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.
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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.