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Home My WebLink AboutApproving Industrial Development Revenue Bonds STC Recycling Inc ProjectORDINANCE No 7232 -83 Passed by the Common Council of the City of South Bend, Indiana August 22, �9 83 IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana Clerk of Common Council IRENE K. GAMMON Approved and signed by me �9 Clerk BILL NO. ORDINANCE NO. 2.2 U-KY AN ORDINANCE APPROVING THE FORM AND TERMS OF LOAN AGREEMENTS, SERIES A AND SERIES B NOTES, BOND PURCHASE AGREEMENT, SECURITY AGREEMENTS, PROJECT LEASE AND INDUSTRIAL DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF AND APPROVING RESOLUTION NO. 2 -83 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE STC RECYLING, INC. PROJECT STATEMENT OF PURPOSE OF INTENT: The Common Council of the City of South Bend, Indiana, ( "City ") heretofore has created the South Bend Economic Devel- opment Commission ( "Commission ") pursuant to the provisions of the Public Law No. 309 of the Acts of the General Assembly of Indiana for 1981, as such may be amended from time to time, in- cluding but not limited to IC 36- 7 -12 -1, through IC 36- 7- 12 -37, hereinafter referred to as the 'Act "; and STC Recycling, Inc., a Delaware corporation ( "STC Recycling ") and Copelco Leverage Leasing Corporation, a New Jersey corporation ( "Copelco ") have filed an application with the Commission to finance the construction of leasehold im- provements and equipping of a manufacturing facility located on real estate in South Bend, Indiana, ( "Facilities ") which will constitute economic development facilities resulting in a sub- stantial 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 and to the Superintendent of the School Corporation in the area of which the Facilities will be located, and has timely received favor- able reports from each of them; and The Commission held a public hearing on the proposed financing of such Facilities on June 3, 1983 and August 5, 1983, after giving the required notice as provided for in Sec- tion 24 of the Act and did find that the proposed financing complies with the purposes and provisions of the applicable Indiana statutes governing the issuance of Economic Development Revenue Bonds by the Commission and the Commission finds that proposed Facilities will not have an adverse competitive effect on similar facilities already constructed and operating in and near the City of South Bend, Indiana; and 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 Agreements, Series A and Series B Notes, Bond Purchase Agreement, Security Agreements, Project Lease and Economic Development Revenue Bonds ( "Bonds ") pertaining to the STC Recycling, Inc. Project and the issuance of the Bonds pursuant thereto are hereby ap- proved and adopted. Section 2. Said form of Loan Agreements, Series A and Series B Notes and Security Agreement together with the Bonds which are on file with the Commission are hereby incorporated by reference into this Ordinance, and said forms shall be in- serted into the minutes of the Common Council of the City. In accordance with the provisions of IC 36- 1 -5 -4, two (2) copies -2- of all such documents are on file in the office of the City Clerk for public inspection. Section 3. The Loan Agreements and Security Agree- ments shall be executed manually on behalf of the City by the Mayor and City Clerk and sealed with the corporate seal of the City. Section 4. Said Bonds, payable solely and only from the revenue derived from the STC Recycling, Inc. Project may be issued in the maximum principal amount of One Million Three Hundred Thousand and no /100 Dollars ($1,300,000.00) bearing interest at a rate of ten percent (10 %) per annum for a period not exceeding seven (7) years after the first installment of principal due thereon, in accordance with the terms of said Loan Agreement. Said Bonds shall be dated August 29, 1983 and shall be executed and delivered on or about August 29, 1983 on behalf of the City by the Mayor and City Clerk and shall be sealed with the corporate seal of the City. Said Bonds shall never constitute general obligations of, indebtedness of, or charges against the general credit of the City. The Bonds shall be issued in fully- 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 op- tional and mandatory prepayment as provided therein. The Bonds shall be issued as a Series A Bond in the principal amount of One Million Seventy Thousand Seven Hundred Eighty-six Dollars ($1,070,786.00) and a Series B Bond in the principal amount of -3- Two Hundred Twenty-Thousand Two Hundred Fourteen Dollars ($ 229, 214. 00) . Section 5. The City appoints as registrar of the Bonds, pursuant to IC 5 -7 -3 (a) (2) (B) , Skandinaviska Enskilda Banken Corporation, New York, New York, a banking corporation chartered under the laws of the State of New York, which bank is purchasing the Bonds. Section 6. The Mayor and City Clerk are authorized to execute on behalf of the City financing statements and such other certificates and documents deemed necessary to issue the Bonds. Section 7. Resolution No. 2 -83 of the South Bend Eco- nomic Development Commission passed on June 3, 1983, and sup- plemented and amended by Resolution No. 2 -83(a) of the Commis- and supplemented. sion passed on August 5, 1983, are hereby approved; and the Common Council hereby finds that the proposed financing for the issuance of the Bonds would be of benefit to the health and welfare of the City and that it complies with the purposes and provisions of the Act, as amended and supplemented. Section 8. The proposed economic development facili- ties will not have an adverse competitive effect on other fa- cilities already constructed or operating in the City of South Bend, Indiana, for the reason that the facility to be financed by the Bonds is not similar in nature or use to any other oper- ation in South Bend, Indiana. -4- Section 9. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approved by the Mayor. 1si P,EANING �— 88 - � 3 PUBLIC HEARING `— — Y 3 2nd READING - - E'3 NOT APPROVED REFERRED PASSED --b' 3 ; �✓� �,�,� M m er of the C on Council —5— FILED IN CLERK'S OFFICE AUG 2 21983 Irene Gammon CITY CLERK, SOUTH fifna Imp. VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS ATTORNEYS b COUNSELORS AT LAW WILLIAM E. VOOR 300 FIRST BANK BUILDING LLOYD M. ALLEN KENNETH P. FEDDER SOUTH BEND, INDIANA 46601 GEORGE E.HERENDEEN ANTHONY D. KOWALS LARRY L. AMBLER FRED R.HAIN5 DAVID M. MCTIGUE August 3, 1983 Members of the South Bend Common Council County City Building South Bend, Indiana 46601 Re: STC Recycling, Inc. Proposed Ordinance Dear Councilmen: AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACK50N GUY H. McMICHAEL The South Bend Economic Development Commission has received an application from STC Recycling, Inc., a Delaware corporation ( "STC "), and Copelco Leverage Leasing Corp., a New Jersey corporation ( "Copelco "), requesting your consideration of a revenue bond issue not to exceed $1,300,000.00. It is intended that the proceeds of this issue be used by Copelco for the purchase of certain equipment which will be leased to STC so that the latter corporation may initiate business operations in South Bend. It is anticipated that the equipment in question will be located at leased facilities at 445 North Sheridan Avenue, South Bend. STC will be involved in the recovery of metals and other base manufacturing materials from used electrical eqiupment through a dry process which involves no chemical changes and is non - polluting. STC will initially directly employ 30 people with an annual payroll of approximately $500,000.00. In addition, it is estimated that STC will be purchasing materials and services for leasehold improvements which it believes are available locally, in.the amount of $300,000.00, and will be spending additional amounts annually for local services and facilities requir in the operation of its business. spectful Ken h� Fedder KPF /mrg fQammutu Arvart Ma tot (ITUMMU TOUMil of tot Ttty of OVW4 NPA. Your Committee OF THE WHOLE to whom was referred 83 -83 A BILL APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, BOND PURCHASE AGREEMENT, SECURITY AGREEMENT, PROJECT LEASE AND INDUSTRIAL DEVELOPMENT REVENUE BONDS, AN AUTHORIZING THE EXECUTION THEREOF AND APPROVING RESOLUTION NO. OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE STC RECYCLING, INC. 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 ORDINANCE s rR6.f PUBLISHING CO. RAYMOND ZIELINSKI Chairman