Council Presented by me to the Mayor of the City of South Bend, Indiana J ne 12, ig 84 City Clerk IRENE K. GAMMON Approved and signed by me I k _19 i 9 ORDINANCE NO. 73 &/a - 8 4 AN ORDINANCE APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, MORTGAGE AND SECURITY AGREEMENT, PROMISSORY NOTE, ECONOMIC DEVELOPMENT REVENUE BOND, AND TRUST INDENTURE, AUTHORIZING THE EXECUTION THEREOF AND APPROVING RESOLUTION NO. 2680 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE METAL RESOURCES CORPORATION PROJECT WHEREAS, the City of South Bend (the "City ") is a municipal corporation and political 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 provi- sions; and WHEREAS, the South Bend Economic Development Com- mission (the "Commission ") has prepared and placed on file a report containing the subject matter specified in Section 23 of the Act, and the Area Plan Commission in the area in which the economic development facilities will be located has commented favorably thereon; and WHEREAS, the Commission, after a public hearing held on June 1, 1984, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition and construction by Metal Resources Corporation, an Indiana corporation, (the "Company "), of the proposed economic develop- ment facility described in said Report will not have an adverse competitive effect on any similar facility already constructed or operating in or about the City, (ii) further finding that the proposed economic development revenue bond financing of such facility will be of benefit to the health and welfare of the City and its citizens, (iii) further finding that the pro- posed economic development revenue bond financing of such facility complies with the purposes and provisions of the Act, (iv) approving the economic development revenue bond financing of such facility, 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 Develop- ment Revenue Bond (Metal Resources Corporation Project), the Trust Indenture between the City and The Indiana National Bank (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 facility will be of benefit to the health and welfare of the City and its citizens, and complies with the purposes and provisions of the Act, and that this Council adopt an ordi- nance 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 facility described in said Report and in the attached Loan Agreement, Mortgage and Security Agreement is an "economic development facility" within the meaning of the Act and that such facility will not have an adverse competitive effect on any similar facility 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 -2- facility 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 facility complies with the purposes and provisions of the Act. Section 4. This Council hereby approves the proposed economic development revenue bond financing of such facility, including (i) the form and terms of the aforementioned Loan Agreement, Mortgage and Security Agreement, Promissory Note, Economic Development Revenue Bond, 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 Bond, (iii) the loan of the net proceeds of said Economic Development Revenue Bond to the Company for the acquisition and construction of such facility, 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 Bond by said Loan Agreement, Mortgage and Security Agreement and said Trust Indenture. Section 5. The City shall issue its Economic Develop- ment Revenue Bond (Metal Resources Corporation Project), in the aggregate principal amount of Three Million Eight Hundred Seventy -Five Thousand One Hundred Twenty -Five Dollars ($3,875,125.00) for the purpose of procuring funds to loan to -3- the Company in order to finance the acquisition and construc- tion of such facilities, as more particularly set out in said Loan Agreement, Mortgage and Security Agreement, which Economic Development Revenue Bond 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 Three Million Eight Hundred Seventy -Five Thousand One Hundred Twenty - Five Dollars ($3,875,125.00) which will be executed and deliv- ered 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 Bond shall never constitute a general obli- gation of, indebtednesses of, or charge against the general credit of the City. Said Economic Development Revenue Bond shall be executed by the manual or facsimile signatures of the Mayor and the Clerk of the City; shall be executed and deliv- ered during regular business hours on or about June 20, 1984; shall be dated as of June 1, 1984, maturing on July 1, 1994, shall bear per annum interest at a variable rate equal to 75% of the per annum prime rate of interest in effect from time to time at The Indiana National Bank, plus additional interest at the rate of 2.61 percent per annum for the period beginning on July 1, 1984 and ending on September 30, 1984, and 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. -4- Section 6. The Mayor and the Clerk of the City are authorized and directed to execute and deliver the aforemen- tioned 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 consumma- tion of such financing. Section 7. 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 Bond, and after the issuance of said Economic Develop- ment Revenue Bond 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 Eco- nomic Development Revenue Bond or the interest thereon remains unpaid. Section 8. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 9. This Ordinance shall be in full force and effect from and after its passage by this Council and approval by the Mayor of the City. 1sT READING Is'- .19 - IT I/ PUBLIC NEARING (.- ! ! - Te y 2nd READING NOT APPROVED REFERRED PASSED (, — 1 l - �C `4 � Cby q�,� (IontnttUrr Irport Xv t4t Tommon Toundt of t4r TUH of .00194 Brno: Your Committee OF THE WHOLE to whom was referred 55 -84 A BILL APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, MORTGAGE AND SECURITY AGREEMENT, PROMISSORY NOTE, ECONOMIC DEVELOPMENT REVENUE BOND, AND TRUST INDENTURE, AUTHORIZING THE EXECUTION THEREOF AND APPROVING RESOLUTION NO. 26 -80 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE METAL RESOURCES CORPORATION PROJECT. Respectfully report that they have examined the matter and that in their opinion this bill should be recommended to the Council favorable, as amended, by substitution of a new bill. Joseph T. Serge Chairman FREE PRESS ageapo PUBLISHING CO.