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HomeMy WebLinkAboutAuthorizing Economic Development Revenue Bonds - Michiana Telecasting Corp ProjectORDINANCE N Passed by the Common Council of the City of South Bend, imp ER Clerk IRENE K. GAMMON of Common Council Presented by me to the Mayor of the City of South Bend, Approved and signed by March 24 �9 81 -A"' ° City Clerk IRENE K. GAMMON ORDINANCE NO. /,vim AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS (MICHIANA TELECASTING CORP. PROJECT, AND APPROVING OTHER ACTIONS IN RESPECT THERETO. STATEMENT OF PURPOSE OF INTENT The South Bend Economic Development Commission has rendered its Project Report for the Michiana Telecasting Corp. Project regard- ing the financing of proposed economic development facilities for Michiana Telecasting Corp. and the Area Plan Commission of St.'Joseph County, Indiana has commented :favorably thereon. The South Bend Economic Development Commission conducted a public hearing on March 20, 1981, and also adopted a resolution on March 20, 1981, which Resolution has been transmitted hereto, finding that the financing of certain economic development facilities of Michiana Telecasting Corp. complies with the purposes and pro- visions of I.C. 18 -6 -4.5 and that such financing will be of benefit to the health and welfare of the City of South Bend and its citizens. The South Bend Economic Development Commission has heretofore approved and recommended the adoption of this form of Ordinance by this Common Council and has approved the forms of and has trans- mitted for approval by the Common Council the Loan Agreement, Note, Trust Indenture, Guaranty Agreement and Offering. Memorandum. BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA THAT: Section 1. It is hereby found that the financing of the economic development facilities referred to in the Loan Agreement approved by the South Bend Economic Development Commission and presented to this Common Council, the issuance and sale of revenue bonds, the loan of the proceeds of the revenue bonds to Michiana Telecasting Corp. for the acquisition and construction of such facilities and the equipping thereof, the payment of the revenue bonds by the note payments of Michiana Telecasting Corp, under the Loan Agreement and Note, and the guaranty of payment of the principal of and interest on the revenue bonds by University of Notre Dame du Lac under the Guaranty Agreement, complies with the purposes and provisions of I.C. 18 -6 -4.5 and will be of bene- fit to the health and welfare of the City of South Bend and its citizens. Section 2. The final forms of the Loan Agreement, Note, Trust Indenture, Guaranty Agreement and Offering Memorandum approved by the South Bend Economic Development Commission are hereby approved and all such documents (herein collectively referred to as the "Financing Agreement" referred to in I.C. 18- 6 -4.5), shall be incorporated herein by reference and shall be inserted in the minutes of the Common Council and kept on file by the Clerk. Section 3. The City of South Bend shall issue its Economic Development Revenue Bonds (Michiana Telecasting Corp. Project), in the total principal amount of Three Million ($3,000,000) Dollars for the purpose of procuring funds to pay the costs of acquisition, construction and equipping of the economic development facilities as more particularly set out in the Trust Indenture and Loan Agreement incorporated herein by reference, which bonds will be payable as to principal, premium, if any, and interest from the note payments made by Michiana Telecasting Corp. under the Loan Agreement and Note or as otherwise provided in the above described Trust Indenture. The Bonds shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of the City of South Bend. Section 4. The Mayor, Clerk and /or Comptroller are authorized and directed to sell such bonds to the purchasers thereof at a rate of interest on the bonds not to exceed 8; % per annum and at a price not less than 99.23% of the principal amount thereof. Section 5. The Mayor and Clerk are authorized and directed to execute the documents constituting the Financing Agreement approved herein on behalf of the City and any other document which may be necessary or desirable to consummate the transaction, includ- ing the bonds authorized herein. The signatures of the Mayor and Clerk on the bonds may be facsimile signatures. The Clerk is authorized to arrange for delivery of such Bonds to the Trustee named - 2 - in the Trust Indenture, payment for which will be made to the Trustee named in the Trust Indenture and delivered by the Trustee to the purchasers thereof. Section 6. The provisions of this Ordinance and the Trust Indenture shall constitute a contract binding between the City of South Bend and the holder of the Economic Development Revenue Bonds (Michiana Telecasting Corp. Project), and after the issuance of said bonds, this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of such holders so long as any of said bonds or the interest thereon remains unpaid. Section 7. The Common Council recognizes that this financing is interim in nature and is anticipated to be repaid from the proceeds of a long term economic development refunding bond issue, and the Common Council agrees to cooperate and use its best efforts to accomplish the proposed refunding bond issue. Section 8. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. Passed, as amended, March 23, 1981 - 3 - 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 MICHIANA TELECASTING CORP., 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 IC 18- 6 -4.5 -1 through IC 18- 6- 4.5 -30, hereinafter referred to as the "Act ": 1. A resolution adopted by the Commission on March 20,1981, 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 construction and equipping of a building to operate a radio and telecasting station at the northeast corner of Dorr Road and U.S. 31, St. Joseph County, Indiana, pursuant to the terms of a Trust Indenture and Loan Agreement and other related documents, and the issuance by the City of South Bend, Indiana of Industrial Development Bonds in a total amount of Three Million ($3,000,000.00) Dollars repayable with interest in accordance with the terms of the docu- ments. You are requested to place on the agenda of the South Bend Common Council the proposed form of Ordinance for the meeting to be held on March 23, 1981 and to present such proposed Ordinance and other documents to the Common Council of the City of South Bend, Indiana. p/ Dated this fp day of March, 1981. SOUTH BEND ECONOMII�iC EVELO/ P.�C NT COMMIS Ii VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 Re: Revenue Bond Application Michiana Telecasting Corp. 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 Michiana Telecasting Corp. for a Revenue Bond in the amount of Three Million ($3,000,000.00) Dollars, to finace the construction and equipping of a building to operate a radio and telecasting station at the northeast corner of Dorr Road and U.S. 31, St. Joseph County, Indiana. The St. Joseph County Council on March 9, 1980, passed its consent resolution. It is anticipated that the new facility will create additional employment of approximately five new jobs immediately and an additional five jobs within two years. The immediate increase of five jobs will create an additional annual payroll of $63,000.00. ReUect£ull Kenneth P. Fedder Attorney for the South Bend Economic Development Commission KPF /k '. i% 1 1L) e Ga Olt. vp ��e��,�� ATTORNEYS & COUNSELORS AT LAW WILLIAM E. VOOR 300 FIRST BANK BUILDING LLOYD M.ALLEN KENNETH P. FEDDER SOUTH BEND, INDIANA 46601 GEORGE E. HERENDEEN ANTHONY D. KOWALS March 17, 1981 Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 Re: Revenue Bond Application Michiana Telecasting Corp. 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 Michiana Telecasting Corp. for a Revenue Bond in the amount of Three Million ($3,000,000.00) Dollars, to finace the construction and equipping of a building to operate a radio and telecasting station at the northeast corner of Dorr Road and U.S. 31, St. Joseph County, Indiana. The St. Joseph County Council on March 9, 1980, passed its consent resolution. It is anticipated that the new facility will create additional employment of approximately five new jobs immediately and an additional five jobs within two years. The immediate increase of five jobs will create an additional annual payroll of $63,000.00. ReUect£ull Kenneth P. Fedder Attorney for the South Bend Economic Development Commission KPF /k '. i% 1 1L) e Ga Olt. vp ��e��,��