HomeMy WebLinkAboutAuthorizing Issurane of Economic Development Revenue Bonds Robert H Freshley ProjectORDINANCE No. 7012 -82
Passed by the Common Council of the City of South Bend,
January 11 __ 82
IRENE K. GAMMON
Presented by me to the Mayor of the City of South Bend,
January 12
Clerk
of Common Council
ER
Clerk
IRENE K. GAMMON
Approved and signed by me ��z /r /�,� �� 19—G
ORDINANCE NO. 7/1a -8a
AN ORDINANCE AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT,INDENIIURE
OF TRUST, MORTGAGE, NOTE AND BONDS AND APPROVING THE FORM AND TERMS
OF THE LOAN AGREEMENT, INDENTURE OF TRUST, LEASE, MORTGAGE, NOTE AND
BONDS AND AUTHORIZING THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE
BONDS AND APPROVING THE RESOLUTION NO. 13 -81 OF THE SOUTH BEND
ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE ROBERT H. FRESHLEY
PROJECT.
WHEREAS, the Common Council of the City of South Bend, Indiana,
heretofore has created the South Bend Economic Development Commission
pursuant to the provisions of the Municipal Economic Development Act
of 1965, as amended, and supplemented by I.C. 18- 6 -4.5, and replaced
by I.C. 36- 7 -12 -1, et seq.
WHEREAS, the South Bend Economic Development Commission has
found by a written Resolution that because of insufficient employment
opportunities, insufficient tax base and insufficient diversification
of economic development facilities in the City of South Bend, the
economic welfare of the City of South Bend, Indiana would be benefited
by construction of certain economic development facilities pursuant
to a request made on August 4, 1981 by Robert H. Freshley, ( "Freshley "),
and has further found by Resolution that the proposed financing
complies with the purposes and provisions of I.C. 36- 7 -12 -1, as
amended, and
WHEREAS, the South Bend Economic Development Commission has
prepared a report estimating the public services which would be made
necessary or desirable by the proposed project, the expenses thereof,
and the total project costs of the propsed project and the number of
jobs and estimated payroll on account of the construction of the
proposed facilities relating to the proposed project, and such report
having been submitted to the Chairman of the Area Plan Commission of
St. Joseph County, and the Plan Commission's written comments having
been made a part of their records, and
WHEREAS, the South Bend Economic Development Commission has approved
the form and terms of the Loan Agreement, Indenture of Trust, Lease,
Mortgage, Note and Bonds and has further approved the form of Ordinance
authorizing the execution of the Loan Agreement, Indenture of Trust,
Mortgage, Note and Bonds and the issuance of Economic Development
Revenue Bonds in accordance therewith, and
WHEREAS, the South Bend Economic Development Commission has
transmitted this form of Ordinance to the City Clerk of the City of
South Bend for presentation to the Common Council of the City of
South Bend, Indiana, and
WHEREAS, the Common Council of the City of South Bend, Indiana
finds that the proposed development will be of public benefit to the
economic welfare of the City of South Bend, Indiana, by tending to
overcome the deficiencies previously found to exist and that such
benefit is greater than the costs of the public facilities which
would be required by the proposed project,
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA THAT:
Section 1. The forms and terms of the Loan Agreement, Indenture
of Trust, Lease, Mortgage, Note and Economic Development Revenue
Bonds pertaining to the Robert H. Freshley Project facilities and
the issuance of Economic Development Bonds pursuant thereto are
hereby approved and adopted.
Section 2. The form of Loan Agreement, Indenture of Trust,
Mortgage, Note and Economic Development Revenue Bonds are hereby
incorporated by reference into this Ordinance and the forms shall
be inserted into the records of the Common Council of the City of
South Bend, Indiana and shall be kept on file by the City Clerk of
the City of South Bend, Indiana.
Section 3. The Loan Agreement, Indenture of Trust and Economic
Development Revenue Bonds shall be executed on behalf of the City
of South Bend, Indiana by the Mayor and the City Clerk manually
affixing their signatures thereto.
Section 4. The Economic Development Revenue Bonds, payable
solely and only from the revenue derived from the facilities, may
be issued in an aggregate amount not to exceed Two Hundred and
Twenty -Five Thousand ($225,000.00) Dollars, fully registered, and
is one of an authorized series of Bonds of the Issuer, dated as of
February 16, 1982, payable in a denomination of Two Hundred and
Twenty -Five Thousand ($225,000.00) Dollars in currency or its
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equivalent at the Offices of American National Bank, 101 North Main
Street, South Bend, Indiana. The Bonds will be amortized over a
period of fifteen (15) years and bear interest at a rate of ten
(10 %) percent per annum in equal monthly installments. The Bonds
will be executed and delivered during regular business hours on
February 16, 1982. The Bonds are redeemable at maturity or prior
thereto in accordance with the terms of Section 6.1 of the Loan
Agreement. Such Bonds shall be issued on behalf of the City of South
Bend, Indiana, by the Mayor and City Clerk of the City of South Bend,
Indiana, and shall be sealed with the Corporate Seal of the City of
South Bend not later than ninety (90) days after the date hereof.
Section 5. The Economic Development Revenue Bonds authorized
by the Ordinance shall not be and shall never constitute an indebtedness
of or a charge against the general credit or taxing power of the City
of South Bend and shall not be in any respect a general obligation
of the City, nor shall the Bonds be paid in any manner from funds
raised by taxation. The Bonds shall be payable solely from revenues
and receipts derived pursuant to the terms of the Loan Agreement and
Indenture of Trust.
Section 6. The Resolution of the South Bend Economic Development
Commission passed on November 20, 1981, Resolution No. 13 -81, relating
to the Robert H. Freshley Project, is hereby approved; and the Common
Council of the City of South Bend hereby finds that the proposed
financing for the issuance of the Economic Development Revenue Bonds
would be of benefit to the health and welfare of the City of South
Bend and that it complies with the purposes and provisions of
I.C. 36- 7 -12 -1, as amended and supplemented.
Section 7. This Ordinance shall be in full force and effect
from and after its passage, due attesta / ion and approval by the Mayor.
10 READING I � -1 y -01
PUBLIC HEARING / - / %-$a
2nd READING
NOT APPROVED,
REFERRED
PASSED J— // - SQ
WILED ID CLERFS OFFICE
DEC 8 1981
Irene Gammon
- 3 - qyy CLERB, $00 BEND, IND.
WILLIAM E. VOOR
LLOYD M.ALLEN
KENNETH P. FEDDER
GEORGE E. HERENDEEN
ANTHONY D. KOWALS
DAVID M. M.TIGUE
VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS
ATTORNEYS 8 COUNSELORS AT LAW
300 FIRST BANK BUILDING
SOUTH BEND, INDIANA 46601
Members of the South Bend
Common Council
County -City Building
South Bend, IN 46601
AREA CODE 219
234 -6061
OF COUNSEL:
WILLIAM O. JACKSON
GUY H. McMICHAEL
Re: Revenue Bond Application - Robert H. Freshley -
Basic Machine Products Company, Inc.
Project
Dear Councilpersons:
The South Bend Economic Development Commission has received an
application from Robert H. Freshley for a Revenue Bond in the amount
of Two Hundred and Twenty -Five Thousand ($225,000.00) Dollars, to
finance the relocation, expansion and remodeling of an existing
building located a 416 West LaSalle, South Bend, Indiana, which
building will be leased to Basic Machine Products Company, Inc.
It is anticipated that the new facility will, with an apprenticeship
program, initially create 3 new jobs, with an estimated payroll of
approximately $40,000 annually, and an additional 7 -10 jobs within a
year, with an estimated payroll of approximately $200,000.00.
This is an existing business which has decided to reloate in the
general South Bend downtown area.
U H P. FEDDER
ey for the
Bend Economic
Development Commission
KPF : ram
FILED IN CLERKS OFFICE
DEC 8 1981
Irene Gammon
CITY CLERI4 SOUTH BEND, IND.
TRANSMITTAL OF ADOPTED COMMISSION RESOLUTION AND PROPOSED ORDINANCE
FOR ADOPTION BY THE SOUTH BEND COMMON COUNCIL AND APPROVAL BY THE
MAYOR PERTAINING TO THE FINANCING OF FACILITIES FOR ROBERT H. FRESHLEY
BY THE ISSUANCE BY THE CITY OF SOUTH BEND, INDIANA OF ITS INDUSTRIAL
DEVELOPMENT REVENUE BONDS TO:
CITY CLERK
CITY OF SOUTH BEND, INDIANA
SOUTH BEND, INDIANA 46601
The South Bend Economic Development Commission ( "Commission ")
hereby transmits to you in accordance with the Public Law No. 182
of the Acts of the General Assembly of Indiana for 1973, as such may
be amended from time to time including but not limited to IC 18- 6 -4.5 -1
through IC 18- 6- 4.5 -30, hereinarter referred to as the "Act ";
1. A resolution heretofore adopted by the Commission on
November 20, 1981, as called for by the Act.
2. A proposed ordinance for adoption by the Common Council of
the City of South Bend, Indiana, as called for by the Act.
You will note from a perusal of the body of these documents that
the purpose thereof is to finance the relocation, expansion and
remodeling of an existing building located at 416 West LaSalle Street,
South Bend, Indiana, which building will be leased to BASIC MACHINE
PRODUCTS COMPANY, INC., an Indiana Corporation, by the execution of
an Indenture of Trust and Loan Agreement and the issuance of Industrial
Development Revenue Bonds in a total amount not to exceed Two Hundred
and Twenty -Five Thousand ($225,000.00) Dollars, repayable with interest
at the rate of ten (10 %) percent per annum, as referred to in said
Trust Indenture and Loan Agreement.
Submitted this 20th day of November, 1981.
SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION
Iim
s -
Walter M. Sz/ymkowiak - Vice President
By: Lktp1
Walter A. Mucha - Secretary
COMMISSION RESOLUTION NO. 13 -81
WHEREAS, the City of South Bend, Indiana, still has insufficient
employment opportunities, insufficient tax base and insufficient
diversification of economic development facilities, which conditions
are harmful to the health, prosperity, economic stability and general
welfare of the area and, if not remedied, will be detrimental to the
development of such area and its environs; and
WHEREAS, ROBERT H. FRESHLEY has filed an application with the
South Bend Economic Development Commission ( "Commission ") to finance
the relocation, expansion and remodeling of an existing building
located at 416 West LaSalle Street, South Bend, Indiana, which
building will be leased to BASIC MACHINE PRODUCTS COMPANY, INC.,
which is engaged in the general machine tool business; and
WHEREAS, Commission has prepared and placed on file a report as
specified in IC 18- 6- 4.5 -16 and has forwarded copies to the Chairman
of the St. Joseph County Area Plan Commission and the Superintendent
of the South Bend Community School Corporation where the economic
development facilities are proposed to be located and has received
favorable reports from each of them; and
WHEREAS, Commission has found on behalf of the City of South Bend,
Indiana that the proposed financing will be of benefit to the health
and welfare of the City of South Bend, Indiana, and complies with the
purposes and provisions of the Indiana Code of 1971, Title 18,
Chapter 6, Article 4.5 as amended; and
WHEREAS, Commission has considered and determined that such
proposed economic development facilities will not have an adverse
competitive effect on similar facilities already constructed or
operating in the City of South Bend, Indiana, and environs;
NOW, THEREFORE, the South Bend Economic Development Commission
at this meeting, pursuant to IC 36- 7- 12 -24, being a public hearing
on not less than ten (10) days' notice of the proposed financing of
such economic development facilities, does now find that the proposed
financing complies with the purposes and provisions of the applicable
Indiana statutes governing the issuance of industrial development
revenue bonds by the Commission and complies in all things with
IC 18- 6 -4.5 -1 through IC 18-6- 4.5 -30; and
BE IT FURTHER RESOLVED by the South Bend Economic Development
Commission that the proposed financing of the relocation, expansion
and remodeling of such facility constitutes such economic development
facilities in accordance with the terms of the financing agreements,
sometimes referred to as "Indenture of Trust," "Loan Agreement" and
the bonds to be issued pursuant thereto in the principal amount of
Two Hundred and Twenty -Five Thousand ($225,000.00) Dollars, repayable
with interest at the rate of ten (10 %) percent per annum, in accordance
with the terms set forth in such Indenture of Trust and Loan Agreement,
together with note and real estate mortgage are hereby approved and
authorized; and
BE IT FURTHER RESOLVED, that the form and terms of the financing
agreements pertaining to such bonds, being designated as an Indenture
of Trust and Loan Agreement, and the form and terms of such bonds and
note and real estate mortgage securing the performance of the terms
of such Indenture of Trust and Loan Agreement, and the issuance of such
bonds are hereby approved and authcrized and that the Secretary of the
Commission be, and he is hereby directed to transmit to the Clerk of
the City of South Bend, Indiana, this resolution, together with a copy
of the form and terms of the financing agreements, viz, Indenture of
Trust, Loan Agreement and the bonds, note and real estate mortgage.
THIS RESOLUTION ADOPTED BY THE SOUTH BEND ECONOMIC DEVELOPMENT
COMMISSION OF THE CITY OF SOUTH BEND, INDIANA, THIS 20th DAY OF
NOVEMBER, 1981,
Walter A. Mucha "'�- /Secretary
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