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HomeMy WebLinkAboutAuthorizing Economic Development Revenue Bond Harbor Metal Treating of Indiana Inc ProjectORDINANCE No 7138 -82 Passed by the Common Council of the City of South Bend, Indiana November 22, 19 82 IRENE K. GAMMON Attest: Presented by me to the Mayor of the City of South Bend, Indiana vember 22, r9 82 Clerk of Common Council IRENE K. GAMMON Approved and signed by me 19 City Clerk Mayor ORDINANCE NO. 7138 -82 ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND (HARBOR METAL TREATING OF INDIANA, INC. 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 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 Equipment Loan and Security Agreement, Note, Bond Purchase 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 Equipment Loan and Security Agreement approved by the South Bend Economic Development Commission and presented to this Common Council, irenne Gammo o_ UERK, I.V the issuance and sale of a revenue bond, the loan of the pro- ceeds of the revenue bond to Harbor Metal Treating of Indiana, Inc. for the acquisition and equipping of such facilities, the payment of the revenue bond by the note payments of Harbor Metal Treating of Indiana, Inc. under the Equipment Loan and Security Agreement and Note, the guaranty of payment of prin- cipal and interest on the revenue bond by Anthony and Francis Fortuna and Harbor Metal Treating Co. under the Guaranty Agree- ment and the securing of said bond by granting a security interest in such facilities to the City of South Bend under the Equipment Loan and Security Agreement and the assignment of the City of South Bend's rights therein pursuant to the Bond Pur- chase 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 Equipment Loan and Security Agreement, 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 Revenue Bond (Harbor Metal Treating of Indiana, Inc. Project), in the total principal amount not exceeding Seven Hundred Thousand Dollars ($700,000) and maturing not - 2 - later than ten years from the date of the first principal payment, which 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 installation of the economic development facilities as more particularly set out in the Bond Purchase Agreement and Equipment Loan and Security Agreement incorporated herein by reference, which bond will be payable as to principal, premium, if any, and interest from the note payments made by Harbor Metal Treating of Indiana, Inc. under the Equipment Loan and Security Agreement 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 $700,000, 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, - 3 - including the bond 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 Agree- ment 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 modifica- tion 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 consideration 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 Bond- holder 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 Equipment Loan and Security Agreement securing the bond shall constitute a contract binding between the City of South Bend and the holder of the Economic Development Revenue Bond (Harbor Metal Treating of Indiana, Inc. 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. 1st READING PUBLIC NEARING 4*Ver of thKfibmmon Council 2nd READING �.� - 4 - NOT APPROVED I 1 IYE REFERRED FILED IH CLEWS oCe r PASSED > /- a - '", o(� iQ. �_ NOV 1 t.j VOOR, ALLEN, FEDDER, HERENDEEN & KOWALS November 3, 1982 Members of the South Bend Common Council County -City Building South Bend, IN AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. McMICHAEL Re: Harbor Metal Treating of Indiana, Inc. - Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission has received an application from Harbor Metal Treating of Indiana, Inc. for a revenue bond in the amount of $700,000.00, for the purpose of acquisition of equipment to be installed in a 20,000 square foot heat treating facility, which is being leased by the Company from Fortuna Land Company, located on an approximate 1.5 acre tract of land, in the Monroe Sample Industrial Park, in the City of South Bend, Indiana. The facility will be placed on the tax`rolest` It is anticipated that approximately 10 -12 new jobs will2i be created with an annual payroll of approximately $125,000.00. As previously noted, this facility is in the Monroe - Sample Industrial Park. �_ectfrt Y, a KPF:ram FILED e� ,,EIK S OFFICE 1982 Irene Gammon CITY CLERK, SOUTH BEND, IND. ATTORNEYS 8 COUNSELORS AT LAW WILLIAM E. VOOR LLOYD M. ALLEN 300 FIRST BANK BUILDING KENNETH P. FEDDER SOUTH BEND, INDIANA 46601 GEORGE E.HERENDEEN ANTHONY D. KOWAL5 DAVID M.M<TIGUE November 3, 1982 Members of the South Bend Common Council County -City Building South Bend, IN AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. McMICHAEL Re: Harbor Metal Treating of Indiana, Inc. - Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission has received an application from Harbor Metal Treating of Indiana, Inc. for a revenue bond in the amount of $700,000.00, for the purpose of acquisition of equipment to be installed in a 20,000 square foot heat treating facility, which is being leased by the Company from Fortuna Land Company, located on an approximate 1.5 acre tract of land, in the Monroe Sample Industrial Park, in the City of South Bend, Indiana. The facility will be placed on the tax`rolest` It is anticipated that approximately 10 -12 new jobs will2i be created with an annual payroll of approximately $125,000.00. As previously noted, this facility is in the Monroe - Sample Industrial Park. �_ectfrt Y, a KPF:ram FILED e� ,,EIK S OFFICE 1982 Irene Gammon CITY CLERK, SOUTH BEND, IND.