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HomeMy WebLinkAboutAuthorizing Economic Development Revenue Bonds - Universal Companies Inc ProjectORDINANCE No. cgoo -81 Passed by the Common Council of the City of South Bend, March 23, 19 81 /c Presented by me to the Mayor of the City of South Bend, Approved and signed by IRENE K. GAMMON Ma rrh 11 19 81 Clerk Of Common Council IRENE K. GAMMON Clerk BILL NO. ORDINANCE NO. 6 &I-ap/ AN ORDINANCE APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, MORTGAGE, INDENTURE OF TRUST, SECURITY AGREEMENT AND INDUSTRIAL DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF AND APPROVING RESOLUTION NO. 28 -8o OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE UNIVERSAL COMPANIES, INC. PROJECT STATEMENT OF PURPOSE OF INTENT: The Common Council of the City of South Bend, Indiana, heretofore has created the South Bend Development Commission herein- after referred to as "Commission ", pursuant to the provisions of 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, includ- ing but not limited to IC 18- 6- 4.5 -2, through IC 18- 6- 4.5 -30, hereinafter referred to as the "Act "; and The Universal Companies, Inc. has filed an application with the Commission to finance the construction and equipping of a manufacturing building located on real estate in St. Joseph County, Indiana, (facilities) which will constitute economic development facilities resulting in a substantial number of new jobs as well as other benefits; and In connection therewith the Commission has prepared and placed on file a report containing the subject matter as specified in Section 16 of IC 18 -6 -4.5 and has forwarded copies thereof to the Chairman of the Area Plan Commission and to the Superintendent of the School Corporation in the area of which the facilities 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 facilities on February 20, 1981, after giving the required notice as provided for in Section 17 of IC 18 -6 -4.5 and did find that the proposed financing complies with the pur- poses and provisions of the applicable Indiana statutes governing the issuance of Industrial Development Revenue Bonds by the Commis- sion and the Commission finds that the proposed facility will not have an adverse competitive effect on similar facilities already constructed and operating in and near the City of South Bend, Indiana; and The St. Joseph County Council has adopted a resolution approving the proposed financing; and 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 Loan Agreement, Mortgage, Indenture of Trust, Security Agreement and Industrial Development Revenue Bonds pertaining to The Universal Companies, Inc. facilities and the issuance of the Industrial Development Revenue Bonds pursuant thereto are hereby approved and adopted. Section 2. Said form of Loan Agreement, Mortgage, Indenture of Trust, and Security Agreement together with Industrial Development Revenue Bonds which are on file with the Commission 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 South Bend, Indiana. Section 3. The Loan Agreement, Mortgage and Indenture of Trust shall be executed on behalf of the City of South Bend, Indiana by the Mayor and City Clerk and sealed with the corporate seal of such City. Section 4. Said Industrial Development Revenue Bonds, payable solely and only from the revenue derived from such Universal Companies, Inc. facilities, may be issued in amounts not to exceed Three Hundred Thousand and no /100 Dollars ($300,000.00) for a period not exceeding fifteen (15) years after the first installment due thereon, in accordance with the terms of said Loan Agreement, Mortgage and Indenture of Trust and that such Bonds shall be executed on behalf of the City of South Bend, Indiana, by the Mayor and City Clerk of South Bend, Indiana, and shall be sealed with the corporate seal of such City. -2- Section 5. Resolution No. 20 -80 of the South Bend Economic Development Commission passed on February 20, 1981, 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 IC 18- 6 -4.5, as amended and supplemented. Section 6. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approved by the Mayor. Ig READING 'USLIC HEARINd 'tnd READING NOT APPROVED`' REFERRED,,"' PASSED' -3- C n Counc FILED IR CLERICS OFFICE MAR y ,c -; Irene CITY CLEUn aPGL. VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 Re: Revenue Bond Application The Universal Companies, 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 Universal Companies, Inc. for a Revenue Bond in the amount of Three Hundred Thousand Dollars ($300,000.00), to finance the purchase of equipment and the construction of a manufacturing building to be located at 50415 Herbert Street, Granger, Indiana 46530. We will also ask for the approval of the St. Joseph County Council. It is anticipated that the new facility will create additional employment of approximately 10 to 15 new jobs with an addi- tional payroll of $85,000.00 to $120,000.00. A security interest in the machinery, equipment, fixtures and tools will be granted. KPF /k ehh4th P. Pedder tto ney for the South Bend corAmic Development Commission FILED IN CLERK'S OFFICE MAR 4 10— Irene Gammon CITY CLERK, SOUTH BEND, IND. ATTORNEYS 8 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 4, 1981 Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 Re: Revenue Bond Application The Universal Companies, 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 Universal Companies, Inc. for a Revenue Bond in the amount of Three Hundred Thousand Dollars ($300,000.00), to finance the purchase of equipment and the construction of a manufacturing building to be located at 50415 Herbert Street, Granger, Indiana 46530. We will also ask for the approval of the St. Joseph County Council. It is anticipated that the new facility will create additional employment of approximately 10 to 15 new jobs with an addi- tional payroll of $85,000.00 to $120,000.00. A security interest in the machinery, equipment, fixtures and tools will be granted. KPF /k ehh4th P. Pedder tto ney for the South Bend corAmic Development Commission FILED IN CLERK'S OFFICE MAR 4 10— Irene Gammon CITY CLERK, SOUTH BEND, IND. 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 THE UNIVERSAL COMPANIES, INC., A MICHIGAN 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 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 February 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 purchase of equipment and the construction of a manufacturing building to be located at 50415 Herbert Street, Granger, Indiana 46530, pursuant to the terms of a Note Purchase and Loan Aareement, Mortgage and Trust Indenture, and the issuance by the City of South Bend, Indiana of Industrial Development Bonds in a total amount of Three Hundred Thousand ($300,000.00) Dollars repayable with interest in accord- ance with the terms of the documents. With respect to the ordinance, you are respectfully asked to publishonce in a newspaper in South Bend, Indiana, a notice that such proposed ordinance has been filed with you and present such ordinance to the Common Council of South Bend, Indiana for passage not earlier than ten days from the date of the publication of such notice. Submitted this 4th day of March, 1981. FILED IN CLERK'S OFFICE MAR 4 10 1 Irene Gammon CITY CLERK,SOUTH BEND,IND. BEND ECONOMIC DEVELOPMENT COMMISSION 11-MR COMMISSION RESOLUTION NO. 28 -80 WHEREAS, the City of South Bend, Indiana still has insufficient employment opportunities and-insufficient diversi- fication of industries, which conditions are harmful to the pros- perity, 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, The Universal Companies, Inc., a Michigan corporation, d /b /a Universal Properties, has filed an application with the South Bend Economic Development Commission ( "Commission ") to finance the construction and equipping of a manufacturing building located on real estate in St. Joseph County, Indiana, which will constitute economic development facilities resulting in a substantial number of new jobs as well as other benefits; and WHEREAS, the Commission has considered whether the proposed facilities may have an adverse competitive effect on similar facilities already constructed and operating in the City of South Bend, St. Joseph County, Indiana; and WHEREAS, the Commission has prepared and placed on file a report as specified in IC 18- 6- 4.5 -16, and has forwarded copies thereof to the Chairman of the Area Plan Commission and to the Superintendent of the School Corporation where the facili- ties will be located, and has received favorable reports from each of them; and WHEREAS, the 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, St. Joseph County, Indiana, and complies with the purposes and provisions of the Indiana Code of 1971, Title 18, Chapter 6, Article 4.5 as amended. NOW, THEREFORE, the South Bend Economic Development Commission at this meeting, being a public hearing on not less than five (5) days notice on such proposed financing of such Atr 0 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 BE IT FURTHER RESOLVED, by the South Bend Economic Development Commission that the proposed financing of the con- struction and equipping of a manufacturing building located on real estate in St. Joseph County, Indiana, and the form and terms of the financing agreement (Loan Agreement, Mortgage and Indenture of Trust) and the Bonds in the principal amount not to exceed Three Hundred Thousand and no /100 Dollars ($300,000.00) and bearing interest at the rate of seventy -five percent (750) of the Prime Rate (as defined below), provided that the interest charged on the principal amount shall not exceed a maximum of thirteen and three- fourths percent (13.75 %) nor shall it be less than a minimum of eight percent (8%). The "Prime Rate" applicable during any calendar year quarter shall be the New York consensus prime rate of interest calculated on the first business day of the calendar quarter to -wit: the first business day of the calendar quarter to -wit: the first business day of January, April, July and Octo- ber during the term of this Bond. The Bonds shall be amortized over a term of fifteen (15) years, and the issuance of the Bonds in accordance therewith, be and the same hereby are approved, and the Secretary of the Commission be and he is directed to transmit to the City of South Bend, Indiana and the St. Joseph County Council, this resolution, together with a copy of the form and terms of the financing agreement (Loan Agreement, Mortgage and Indenture of Trust) and the Bonds. THIS RESOLUTION ADOPTED BY THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION OF THE CITY OF SOUTH BEND, INDIANA, THIS 20th DAY OF FEBRUARY, 1981. FILED ID CLERK'S OFFICE MAR 4 1981 Irene Gammon CITY CLERK, SOUTH BEND, IND. -2 u