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HomeMy WebLinkAboutApproving Industrial Development Revenue Bond - William Heike Dobslaw ProjectORDINANCE N0.6910 -81 Passed by the Common Council of the City of South Bend, Indiana. it 28, — 81 /r IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, zg 81 Clerk of Common Council IRENE K. GAMMON Approved and signed by Clerk BILL NO. ORDINANCE NO. (o C( 10 $ AN ORDINANCE APPROVING THE FORM AND TERMS OF A LOAN AGREEMENT AND TRUST INDENTURE, REAL ESTATE MORTGAGE AND INDUSTRIAL DEVELOPMENT REVENUE BOND, AND AUTHORIZING THE EXECUTION THEREOF PERTAINING TO THE WILLIAM R. DOBSLAW AND HEIKE DOBSLAW PROJECT AND APPROVING RESOLUTION NO. 3 -81 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION. STATEMENT OF PURPOSE OF INTENT: The Common Council of the City of South Bend, Indiana, heretofore has created the South Bend Economic Development Commission, hereinafter 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, including but not limited to IC 18- 6 -4.5 -1 through 18- 6- 4.5 -30, hereinafter referred to as the "Act "; and WILLIAM R. DOBSLAW and HEIKE DOBSLAW have filed an application with the Commission to finance the acquisition of real estate and the construction thereon of an industrial facility 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 IC 18- 6- 4.5 -16 and has forwarded copies thereof to the Chairman of the Area Plan Commission of St. Joseph County, Indiana, and to the Superintendent of the South Bend Community School Corporation, being the area in which the proposed 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 economic development facilities on April 3, 1981, after giving the required notice as provided in the Act, and adopted a Resolution finding that such proposed financing complies with the purposes and provisions of all applicable Indiana statutes covering 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 constructed 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 Common Council of the City hereby finds and determines that the real estate, interests in real estate and other improvements thereon to be acquired and constructed with the proceeds of the bonds herein authorized are "economic development facilities" as that phrase is used in the Act and that acquisition and construction of the Project will increase employment opportunities and increase diver- sification of economic development in the City, will improve and promote the economic stability, development and welfare of the area in the city and will encourage and promote the expansion of industry, trade and commerce in the area in the City and the location of other new economic development facilities in such area. Section 2. The Common Council hereby finds that this Ordinance (the "Bond Ordinance ") is of public benefit to the economic welfare of the City by tending to overcome the deficiencies previously found to exist, to -wit: insufficient employment opportunities and insufficient diversification of economic development, and that such benefit is greater than the cost of public facilities (as that phrase is defined in the Act) which will be required by the Project and further that the proposed financing will be of benefit to the welfare of the City and complies with the purposes and provisions of the Act. Section 3. The form and terms of the Loan Agreement and Trust Indenture, Real Estate Mortgage and Industrial Development Revenue Bond pertaining to the William R. Dobslaw and Heike Dobslaw Project and the issuance of the Industrial Development Revenue Bond pursuant thereto are hereby approved and adopted. Section 4. Said forms of Loan Agreement and Trust Indenture, and Real Estate Mortgage together with the 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. - 2 - Section 5. Said Loan Agreement and Trust Indenture 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 6. Said Industrial Development Revenue Bonds, payable solely and only from the revenues derived from such William R. Dobslaw and Heike Dobslaw facilities, pursuant to the aforementioned Loan Agreement and Trust Indenture, may be executed in the amounts not to exceed Three Hundred and Fifty Thousand ($350,000.00) Dollars, repayable with interest at the rate of 70% of the prime interest rate established by the Continental Illinois National Bank and Trust Company of Chicago, not to exceed an annual interest rate of 12% nor to be less than an annual interest rate of 10 %, such rate to be adjusted as of the lst day of each calendar month payable in monthly installments over a period not exceeding 12 years after the date of such bonds and as such Loan Agreement and Trust Indenture and such Industrial Development Revenue Bonds 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 7. Resolution No. 3 -81 of the South Bend Economic Development Commission and the Common Council the proposed financing revenue bonds would be the City of South Bend and provisions of I.C. passed on April 3, 1981, is hereby approved; of the City of South Bend hereby finds that for the issuance of the economic development of benefit to the health and welfare of and that it complies with the purposes 18- 6 -4.5, as amended and supplanted. Section 8. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. 1st READING 7 S -9'/ PUBLIC HEARING � —s2 f — k1 2n8 READING NOT APPROVED REFERRED ./ PASSED / - 3 - FILED IN CLERIC'S OFFICE APR $1981 Irene Gammon CITY CLERK, SOUTH BEAD, I?, WILLIAM E.VOOR LLOYD M. ALLEN KENNETH P. FEDDER GEORGE E.HERENDEEN ANTHONY D. KOWALS VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS ATTORNEYS 8 COUNSELORS AT LAW 300 FIRST BANK BUILDING SOUTH BEND, INDIANA 46601 Members of the South County -City Building South Bend, Indiana April 7, 1981 Bend Common Council F..� Re: Revenue Bond Application (William R. Dobslaw and Heike Dobslaw Project) Dear Councilmen: AREA CODE 219 23 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. MCMICHAEL The South Bend Economic Development Commission has received an application from William R. Dobslaw and Heike Dobslaw Project for a Revenue Bond in the amount of Three Hundred Fifty Thousand ($350,000.00) Dollars, to finance the purchase of real estate and the construction of an additional Economic Development Com- mission facility to be located on the southeast corner of Ireland and U. S. 31 South, South Bend, Indiana. It is anticipated that the new facility will create additional employment of approximately 40 employees and an estimated payroll of $200,000.00 per year. It is property zoned and the Economic Development Commission passed its Resolution on April 3, 1981. KPF /k P. FOR THE SOUTH BEND DEVELOPMENT COMMISSION