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HomeMy WebLinkAboutWeltek Inc $550,000 Economic Development Revenue BondORDINANCE No 7171 -83 Passed by the Common Council of the City of South Bend, Indiana March 14, ig 83 IRENE K. GAMMON City Clerk of Common Council Presented by me to the Ma f yor of the City of South Bend, Indiana u F rTW4wQ If . City Clerk IRENE K. GAMMON Approved and signed by me �' 19-t Bill No. 18 -83 ORDINANCE NO. "� *7 1 - ?3 ORDINANCE AUTHORIZING THE ASSIGNMENT OF THE INTERESTS OF WELTEK, INC. UNDER THE $550,000 CITY OF SOUTH BEND, INDIANA, ECONOMIC DEVELOPMENT REVENUE BOND (WELTEK, INC. PROJECT) TO OSWALD DEVELOPMENT AND INVESTMENT COMPANY, AN INDIANA PARTNERSHIP STATEMENT OF PURPOSE OF INTENT The City of South Bend, Indiana has previously issued a $550,000 City of South Bend, Indiana, Economic Development Revenue Bond (Weltek, Inc. Project) (the "Bond ") pursuant to authority granted by Indiana law. Weltek, Inc. has filed a petition in bankruptcy causing the purposes for which the Bond was issued to be frustrated. Oswald Development and Investment Company, an Indiana Partnership ( "Oswald ") desires to assure the right, title, in- terest, duties, liabilities, and responsibilities of Weltek, Inc. under the Bonds. Such assumption is consistent with the provision or preservation of employment opportunities and the other goals for which the Bond was originally issued. Such an assignment is allowed by law and by the terms of the Bond and the instruments executed in connection therewith. The South Bend Economic Development Commission has approved such assumption. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana: Section 1. The City of South Bend, Indiana, hereby consents to the assignment of the right, title, interest, duties, liabilities, and responsibilities of Weltek, Inc. under the terms and conditions of a document entitled "Loan Agreement and Trust Indenture" executed on July 26, 1979, and all other documents executed in connection with the Bonds and of the transfer by C Weltek, Inc. of its right, title, and interest to certain real property purchased in connection with said bond issue and certain of the property thereon to Oswald. Section 2. The Mayor and City Clerk are hereby authorized to execute a Consent to Assignment in the form pre- sented to this Council, which form is hereby approved, and to execute any and all other documents necessary to consummate and evidence this assignment. Two [2J copies of this Consent to Assignment have been and are on file in the Office of the Clerk of the City of South Bend, Indiana, for public inspection pur- suant to Indiana Code Section 36- 1 -5 -4. Section 3. To the extent the Bonds or the documents thereunder may be deemed to require amendment to consummate said assignment the City of South Bend, Indiana hereby gives its consent. Section 4. The Common Council of South Bend, Indiana, hereby finds that this assignment will advance the purposes for which the Bonds were originally approved in Ordin- ance No. 6606 -79. Section 5. This ordinance shall be effective im- mediately upon.passage by the Common Council and approval by the Mayor. :ADING HEARING %3- l Ll.B 3 APPROVED Pi:FERRED PASSED 3- N-'93 M tuber of the Co n Council -2- 00 C� AGREEMENT This Agreement is entered into by the undersigned on this 15th day of December, 1982, whereby the undersigned mutually agree that: 1. Weltek, Inc. hereby sells, assigns, and-transfers to Purchaser all its right, title, and interest in the real estate described in the deed attached hereto and incorporated herein by reference, and all of the property located thereon, and also transfers, sells, assigns, and conveys all its rights, title, interest, duties, liabilities, and responsibilities under the terms and conditions of a document entitled "Loan Agreement and Trust Indenture" executed on July 26,`1979, and all other documents executed in connection with a City of South Bend, Indiana, Industrial Development Bond, Weltek, Inc:'., X979 Project. 2. Purchaser hereby agrees to assume and accept responsibility for all rights, titles, interests, duties, re -. sponsibilities, and liabilities of Weltek, Inc., under the pre- viously described Industrial Development Bond including, but not limited to, those arising out of the previously described "Loan Agreement and Trust Indenture ". 3. lst Source Bank, as bondholder, hereby consents to this assignment and agrees to furnish the purchaser with a title insurance policy with respect to the real estate described in the deed attached hereto in an amount equal to the principal amount of the Industrial Development Bond presently outstanding within sixty (60) days. Y 4. lst Source Bank, as Trustee, under the previously described "Loan Agreement and Trust Indenture" hereby consents to this assignment in its capacity as Trustee. 5. To the extent that any of the actions taken hereby shall require an amendment, alteration, or supersession of the previously described "Loan Agreement and Trust Indenture" or any other document said "Loan Agreement and Trust Indenture" or other document shall be hereby deemed amended, altered, or superseded so as to permit this assignment. LTEK, NC. lst S6ur,ce Bank and ust Company, as bondholder is P2rource Bank an rust Company, as Trustee -2- CONSENT TO- .ASSIGNMENT The South Bend Economic Development Commission and the City of South Bend hereby consent to the assignment of the right, title, interest, duties, liabilities, and responsibili- ties of Weltek, Inc., under the terms and conditions of a docu- ment entitled "Loan Agreement and Trust Indenture" executed on July 26, 1979, and all other documents executed in connection with a City of South Bend, Indiana Industrial Development Bond, Weltek, Inc., 1979 Project, and of the transfer by Weltek, Inc. of its right, title, and interest to certain real property pur- chased in connection with said bond issue and certain of the property thereon to Oswald Development and Investment Company, an Indiana partnership. - SOUTH BEND-ECONOMIC DEVELOPMENT COMMISSION CITY OF SOUTH BEND, INDIANA By Roger Parent, Mayor Attest Irene Gammons, City Clerk JERRY P. BELKNAP ROBERT S. ASHBY LOUIS A. HIGHMARK JOHN W. HOUGHTON WARREN E. McGILL WARREN A. DEAHL JOHN L. CAREY GEORGE J. ZAZAS THOMAS L. MURRAY JOHN R. HARMAN HOWARD J. CO FIELD RICHARD M.TRECKELO EUGENE C. MI LLER, JR. WILLIAM J. REINKE RICHARD E. DEER EDWARD J. GRAY ROBERT E.HIGHFIELO DANIEL W. RUDY JACK C. DUN FEE, JR. HENRY J. PRICE HERBERT C. SNYDER, JR. JAMES A. MCDERMOTT SHIRLEY A. SHIDELER ROBERT H. REYNOLDS CHARLES E. BRUESS WILLIAM R. COFFEY BRUCE R. BANCROFT JOHN T. MU LV IHILL FRANKLIN A. MOR E 11 STEPHEN A. SEALL G0RDON S. ESLI CK RICHARD E. ST El NBRONN JOHN A. BURGESS H. KENT HOWARD ROBERT P.JOHNSTONE TOM CHARLES HUSTON JAMES A. STRAIN GEORGE H. BAKER TONI SUE AX R. MICHAEL PARKER NELSON J. VOGEL, JR. ROGER W. BENKO DAVID R. MELTON BRIAN J. LAKE BRYAN G. TABLER DANIEL H. FITZGIBBON STEPHEN K. SMITH RICHARD W. MORGAN MICHAEL R. FRUEHWALD EDWARD 0. DELANEY CYM H. LOWELL JERRY E. HYLAND SAMUEL S. THOMPSON BRUCE R. KARR DONALD E. KNEBEL WAYNE C. KREUSCHER KRISTIN G. FRUEHWALD DANIEL W. McGILL KENT E.AGNESS MICHAEL R. CONNER CLAUDIA V. SWHIER ROBERT K. BELLAMY CATHERINE L. BRIDGE RICHARD D. CONARD LARRY J. STROSLE MICHAEL ROSIELLO Ms. Irene Gammon City Clerk County -City South Bend, BARNES & THORNBURG SIXTH FLOOR, IST SOURCE BANK CENTER 100 NORTH MICHIGAN SOUTH BEND, INDIANA 46601 TELEPHONE TELECOPIER (219) 233 -1171 (219) 237 -1125 TWX 810-341 -3427 B &T LAW IND 1313 MERCHANTS BANK BUILDING INDIANAPOLIS, INDIANA 46204 (317) 638-1313 FIRST NATIONAL BANK BUILDING 301 SOUTH MAIN STREET,SUITE 305 ELKHART, INDIANA 46516 (219) 293 -0681 Building Indiana 46601 SUITE 200 2000 L STREET, N.W. WASHINGTON, D. C. 20036 (202) 296 -2630 February 23, 1983 OF COUNSEL ALAN W. BOYD CHARLES M. WELLS THOMAS M. SCANLON JAMES F. THORNSURG FREDERIC D.ANDERSON LESTER IRONS LYNN BRUNDAGE STEPHEN W.LEE DAVID A. HAIST STANLEY C. FICKLE WILLIAM I. KOHN A. JAMES RICHARDSON ERNESTJ.SZARWARK PAUL E. BECHER JAMES E. MAHONEY DAVID M. POWLEN EDWIN S. WAINSCOTT MICHAEL P. LUCAS DAVID L. SWIDER RENEE R. MAWHINNEY JOHN P. GREELEY MARCUS B. CHANDLER DAVID F. SNIVELY JOHN J. KISH DOUGLAS P. LONG STEPHEN L. SMITH JOHN M. KYLE III JAMES A. COLES MILDRED L. CALHOUN JOHN C. ROTH HAAR LESTER M. PONDER DONALD D. EVENSON THOMAS P. JENKINS EVERET F. SMITH JOHN J. METTS PHILIP J. FACCENDA DOUGLAS K. DIETERLY SANDRA J. LONG DOUGLAS E. STARKEY ROBERT J. SMITH, JR. CONNIE M. MCKEAN BRUCE B. MARR JEFFREY J. TONNER GREGORY L. KELLY PATRICK J. O'NEIL MARK R.WENZEL JAMES B. LOOTENS NANCY L. MARSHALL ANNE N. DEPREZ RICHARD A. COHEN DONALD E. C. LEICHT E. VICTOR INDIANO ALAN A. LEVIN FRANK SULLIVAN,JR. KENNETH R.PETRINI KENNETH H. INSKEEP KATHLEEN K. BRICKLEY ALAN K. MILLS JOSEPH W. REBONE • NOT ADMITTED IN INDIANA TO CALL WRITER DIRECT Dear Ms. Gammon: I am enclosing herewith a copy of an Ordinance which I wish to have considered at the next regularly scheduled meeting of the Common Council of the City of South Bend, Indiana. The purpose of this Ordinance is to allow the transfer of the rights, duties, liabilities, title, interest, and responsi- bilities of Weltek, Inc. under an Economic Development Revenue Bond issued by the City of South Bend, Indiana, to Oswald Develop- ment and Investment Company, an Indiana partnership. The bond in question was issued on July 26, 1979. Since then, Weltek, Inc. has been adjudicated a bankrupt and is no longer able to fulfill its duties under the terms and conditions of the bond documents. Oswald Development and Investment Company, an Indiana partner- ship, has offered to acquire the right, title, interest, duties, liabilities, and responsibilities of Weltek, Inc. under the terms and conditions of the bond and the documents signed in connection therewith. The Trustee of the bonds and 100 percent of the bondholders, as well as the South Bend Economic Development Commission, have approved the assignment in question, and we respectfully request the consent of the City of South Bend, Indiana, to this action. Sincerely yours, BARNES /& T/HJJORNBURG / Ernest J. Szarwark EJS:kav Enclosure Tomrn twit Irvar# Xv #4e (common Toundl of the Tug of ftd4 Rend: Your Committee OF THE WHOLE to whom was referred BILL NO. 18 -83 A BILL AUTHORIZING THE ASSIGNMENT OF THE INTERESTS OF WELTEK, INC., UNDER THE $550,000 CITY OF SOUTH BEND, INDIANA, ECONOMIC DEVELOPMENT REVENUE BOND (WELTEK, INC. PROJECT) TO OSWALD DEVELOPMENT AND INVESTMENT COMPANY, AN INDIANA PARTNERSHIP. Respectfully report that they have examined the matter and that in their opinion THIS BILL SHOULD BE RECOMMENDED TO THE COUNCIL FAVORABLE. RAYMOND ZIELINSKI Chairman FREE PRESS PUBLISHING CO.