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HomeMy WebLinkAboutIndustrial development revenue bonds Niles Avenue Partnership ProjectORDINANCE No. 6857 -80 Passed by the Common Council of the City of South Bend, Indiana_ Attest: ovember 10 M IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Ind'ana Approved and signed by .e November 12, i9 80 City Clerk of Common Council City Clerk IRENE K. GAMMON el ORDINANCE NO. AN ORDINANCE APPROVING THE FORM AND TERMS OF TRUST INDENTURE AND USER AGREEMENT, REAL ESTATE MORTGAGE AND INDUSTRIAL DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF, AND APPROVING RESOLUTION NO. 27 -80 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE NILES AVENUE PARTNERSHIP PROJECT 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 IC 18- 6- 4.5 -30, hereinafter referred to as the "Act "; and NILES AVENUE PARTNERSHIP, an Indiana Limited Partnership, has filed an application with the Commission to finance the restoration and rehabilitation of those buildings located at 411 East Jefferson Boulevard, and 121 South Niles Avenue, South Bend, Indiana, including the retirement and payment of a prior Industrial Revenue Bond issue of Seven Hundred Fifty Thousand ($750,000.00) Dollars, 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 are located, and has timely received favor- able 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 approved the form and terms of the Trust Indenture and User Agreement, Real Estate Mortgage and Bonds, and further approved this form of Ordinance authorizing the execution thereof, 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 form and terms of the Trust Indenture and User Agreement, Real Estate Mortgage and Industrial Development Revenue Bonds attached as exhibits thereto pertaining to the issuance of the Industrial Development Revenue Bonds in accordance with the terms of the Trust Indenture and User Agree- ment pertaining to the application of NILE'S AVENUE PARTNERSHIP, an Indiana Limited Partnership, are hereby approved and adopted. Section 2. Said forms of Trust Indenture and User Agreement, Real Estate Mortgage and 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. Section 3. The Trust Indenture and User Agreement and Real Estate Mortgage and Bonds shall be executed on behalf of the City of South Bend, Indiana by the Mayor and the City Clerk. Section 4. Said Industrial Development Revenue Bonds, payable solely and only from the revenues derived from such NILES AVENUE PARTNERSHIP PROJECT pursuant to the aforementioned Trust Indenture and User Agreement, shall not be in any respect a general obligation of the City, nor shall the bonds be paid in any manner from funds raised by taxation, and may be executed in amounts not to exceed One Million ($1,000,000.00) Dollars, repayable with interest thereon.at. a rate not to exceed Nine and one -half (920) percent per annum, payable in monthly installments over a period of Twenty (20) Years after the date of such bonds, and that such Trust Indenture and User Agreement, Real Estate Mortgage and such Industrial Development Revenue Bonds shall be executed on behalf of the City of South Bend, Indiana, by the Mayor and Clerk and sealed with the corporate seal of such City. Section 5. Resolution No. 27 -80 of the South Bend Economic Develop- ment Commission passed on October 17, 1980, is hereby approved; and the Common -2- 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 I.C. 1846.4.5, as amended and supplanted. Section 6. The Mayor and the Clerk of the City of South Bend, Ind iana,'hereby authorized separately and collectively, to execute and file on behalf of the City of South Bend, Indiana, the statement required pursuant to Section 103(b)(6)(D) of the Internal Revenue Code, as amended, and regulations issued pursuant thereto, with the Director of the Regional Service Center of the Internal Revenue Service where-said N[LES AVENUE PARTNERSHIP, an Indiana Limited Partnership, files federal income tax returns prior to issuance of any such Industrial Development Revenue Bonds, in order to elect to have the provisions of said Section 103(b)(6)(D) of the Internal Revenue Code, as amended, be applicable to this issue of Industri -al Development Revenue Bonds. Section 7. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. R �) ANl' OVED PASSED // - 16, U� Members of the South Bend Common Council -3- Irene Gammon CITY CLERK, SOUTH BEND, IND. WILLIAM E.VOOR GUY H.McMICHAEL LLOYD M. ALLEN KENNETH P. FEDDER GEORGE E.HERENDEEN ANTHONY D. KOWALS VOOR, MCMICHAEL, ALLEN, FEDDER 8 HERENDEEN ATTORNEYS 8 COUNSELORS AT LAW 300 FIRST BANK BUILDING SOUTH BEND, INDIANA 46601 October 22, 1980 Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 Re: Revenue Bond Application (Niles Avenue Partnership Project) Dear Councilmen: AREA CODE 219 234 -6061 OF COUNSEL: WILLIAM O. JACKSON The South Bend Economic Development Commission has received an application from Niles Avenue Partnership Project for a Revenue Bond in the amount of One Million Dollars ($1,000,000.00), to finance the restoration and rehabilitation of those buildings located at 411 East Jefferson Boulevard, and 121 South Niles Avenue, South Bend, Indiana, including the retirement and payment of a prior Industrial Revenue Bond issue of Seven Hundred Fifty Thousand ($750,000.00) Dollars. It is anticipated that the new facility will create additional employment of approximately 25 -30 full and part time employees with an estimated payroll of $250,000.00 per year. It is properly zoned and it will be a further ex- pansion of business facilities in the Downtown area. KPF /cn pectful P. Fedder Y FOR THE SOUTH BEND C DEVELOPMENT COMMISSION FILED El TU I Ts MICE .. : J i K.. v... •u/ iJ Irene Gammon CITY CLERK, SOUTH BEND, IND.