HomeMy WebLinkAboutIndustrial Development Revenue Bonds - Schafer Gear Works Inc ProjectORDINANCE No. 6962 -81
Passed by the Common Council of the City of South Bend,
September 28, 19 81
Presented by me to the Mayor of the City of South Bend,
Approved and signed by
IRENE K. GAMMON
September 29, �9 81
Clerk
of Common Council
IRENE K. GAMMON
Clerk
ORDINANCE NO. (a R (o ;� — g
AN ORDINANCE APPROVING THE FORM AND TERMS OF INDENTURE OF
TRUST AND LOAN AGREEMENT, INDUSTRIAL DEVELOPMENT REVENUE
BONDS, NOTE, REAL ESTATE MORTGAGE AND GUARANTY AND AUTHOR-
IZING THE EXECUTION OF INDENTURE OF TRUST, LOAN AGREEMENT
AND INDUSTRIAL DEVELOPMENT REVENUE BONDS AND APPROVING
RESOLUTION NO. 11 -81 OF THE SOUTH BEND ECONOMIC DEVELOPMENT
COMMISSION AND THE FILING OF A STATEMENT PURSUANT TO THE
INTERNAL REVENUE CODE RELATING TO THE SCHAFER GEAR WORKS,
INC. PROJECT.
STATE OF PURPOSE OF INTENT:
The Common Council of the City of South Bend, Indiana, here-
tofore 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 IC 186- 4.5 -30, hereinafter referred
to as the "Act "; and
SCHAFER GEAR WORKS, INC., an Indiana Corporation, has filed
an application with the Commission to finance the installation and
construction of an approximately 10,000 sq. ft. expansion (facilities)
to the main plant building on realty situated at and commonly known
as 814 S. Main Street, South Bend, Indiana, 46624 including walls,
roof, flooring, partitions, ceilings, lighting, service wiring and
outlets, air distribution system, and other facilities commonly in-
corporated in a plant expansion to constitute economic development
facilities resulting in a substantial number of new jobs as well as
other benefits, and in connection therewith the Commission has pre-
pared 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 Corpora-
tion, being the area in wich 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 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 al-
ready 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 form and terms of the Indenture of
Trust, Loan Agreement, Industrial Development Revenue Bonds pertain-
ing to Schafer Gear Works, Inc. Project and the issuance of the
Industrial Development Revenue Bonds pursuant thereto, the note, real
estate mortgage and guaranty are hereby approved and adopted.
Section 2. Said forms of Indenture of Trust, Loan
Agreement, Industrial Development Revenue Bonds, note, real estate
mortgage and guaranty 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 Mayor and City Clerk be and they hereby
are authorized and directed to execute said Indenture of Trust, said
Loan Agreement, Industrial Development Revenue Bonds and Ten Million
Dollars ($10,000,000.00) Election Statement authorized by the
Internal Revenue Code as well as any other documents deemed advisable
by said officers to be executed on behalf of the City of South Bend,
Indiana, and affix the corporate seal thereto.
Section 4. Said Industrial Development Revenue Bonds,
payable solely and only from the revenues derived from such Schafer
Gear Works, Inc. Project pursuant to the aforementioned Indenture of
Trust and Loan Agreement may be issued in amounts not to exceed Two
Hundred Fifty Thousand Dollars ($250,000.00) repayable with interest
thereon at the rate of eleven and one -half (11.5 %) per annum, in
sixty (60) consecutive monthly payments, including interest, of Five
Thousand Four Hundred Ninety -Eight and 15/100 Dollars ($5,498.15) on
or before the same day of each of such sixty (60) consecutive months
as the date of original issue of said bond(s), all in accordance with
the terms of said Indenture of Trust and Loan Agreement, and that
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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 said City.
Section 5. Resolution No. 11 -81 of the South Bend
Economic Development Commission passed on August 28, 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.
lst READING
PUBLIC HEARING
2nd READING
NOT APPROVED
REFERRED
PARSED
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Mem er o t e Common Counci
FILED ID CLERK'S OFFICE
SEP 81981
Irene Gammon
CITY, CLERK, SOUTH BEND, MD.
VOOR, ALLEN, FEDDER, HERENDEEN & KOWALS
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
DAVID M. McTIGUE
September 8, 1981
Members of the South Bend
Common Council
County -City Building
South Bend, IN 46601
AREA CODE 219
23 _6061
OF COUNSEL:
WILLIAM O. JACKSON
GUY H. McMICHAEL
Re: Revenue Bond Application - Schafer Gear Works, Inc.
Dear Councilmen:
The South Bend Economic Development Commission has received an
application from Schafer Gear Works, Inc., for a Revenue Bond
in the amount of Two Hundred and Fifty Thousand ($250,000.00)
Dollars, to finance the installation and construction of an
approximately 10,000- square -foot expansion (facilities) to the
main plant building on realty situated at and commonly known aE
814 S. Main Street, South Bend, Indiana 46624, including walls,
roof, flooring, partitions, ceilings, lighting, service wiring
and outlets, and air distribution system.
It is anticipated that the new facility will create additional
employment of approximately 31 jobs with an additional annual
payroll of Four Hundred Thousand ($400,000.00) Dollars.
ct
7 ETH P. FEDDER
rney for the
h Bend Economic
Development Commission
KPF:ram
TRANSMITTAL OF ADOPTED COMMISSION RESOLUTION AND PRO-
POSED ORDINANCE FOR ADOPTION BY THE SOUTH BEND COMMON
COUNCIL AND APPROVAL BY THE MAYOR PERTAINING TO THE
FINANCING OF FACILITIES FOR SCHAFER GEAR WORKS, INC.
BY THE ISSUANCE BY THE CITY OF SOUTH BEND, INDIANA OF
ITS INDUSTRIAL DEVELOPMENT REVENUE BONDS
TO: City Clerk
City of South Bend, Indiana
South Bend, Indiana 46601
The South Bend Economic Development Commission, (Commis-
sion) 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 ammended 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 heretofore adopted by the Commission on
August cZY 1981, as called for by the Act.
2. A 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 installation and construc-
tion of an approximately 10,000 sq. ft. expansion (facilities) to the
main plant building of Schafer Gear Works, Inc., an Indiana corpora-
tion, by the execution of an Indenture of Trust and Loan Agreement
and the issuance of Industrial Development Revenue Bonds in a total
amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00),
repayable with interest thereon over a period of five (5) years as
referred to in said Trust Indenture and User Agreement.
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.
THORNBURG. MCGILL.
OEAHL HARMAN.
CAREY & MURRAY
THORNBURG, MCGILL.
DEAHL. HARMAN.
CAREY &MURRAY
Submitted this WB day of August, 1981.
SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION
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COMMISSION RESOLUTION NO. --
WHEREAS, the City of south Bend, Indiana, still has insuf-
ufficient tax base and insuf-
ficient employment opportunities, ins
ficient diversification of economic development facilities, which
conditions are harmful to the health, prosperity, economic stability
and general welfare of the area and, if not remedied, will be detri-
mental to the development of such area and its environs; and
WHEREAS, Schafer Gear Works, Inc., an Indiana corporation,
has filed an application with the South Bend, Economic Development
Commission ( "Commission ") to finance the installation and constrtrc-
tion of an approximate 10,000 sq. ft. expansion (facilities) to the
on realty situated
main plant building of Schafer Gear Works, Inc.,
at and commonly known as 814 S. Main Street, South Bend, Indiana,
46624 including new walls, roof, flooring, partitions, ceilings,
ibution system, and
lighting, service wiring and. outlets, air distr
other facilities commonly incorporated in a plant expansion to con -
stituted economic development facilities resulting in the creation of
a substantial number of new jobs as well as other benefits; and
WHEREAS, Commission has prepared and placed on file a report
as specified in IC 18- 6 -45 -16 and has forwarded copies to the Chair
l -
man of the St. Joseph ..County Area Pan Commission and the Superinten-
dent of the South Bend Community School Corporation where the eco-
nomic development facilities are proposed'to be located and has re-
ceived favorable reports from each of them; and
ission has found on behalf of the City of
WHEREAS, Comm
sed financing will be of benefit t<
South Bend, Indiana that the propo
the health and welfare of the City of South Bend, Indiana, and com-
plies with the purposes and provisions of the Indiana Code of 1971,
Title 18, Chapter 6, Article 4.5 as amended; and
WHEREAS, Commission has considered and determined that suc
proposed economic development facilities will not have an adverse cc
petitive effect on similar facilities already constructed or opera-
ting in the City
Of South Bend, Indiana, and environs.
NOW, THEREFORE, the South Bend Economic Development Commi
blic hearing on not less than fiv<
Sion at this meeting, being a pu
(5) days notice of the proposed financing of such economic develop
ment 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 complies in all things with IC 18- 6 -4.5 -1 through IC
18- 6- 4.5 -30; and
BE IT FURTHER RESOLVED by the South Bend Economic Develop-
ment Commission that the proposed financing of the acquisition, in-
stallation and construction of such plant expansion constitute such
economic development facilities in accordance with the terms of the
financing agreements, sometimes referred to as "Indenture of Trust,"
"Loan Agreement" and the bonds to be issued pursuant thereto in the
principal amount of Two Hundred Fifty Thousand Dollars ($250,000.00)
repayable with interest at the rate of eleven and one -half (11.5 %)
per annum in accordance with the terms set forth in such Indenture
of Trust and Loan Agreement, together with note and real estate mort-
gage are hereby approved and authorized; and
BE IT FURTHER RESOLVED, that the form and terms of the
financing agreements pertaining to such bonds, being designated as an
Indenture of Trust and Loan Agreement, and the form and terms of such
bonds and note and real estate mortgage securing the performance of
the terms of such Indenture of Trust and Loan Agreement, and the
issuance of such bonds are hereby approved and authorized and that
the Secretary of the Commission be, and he is hereby directed to
transmit to the Clerk of the City of South Bend, Indiana this reso-
lution, together with a copy of the form and terms of the financing
agreements, viz, Indenture of Trust, Loan Agreement and the bonds,
note and real estate mortgage.
THIS RESOLUTION ADOPTED BY THE SOUTH BEND ECONOMIC DEVELOPMENT
COMMISSION OF THE CITY OF SOUTH BEND, INDIANA, THIS atT DAY OF
AUGUST, 1981.
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