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HomeMy WebLinkAboutAuthorizing Economic Development Fortuna Land Company ProjectORDINANCE No. 7137 -82 Passed by the Common Council of the City of South Bend, Indiana November 22, 19 82 City Clerk IRENE K. GAMMON 41 of Common Council Presented by me to the Mayor of the City of South Bend, Indiana November 23 �9 82 IRENE K. GAMMON City Clerk Approved and signed by me ORDINANCE NO. 7137 -82 ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND TO ISSUE ITS "ECONOMIC DEVELOPMENT FIRST MORTGAGE REVENUE BOND (FORTUNA LAND COMPANY PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO STATEMENT OF PURPOSE OF INTENT The South Bend Economic Development Commission has rendered its Project Report for the Fortuna Land Company Project regarding the financing of proposed economic development facilities for Fortuna Land Company, who will lease said facilities to Harbor Metal Treating of Indiana, Inc., and the South Bend Planning Commission has commented favorably thereon; and The South Bend Economic Development Commission conducted a public hearing on November 19 , 1982, and also adopted a resolution on November 19 , 1982, which Resolution has been transmitted hereto, finding that the financing of certain economic development facilities of Fortuna Land Company 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 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 forms of and has transmitted for approval by the Common Council the Loan Agreement and Mortgage, Note, Bond Purchase Agreement, Lease Agreement and Guaranty Agreement; now therefore, BE IT ORDAINED 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 Agree- ment and Mortgage approved by the South Bend Economic Develop- ment Commission and presented to this Common Council, the issuance and sale of a revenue bond, the loan of the proceeds of the revenue bond to Fortuna Land Company for the acquisition and construction of such facilities, the payment of the revenue bond by the note payments of Fortuna Land Company under the Loan Agreement and Mortgage and Note, the guaranty of payment of principal and interest on the revenue bond by Anthony and Francis Fortuna, Harbor Metal Treating of Indiana, Inc., and Harbor Metal Treating Co. under the Guaranty Agreement and the securing of said bond by the mortgaging of such facilities to the City of South Bend under the Loan Agreement and Mortgage and the assignment of the City of South Bend's rights therein pursuant to the Bond Purchase 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 Agree- ment and Mortgage, Note, and Bond Purchase Agreement approved by the South Bend Economic Development Commission are hereby approved (herein collectively referred to as the "Financing Agreement" referred to in I.C. 36- 7 -12), and the substantially final forms of the Guaranty 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 First Mortgage Revenue Bond (Fortuna Land Company Project), in the total principal amount not exceeding Three Hundred Thousand Dollars ($300,000) and maturing not later than ten years from the date of the first principal payment, which - 2 - in no event may exceed thirty (30) years from the date of issuance, for the purpose of procuring funds to pay the costs of acquisition and construction of the economic development facilities as more particularly set out in the Bond Purchase Agreement and Loan Agreement and Mortgage incorporated herein by reference, which bond will be payable as to principal, premium, if any, and interest from the note payments made by Fortuna Land Company under the Loan Agreement and Mortgage and Note or as otherwise provided in the above described Bond Purchase Agreement. The bond shall be issued in fully registered form in the denomination of $300,000, and shall be redeemed as provided in Section 4 of the Bond Purchase Agreement. Payments of principal and interest are payable in lawful money of the United States of America at the principal office of the Bondholder in immediately available funds. The bond shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of the City of South Bend, nor is the bond payable in any manner from revenues raised by taxation. Section 4. The Mayor and Clerk are authorized and directed to sell such bond to the purchaser thereof at a rate of inter- est on the bond not to exceed a rate of interest equal to 85% of the interest rate announced from time to time by National Bank of Detroit, Detroit, Michigan, as its prime rate and at a price not less than 100% 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 approved herein on behalf of the City and any other document which may be necessary or desirable to consummate the transaction, including the bond authorized herein. The Mayor and Clerk are hereby expressly authorized to approve any modifications or - 3 - 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 attesta- tion 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 bond 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 bond may be either manual or facsimile signatures. The Clerk is authorized to arrange for delivery of such bond to the Bondholder named in the Bond Purchase Agreement. The Mayor and Clerk shall execute and the Clerk shall deliver the bond to the Bondholder within ninety days of the adoption of this ordinance. The bond shall be dated as of the date of delivery thereof. Section 6. The provisions of this Ordinance and the Loan Agreement and Mortgage securing the bond shall constitute a contract binding between the City of South Bend and the holder of the Economic Development First Mortgage Revenue Bond (Fortuna Land Company Project), and after the issuance of said bond, this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of such holders so long as said bond 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. Ist READING //— A 4 _ PUBLIC HEARING / / —�� _ X 2 2nd READING NOT APPROVED REFERRED PASSED Me r of the Cognon Council - 4 - iv 16192 VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS November 3, 1982 Members of the South Bend Common Council County -City Building South Bend, IN 46601 Re: Fortuna Land Company - 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 Fortuna Land Company for a revenue bond in the amount of $300,000.00 for the purpose of the construction of a 20,000 square foot heat treating facility, on an approximate 1.5 acre tract of land, located in the Monroe Sample Industrial Park, in the City of South Bend, Indiana. r The facility will be placed on the tax rples. It is anticipated that approximately 10 -12 new jobs will b_ceated with an annual payroll of approximately $125,000.00. As previously noted, this facility is in the Monroe - Sample Industrial Park. Res #pectfull KENN#H P.-FEDDER KPF:ram RUD I# CLEll, OFFICE Irene G CITY CLERK, WUa1H BEND,110 ATTORNEYS 8 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 DAVID M.McTIGUE November 3, 1982 Members of the South Bend Common Council County -City Building South Bend, IN 46601 Re: Fortuna Land Company - 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 Fortuna Land Company for a revenue bond in the amount of $300,000.00 for the purpose of the construction of a 20,000 square foot heat treating facility, on an approximate 1.5 acre tract of land, located in the Monroe Sample Industrial Park, in the City of South Bend, Indiana. r The facility will be placed on the tax rples. It is anticipated that approximately 10 -12 new jobs will b_ceated with an annual payroll of approximately $125,000.00. As previously noted, this facility is in the Monroe - Sample Industrial Park. Res #pectfull KENN#H P.-FEDDER KPF:ram RUD I# CLEll, OFFICE Irene G CITY CLERK, WUa1H BEND,110