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HomeMy WebLinkAboutEconomic Development Revenue Bonds SDT PartnershipORDINANCE No. 7186 -83 Passed by the Common Council of the City of South Bend, Indiana /f April 25, Yq 83 IRENE K. GAMMON City Clerk Presented by me to the Mayor of the City of South Bend, Indiana Approved and signed by April 26, �9 83 of Common Council City Clerk IRENE K. GAMMON 19 �3 ORDINANCE N0. 7186 -83 AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1983 (SDT PARTNERSHIP - 1983 PROJECT) AND APPROVING OTHER ACTIONS IN RESPECT THERETO. STATEMENT OF PURPOSE AND INTENT The South Bend Economic Development Commission has rendered its Project Report for the SDT Partnership - 1983 Project regarding the financing of proposed economic development facilities for SDT Partnership - 1983 and the Area Plan Commission of St. Joseph County, Indiana has commented favorably thereon. The South Bend Economic Development Commission conducted a public hearing on April 25, 1983, and also adopted a Resolution on April 25, 1983, which Resolution has been transmitted hereto, finding that the financing of certain economic development facilities of SDT Partnership - 1983 complies with the purposes and provisions of I.C. 36 -7 -12 and that such financing will be of benefit to the health and welfare of the City of South Bend and its citizens, and which Resolution includes special findings of fact as to the competitive effect of the proposed facilities. 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 substantially final forms of and has transmitted for approval by the Common Council the Loan and Security Agreement, Note, Trust Indenture, Equipment Lease, Collateral Assignment of Equipment Lease and Rentals, Lessee's Consent and Agreement to Equipment Lease Assignment, Official Statement and Bond Purchase Agreement. NOW, THEREFORE, BE IT ORADINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: Section 1. It is hereby found that the financing of the economic development facilities referred to in the Loan and Security Agremeent approved by the South Bend Economic Development Commission and presented to this Common Council, the issuance and sale of revenue bonds, the loan of the proceeds of the revenue bonds to SDT Partnership 1983 for the equipping of such facilities, the payment of the revenue bonds by the Note payments of SDT Partnership - 1983 under the Loan and Security Agreement and Note, the leasing of the equipment being financed to Synthetic Diamond Technology, Inc. under the Equipment Lease, and the securing of said bonds by the granting of security interests under the Loan and Security Agreement complies with the purposes and provisions 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 2. The substantially final forms of the Loan and Security Agreement, Note and Trust Indenture approved by the South Bend Economic Development Commission are hereby approved (herein collectively referred to as the "Financing Agreement" as defined in I.C. 36-7-12), and the substantially final forms of the Equipment Lease, Collateral Assignment of Equipment Lease and Rentals, Lessee's Consent and Agreement to Equipment Lease Assignment, Official Statement and Bond Purchase Agreement 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. Section 3. The City of South Bend shall issue its Economic Development Revenue Bonds, Series 1983 (SDT Partnership - 1983 Project), in the total principal amount not exceeding Four Million, Six Hundred and Eighty Thousand ($4,680,000.00) Dollars, and maturing not later than seven (7) years from the date of the first interest payment and which in no event may exceed - 2 - thirty (30) years, for the purpose of procuring funds to pay the costs of acquisition, construction and equipping of the economic development facilities as more particularly set out in the Trust Indenture and Loan and Security Agreement incorporated herein by reference, which bonds will be payable as to principal, premium, if any, and interest from the Note payments made by SDT Partnership - 1983 under the Loan and Security Agreement and Note or as otherwise provided therein and in the above described Trust Indenture. The bonds may be issued in coupon or registered form, may be issued in denominations of Five Thousand ($5,000.00) Dollars, or a multiple thereof, may be fully registered, or in the case of coupon bonds, may be registrable as to principal only, and shall be redeemed as provided in Article V of the Trust Indenture. Payments of principal and interest are payable in lawful money of the United States of America at the principal office of the Trustee of its successor in trust, or by check or draft mailed or delivered to the registered owner as provided in the Trust Indenture. 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 4. The Mayor and Clerk are authorized and directed to sell such bonds to the purchasers thereof at a rate of interest on the bonds not to exceed 9.75% and at a price not less than 96% of the principal amount thereof. Section 5. 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, the Official Statement and Bond Purchase Agreement approved herein on behalf of the City of South Bend and any other document which may be necessary or desirable to consummate - 3 - 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, the Official Statement and Bond Purchase 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, the Official Statement and Bond Purchase Agreement are 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 consideration by the Common Council. The signatures of the Mayor and Clerk on the bonds and coupons, if any, may be either manual or facsimile signatures. The Clerk is authorized to arrange for delivery of such bonds to the Trustee named in the Trust Indenture, payment for the bonds will be made to the Trustee named in the Trust Indenture and after such payment the bonds will be delivered by the Trustee to the purchasers thereof. The Mayor and Clerk shall execute and the Clerk shall deliver the bonds to the Trustee within ninety (90) days of the adoption of this Ordinance. The bonds shall be dated as of May 1, 1983. Section 6. The provisions of this Ordinance and the Loan and Security Agreement securing the bonds shall constitute a contract binding between the City of South Bend and the holders of the Economic Development Revenue Bonds, Series 1983 (SDT Partnership - 1983 Project), and after the issuance of - 4 - 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 7. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. er - 5 - the Common Counc RI ED ID PeE�!" 4L OFFICE '0 Irene j�u� Irene Gammon UWK, SOUTH BEND, IND. NOT n,PP,,:O�fr),- REFERRED PASSED - 5 - the Common Counc RI ED ID PeE�!" 4L OFFICE '0 Irene j�u� Irene Gammon UWK, SOUTH BEND, IND. WILLIAM E. VOOR LLOYD M.ALLEN KENNETH P. FEDDER GEORGE E.HERENDEEN ANTHONY D. KOWAL5 LARRY L. AMBLER FRED R.HAINS DAVID M. McTIGUE April 25, 1983 VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS ATTORNEYS 8 COUNSELORS AT LAW 300 FIRST BANK BUILDING Members of the South Bend Common Council County -City Building South Bend, IN 46601 SOUTH BEND, INDIANA 46601 Re: SDT Partnership - Proposed Ordinance Dear Councilmen: AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. McMICHAEL The South Bend Economic Development Commission has received an application from SDT Partnership for a revenue bond in the amount of Four Million, Six Hundred and Eighty Thousand ($4,680,000.00) Dollars, for the purchase of machinery and equipment to be used in the manufacture of synthetic industrial diamonds in its facility to be located in South Bend, Indiana. This project, when completed, will be the partnership's.singular operation in the United States and when in full operation will employ upwards to sixty (60) employees. This facility, when in full operation, will have numerous benefits to be derived by the community for years to come, especially to the tool and die industry. Res,�e(ctf TH V. FEDDER FILED ID CLE ,"i'S OFFICE Irene Gammon CITY CLERK, SOUTH BEND, IND.