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HomeMy WebLinkAbout$200,000.00 City Economic Development Revenue Bond (Dixie Development Partnership Project)ORDINANCE No. 7.180 -83 Passed by the Common Council of the City of South Bend, Indiana it 11, �9 83 Attest: City Clerk IRENE K. GAMMON Attest: Presented by me to the Mayor of the City of South Bend, Ind'ana April 12, -1983 of Common Council a",— — City Clerk IRENE K. GAMMON Approved and signed by me LA4MICZ / V ,n 03 ORDINANCE NO. 7z zi44 ORDINANCE AUTHORIZING THE ASSIGNMENT OF THE INTERESTS OF DIXIE DEVELOPMENT PARTNERSHIP, AN INDIANA PARTNERSHIP UNDER THE $200,000.00 CITY OF SOUTH BEND, INDIANA, ECONOMIC DEVELOPMENT REVENUE BOND (DIXIE DEVELOPMENT PARTNERSHIP PROJECT) TO GRANNY FRANNY'S, INC., AN INDIANA CORPORATION STATEMENT OF PURPOSE OF INTENT The City of South Bend, Indiana has previously issued a $200,000.00 City of South Bend, Indiana, Economic Development Revenue Bond (Dixie Development Partnership Project) (the "Bond ") pursuant to authority granted by Indiana law. Dixie Development Partnership is delinquent in its payment under the bond issue, causing the purposes for which the bond was issued to be frustrated. Granny Franny's, Inc., an Indiana Corporation ( "Granny Franny's',') desires to assure the right, title, interest, duties, liabilities, and responsibilities of Dixie Development Partnership 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 Dixie Development Partnership under the terms and conditions of a document entitled "Lease and Trust Indenture" executed on October 1, 1977, and all other documents executed in connection with the bonds and of the transfer by Dixie Development Partnership of its right, title, and interest to certain real property purchased in connection with said bond issue and certain of the property thereon to Granny Franny's. Section 2. The Mayor and City Clerk are hereby authorized to execute a Consent to Assignment in the form presented to this Council, which form is hereby approved, and to execute any and all other documents necessary to consummate and evidence this assignment. Two (2) 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 pursuant 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. In addition, the language of Section 3.7 of the said Lease and Trust Indenture is amended by adding the following sentence to the end of said Section 3.7, to wit: "Said conveyance shall be by means of a good and sufficient Warranty Deed, showing good and marketable title in Lessor, without any liens or encumbrances except such as may be caused or occasioned by Lessee or Lessee's assigns." 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 Ordinance No. 6216 -77. Section 5. This ordinance shall be effective immediately upon passage by the Common Council and approval by the Mayor. 1st READING 3 - a '� - $ 3 PUBLIC HEARING q -11- 8.3 2nd READING 1 ' 63 NOT APPROVED REFERRED PASSED Member of the Co. on Council FILED IN GLEnn WS OFFICE MAR 2 3 1983 Irene Gammon CITY CLERK, SOUTH BEND, IND. AGREEME11T AND ASSIGNMENT This Agreement is entered into by the undersigned on this day of 1933, whereby the undersigned mutually agree that: 1. Dixie Development Partnership,. an Indiana partnership 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 "Lease and Trust Indenture" executed on October 1, 1977, and all other documents executed in connection with a City of South Bend, Indiana, Industrial Development Bond, Dixie Development Partnership, a 1977 project. 2. Purchaser hereby .agrees to.assume and accept responsibility for all rights, titles, interests, duties, responsibilities, and liabilities of Dixie Development Partnership, under the previously described Industrial Development Bond including, but not limited to, those arising out of the previously described "Lease and Trust Indenture" 3. St. Joseph Bank & Trust C mp ny, as bondholder, hereby consents to this assignment_owdegrees 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. 4. St. Joseph Bank & Trust Company, as Trustee, tinder the previously described "Lease and Trust Indenture" hereby consents to this assignment in its capacity as Trustee. -1- 5. To the extent that any of the actions taken hereby shall require an amendment, alteration, or supersession of the previously described "Lease and Trust Indenture" or any other document said "Lease and Trust Indenture" or other document shall be hereby deemed amended, altered, or superseded so as to permit this assignment. 6. This assignment shall not excuse Dixie Development Partnership from any obligations under said "Lease and Trust Indenture DIXIE EVELOPMENT PA TNERSHIP i BY: JJJ2 z t a — Ja2l ook, Partner BY: oxrn,.s a Thomas J. J. eehan, Partner BY: kOxtt t l (5 4&--,C4 Donald C. Bullock, Partner ST. JOSEPH BANK AND TRUST COMPANY, as bo dhol /"( de�r� BY: - ADO ST. JOSEPH BANK AND TRUST COMPANY, Tru tee BY: CONSENT TO ASSIGNMENT The South Bend Economie Development Commission and the City of South Bend hereby consent to the assignment of the right, title, interest, duties, liabilities, and responsibilities of Dixie Development Partnership, under the terms and conditions of a document entitled "Lease and Trust Indenture" executed on October 1, .1977, and all other documents executed in connection with a City of South Bend, Indiana Industrial Development Bond, Dixie Development. Partnership, 1,977 Project, and of the transfer of Dixie Development Partnership of its right, title, and interest.to certain real property purchased in connection with said bond issue and certain of the property thereon to Granny Franny's,..Inc., an Indiana Corporation. SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION By: , CITY OF SOUTH BEND, INDIANA By: Roger Parent, Mayor . Attest City Clerk WILLIAM E. VOOR LLOYD M. ALLEN KENNETH P. FEDDER GEORGE E.HERENDEEN ANTHONY D. KOWALS LARRY L.AMBLER FRED R, RAINS DAVID M. MCTIGUE VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS ATTORNEYS 8 COUNSELORS AT LAW 300 FIRST BANK BUILDING SOUTH BEND, INDIANA 46601 Ms. Irene Gammon City Clerk County -City Building South Bend, IN 46601 Re: Granny Franny's, Inc Dear Ms. Gammon: March 22, 1983 AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. McMICHAEL - Proposed Common Council Ordinance I am enclosing herewith the original of a proposed Ordinance requesting that you file for first reading and subsequent public hearing before the South Bend Common Council. The purpose of this Ordinance is to allow the transfer of the rights, duties, liabilities, title, interest and responsibilities of Dixie Development Corporation, under an Economic Development Revenue Bond issued by the City of South Bend, Indiana, to Granny Franny's, Inc., an Indiana Partnership. The bond in question was issued on October 1, 1977. Dixie Development Partnership leased this facility to Gropp's Fish of Stroh, which was a restaurant facility which went out of business. Dixie Development Partnership is no longer able to fulfill its duties under the terms and conditions of the bond documents. Granny Franny's, Inc., an Indiana Corporation, has offered to acquire the right, title, interest, duties, liabilities and responsibilities of Dixie Development Partnership under the terms and conditions of the bond and the documents signed in connection therewith. The Trustee of the bonds and 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. Reqo(ectfully, H P. FEDDER KPF:ram enc. Tommtttrr Report (To toe Tommon Tonnrd of tot Ttuj of oora4 lornd: Your Committee OF THE WHOLE to whom was referred RTT.T. W) 27 -83 A BILL AUTHORIZING THE ASSIGNMENT OF THE INTERESTS OF DIXIE DEVELOPMENT PARTNERSHIP, AN INDIANA PARTNERSHIP UNDER THE $200,000.00 CITY OF SOUTH BEND, INDIANA, ECONOMIC DEVELOPMENT REVENUE BOND (DIXIE DEVELOPMENT PARTNERSHIP PROJECT) TO GRANNY FANNY'S, INC., AN INDIANA CORPORATION. Respect ull re ort that the have examined the matter and that in their opinion THIS BILL SHOULD BE RECOMMENDED T k COUNCIL FAVORABLE. Raymond Zielinski Chairman FREE PRESS PUBLISHING CO.