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HomeMy WebLinkAboutApproving Industrial Development Revenue Bonds - Marion W. Dunn ProjectORDINANCE No 6791 -80 Passed by the Common Council of the City of South Bend, Indiana Attest. May 27 IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana Approved and signed by r May 28 80 9—= /T— Clerk of Common Council City Clerk IRENE K. GAMMON _r9 BILL NO. ORDINANCE NO. 7 AN ORDINANCE AMENDING AND SUPPLEMENTING ORDINANCE NO. 6767 -80 APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, TRUST INDENTURE, REAL ESTATE MORTGAGE, SECURITY AGREEMENT, FINANCING STATEMENTS, ASSIGNMENT OF LEASES AND RENTS AND INDUSTRIAL DEVELOPMENT REVE- NUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF, AND APPROVING RESOLUTION NO. 10 -80 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE MARION W. DUNN 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, in- cluding but not limited to IC 18- 6 -4.5 -1 through IC 18- 6- 4.5 -30, hereinafter referred to as the "Act "; and Marion W. Dunn, has filed an application with the Commission to finance the acquisition of real estate of a commercial building located thereon which will constitute economic development 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 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 facili- ties in accordance with the Act after giving the required notice as provided in the Act, and adopted a resolution finding that such pro- posed financing complies with the purposes and provisions of all applicable Indiana statutes governing the issuance of Industrial De- velopment Revenue Bonds, including but not limited to the Act and approved the form and terms of the Loan Agreement, Trust Indenture, Real Estate Mortgage, Security Agreement, Financing Statements, As- signment of Leases and Rents and Industrial Development Revenue 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 Loan Agreement, Trust Indenture, Real Estate Mortgage, Security Agreement, Financing State- ments, Assignment of Leases and Rents 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 Loan Agreement pertaining to the application of Marion W. Dunn, are hereby approved and adopted. Section 2. Said forms of Loan Agreement, Trust Indenture, Real Estate Mortgage, Security Agreement, Financing Statements, As- signment of Leases and Rents 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 Loan Agreement, Trust Indenture, Real Estate Mortgage, Security Agreement, Financing Statements 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 Marion W. Dunn Project pursuant to the aforementioned Trust Indenture 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, and may be executed in amounts not to exceed Three Hundred Thousand Dolllars ($300,000.00), repayable with interest thereon at a rate not to exceed nine and three - fourths percent (9-3/4 %) per annum, payable in monthly installments over a period of twenty (20) years after the date of such bonds, and that such Trust Inden- ture and Loan Agreement and such Industrial Development Revenue -2- (Form of Bond) UNITED STATES OF AMERICA STATE OF INDIANA COUNTY OF ST. JOSEPH CITY OF SOUTH BEND Economic Development Revenue Bond (Marion W. Dunn Project) KNOW ALL MEN BY THESE PRESENTS that the CITY OF SOUTH BEND, a municipal corporation and political subdivision of the State of Indiana (the "Issuer "), for value received, promises to pay, but solely from the source and as hereinafter provided, to the regis- tered owner hereof, the principal sum of [See Exhibit "A" for the terms of each Bond], together with interest thereon at the rate of nine and three- fourths percent (9 -3/4 %) per annum in equal monthly payments of [See Exhibit "A" for the terms of each Bond] each com- mencing , 19 and on the day of each month thereafter until 19 , when all remaining prin- cipal and interest remaining unpaid shall be due. All payments are payable in lawful money of the United States of America at the principal office of St. Joseph Bank and Trust Company, South Bend, Indiana. This Bond is one of an authorized series of Bonds of the Issuer in the aggregate principal amount of Three Hundred Thousand Dollars ($300,000.00) designated as "Economic Development Revenue Bonds, (Marion W. Dunn Project)" (hereinafter called the "Bonds "), issued under and secured by an Indenture of Trust, as from time to time amended (the "Indenture "), dated as of May , 1980, duly executed and delivered by the Issuer to St. Joseph Bank and Trust Company, South Bend, Indiana, as Trustee (the term "Trustee" where used herein referring to said Trustee or its successors in trust). The Bonds are issued in order to increase employment and to promote the diversification of business, commerce and industry in and near the Issuer and to promote the health, prosperity, economic stability and general welfare of the area in and near the Issuer by funding a loan by the Issuer to Marion W. Dunn (the "User "), for the purpose of financing costs of the acquisition by the User of certain eco- nomic development facilities to be located in South Bend, St. Joseph County, Indiana (the "Project "). Reference is hereby made to the Indenture for a description of the provisions, among others, with respect to the nature and extent of the security, the rights, duties and obligations of the Issuer, the Trustee, and the holders of the Bonds. This Bond and the series of Bonds of which it forms a part are issued pursuant to and in full compliance with the Constitution and laws of the State of Indiana, particularly IC 18- 6-4.5, as sup- plemented and amended, and pursuant to proceedings adopted by the Issuer, which proceedings authorize the execution and delivery of the Indenture. This Bond and the series of Bonds of which it forms a part are limited obligations of the Issuer and are payable solely from payments from one or more Notes delivered by the User to evi- dence its obligation to repay the loan made by the Issuer to the User for the purpose of financing costs of the acquisition by the User of the Project, and otherwise as provided in a Loan Agreement dated as of May , 1980, by and between the Issuer and the User (the "Loan Agreement "). Pursuant to the Loan Agreement, payments on iHORNF�U HG. MCC�IL L. the Notes sufficient for the prompt payment when due of The ;pwa"�ncc- pal of, premium, if any, and interest on the Bonds are tose_zmade'*.T the User to the Trustee for "the account of the Issuer and deposxi` in a special account created by the Issuer and designated T&,oa Bend Economic Development Revenue Bond Fund Marion W. _Dunn ect "; such payments have been duly assigned and pledged 'to the Trustee for that purpose; and under the Indenture .the rights of,tibe Issuer under the Loan Agreement and the Notes have been assigned and pledged to the Trustee to secure payment of such principal, premium, if any, and interest on the Bonds. The Bonds do not now and shall never constitute an indebtedness of or a charge against the general credit or taxing power of the Issuer. The Bonds are callable for redemption in the event (i) the User shall exercise its option to prepay the loan pursuant to sub- section (1), (2), (3) or (4) of Section 6.1(a) of the Loan Agreement relating to damage or destruction of the Project, condemnation of the Project or certain extraordinary conditions affecting the Loan Agreement or the Project, or (ii) the User becomes obligated to prepay the loan pursuant to Section 6.1(b) of the Loan Agreement upon receipt of notice from any Bondholder or the Trustee of a Determination of Taxability (as defined in Section 6.3 of the Loan Agreement). If called for redemption as a result of any of the events referred to in clause (i) above, the Bonds shall be subject to re- demption by the Issuer on any interest payment date in whole (or in part if pursuant to 6.1(a)(4) of the Loan Agreement) at a redemption price of 100% of the principal amount thereof plus accrued interest to the redemption date. If called for redemption due to the event described in clause (ii) above, the amount payable shall be a sum sufficient, together with other funds deposited with Trustee and available for such purpose, to pay the principal of and interest on the Bonds outstanding on the date of the occurrence of the Determination of Taxability, as defined in the Loan Agreement, plus the increase in the Federal and /or State tax liability of the holders of such Bonds due to the occurrence of a Determination of Taxability as set forth in Section 6.3 of the Loan Agreement, and to pay all reasonable and necessary fees and expenses of Trustee accrued and to accrue through final payment of the Bonds. The holder of this Bond shall have no right to enforce the provisions of the Indenture or to institute action to enforce the covenants therein, or to take any action with respect to any event of default under the Indenture, or to institute, appear in or defend any suit or other proceedings with respect thereto, except as pro- vided in the Indenture. In certain events, on the conditions, in the manner and with the effect set forth in the Indenture, the principal of all of the Bonds issued under the Indenture and then outstanding may become or may be declared due and payable before the stated maturity thereof, together with interest accrued thereon. Modifications or alterations of the Indenture, or of any supplements thereto, may be made only to the extent and in the circumstances permitted by the Indenture. IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required to exist, happen and be per- formed precedent to and in the execution and delivery of the Inden- ture and the issuance of this Bond and the series of which it forms a part do exist, have happened and have been performed in due time, form and manner as required by law; and the issuance of this Bond and the issue of which it forms a part, together with all other obligations of the Issuer, does not exceed or violate any constitu- tional or statutory limitation. The Bond shall not purpose or be entitled to any Lure until the certificate of signed by the Trustee. - HORNPURG. MCGIL.L. tlE MURRAY be valid or become obligatory for any security or benefit under the Inden- authentication hereon shall have been -2- '. ORNBURG. MCGILL. IN WITNESS WHEREOF, the City of South Bend, Indiana, has caused this Bond to be executed in its name by the facsimile or I manual signature of its Mayor and attested with the facsimile or manual signature of its City Clerk, and its corporate seal or a facsimile thereof to be hereunto imprinted, all as of May , 1980. CITY OF SOUTH BEND, INDIANA (SEAL) By Roger 0. Parent Its Mayor Attest: Irene K. Gammon Its City Clerk (Form of Trustee's Certificate of Authentication) This Bond is the Bond described in the within mentioned Indenture of Trust. ST. JOSEPH BANK AND TRUST COMPANY By -3- Authorized Officer