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HomeMy WebLinkAboutIssue Economic Development Refunding Columbia Place Associates ProjectORDINANCE No. 7238 -83 Passed by the Common Council of the City of South Bend, Indiana A-, August 22, rq 83 IRENE K. GAMMON City Clerk Presented by me to the Mayor of the City of South Bend, Ind'ana Auctust 23, ig 83 of Common Council /cK v IRENE K. GAMMON Approved and signed by me A. —a Ig 83 Clerk ORDINANCE. NO. 7238 -83 ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND TO ISSUE ITS "ECONOMIC DEVELOPMENT REFUNDING REVENUE BOND, SERIES 1983 (COLUMBIA PLACE ASSOCIATES PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the South Bend Economic Development Commission conducted a public hearing on August 5, 1983, and also adopted a resolution on August 5, 1983, which Resolution has been transmitted hereto, finding that the refunding of the City of South Bend, Indiana, Economic Development Revenue Bonds (Columbia Place Associates Project), Series 1981 dated as of May 1, 1981 (the "1981 Bonds "), and the financing of the completion of certain economic development facilities of . Columbia Place Associates complies with the purposes and provisions of I.C. 36 -7 -12 and that such refunding will be of benefit to the health and welfare of the City of South Bend and its citizens; 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 Mortgage and Security Agreement, Note, L•aan Agieemen and Pond Purchase Agreement, Teases and Assignment of Rents and Leases; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA THAT: Section 1. The economic development facility ( "Project ") consists of the construction and acquisition of a two -story office building containing 29,000 square feet, located on an approximate 1.3 acre tract of land, located in the River Glen Office Park, South Bend, Indiana. Section 2. It is hereby found that the refunding of the 1981 Bonds by the issuance of City of South Bend Economic Development Refunding Revenue Bond, Series 1983 (Columbia Place Associates Project) referred to in the Loan Agreement and Bond Purchase Agreement approved by the South Bend Economic Com- mission and presented to this Common Council, the issuance and sale of revenue bonds, the loan of the proceeds of the revenue bonds to Columbia Place Associates for the refunding of the 1981 Bonds and the completion of the Project, the payment of the revenue bonds by the note payments of Columbia Place Associates under the Loan Agreement and Bond Purchase Agreement and Note, the leasing of the economic development facilities to various lessees under the Leases, and the securing of said bonds by the mortgaging of such facilities under the Mortgage and Security Agreement complies with the purposes and pro- visions 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 3. The substantially final forms of the Mortgage and Security Agreement, Note and Loan Agreement and.Bond Purchase Agreement approved by the South Bend Economic Develop- ment 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 forms of the Leases and the Assignment of Rents and Leases approved by the South Bend Economic Development Commission are 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. - 2 - Section 4. The City of South Bend shall issue its Economic Development Refunding Revenue Bond, Series 1983 (Columbia Place Associates Project), in the total principal amount not exceed- ing One Million Seven Hundred Thousand Dollars ($1,700,000) and maturing not later than thirty 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 refund the 1981 Bonds and complete the Project as more particularly set out in the Loan Agreement and Bond Purchase Agreement incorporated herein by reference, which bonds will be payable as to principal, premium, if any., and interest from the note payments made by Columbia Place Associates under the Loan Agreement and and Bond Purchase Agreement and Note or as otherwise provided therein. The bond shall be issued in fully registered form, shall be issued in denomination of $1,700,000, and shall be redeemed as provided for therein. Payments of principal and interest are payable in lawful money of the United States of America at the principal office of the Bondholder, or at such other place as the Bond- holder may designate in writing, as provided in the Bonds. 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 5. The Mayor and Clerk are authorized and directed to sell such bond to the Bondholder at a rate of interest on the bond not to exceed 10.33% (except in the event the Bond- holder increases the interest on the bond under the terms and conditions of the Loan Agreement and Bond Purchase Agreement, in which event the interest rate on the bond shall not exceed the Index Rate described in the Bond plus 5 %, which in any - 3 - event shall not exceed �Q_ �) and at a price not less than 100% of the principal amount thereof. Section 6. 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 approved herein on behalf of the City of" South Bend and any other document which may be necessary or 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 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 Financing Agreement is 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; provided, 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 considera- tion 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 Bondholder named in the Loan Agreement and Bond Purchase Agreement. The Mayor and Clerk shall execute and the Clerk shall deliver the bonds to the Bondholder within ninety days of the adoption of this ordinance. August 1, 1983. The bonds shall be dated as of - 4 - Section 7. The provisions of this Ordinance and the Loan Agreement and Bond Purchase Agreement shall constitute a con- tract binding between the City of South Bend and the holders of the Economic Development Refunding Revenue Bond, Series 1983 (Columbia Place Associates Protect), 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 8. This Ordinance shall be in full'force and effect from and after its passage and signing by the Mayor. Passed and adopted this day of August, 1983. 9s1 READING (F -a a- d�s PUBLIC HEA.RI11 IG Y,_. _F3 2nd READING NOT APPROVED REFERRED PASSED FILED ID CLEF ll'S OFFICE Irene Gammon CITY CLERK, SOO BEND, IND. lember o f the on Council - 5 - VOOR, ALLEN, FEDDER, HERENDEEN & KOWALS August 17, 1983 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: Columbia Place Associates Project - Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission, on August 5, 1983, by resolution, approved the proposed refunding of a 1981 revenue bond issue which had constructed an economic development facility located in River Glen Office Park, South Bend, Indiana, and to further make completions to the project. Since this is issued pursuant to the refunding portion of the controlling Indiana Statute, the benefits to the City in the form of jobs and related items were accomplished with the 19,81-)revenue bond issue. Res-6ectful 13 ram FILED IN CLECTS WICE :s 1983 Iren GaBEND, mon CLERK, ND. ATTORNEYS & 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.HAINS DAVID M. McTIGUE August 17, 1983 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: Columbia Place Associates Project - Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission, on August 5, 1983, by resolution, approved the proposed refunding of a 1981 revenue bond issue which had constructed an economic development facility located in River Glen Office Park, South Bend, Indiana, and to further make completions to the project. Since this is issued pursuant to the refunding portion of the controlling Indiana Statute, the benefits to the City in the form of jobs and related items were accomplished with the 19,81-)revenue bond issue. Res-6ectful 13 ram FILED IN CLECTS WICE :s 1983 Iren GaBEND, mon CLERK, ND.