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HomeMy WebLinkAboutIssue Economic Development Revenue Bonds Synthetic Diamond Technology IncORDINANCE N0.7221 -83 Passed by the Common Council of the City of South Bend, Indiana /-- July 11, iq 83 City Clerk IRENE K. GAMMON of Common Council Presented by me to the Mayor of the City of South Bend, Indiana July 13, 1983 qta City Clerk IRENE K. GAMMON Approved and signed by me i9 $ 7 i 7.4 a /41 ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1983 (SYNTHETIC DIAMOND TECHNOLOGY, INC. PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the South Bend Economic Development Commission has rendered its Project Report for the Synthetic Diamond Technology, Inc. Project regarding the financing of proposed economic development facilities for Synthetic Diamond Technology, Inc. and the Area Plan Commission of St. Joseph County, Indiana has commented favorably thereon; and WHEREAS, the South Bend Economic Development Commission conducted a public hearing on July 11, 1983, and also adopted a resolution on July 11, 1983, which Resolution has been trans- mitted hereto, finding that the financing of certain economic development facilities of Synthetic Diamond Technology, Inc. complies with the purposes and provisions of I.C. 36 -7 -12 and that such financing will be of benefit to the health and welfare of the City of South Bend and its citizens, and which Resolution includes special findings of fact as to the com- petitive effect of the proposed facilities; and WHEREAS, the South Bend Economic Development Commission has heretofore approved and recommended the adoption of this form of Ordinance by this Common Council and has approved the sub- stantially final forms of and has transmitted for approval by the Common Council the Loan and Security Agreement, Note, Trust Indenture and Official Statement; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA THAT: Section 1. On the 28th day of February, the Common Council adopted an inducement resolution inducing a to -be- formed Indiana general partnership, as developer, and SDT, Inc., as user, as co- applicants to acquire machinery and equipment to be used by SDT, Inc. in the manufacture of synthetic industrial diamonds as described in Section 2 hereof. The Common Council now finds that for business and tax purposes, the sole applicant is to be SDT, Inc. in its proper corporate name Synthetic Diamond Tech- nology, Inc. and such change in the designation of the applicant should be and is hereby approved and all prior action by the Common Council with respect to the proposed economic develop- ment facilities is hereby ratified. Section 2. The proposed economic development facilities will consist of the acquisition and installation of equipment to be used in connection with the manufacturing of synthetic industrial diamonds, which equipment will be installed in a 15,000 square foot building located on an approximate 3 acre tract of land, located on one of the lots in the South Bend Airport Industrial Park. Section 3. It is hereby found that the financing of the economic development facilities referred to in the Loan and Security Agreement approved by the South Bend Economic Develop- ment Commission and presented to this Common Council, the issuance and sale of revenue bonds, the loan of the proceeds of the revenue bonds to Synthetic Diamond Technology, Inc. for the - 2 - equipping of such facilities, the payment of the revenue bonds by the note payments of Synthetic Diamond Technology, Inc. under the Loan and Security Agreement and Note, and the secur- ing of said bonds by the granting of security interests under the Loan and Security Agreement complies with the purposes and provisions of I.C. 36 -7 -12 and will be of benefit to the health and welfare of the City of South Bend and its citizens. Section 4. The substantially final forms of the Loan and Security Agreement, Note and Trust Indenture approved by the South Bend Economic Development Commission are hereby approved (herein collectively referred to as the "Financing Agreement" as defined to in I.C. 36- 7 -12), and the substantially final form of the official Statement approved by the South Bend Economic Development Commission is hereby approved, and all such documents shall be incorporated herein by reference and shall be inserted in the minutes of the Common Council and kept on file by the Clerk. In accordance with the provisions of I.C. 36- 1 -5 -4, two (2) copies of all such documents are on file in the office of the Clerk for public inspection. Section 5. The City of South Bend shall issue its Economic Development Revenue Bonds, Series 1983 (Synthetic Diamond Technology, Inc. Project), in the total principal amount not exceeding Four Million Six Hundred Eighty Thousand Dollars ($4,680,000) and maturing not later than seven years from the date of the first maturity and which in no event may exceed thirty (30) years, for the purpose of procuring funds to pay the costs of acquisition, construction and equipping of the - 3 - economic development facilities as more particularly set out in the Trust Indenture and Loan and Security Agreement incorpo- rated herein by reference, which bonds will be payable as to principal, premium, if any, and interest from the note payments made by Synthetic Diamond Technology, Inc. under the Loan and Security Agreement and Note or as otherwise provided therein and in the above described Trust Indenture. The bonds shall be issued in registered form, may be issued in denominations of $5,000 or a multiple thereof, and shall be redeemed as provided in Article V of the Trust Indenture. Payments of principal and interest are payable in lawful money of the United States of America at the principal office of the Trustee or its successor in trust or by check or draft mailed or delivered to the registered owner as provided in the Trust Indenture. The bonds shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of the City of South Bend, nor are the bonds payable in any manner from revenues raised by taxation. Section 6. The Mayor and Clerk are authorized and directed to sell such bonds to the purchasers thereof at a rate of interest on the bonds not to exceed 11.00% and at a price not less than96 % of the principal amount thereof. Section 7. The Mayor and Clerk are authorized and directed to execute, attest, affix or imprint by any means the City seal to the documents constituting the Financing Agreement and the Official Statement approved herein on behalf of the City of South Bend and any other document which may be necessary or - 4 - desirable to consummate the transaction, including the bonds authorized herein. The Mayor and Clerk are hereby expressly authorized to approve any modifications or additions to the documents constituting the Financing Agreement and the Official Statement which take place after the date of this Ordinance with the review and advice of the City Attorney; it being the express understanding of this Common Council that said Financ- ing Agreement and the Official Statement are in substantially final form as of the date of this Ordinance. The approval of said modifications or additions shall be conclusively evidenced by the execution and attestation thereof and the affixing of the seal thereto or the imprinting of the seal thereon; pro- vided, however, that no such modification or addition shall change the maximum principal amount of, interest rate on or term of the bonds as approved by the Common Council by this Ordinance without further consideration by the Common Council. The signatures of the Mayor and Clerk on the bonds may be either manual or facsimile signatures. The Clerk is authorized to arrange for delivery of such bonds to the Trustee named in the Trust Indenture, payment for the bonds will be made to the Trustee named in the Trust Indenture and after such payment the bonds will be delivered by the Trustee to the purchasers thereof. The Mayor and Clerk shall execute and the Clerk shall deliver the bonds to the Trustee within ninety days of the adoption of this ordinance. The bonds shall be dated as of August 1, 1983. - 5 - Section 8. The provisions of this Ordinance and the Loan and Security Agreement securing the bonds shall constitute a contract binding between the City of South Bend and the holders of the Economic Development Revenue Bonds, Series 1983 (Synthetic Diamond Technology, Inc. Project), and after the issuance of said bonds, this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of such holders so long as any of said bonds or the interest thereon remains unpaid. Section 9. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. Passed and adopted this 11th day of July, 1983. Attest: Clerk SOUTH BEND COMMON COUNCIL A.41, I /- I- n, Presiding office r Presented by me to the Mayor of the City of South Bend, on this day of , 1983, at the hour of _.m. Clerk Approved and signed by me on this day of 1983. 1st READING 7 — //— L3 PUBLIC HEARING 2nd READING NOT APPROVED REFERRED ° PASSER '% Mayor, City of South Bend CITY of SOUTH BEND ROGER O PARENT, Mayor Economic Development Commission Jerry Hammes, President Walter Szymkowiak, Vice President Walter A. Mucha, Secretary Kenneth P. Fedder, Counsel Alice Neddo, Asst. Sec. July 6, 1983 Members of the South Bend Common Council County -City Building South Bend, IN 46601 Alice Neddo Staff Administrator 230 W. Jefferson Boulevard P.O. Box 1677 South Bend, Indiana 46634.1677 (219) 234 -0051 Re: Synthetic Diamond Technology, Inc. - Proposed Ordinance Dear Councilmen: On the 18th day of February, 1983, the South Bend Economic Development Commission adopted an Inducement Resolution for a to -be- formed Indiana General Partnership, as Developer, and SDT,'Inc., as User, to acquire machinery and equipment to be used in the manufacturing of synthetic industrial diamonds in a facility to be located on an approximate 3 -acre tract of land in the South Bend Industrial Park. Subsequent to the receipt of the application, both the.Economic Development Commission and the South Bend Common Council approved the funding of this project with Industrial Revenue Bonds as outlined in South Bend Common Council Ordinance No. 7186 -83, which was passed on April 25, 1983, The purpose of the newly approved. Commission Resolution and proposed Common Council Ordinance is because of a change in the legal name of the entity to Synthetic Diamond Technology, Inc., and the approval of all the financial arrangements to that particular Corporation. Other than the approval of the newly named party, all other financing arrangements, including bonds issued, jobs created, payroll estimated and benefits to be generated remain the same as when the original bond issue was approved by the Ordinance preXiously passed by the Common Council. ram FILED IN CLE '11 OFFICE I 1983 Irene Gammon CITY CLERK, SOUTH BEND, IND.