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HomeMy WebLinkAboutAuthorizing South Bend Economic Development Revenue Note - South Bend Medical Foundation Inc ProjectORDINANCE No. 6882 -81 Passed by the Common Council of the City of South Bend, IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Approved and signed by Clerk Of Common Council IRENE K. GAMMON Clerk ORDINANCE NO. Sf J ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND TO ISSUE ITS "CITY OF SOUTH BEND ECONOMIC DEVELOPMENT REVENUE NOTE, SERIES 1981 (SOUTH BEND MEDICAL FOUNDATION, INC. PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO STATEMENT OF PURPOSE OF INTENT: The South Bend Economic Development Commission has rendered its project report regarding the financing of proposed economic development facilities for South Bend Medical Foundation, Inc., an Indiana not - for - profit corporation, and the Executive Director of the South Bend Area Plan Commission and the Superintendent of the South Bend Community School Corporation have commented favorably thereon; and The South Bend Economic Development Commission conducted a public hearing on January 9, 1981, and also adopted a resolution on January 9, 1981, which resolution has been transmitted hereto, finding that the financing of certain economic development facilities for South Bend Medical Foundation, Inc., an Indiana not - for - profit corporation, complies with the purposes and provisions of IND. CODE §§ 18- 6 -4.5 -1 et. sea_. and that such financing will be of benefit to the health aii welfare of the City of South Bend and its citizens; and 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 or and has transmitted for approval by the Common Council the Note Purchase and Loan Agreement, Promissory Note of South Bend Medical Founda- tion, Inc., Mortgage and Trust Indenture, Security Agreement, and Collateral Assignment of Leases and Rents; NOW, THEREFORE, 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 Note Purchase and Loan Agreement approved by the South Bend Economic Development Commission and presented to this Common Council, the issuance and sale of a "City of South Bend Economic Development Revenue Note, Series 1981 ( South Bend Medical Foundation, Inc. Project)" (the "Revenue Note "), the loan of the proceeds of the Revenue Note to South Bend Medical Foundation, Inc., an Indiana not -for- profit corporation, for the construction of such facilities and the equipping thereof, the payment of the Revenue Note by the payments of South Bend Medical Foundation, Inc., an Indiana not -for- profit corporation, under the Note Purchase and Loan Agreement and the Promissory Note, and the securing of the revenue Note by granting a first mortgage and security interest on such facilities and equipment complies with the purposes and provisions of IND. CODE §§ 18- 6 -4.5 -1 et seq. and will be of benefit to the health and welfare of the City of South Bend and its citizens. Section 2. The final forms of the Note Purchase and Loan Agreement, Promissory Note of South Bend Medical Foundation, Inc., Mortgage and Trust Indenture, Security Agreement and Collateral Assignment of Leases and Rents approved by the South Bend Economic Development Commission are hereby approved and all such documents (hereinafter referred to collectively as the "Financing Agreement" referred to in IND. CODE §§ 18- 6 -4.5 -1 et seq.), 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 the Revenue Note in the total principal amount of Two Million One Hundred Fifty Thousand ($2,150,000.00) Dollars for the purchase of procuring funds to pay the costs of construction and equipping of the economic development facilities as more particularly set out in the Note Purchase and Loan Agreement incorporated herein by reference, which Revenue Note will be payable as to Principal, premium, if any, and interest solely from the payments made by South Bend Medical Foundation, Inc., an Indiana not-for-profit corpora- tion, under the Note Purchase and Loan Agreement and Promissory Note and as otherwise provided in the Financing Agreement. The Revenue Note shall never constitute a general obligation 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 the Revenue Note to the purchaser thereof at a price not less than one hundred (100%) percent of the principal amount thereof and at the stated rates of interest not greater than (i) eighty-five (850) percent of the Prime Rate per annum from the date thereof_ to the Purchase Date and (ii) ten and three - quarters (10 3/40) percent per annum from and after the Purchase Date. In the event of a Determination of Taxability, the Revenue Note shall bear interest at rates not to exceed (i) one hundred twenty -five (125%) percent of the Prime Rate per annum prior to the Purchase Date and (ii) fourteen (140) percent per annum from and after the Purchase Date. The Revenue Note shall bear interest on over -due installments of principal or interest at the rates per annum equal to: (i) one hundred (100%) percent of the Prime Rate prior to the Purchase Date and (ii) fourteen (14%) percent from and after the Purchase Date. The terms "Purchase Date ", "Prime Rate" and "Determi- nation of Taxability" shall have the same meanings as assigned to them in the Financing Agreement. Section 5. The Mayor and Clerk are authorized and directed to execute the documents constituting the Financing Agreement approved herein, and their execution is hereby confirmed, on behalf of the City of South Bend and any other document which may be neces- sary or desirable to consummate the transaction, including the Revenue Note authorized herein. The Mayor and Clerk are authorized to arrange for the delivery of the Revenue Note to the -Purchaser thereof, payment for which will be made to the Trustee named in the Mortgage and Trust Indenture. Section 6. The provisions of this Ordinance and the Financing Agreement securing the Revenue Note shall constitute a contract binding between the City of South Bend and the holder of the Revenue Note and after the issuance of the Revenue Note, this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of the holder of the Revenue Note so long as the Revenue Note or the interest thereon remain unpaid. Section 7. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 8. This Ordinance shall be in full force and effect from and after its passage and signyha by the Mavor. ember of the South Bend Common Council FILE) IN OFFICE 0"� .1U_ - 2 - Irene Gammon CITY CLERK, SOUTH BEND, IN 2nd READING NOT APPROVED REFERRED PASSED FILE) IN OFFICE 0"� .1U_ - 2 - Irene Gammon CITY CLERK, SOUTH BEND, IN 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 January 7, 1981 Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 Re: City of South Bend Revenue Bond Application (South Bend Medical Foundation, Inc.) Dear Councilmen: AREA CODE 219 236 -6061 OF COUNSEL: WILLIAM O. JACKSON GUY H. MCMICHAEL The South Bend Economic Development Commission has received an application from South Bend Medical Foundation, Inc. for a Revenue Bond in the amount of Two Million, One Hundred Fifty Thousand ($2,150,000.00) Dollars for the purpose of procuring funds to pay the costs of construction and equipping of an economic development facility to be located at the southeast corner of Lafayette and Navarre, South Bend, Indiana. It is anticipated that the new .facility will create additional employment of approximately 20 -25 new jobs with an estimated payroll of $250,000.00 per year. The Medical Foundation has served the South Bend-Mishawaka communities as the primary provider of clinical laboratory tests since 1912. This additiona project will mean a more efficent flow of operations. I -properly zoned. ttornev for the South Bend conomic Development Commission KPF /k RESOLUTION OF THE SOUTH BEND ECONOMIC D EVELOPI4F.NT COMMISSION BE IT RESOLVED BY THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION THAT: Section 1. It finds that the proposed fi- nancing of economic development facilities re- ferred to in the Note Purchase and Loan Agree- ment presented to this meeting for South Bend Medical Foundation, Inc., an Indiana not -for- profit corporation, complies with the purposes and provisions of IND. CODE §§ 18- 6 -4.5 -1 et seq. and will be of benefit to the health and w—elfare of the City of.South Bend and its citizens. Section 2. The final forms of the Note Purchase and Loan Agreement, Promissory Note of South Bend Medical Foundation, Inc., Mortgage and Trust Indenture, Security Agreement, Collat- eral Assignment of Leases and Rents, and the proposed form of Ordinance for the South Bend Common Council presented to this meeting are hereby approved, subject to such changes as the Common Council deems necessary to eliminate any ambiguity or correct technical defects, includ- ing dates. Section 3. The proposed economic develop- ment facilities will not have an adverse compe- titive effect on any similar facilities already under construction or in operation in the City of South Bend. Section 4. The Secretary of this Commis- sion shall initial and then insert a copy of the forms of documents approved by this resolu- tion in the minutes book of this Commission. Section 5. A copy of this Resolution and the other documents approved by this Resolution and the proposed form of Ordinance shall be pre- sented by Counsel for this Commission or by any member of this Commission to the Clerk of the City of South Bend for presentation to the Com- mon Council of the City of South Bend. Dated this _1__ day Approved: (! r President 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 SOUTH BEND MEDICAL FOUNDATION, INC., AN INDIANA 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 January 9, 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 expansion of the existing clinical laboratory facility of the company at 531 North Main Street, South Bend, Indiana, by the construction of a building addition containing approximately 33,372 square feet, pursuant to the terms of a Note Purchase and Loan Agreement, Mortgage and Trust Indenture, and the issuance by the City of South Bend, Indiana of Industrial Development Bonds in a total amount of Two Million One Hundred Fifty Thousand ($2,150,000.00) Dollars repayable with interest in accord- ance with the terms of the documents. With respect to the ordinance, you are respectfully asked to publish once 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 9th day of January, 1981. SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION BY BY BY