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HomeMy WebLinkAbout$4,000,000.00 Revenue Bonds Making a Loan to Health Quest Realty VORDINANCE No. 7048 -82 Passed by the Common Council of the City of South Bend, Presented by me to the Mayor of the City of South Bend, IRENE K. GAMMON 12, �9 82 Approved and signed by me Clerk of Common Council IRENE K. GAMMON Clerk ORDINANCE NO. 70 r; ON ORDINANCE AMENDING AN ORDINANCE ENTITLED: "AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE NOT EXCEEDING $4,000,000.00 OF REVENUE BONDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PURPOSE OF MAKING A LOAN TO HEALTH QUEST REALTY V, IN ORDER TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN ECONOMIC DEVELOP- MENT FACILITIES LOCATED IN ST. JOSEPH COUNTY, INDIANA, TO BE USED AND OCCUPIED BY FOUNTAIN - VIEW PLACE CORPORATION OF SOUTH BEND; AUTHOR- IZING EXECUTION OF A TRUST INDENTURE AND FI- NANCING AGREEMENT; PROVIDING FOR THE DELIVERY OF AN FHA - INSURED MORTGAGE NOTE AS SECURITY FOR SAID BONDS; AND AUTHORIZING THE TERMS AND SALE OF SAID BONDS ". The City of South Bend, Indiana, (hereinafter called the "City ") is a municipal corporation and political subdivi- sion of the State of Indiana, and by virtue of IC 36 -7 -12, as amended (hereinafter called the "Act ") is authorized and em- powered to adopt this ordinance to carry out its provisions; and Health Quest Realty II (formerly known as Health Quest Realty V), an Indiana general partnership (the "Developer ") has applied for financing of a project (the "Project "), consisting of the acquisition of approximately 12.17 acres of land on the East side of Ironwood approximately 1,500 feet North of the Intersection of Cleveland and Ironwood, St. Joseph County, Indiana, and the construction thereon and equipment of a build- ing for use as a nursing home, containing 144 skilled nursing and intermediate care beds; and Following a duly held public hearing, the South Bend Economic Development Commission adopted a resolution on August 14, 1981, finding that the proposed financing of the Project complies with the purposes and provisions of the Act, and the St. Joseph County Council adopted a resolution on August 11, 1981, consent- ing to the issuance of the Bonds referred to below; and The Project will provide additional employment oppor- tunities and diversification of economic development facilities in St. Joseph County and South Bend, Indiana; and On August 24, 1981, the Common Council of the City adopted Ordinance No. 6954 -81 (the "Bond Ordinance ") authoriz- ing the issuance by the City of its bonds pursuant to the Act to finance a portion of the costs of the Project, such bonds to be designated "City of South Bend, Indiana, Health Care Facilities Revenue Bonds, Fountainview Place of South Bend Issue (FHA Insured Project), Series "A" in the aggregate prin- cipal amount not exceeding $4,000,000.00, and at an interest rate not exceeding twelve percent (12 %) per annum (the "Bonds "); and Due to increases in market interest rates on obliga- tions such as the Bonds, the Developer has requested that the City amend the Bond Ordinance to provide for an increase in the principal amount of the Bonds and an increase in the interest rate thereon. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: Section 1. Section 2 of the Bond Ordinance is hereby amended to read as follows: "(a) In order to pay a portion of the costs of acquiring and constructing the Project, there are hereby authorized to be issued, sold and delivered the Bonds in an aggregate principal amount not exceeding $4;500,000.00. The Bonds will be sold at a price to yield not in excess of fourteen and one -half percent (142%) per annum, plus accrued interest, and shall mature on February 12, 2012. The Bonds shall be sold to such purchasers (the "Purchasers ") as may be satisfactory to the City, as recommended by Blyth Eastman Paine Webber Health Care Funding, Inc., and Herbert J. Sims & Co., Inc., as placement agents for the City (the "Placement Agents "). The Bonds shall have interest rate or rates and be in such aggregate principal amount as shall be approved by the Mayor, such approval to be evidenced by his execution of an agreement or agreements with the Purchasers for sale of the Bonds. (b) The Bonds will be dated and bear interest from June 1, 1982, or the first day of the month in which an agree- ment or agreements with the Purchasers providing for the sale of the Bonds shall be executed by the Mayor on behalf of the City, whichever date is the later. The Bonds shall be issued in coupon form in the denomination of $5,000 each, registrable as the principal at the principal corporate trust office of the Trustee; or, at the option of the Purchasers, as fully - registered Bonds in the denomination of $5,000, or any whole multiple thereof; or any combination of the foregoing. Interest on the Bonds shall be payable on February 1, and August 1, each year, commencing February 1, 1983. The principal of the in- terest on coupon Bonds, including Bonds registered as to prin- cipal only, shall be payable at the principal corporate trust office of the Trustee, or at the option of the holder, at the principal corporate trust office of Marine Midland Bank, New York, New York. The principal of fully- registered Bonds should be payable at the principal corporate trust office of the Trustee, and interest on fully- registered Bonds will be payable by check or draft mailed to the registered owner. (c) The Bonds shall be executed by the manual or facsimile signature of the Mayor, and the corporate seal of the City shall be affixed, imprinted, lithographed or reproduced thereon, and shall be attested by the manual or facsimile sig- nature of the Clerk or Assistant Clerk of the City. Interest coupons attached to coupon Bonds shall be executed with the facsimile signature of the Mayor. Upon execution of the Bonds as aforesaid, and upon authentication of the Bonds by the Trustee in the manner provided in the Indenture, the Mayor is hereby authorized and directed to execute and deliver to the Trustee a letter of instructions authorizing the Trustee to deliver the Bonds to the Purchasers against receipt of the purchase price or unpaid balance thereof, on such date as may be agreed upon by the Mayor on behalf of the City, and the Purchasers. (d) The Bonds shall be subject to redemption prior to maturity as provided in the form of Bond set forth in the Indenture, and Article VIII of the Indenture. -2- (e) Any costs of the Project which cannot be paid from the proceeds of the Bonds will be paid for by the Develop- er, unless paid for from the proceeds of additional parity bonds, as authorized by the Indenture." Section 2. The Mayor and Clerk be and they are each hereby authorized and directed, in the name and on behalf of the City, to execute any and all instruments, perform any and all acts, approve any and all matters, and do any and all things deemed by them, or any of them, to be necessary or desirable in order to carry out the purposes of the Bond Ordinance as amended hereby (including the preambles hereto), the acquisi- tion and construction of the Project by the Developer, the issuance and sale of the Bonds, and the securing of the Bonds under the Indenture. Section 3. Except as expressly amended hereby, the Bond Ordinance is hereby approved and confirmed in all respects. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. Passed 1st READING Y PUBLIC HEARING 2nd READING NOT APPROVED REFERRED PASSED , 1982 MEMBER HE CITY C UNCIL FILED ID CLERK'S OFFICE APR 2 ? 19187 Irene Gammon CITY CLERK, SOUTH BEND, IND. WILLIAM E.VOOR LLOYD M. ALLEN KENNETH P. FEDDER GEORGE E. HERENDEEN ANTHONY D.KOWALS DAVID M. M.TIGUE April 20, 1982 VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS ATTORNEYS 8 COUNSELORS AT LAW AREA CODE 219 300 FIRST BANK BUILDING 2346061 SOUTH BEND, INDIANA 46601 OF COUNSEL: WILLIAM O. JACKSON GUY H. MCMICHAEL Members of the South Bend Common Council County -City Building South Bend, IN 46601 Re: Health Quest Realty V - (Fountainview Place of South Bend) - Amended Ordinance Dear Councilmen: On August 24, 1981, the Common Council adopted Ordinance 6954 -81, which authorized the sale of revenue bonds in the aggregate principal amount not to exceed Four Million ($4,000,000.00) Dollars, with an interest rate not to exceed twelve (12 %) percent. Because of increases in the market interest rates, this Amended Ordinance is being filed for passage wherein, to underwrite the proposed health care facility, the principal amount will be increased to Four Million, Five Hundred ($4,500,000.00) Dollars, and the interest rate will likewise be increased to fourteen and one -hilf (14 1/2 %) percent. FEDDER KPF:ram FILED IN CLEWS OFFICE APR 2, Irene Gammon CITY CLERK, SOUTH BEND, IUD.