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HomeMy WebLinkAboutAuthorizing Issuance of Economic Development Revenue Bonds Raitt Corporation ProjectORDINANCE No. 6754 -80 Passed by the Common Council of the City of South Bend, Indiana_ February 25, rq 80 /-. Cit y Clerk IRENE K. GAMMON Attest: A,(, President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana Approved and signed by February 26, �9 80 i- " City Clerk IRENE K. GAMMON t9 'c v ORDINANCE NO. i 7Sq- 8V AN ORDINANCE AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT AND TRUST INDENTURE AND BONDS AND AUTHORIZING THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS PERTAINING TO RAITT CORPORA- TION PROJECT WHEREAS, the Common Council of the City of South Bend, Indiana, heretofor has created the South Bend Economic Development Commission (Commission) pursuant to the provisions of the Public Law No. 182 of the Acts of the General Assembly of Indiana for 1973, as amended, being IC 18 -6 -4.5 (Act), and WHEREAS, the Raitt Corporation has filed an application with the Commission to finance the construction of an industrial and commercial building being an airfreight building (Facilities) which will result in the savings of a substan- tial number of jobs as well as other benefits, and WHEREAS, the Commission has prepared and placed on file a report containing the subject matter as specified in section 16 of IC 18 -6 -4.5 and has forwarded copies thereof to the chairman of the Area Plan Commission and to the superin- tendent of the School Corporation in the area in which the Facilities will be located, and has received favorable reports from each of them, and WHEREAS, the Commission held a public hearing on the proposed financing of such Facilities on February 1, 1980, after giving the required notice and did find that the proposed financing complies with the purposes and provisions of the applicable Indiana statutes, and the Commission did also find that the pro- posed facility will not have an adverse competitive effect on similar facilities already constructed and operating in the City of South Bend, Indiana, and WHEREAS, the Common Council of South Bend, Indiana, hereby finds that the Facilities are economic development facilities as that phrase is used in the Act; and that the construction of the Facilities will increase employment oppor- tunities and increase diversification of business, commerce and industry in and near the city, will improve and promote the economic stability, development and welfare of the area in and near the city, and will encourage and promote the expansion of industry, trade and commerce in the area in and near the city, and the location of other new commercial and business facilities in such area. 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 and Trust Indenture and Bonds pertaining to the Raitt Corporation project and the issuance of economic development revenue bonds pursuant thereto are hereby approved. Section 2. Said form of Loan Agreement and Trust Indenture and Bonds is hereby incorporated by reference into this ordinance and said form shall be inserted into the minutes of the Common Council of South Bend, Indiana, and shall be kept on file by the City Clerk of South Bend, Indiana. Section 3. The said Loan Agreement and Trust Indenture and Bonds shall be executed on behalf of the Economic Development Commission of the City of South Bend, Indiana by the Mayor and City Clerk. Section 4. Economic development revenue bonds, payable solely and only from the revenue derived from such air freight terminal at the Michiana Regional Airport, may be issued in a total sum of not to exceed $550,000 for a period not to exceed twenty years duration from the date of the issuance of such bonds in accordance with the terms of said Loan Agreement and Trust Indenture and that such bonds shall be executed on behalf of the Economic Development Commission of the City of South Bend, Indiana by the Mayor and City Clerk of South Bend, Indiana, and shall be sealed with the corporate seal of said city. Section 5. This ordinance shall be in full force and effect from and after its passage by the Common Council and approved by the Mayor. ht READ3!NG 0") - /'1- 947 ?L.h3LIC HEARING QJ-- iliD zt J sl f F,13iovC3 )-As - -g'v NIC"T APPROVED P,_FCi "iPED PASSED Member of South Bend Common Council FILED IN CI.E2, 4'S OFFICE FEB 61980 Irene Gammon CITY CLERK, SOUTH BEND, IND. ATTORNEYS AT LAW ROEMER AND MINTZ CHARLES ROEMER 1400 ST. JOSEPH BANK BUILDING AREA CODE 219 RICHARD L. MINTZ SOUTH BEND, INDIANA 46601 TELEPHONE 232 -1442 February 5, 1980 Mrs. Irene K. Gammon City Clerk City of South Bend County -City Building South Bend, Indiana 46601 Re: Economic Development Bond Ordinance for Raitt Corporation project Dear Mrs. Gammon: Enclosed is a proposed Ordinance by which the Common Council authorizes the issuance of up to $550,000 of Economic Development Revenue Bonds to finance the construction of an airline freight terminal at Michiana Regional Airport. When constructed, the terminal will be leased to United Airlines and Towne Airfreight. Leases have already been signed by these companies. United and Towne are presently performing their air cargo handling and storage functions at a temporary facility off the airport premises which is inadequate for their purposes. The building previously occupied by them at the airport was destroyed by fire. Because of the nature of their business, an airport site is essential if they are to continue their business operations at their present level. It is estimated that the new building will preserve a minimum of 12 jobs having an annual payroll of $212,000. We request that you place this Ordinance on the agenda for the consideration of the Common Council at its February 11 meeting. Also enclosed with the proposed Ordinance are copies of the following documents which we ask the Council to approve: 1. Indenture of Trust, with the Economic Development Revenue Bond attached, from the City of South Bend, Indiana, to St. Joseph Bank and Trust Company of South Bend, Indiana, as Trustee. 2. Loan Agreement, with the Promissory Note and Indenture of Mortgage and Security Agreement attached, between the City of South Bend, Indiana, and Raitt Corporation. Mrs. Irene K. Gammon Page 2 Also enclosed is the South Bend Economic Development Commission Resolution No. 43 -79 authorizing issuance of bond, approving form of bond, Loan Agreement and Trust Indenture and Mortage, and transmittal thereof to the South Bend Common Council. Enclosed are nine copies of this letter for distribution to the council members. Thank you very much for your cooperation in this matter. Sincerely, a- i Richard L. Mintz jk Enclosures cc: Mr. Kenneth P. Fedder Raitt Corporation Mr. Robert Green, C.P.A.