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HomeMy WebLinkAboutApproving Economic Development Revenue Bonds - Cira's Timberline IncORDINANCE No. 6876 -81 Passed by the Common Council of the City of South Bend, January 12, 1981 N Presented by me to the Mayor of the City of South Bend, January 13 19 81 Approved and signed by Clerk of Common Council IRENE K. GAMMON if Clerk BILL NO. ORDINANCE NO. AN ORDINANCE APPROVING THE FORM AND TERMS OF THE LOAN AGREEMENT, INDENTURE OF TRUST, AND ECONOMIC DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF, AND APPROVING RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE CIRA'S TIMBERLINE, INC. PROJECT STATEMENT OF PURPOSE AND INTENT: The Common Council of the City of South Bend, Indiana, heretofore has created the South Bend Economic Development Commission, hereinafter referred to as the "Commission" pursuant to the provisions of Indiana Code 18- 6 -4.5, as amended, herein- after referred to as the "Act ". Cira's Timberline, Inc., an Indiana corporation (the "Borrower "), has filed an application with the Commission to finance certain 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 Indiana Code 18- 6- 4.5 -16 and has forwarded copies thereof to the Chairman of the St. Joseph County Area Plan Commission of St. Joseph County, Indiana, and to the Superintendent of the Penn - Harris- Tyladison 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 in accordance with the Act 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 governing the issuance of Economic Development Revenue Bonds, including but not limited to the Act and approving the form and terms of the Loan Agreement, Indenture of Trust, and Bonds, and further approving this form of Ordinance authorizing the execution thereof, and further finding 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. The City of South Bend, Indiana, has heretofore issued its Economic Development First Mortgage Revenue Bond, Series 1980 (Timberline Trace Project), in the aggregate principal amount of $500,000.00, to finance the acquisition and construc- tion of certain real estate and improvements, a portion of which will be leased to the Borrower. The economic development facilities of the Borrower are designed to perfect and complete said Timberline Trace Project by providing for the construction of leasehold improvements and the acquisition and installation of furnishings, fixtures, and equipment in that portion of the improvements to be leased to the Borrower. 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, Indenture of Trust, and Economic Development Revenue Bonds pertaining to the Cira's Timberline, Inc. Project and the issuance of the Economic Development Revenue Bonds pursuant thereto are hereby approved and adopted. Section 2. Said forms of Indenture of Trust and Loan Agreement, together with the Note and Mortgage attached as an exhibit thereto, and the Economic 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. Section 3. Said Loan Agreement 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 Economic Development Revenue Bonds, payable solely and only from the revenues derived from such -2- Project pursuant to the aforementioned Loan Agreement and Indenture of Trust will not be in any respect a general obligation of the City, nor may the Bonds be paid in any manner from funds raised by taxation, and may be issued in amounts not to exceed $300,000.00 repayable with interest thereon at the rate of 10% per annum, over a term of 7 years, in accordance with the terms of said Loan Agreement and Indentures 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 sealed with the corporate seal of said City. Section 5. The Resolution of the South Bend Economic Development Commission, passed on December 5, 1980, is hereby approved; and the Common Council of the City of South Bend, Indiana, hereby finds that the proposed financing for the issuance of the Economic Development 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 the Act. Section 6. 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 /a. PUBLIC HEARING f' °�- 2nd READING NOT APPROVED REFERRED , rI PASSED /LtL Member of the Common Council -3- 9.,in B�e Fly 9� Cis? ;iER , SHIN BE!" D, IND. ,n VOOR, ALLEN, FEDDER, HERENDEEN 8 KOWALS Members of the South County -City Building South Bend, Indiana Bend Common Council 46601 Re: Revenue Bond Application (Cira's Timberline Inc. - Project) Dear Councilmen: AREA CODE 219 234 -6061 OF COUNSEL: WILLV O. JACKSON GUY H. M<MICHAEL The South Bend Economic Development Commission has received an application from Cira's Timberline Inc. Project for a Revenue Bond in the amount of Three Hundred Thousand Dollars ($300,000.00) to construct leasehold improvements and to acquire and install furnishings, fixtures and equipment to be used in a supermarket (hereinafter collectively called the "Project ") within the limits of St. Joseph County, nc.iara. It is anticipated that the new facility will create additional employment of approximately 40 full and part time jobs with an estimated payroll of between $300,000.00 to $400,000.00 per year. This Project is the Timberline Trail Council. KPF /bm designed to perfect and complete Project previously approved by the spect FOR THE SOUTH BEND DEVELOPMENT COMMISSION 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. KOWAIS December 3, 1980 Members of the South County -City Building South Bend, Indiana Bend Common Council 46601 Re: Revenue Bond Application (Cira's Timberline Inc. - Project) Dear Councilmen: AREA CODE 219 234 -6061 OF COUNSEL: WILLV O. JACKSON GUY H. M<MICHAEL The South Bend Economic Development Commission has received an application from Cira's Timberline Inc. Project for a Revenue Bond in the amount of Three Hundred Thousand Dollars ($300,000.00) to construct leasehold improvements and to acquire and install furnishings, fixtures and equipment to be used in a supermarket (hereinafter collectively called the "Project ") within the limits of St. Joseph County, nc.iara. It is anticipated that the new facility will create additional employment of approximately 40 full and part time jobs with an estimated payroll of between $300,000.00 to $400,000.00 per year. This Project is the Timberline Trail Council. KPF /bm designed to perfect and complete Project previously approved by the spect FOR THE SOUTH BEND DEVELOPMENT COMMISSION TRANSMITTAL OF AN ADOPTED RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION OF THE CITY OF SOUTH BEND COMMON COUNCIL PERTAINING TO THE FINANCING OF FACILITIES FOR CIRA'S TIMBERLINE, INC. BY THE ISSUANCE OF THE CITY OF SOUTH BEND, INDIANA OF ITS ECONOMIC DEVELOPMENT REVENUE BONDS To: South Bend Common Council c/o Irene K. Gammon, City Clerk City of South Bend County -City Building South Bend, Indiana 46601 The South Bend Economic Development Commission (the "Commis- sion") hereby transmits to you in accordance with the provisions of Chapter 4.5 of Article 6 of Title 18 of the Indiana Code, as amended (the "Act "), a resolution adopted by the Commission on December 5, 1980, as called for by the Act. You will note from perusal of the body of the resolution and documents that the purpose thereof is to provide for the financing by the City of certain economic development facilities to be located in the County of St. Joseph, State of Indiana for Cira's Timberline, Inc., an Indiana corporation, by the execution of a Loan Agreement and an Indenture of Trust, and the issuance of Economic Development Revenue Bonds of the City of South Bend, Indiana, in a total amount not to exceed $300,000.00, repayable over a term not to exceed 7 years. As to the recommended ordinance, you are respectfully asked to present such ordinance upon its submission to the Common Council of the City of South Bend, Indiana for passage. Submitted December 5, 1980. SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION By: -L hta)a L j x allterAA. Mucha, Secretary TommtUrr Ervort coo flit Tommu Coumil of tlir TUH of ftut# WrO. Your Committee OF THE WHOLE to whom was referred A BILL APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, INDENTURE OF TRUST, AND ECONOMIC DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF, AND APPROVING RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOP- MENT COMMISSION RELATING TO CIRA'S TIMBERLINE, INC. PROJECT. Respectfully report that they have examined the matter and that in their opinion THIS BILL SHOULD BE RECOMMENDED TO THE COUNCIL FAVORABLE, AS AMENDED: BY CHANGING SOUTH BEND COMMUNITY SCHOOL CORPORATION TO PENN— HARRIS — MADISON SCHOOL CORPORATION JOHN VOORDE Chairman vezm ..... 09ER�' . r...... na co.