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HomeMy WebLinkAboutApproving Industrial Development Revenue Bonds - Mossberg & Company IncORDINANCE No 6792 -80 Passed by the Common Council of the City of South Bend, Indiana_ May 27, 80 IRENE K. GAMMON P City Clerk of Common Council Presented by me to the Mayor of the City of South Bend, Ind*ana May 28, IRENE K. GAMMON Approved and signed by me �1 (f ,� ( d Clerk BILL NO. ORDINANCE NO. 7 AN ORDINANCE AMENDING AND SUPPLEMENTING ORDINANCE NO. 6775 -80 APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, INDENTURE OF TRUST, REAL ESTATE MORTGAGE, SECURITY AGREEMENT AND INDUSTRIAL DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF, AND APPROVING RESOLUTION NO. 12 -80 OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO THE MOSSBERG & COMPANY, INC., AN INDIANA CORPORATION, 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 Mossberg & Company, Inc., an Indiana corporation, has filed an application with the Commission to finance the expansion of its commercial printing facility located at 301 East Sample Street, South Bend, Indiana, and the purchase and installation of certain machinery and equipment (facilities) 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 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 Corporation, being the area in which the proposed facilities will be located, and has timely received favorable reports from each of them, and the Com- mission held a public hearing on the proposed financing of such eco- nomic 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 Loan Agreement, Indenture of Trust, Real Estate Mortgage, Security Agreement 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, Indenture of Trust, Real Estate Mortgage, Security Agreement 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 Indenture of Trust and Loan Agreement pertaining to the application of Mossberg & Company, Inc., an Indiana corporation, are hereby approved and adopted. Section 2. Said forms of Loan Agreement, Indenture of Trust, Real Estate Mortgage, Security Agreement 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, Indenture of Trust, Real Estate Mortgage, 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 Mossberg & Company, Inc. Project pursuant to the aforementioned Indenture of Trust and Loan Agreement shall not be in any respect a general ob- ligation 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 Seven Hundred Fifty Thousand Dollars ($750,000.00), re- payable with interest thereon at a rate not to exceed eleven percent -2- (11 %) per annum, payable in monthly installments over a period not to exceed fifteen (15) years after the date of such bonds, and that such Indenture of Trust and Loan Agreement and such Industrial Develop- ment 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. 12 -80 of the South Bend Eco- nomic Development Commission passed on April 18, 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 I.C. 18- 6 -4.5, as amended and supplanted. Section 6. This Ordinance amends and supplements Ordinance No. 6775 -80 previously passed by the Common Council and approved by the Mayor. 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. Me er o the South Bend Common Council 10 READING `3 7'J3LIC HEARING :nd READING ✓ —�� NOT APPROVE! REFERRED PASSED ` 7 —4-d -3- 'RED III CL 01'S OFFICE MAY 2 a 1980 Irene Gammon CITY CLERK, SOUTH BEND, IND.