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HomeMy WebLinkAboutAuthorizing $350,000 Economic Development Revenue Bonds Medical Arts CorpORDINANCE No. 7086 -82 Passed by the Common Council of the City of South Bend, August 23 Ig 89, Presented by me to the Mayor of the City of South Bend, IRENE K. GAMMON t 24, �9 82 A-7 o Clerk of Common Council IRENE K. GAMMON Approved and signed by me--- 2 (S> Z _ TA Clerk ORDINANCE NO..2 -jE,� AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $350,000 ECONOMIC DEVELOPMENT REVENUE BONDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PURPOSE OF MAKING A LOAN TO MEDICAL ARTS CORPORATION OF SOUTH BEND, AN INDIANA CORPORATION, IN ORDER TO FINANCE THE CONSTRUCTION AND EQUIPPING OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES LOCATED IN SOUTH BEND, INDIANA; AUTHORIZING EXECUTION OF A LOAN AGREEMENT; PROVIDING FOR THE DELIVERY OF A NOTE AND ASSIGNMENT THEREOF AS SECURITY FOR SAID BONDS; AUTHORIZING AN INDENTURE OF TRUST APPROPRIATE FOR THE PROTECTION AND DISPOSITION OF THE REVENUES FROM SUCH NOTE. 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 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 and near the City of South Bend, Indiana, the economic welfare of the City of South Bend would be bene- fited by construction of certain economic development facilities pur- suant to a request made on February 23, 1982, by Medical Arts Corpora- tion of South Bend, an Indiana corporation, ( "Medical Arts Corporation ") and has further found by Resolution that the proposed financing com- plies 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 pro- posed facilities relating to the proposed project, and such report having been submitted to the Chairman of the St. Joseph County Area Plan Commission and the Area Plan Commission's written comments, if any, 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, Security Agreement, Mortgage, Note and Bonds and has further approved the form of Ordinance authorizing the execution of the Loan Agreement, Indenture of Trust, Security Agreement, Mortgage, Note and Bonds and the issuance of Economic Development Revenue Bonds in ac- cordance 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 bene- fit 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, Security Agreement, Mortgage, Note and Economic Development Revenue Bonds pertaining to the Medical Arts 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, Security Agreement, 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 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 Clerk manually affixing their signatures thereto. -2- Section 4. The Economic Development Revenue Bonds, pay- able solely and only from the revenue derived from the facilities, may be issued in an aggregate amount not to exceed Three Hundred Fifty Thousand Dollars ($350,000.00) as registered serial bonds dated as of , 1982, in denominations of Ten Thousand Dollars ($10,000.00) or multiples thereof payable in currency or its equivalent at the offices of 1st Source Bank, 133 South Main Street, South Bend, Indiana. The Bonds will be amortized over a period of seven (7) years and bear interest at a rate of seventy percent (70 %) of the local Prime Rate of interest charged by 1st Source Bank, South Bend, Indiana, adjusted quarterly. The Bonds will be executed and delivered during regular business hours on , 1982. The Bonds are redeemable at maturity or prior thereto in accordance with the terms of Section 6.1 of the Loan Agreement. Such bonds shall be issued on behalf of the City of South Bend, Indiana, by the Mayor and Clerk of the City of South Bend, Indiana, and shall be sealed with the corporate seal of the City. Section 5. The Economic Development Revenue Bonds autho- rized by the Ordinance shall not be and shall never constitute an indebtedness of or a charge against the general credit or taxing power of the City of South Bend and shall not be in any respect a general obligation of the City, nor shall the bonds be paid in any manner from funds raised by taxation. The bonds shall be payable solely from revenues and receipts derived pursuant to the terms of the Loan Agreement and Indenture of Trust. Section 6. The Resolution of the South Bend Economic De- velopment Commission passed on April 2, 1982, relating to the Medical Arts Corporation Project is hereby approved; and the Common Council of the City of South Bend hereby finds that the proposed financing for the issuance of the economic development revenue bonds would be of benefit to the health and welfare of the City of South Bend and that it complies with the purposes and provisions of I.C. 36- 7 -12 -1, as amended and supplemented. -3- Section 7. This Ordinance shall be in full force and effect from and after its passage, due attestation and approval by the Mayor. Member of the Common Co ist READING &/46 -$a FILED IN CLERICS OFFICE PUBLIC HEARING J3 &� APR 2 119N 2nd READING NOT APPROVED REFERRED Irene Gammon PASSED • a _ 8 CIiT CLERK, SOUR BEND, IND. -4- 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 MEDICAL ARTS CORPORATION OF SOUTH BEND, AN INDIANA CORPORATION, BY THE ISSUANCE BY THE CITY OF SOUTH BEND, INDIANA, OF ITS INDUSTRIAL DEVELOPMENT REVENUE BONDS TO: Irene K. Gammon City Clerk City of South Bend County -City Building 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 I.C. 18- 6 -4.5 -1 through I.C. 18- 6- 4.5 -30, hereinafter referred to as the "Act ": 1. A resolution adopted by the Commission on April 2, 1982, as called for by the Act; 2. 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 expansion of existing space and to construct an addition thereto at the present facility, the South Bend Clinic, 211 North Eddy Street, South Bend, Indiana, pursuant to the terms of a Loan Agreement, Indenture of Trust, Security Agreement, Note, Mortgage, and the issuance by the City of South Bend, Indiana, of Industrial Development Bonds in a total amount of Three Hundred and Fifty Thousand ($350,000.00) Dollars, repayable with interest in accordance with the terms of the documents. Submitted this 21st day of April, 1982. WALTER A. MUCHA, Secretary SOUTH BEND ECONOMIC DEVELOPMENT COlM4ISSION FILED IN MOPS PS OFFNCE APR 2 11982 Irene Gammon CRY CLERK, SOU1N BEND, IND. April 20, 1982 Members of the South Bend Common Council County -City Building South Bend, IN 46601 Re: $350,000 Economic Revenue Bond - Medical Arts Corporation of South Bend (South Bend Clinic) - Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission has received an application from the Medical Arts Corporation of South Bend, an Indiana Corporation, for a Revenue Bond in the amount of Three Hundred and Fifty Thousand ($350,000.00) Dollars, for the purpose of expanding existing space and contracting new space to be leased to Clinic Outpatient Surgery, Inc., which would operate the facility for the purpose of providing outpatient surgery service. These services would complement the medical services already provided by the South Bend Clinic at 211 North Eddy Street, South Bend, Indiana. It is anticipated that the new facility will create additional employment of approximately 8 new jobs with an additional annual payroll of Ninety -Six Thousand, Four Hundred and Forty ($96,440.00) DOlYars. ec I NTH P. FEDDER A orney for the South Bend Economic Development Commission KPF:ram FILED IN CLERK'S OFFICE APR 21 yg82 Irene Gammon CITY CLERK, SOUTH BEND, INO. VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS 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. McTIGUE April 20, 1982 Members of the South Bend Common Council County -City Building South Bend, IN 46601 Re: $350,000 Economic Revenue Bond - Medical Arts Corporation of South Bend (South Bend Clinic) - Proposed Ordinance Dear Councilmen: The South Bend Economic Development Commission has received an application from the Medical Arts Corporation of South Bend, an Indiana Corporation, for a Revenue Bond in the amount of Three Hundred and Fifty Thousand ($350,000.00) Dollars, for the purpose of expanding existing space and contracting new space to be leased to Clinic Outpatient Surgery, Inc., which would operate the facility for the purpose of providing outpatient surgery service. These services would complement the medical services already provided by the South Bend Clinic at 211 North Eddy Street, South Bend, Indiana. It is anticipated that the new facility will create additional employment of approximately 8 new jobs with an additional annual payroll of Ninety -Six Thousand, Four Hundred and Forty ($96,440.00) DOlYars. ec I NTH P. FEDDER A orney for the South Bend Economic Development Commission KPF:ram FILED IN CLERK'S OFFICE APR 21 yg82 Irene Gammon CITY CLERK, SOUTH BEND, INO.