Loading...
HomeMy WebLinkAboutAuthorizing the Issuance of $1,550.000 Economic Development Revenue Bonds - Columbia Place Associates ProjectORDINANCE No. 6916 -81 Passed by the Common Council of the City of South Bend, APRIL 28, �9 81 IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, APRIL 29 �9 81 Clerk of Common Council IRENE K. GAMMON Clerk 8 BILL NO. ORDINANCE NO. (, 0(l AN ORDINANCE AUTHORIZING THE ISSUANCE OF $1,550,000 ECONOMIC DEVELOPMENT REVENUE BONDS (COLUMBIA PLACE ASSOCIATES PROJECT), SERIES 1981; CONFIRMING THE SALE THEREOF; AUTHORIZING THE LOAN OF THE PROCEEDS OF SAID BONDS TO COLUMBIA PLACE ASSOCIATES; AND A MORTGAGE, LOAN AND SECURITY AGREEMENT, A TRUST INDENTURE, AND A BOND PURCHASE AGREEMENT IN CONNEC- TION THEREWITH. STATEMENT OF PURPOSE AND INTENT: The City of South Bend, Indiana (the "City ") , as an Indiana city, is authorized and empowered by the provisions of Indiana Code 18- 6 -4.5, as amended (the "Act "), to finance the cost of economic development facilities. The City is further authorized to issue revenue bonds payable from the revenues and receipts derived by.the City from agreements with the users of such facilities and secured by a pledge of said revenues and receipts. The City proposes to issue $1,550,000 aggregate principal amount of Economic Development Revenue Bonds (Columbia Place Associates Pro- ject) Series 1981 ( "Series 1981 Bonds ") , and lend the proceeds thereof to Columbia Place Associates, an Indiana limited partnership (the "Part- nership") pursuant to a Mortgage, Loan and Security Agreement (the "Loan Agreement ") dated as of May 1, 1981, in order to provide funds (1) to acquire a site and construct an office building thereon, and (ii) to pay necessary expenses incidental thereto (the "Project "). By a resolution,adopted on January 26, 1981, the City has expressed its intention to finance the Project by the issuance of Economic Development Revenue Bonds. It has been determined that the estimated amount necessary to accomplish said purposes will require the issuance, sale, and delivery of the Series 1981 Bonds in the aggregate principal amount of $1,550,000 as hereinafter provided. The Economic Development Commission, after notice and hearing, as required by the Act, has approved the proposed financing by a reso- lution adopted on April 3, 1981, and has transmitted it to this Common Council. Raffensperger, Hughes & Co., Inc., Indianapolis, Indiana (the "Underwriter ") has submitted to the City its proposal (the "Bond Pur- chase Agreement ") for the purchase of all of the Series 1981 Bonds by the Underwriter. The officers of the City have caused to be prepared and presented to this Common Council the following instruments with respect to the Series 1981 Bonds: (1) The Trust Indenture (the "Indenture ") dated as of May 1, 1981, between the City and First Bank and Trust Company of South Bend, South Bend, Indiana (the "Trustee") securing the Series 1981 Bonds; (2) The Loan Agreement; (3) The Bond Purchase Agreement; and (4) The form of Official Statement relating to the Series 1981 Bonds (the "Official Statement "). It is now necessary to adopt an ordinance to provide for the issu- ance of the Series 1981 Bonds; to authorize the sale thereof; to author- ize the execution of the Indenture, the Loan Agreement, and the Bond Purchase Agreement; and to authorize the loan of the proceeds of the Series 1981 Bonds to the Partnership. NOW, THEREFORE, Be It Ordained by the Common Council of the City of South Bend, Indiana as follows: Section 1 - Public Purpose. The acquisition and improvement of the Project, the payment of necessary expenses incidental thereto, and the issuance of the Series 1981 Bonds, are hereby determined to be in the public interest and, in furtherance of the public purposes contem- plated by the Act, comply with the purposes and provisions of the Act, and will be of benefit to the health and welfare of the City. Section 2 - Authority. The Series 1981 Bonds herein authorized shall be issued pursuant to the Act and other applicable provisions of law. Section 3 - Authorization and Terms of Bonds. The Series 1981 Bonds shall be issued for the purpose of providing the funds needed to loan sufficient money to the Partnership to acquire and construct the Project, and to pay the expenses of issuing the Series 1981 Bonds. The Series 1981 Bonds shall.be designated "Economic Development Revenue Bonds (Columbia Place Associates Project), Series 1981 "; shall be dated as of May 1, 1981; shall bear interest at 9.25 percent per annum, sub - iect to increase as provided in the Indenture; shall mature on May 1, 1985; and shall be of such denominations and numbers as is provided in the Indenture. The Series 1981 Bonds shall be subject to redemption prior to maturity, shall be payable at the office of the Trustee, shall be exe- cuted and authenticated in such manner, shall be in such form, shall be of such tenor and effect, and shall be payable from such sources, all as provided in the Indenture. The Mayor and the City Clerk are hereby authorized, empowered, and directed to cause the Series 1981 Bonds to be prepared in the form and having such terms and provisions as may be provided in the Inden- ture; and the Series 1981 Bonds shall be executed in the name of the City in the manner specified in the Indenture; and the Mayor or other officer of the City shall cause the Series 1981 Bonds to be delivered to the Trustee for identification and delivery to the Underwriter against payment therefor in the manner provided in the Bond Purchase Agreement. Section 4 - Execution of Related Instruments. The Mayor and the City Clerk are hereby authorized and directed to execute the Loan Agree- ment, the Indenture, the Bond Purchase Agreement, and the Official State- ment, substantially in the forms presented to and approved by this Common Council, with such changes therein as shall be approved by the officers of the City executing said instruments, their execution thereof to con- stitute conclusive evidence of their approval of any such changes. The use of the Official Statement by the Underwriter to offer and sell the Series 1981 Bonds is hereby approved. Section 5 - Sale of Bonds. The sale of the Series 1981 Bonds to the Underwriter at a price of $1,488,000 and accrued interest is hereby ratified and confirmed, and the Bond Purchase Agreement is hereby approved. Section 6 - Loan to- Partnership. The City shall loan to the Partnership the proceeds of the Series 1981 Bonds in the amount and manner and under the conditions provided in the Loan Agreement. Section 7 - Further Action. The officers of the City are hereby authorized and directed to take all further action, and to execute all such further instruments and documents, in the name and on behalf of the City, and under the corporate seal of the City or otherwise, as in their judgment shall be necessary to carry out the intent and to accom- plish the purposes of this ordinance, and to make effective the Inden- ture, the Loan Agreement, and the Bond Purchase Agreement, and to carry out the transaction contemplated by said instruments, and to perform all of the obliqations required to be performed by the City under the said instruments. -2- Section 8 - Election Under Section. tlg )(6)(D): The City hereby elects to have the provisions as to the $10,000,00 limits in Section 103(b)(6)(D) of the Internal Revenue Code of 1954, as amended, applied to the Series 1981 Bonds; and the Mayor and the City Clerk of the City are hereby authorized, empowered, and directed to take any and all fur- ther actions which may be required to implement and effectuate such election, including, without limitation, the preparation and filing of such statements or other documents as may be deemed by them to be necessary or advisable in order to comply with the procedure set forth in Section 1.103-10(b) (2) (vi) of the Income Tax Regulations (26 C.F.R. Part One) under Section 103 of the Internal Revenue Code of 1954, as amended; and all acts heretofore taken by them in this connection are hereby'ratified and confirmed. Section 9 - Severability. If any section, paragraph, or provi- sion of this ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph, or.provision shall not affect any.of the remaining pro- visions of this ordinance. Section 10 - Repeal of Conflicting Ordinances. All ordinances, resolutions, and orders, or parts thereof, in conflict with the pro- visions of this ordinance are, to the extent of such conflict, hereby repealed. Section 11 - Effective Date. This.ordinance shall be in full force and effect from and after its pa age by the Common Council and approval by the Mayor. Passed, as amended, April 28, 1981 ra -3- Common TRANSMITTAL OF AN ADOPTED RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOP- MENT COMMISSION TO THE CITY OF SOUTH BEND COMMON COUNCIL PERTAINING TO THE FINANCING OF FACILITIES FOR COLUMBIA PLACE ASSOCIATES BY THE ISSU- ANCE OF THE CITY OF SOUTH BEND, INDIANA OF ITS ECONOMIC DEVELOPMENT REVENUE BONDS To: The 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 Lthe "Commission ") 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 April 3, 1981, as called for by the Act. You will note from perusal of the body of the resolution and doc- uments that the purpose thereof is to provide for the financing by the City of certain economic development facilities to be located in the City of South Bend, Indiana, for Columbia Place Associates, an Indiana limited partnership, by the execution of a Mortgage, Loan and Security Agreement and a Trust Indenture, and the issuance of Economic Develop- ment Revenue Bonds of the City of South Bend, Indiana, in a total amount not to exceed $1,550,000, repayable over a term not to exceed four (4) 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 April 22, 1981. SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION Walter A. Mucha, Secretary TRANSMITTAL OF AN ADOPTED RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOP - MENT COMMISSION TO THE CITY OF SOUTH BEND COMMON COUNCIL PERTAINING TO THE FINANCING OF FACILITIES FOR COLUMBIA PLACE ASSOCIATES BY THE ISSU- ANCE OF THE CITY OF SOUTH BEND, INDIANA OF ITS ECONOMIC DEVELOPMENT REVENUE BONDS To: The 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 "Commission ") hereby transmits to you in accordance with the provisions of Chapter 4.5.0f Article 6 of Title 18 of the Indiana Code, as amended (the "Act "), a resolution adopted by the Commission on April 3, 1981, as called for by the Act. You will note from perusal of the body of the resolution and doc- uments that the purpose thereof is to provide for the financing by the City of certain economic development facilities to be located in the City of South Bend, Indiana, for Columbia Place Associates, an Indiana limited partnership, by the execution of a Mortgage, Loan and Security Agreement and a Trust Indenture, and the issuance of Economic Develop- ment Revenue Bonds of the City of South Bend; Indiana, in a total amount not to exceed $1,550,000, repayable over a term not to exceed four (4) 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 April 22, 1981. SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION Walter A. Mucha, Secretary