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HomeMy WebLinkAboutIndustrial Development revenue Bonds - Authorizing Lock Joint Tube Co IncORDINANCE No. 6892 -81 Passed by the Common Council of the City of South Bend, Indiana February 9, 19 81 Presented by me to the Mayor of the City of South Bend, Approved and signed by IRENE K. GAMMON February l 0 Ig_$L Clerk Of Common Council l A Clerk IRENE K. GAMMON ORDINANCE NO. AN ORDINANCE APPROVING THE FORM AND TERMS OF TRUST INDENTURE AND USER AGREEMENT, SECURITY AGREEMENT, AND INDUSTRIAL DEVELOPMENT REVENUE BONDS AND AUTHORIZING THE EXECUTION THEREOF AND APPROVING RESOLUTION NO. 31 -80 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE LOCK JOINT TUBE COMPANY, INC. PROJECT STATEMENT OF PURPOSE OF INTENT: The Common Council of the City of South Bend, Indiana, heretofore has created the South Bend Economic Development Com- mission, hereinafter referred to as "Commission ", pursuant to the provisions of I.C. 18- 6 -4.5 -1 through I.C. 18- 6- 4.5 -30, as amended and supplemented, hereinafter referred to as the "Act "; and LOCK JOINT TUBE COMPANY, INC., an Indiana corporation, has filed an application with the Commission to finance the ac- quisition of machinery, equipment, fixtures and tools for the business operations to be conducted at 1400 Riverside Drive, South Bend, Indian 46616, which will constitute economic develop- ment facilities resulting in a savings of a substantial number of jobs and the creation of a substantial number of new jobs, as well as other benefits, and in connection therewith the Commis- sion has prepared and placed on file a report containing the subject matter as specified in I.C. 18- 6- 4.5 -16 and has forwarded copies thereof to the Chairman of the St. Joseph County Area Plan Commission and to the Superintendent of the South Bend Community School Corporation, being the area in which such proposed facil- ities will be located, and has timely received favorable reports from each of them, and the Commission held a public hearing on the proposed financing of such economic development facilities in accordance with the Act after giving the required notice as.pro- vided in the Act, and adopted a resolution finding that such pro- posed financing complies with the purposes and provisions of all applicable Indiana statutes governing the issuance of Industrial Development Revenue Bonds, including but not limited to the Act, and that such economic development facilities will not have an adverse competitive effect on similar facilities already con- structed and operating in the City of South Bend, Indiana. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, THAT: Section 1. The form and terms of the Trust Indenture and User Agreement, Security Agreement, and Industrial Develop- ment Revenue Bond attached as exhibits thereto pertaining to the issuance of the Industrial Development Revenue Bonds in accor- dance with the terms of the Trust Indenture and User Agreement pertaining to the application of Lock Joint Tube Company, Inc., an Indiana corporation, herein sometimes referred to as "Lock Joint Tube Company, Inc. Project ", are hereby approved- and adopted. Section 2. Said forms of Trust Indenture and User Agreement, Security Agreement, and Industrial Development Revenue Bond which are on file with the Commission and the City -Clerk are hereby incorporated by reference into this Ordinance, and said forms shall be inserted into the minutes 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. Said Industrial Development Revenue Bonds, payable solely and only from the revenues derived from such Lock Joint Tube Company, Inc. Project pursuant to the aforementioned Trust Indenture and User Agreement, may be executed in amounts not to exceed Eight Hundred Thousand Dollars ($800,000.00) re- payable with interest thereon a rate not to exceed seventy -five percent (75 %) of the prime rate recognized by First Bank and Trust Company of South Bend, South Bend, Indiana, adjusted quarter annually on the first day of each quarter annual period but not less than ten percent (10 %) per annum, payable in quarter - annual installments over a period of eight (8) years after the date of such Bond or Bonds and such Industrial Devel- opment Revenue Bond or Bonds shall be executed on behalf of the City of South Bend, Indiana, by the Mayor and Clerk and sealed with the corporate seal of such City. -2- Section 4. The Industrial Development Revenue Bond or Bonds authorized by this Ordinance shall not be and shall never constitute an indebtedness of or a charge against the general credit or the taxing power of the City of South Bend, Indiana, and shall not be in any respect a general obligation of the City of South Bend, Indiana, nor shall such Bond or Bonds be paid in any manner from funds raised by taxation. Such Bond or Bonds shall be payable solely from the revenues and receipts received pursuant to the terms of such Trust Indenture and User Agreement. Section 5. Resolution No. 31 -80 of the South Bend Economic Development Commission passed on January 23, 1981, is hereby approved and the Common Council of the City of South Bend hereby finds that the proposed financing for the issuance of such Industrial Development Revenue Bonds would be of benefit to the health and welfare of the City of South Bend and that such com- plies with the purposes and provisions of the Act. Section 6. This Ordinance shall be in full force and effect from and after its pass approved by the Mayor. tsl READING PUBLIC HEARING 2nd READING 9-C7— g NOT APPROYM REFERREQ by the Common Council and A ounc FILED ICI CLE L''i'S OFFICE Irene Gammon CITY CLERK, SOUTH BEND, IND, VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS ATTORNEYS 8 COUNSELORS AT LAW WILLIAM E. VOOR 300 FIR5T BANK BUILDING LLOYD M. ALLEN KENNETH P. FEDDER SOUTH BEND, INDIANA 46601 GEORGE E. HERENDEEN ANTHONY D. KOWALS January 28, 1981 Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 Re: Revenue Bond Application Lock Joint Tube Company, Inc. Dear Councilmen: AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. McMICHAEL The South Bend Economic Development Commission has received an application from the Lock Joint Tube Company, Inc. for a Revenue Bond in the amount of Eight Hundred Thousand Dollars ($800,000.00), to finance the acquisition of machinery, equip- ment, fixtures and tools for the business operations to be conducted at 1400 Riverside Drive, South Bend, Indiana 46616. It is anticipated that the new facility will create additional employment of approximately 15 jobs with an additional annual payroll of Two Hundred Thirty Thousand Dollars ($230,000.00). A security interest in the machinery, equipment, fixtures and tools will be granted. ct KPF /k FOR THE SOUTH BEND DEVELOPMENT COMMISSION