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
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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.