HomeMy WebLinkAboutIssuance of Economic Development Revenue Bonds Jeffry S Beardsley - Bernell Corporation ProjectORDINANCE No. 7013 -82
Passed by the Common Council of the City of South Bend,
January 11, IQ 82
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Presented by me to the Mayor of the City of South Bend,
Approved and signed by
IRENE K. GAMMON
January 12, X982
Clerk
of Common Council
IRENE K. GAMMON
Clerk
ORDINANCE NO. 26/_I -8',a
AN ORDINANCE AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT, INDENTURE
OF TRUST, NOTE AND BONDS AND APPROVING THE FORM AND TERMS OF THE LOAN
AGREEMENT, INDENTURE OF TRUST, LEASE, NOTE AND BONDS AND AUTHORIZING
THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS AND APPROVING THE
RESOLUTION NO. 14 -81 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION
RELATING TO JEFFRY S. BEARDSLEY - BERNELL CORPORATION 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 September 23, 1981, by Jeffry S. Beardsley -
Bernell Corporation,( "Beardsley "), 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 proposed 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, Note and Bonds and has further approved the form of Ordinance
authorizing the execution of the Loan Agreement, Indenture of Trust,
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, Note and Economic Development Revenue Bonds pertaining
to the Jeffry S. Beardsley - Bernell Corporation 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, 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 Three Hundred Thousand ($300,000.00)
Dollars, fully registered, and is one (1) of an authorized series of
Bonds of the Issuer, dated as of February 12, 1982, in a denomination
of Three Hundred Thousand ($300,000.00) Dollars, payable in currency
- 2 -
or its equivalent at the Office of the First National Bank, 301 South
Main Street, Elkhart, Indiana. The Bonds will be amortized over a
period of twelve (12) years and bear interest at a rate of thirteen
(13 %) percent, or seventy (70 %) percent of the Prime Rate charged
by the First National Bank, Elkhart, Indiana. If a floating rate
is used, there will be a floor of nine and one -half (9 1/2 %) percent.
The Bonds will be executed and delivered during regular business
hours on February 12, 1982. The Bond is callable for redemption on
any interest payment date in whole or in part at a redemption price
of one hundred (100 %) percent of the principal amount thereof, plus
accrued interest. 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. 14 -81, relating
to the Jeffry S. Beardsley - Bernell Corporation 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 suppleamted.
Section
7.
This Ordinance
shall be in
full force
and
effect
from and after
its
passage, due
attestat/ on
and approval
by
the Mayor.
Ist READING 141 -1 q-9)
PUBLIC HEAPING it - TS- L
2nd READING
NOT APPROVED
REFERRED
PASSED ( 1 \ - SC L,
FILED ID CLERK'S
DEC 8 1981
- 3 -
Irene Gammon
CRYCLERR, SM BEND, IND,
VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS
November 23, 1981
Members of the South Bend
Common Council
County - City Building
South Bend, IN 46601
Re: Revenue Bond Application - Jeffry S. Beardsley -
Bernell Corporation Project
Dear Councilpersons:
The South Bend Economic Development Commission has received an
application from Jeffry S. Beardsley for a Revenue Bond in the
amount of Three Hundred Thousand ($300,000.00) Dollars, to finance
the relocation, expansion and construction of a new facility in
the Monroe - Sample Redevelopment Area in the 800 Block of Lincolnway
East, South Bend, Indiana, such facility to be leased to the Bernell
Corporation, which is in the wholesale and retail opometric and
opthalmic equipment, and related products, business.
It is anticipated that the new facility will continue the 27 present
jobs and increase 5 new jobs in 1982, and will create additional
employment of approximately 10 jobs with an additional annual
payroll of Four Hundred and Fifty Thousand ($450,000.00) Dollars.
for the
d Economic
nt Commission
KPF;ram
ATTORNEYS 8 COUNSELORS AT LAW
AREA CODE 219
WILLIAM E. VOOR
300 FIRST BANK BUILDING
234-6061
LLOYD M. ALLEN
KENNETH P. FEDDER
SOUTH BEND, INDIANA 46601
OF COUNSEL:
GEORGE E. HERENDEEN
WILLIAM O. JACKSON
ANTHONY D.KOWALS
GUY H.MCMICHAEL
DAVID M. M<TIGUE
November 23, 1981
Members of the South Bend
Common Council
County - City Building
South Bend, IN 46601
Re: Revenue Bond Application - Jeffry S. Beardsley -
Bernell Corporation Project
Dear Councilpersons:
The South Bend Economic Development Commission has received an
application from Jeffry S. Beardsley for a Revenue Bond in the
amount of Three Hundred Thousand ($300,000.00) Dollars, to finance
the relocation, expansion and construction of a new facility in
the Monroe - Sample Redevelopment Area in the 800 Block of Lincolnway
East, South Bend, Indiana, such facility to be leased to the Bernell
Corporation, which is in the wholesale and retail opometric and
opthalmic equipment, and related products, business.
It is anticipated that the new facility will continue the 27 present
jobs and increase 5 new jobs in 1982, and will create additional
employment of approximately 10 jobs with an additional annual
payroll of Four Hundred and Fifty Thousand ($450,000.00) Dollars.
for the
d Economic
nt Commission
KPF;ram
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 JEFFRY S. BEARDSLEY
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, hereinafter 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
construction of a new facility to be located in the Monroe - Sample
Redevelopment Area in the 800 Block of Lincolnway East, South Bend,
Indiana, such facility to be leased to the Bernell Corporation, 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 Three Hundred Thousand
($300,000.00) Dollars, repayable with interest at the rate of either
a fixed rate of thirteen (13 %) percent or a floating rate of seventy
(70 %) percent of the prime rate per annum', as referred to in said
Trust Indenture and Loan Agreement.
Submitted this 20th day of November, 1981.
SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION
By: X [h �LGI )
Walter A. Mucha - Secretary
I
COMMISSION RESOLUTION NO.. 14 -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, JEFFRY S. BEARDSLEY has filed an application with the
South Bend Economic Development Commission ( "Commission ") to finance
the relocation, expansion and construction of a new facility to be
located in the Monroe - Sample Redevelopment Area in the 800 Block of
Lincolnway East, South Bend, Indiana, such facility to be leased to
the BERNELL CORPORATION, which is in the wholesale and retail
optometric and opthalmic equipment, and related products, 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 construction 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
Three Hundred Thousand ($300,000.00) Dollars, repayable with interest
at the rate of either a fixed rate of thirteen (13 %) percent or a
floating rate of seventy (70 %) percent of the prime rate.per annum,
in accordance with the terms set forth in such Indenture of Trust
and Loan Agreement, 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
securing the performance of the terms of such Indenture of Trust and
Lcan Agreement, and the issuance of such bonds are hereby approved
and authorized 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 bonds.
THIS RESOLUTION ADOPTED BY THE SOUTH BEND ECONOMIC DEVELOPMENT
COMMISSION OF THE CITY OF SOUTH BEND, INDIANA, THIS 20th DAY OF
NOVEMBER, 1981.
MM