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HomeMy WebLinkAboutApproving Industrial Development Revenue Bonds Raconik LeasingORDINANCE No 6833 -80 Passed by the Common Council of the City of South Bend, Indiana_ OCTOBER 13, rq 80 IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Ind'ana City Clerk OCTOBER l4 19 80 Approved and signed by me U CZdkt,4, l S of Common Council City Clerk IRENE K. GAMMON BILL NO. ORDINANCE NO. („ �k -3 3_ ff6 AN ORDINANCE APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, INDENTURE OF TRUST, SECURITY AGREEMENT AND INDUSTRIAL DEVEL- OPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF, AND APPROVING RESOLUTION NO. 19 -80 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE RACONIK LEASING, AN INDIANA 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 Com- mission, hereinafter referred to as "Commission ", pursuant to the provisions of the Public Law No. 182 of the Acts of the Gen- eral 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 Raconik Leasing, an Indiana partnership comprised of Conrad R. Adams, II and Mary R. Adams, has filed an application with the Commission to finance the acquisition and installation of machinery to be leased to Adams Engineering, Inc., an Indiana corporation, located at 1702 West Washington Avenue, South Bend, Indiana, which will constitute economic development facilities (facilities) resulting in a 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 facil- ities 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 Indus- trial Development Revenue Bonds, including but not limited to the Act and approved the form and terms of the Loan Agreement, Inden- ture of Trust, Note, Security Agreement and Industrial Develop- ment Revenue Bonds, and further approved this form of ordinance authorizing the execution thereof, and that such economic devel- opment 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 Loan Agreement, Indenture of Trust, Security Agreement and Industrial Development Revenue Bonds attached as exhibits thereto pertaining to the is- suance of the Industrial Development Revenue Bonds in accordance with the terms of the Indenture of Trust and Loan Agreement per- taining to the application of Raconik Leasing, an Indiana partner- ship, are hereby approved and adopted. Section 2. Said forms of Loan Agreement, Indenture of Trust, Note, Security Agreement and Industrial Development Rev- enue Bonds which are on file with the Commission are hereby in- corporated 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 Loan Agreement, Indenture of Trust, Security Agreement and Industrial Development Revenue 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 Raconik Leasing, an Indiana partnership, Project pursuant to the aforementioned Indenture of Trust and Loan 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, -2- and may be executed in amounts not to exceed One Million Dollars ($1,000,000.00), repayable with interest thereon at a rate not to exceed thirteen percent (13%) per annum, payable in monthly installments over a period not to exceed thirteen (13) years after the date of such bonds, and that such Indenture of Trust and Loan Agreement 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. 19 -80 of the South Bend Eco- nomic Development Commission passed on September 26, 1980, 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 supplanted. Section 6. The Mayor and the Clerk of the City of South Bend, Indiana, hereby authorized separately and collectively, to execute and file on behalf of the City of South Bend, Indiana, the statement reauired 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 Raconik Leasing, a 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 Industrial Development Revenue Bonds. Section 7. This Ordinance shall be in full force and effect from and after its passage by the Common Council and ap- proval by the Mayor. _ e South Bend 9fftion Council Passed, as amended, October 13, 1980 -3-