HomeMy WebLinkAboutExpress Freight Lines Inc Economic Development Mortgage Revenue BondsORDINANCE No 6755 -80
Passed by the Common Council of the City of South Bend, Indiana_
v
Attest:
March 10 — 80
City Clerk
K. GAMMON
Of Common Council
Presented by me to the Mayor of the City of South Bend, Ind'ana
March 11 z9 80
City Clerk
IRENE K. GAMMON
Approved and signed by me 11-� n/. cj�- l
Bill No.
ORDINANCE OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND
(EXPRESS FREIGHT LINES, INC. PROJECT)
COMMON COUNCIL ORDINANCE NO. (o7 5-°S— 1980
A SPECIAL ORDINANCE authorizing the City of
South Bend to issue its "Economic Development Mortgage
Revenue Bonds, Series 1980 (Express Freight Lines, Inc.,
Project)" in the principal amount of Five Hundred Thousand
Dollars ($500,000) and approving and authorizing other
actions in respect thereto.
WHEREAS, the City of South Bend, Indiana, is
authorized by IC 18 -6 -4.5 to issue revenue bonds for the
purpose of financing the acquisition, installation and
construction of economic development facilities;
WHEREAS, the City of South Bend has issued $1,000,000
of its Economic Development Mortgage Revenue Bonds (Express
Freight Lines, Inc., Project) to finance a portion of the
cost of certain economic development facilities to be located
in St. Joseph County, Indiana;
WHEREAS, Express Freight Lines, Inc., a Wisconsin
corporation, now expects to incur increased costs "in-,
connection with the acquisition, installation and con-
struction of the economic development facilities;
WHEREAS, Express Freight Lines, Inc., has proposed
that the City of South Bend issue its revenue bonds under
IC 18 -6 -4.5 to finance the increased costs of the acquisition,
installation and construction of the economic development
facilities, and the Common Council has passed a resolution
in which it has undertaken to authorize and issue revenue
bonds of the City of South Bend pursuant to IC 18 -6 -4.5
in an aggregate principal amount not exceeding Five Hundred
Thousand Dollars ($500,000) to finance the increased costs
of the economic development facilities;
WHEREAS, the South Bend Economic Development
Commission has rendered a Report of the South Bend Economic
Development Commission concerning the proposed financing
of the increased costs of the economic development facili-
ties for Express Freight Lines, Inc., and the Director of
the South Bend Area Plan Commission has been given an
opportunity to comment thereon;
WHEREAS, the St. Joseph County Council has con-
sented to the South Bend Economic Development Commission
and the City of South Bend to the financing of the increased
costs of the economic development facilities for Express
Freight Lines, Inc., by the issuance of City of South Bend,
Indiana economic development revenue bonds;
WHEREAS, the South Bend Economic Development
Commission after a public hearing adopted a resolution,
which resolution has been previously transmitted hereto,
finding that the financing of the increased costs of the
economic development facilities of Express Freight Lines,
Inc., complies with the purposes and provisions of IC 18 -6 -4.5
and that such financing will be of benefit to the health,
prosperity, economic stability and general welfare of the
City of South Bend and St. Joseph County and their citizens;
and
WHEREAS, the South Bend Economic Development
Commission has approved the final forms of the First
Supplemental Loan Agreement, including the Series 1980 Note
attached thereto, the First Supplemental Mortgage and
Trust Indenture and the Bond Purchase Agreement by resolution,
which resolution has been transmitted hereto; now therefore:
BE IT ORDAINED BY THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND:
SECTION 1. It is hereby found that the financing
of the increased costs of the economic development facilities
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referred to in the First Supplemental Loan Agreement, pre-
viously approved by the South Bend Economic Development
Commission and presented to this Common Council, the issuance
and sale of mortgage revenue bonds, the loan of the net
proceeds thereof to Express Freight Lines, Inc., for the
acquisition and construction of said facilities and the
repayment of said loan by Express Freight Lines, Inc., to
be evidenced and secured by a promissory note of Express
Freight Lines, Inc., will be of benefit to the health,
prosperity, economic stability and general welfare of the
City of South Bend and St. Joseph County and their citizens
and complies with the purposes and provisions of IC 18- 6 -4.5.
SECTION 2. The forms of the First Supplemental
Loan Agreement, including the Series 1980 Note attached
thereto, the First Supplemental Mortgage and Trust Indenture
and the Bond Purchase Agreement approved by the South Bend
Economic Development Commission are hereby approved and all
such documents shall be incorporated herein by reference and
shall be inserted in the minutes of the Common Council and
kept on file by the Clerk of the Council.
SECTION 3. The City of South Bend shall issue
its Economic Development Mortgage Revenue Bonds, Series 1980
(Express Freight Lines, Inc., Project) in the total principal
amount of Five Hundred Thousand Dollars ($500,000) for the
purpose of procuring funds to loan to Express Freight Lines,
Inc., in order to pay the increased costs of the acquisition,
construction, installation and equipping of the economic
development facilities, as more particularly set out in
the First Supplemental Loan Agreement and First Supplemental
Mortgage and Trust Indenture incorporated herein by reference,
which Bonds will be payable as to principal, premium, if
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any, and interest solely from the payments made by Express
Freight Lines, Inc., on its promissory note which will be
executed and delivered by Express Freight Lines, Inc., to
evidence and secure said loan and from other sources under
the First Supplemental Loan Agreement, or as otherwise
provided in the above - described First Supplemental Mortgage
and Trust Indenture, the original Loan Agreement or the
original Mortgage and Trust Indenture. The Bonds shall
never constitute a general obligation of, an indebtedness
of, or a charge against the general credit of the City of
South Bend.
SECTION 4. The Mayor, Clerk and Controller are
authorized and directed to sell such Bonds to the purchaser
set forth in the Bond Purchase Agreement at rates of interest
on the Bonds not to exceed 9.00% per annum and at a price
of 100% of the principal amount thereof plus accrued interest.
SECTION 5. The Mayor and Clerk are authorized
and directed to execute the First Supplemental Loan Agreement,
the First Supplemental Mortgage and Trust Indenture, the
Bond Purchase Agreement and the Bonds approved herein on
behalf of the City of South Bend. The Mayor, Clerk and
Controller are authorized to execute any coupons on the
Bonds and any other documents which may be necessary or
desirable to consummate the transaction. The signatures
of the Mayor, Clerk and Controller on the Bonds and coupons
may be facsimile signatures. The Clerk and the Controller
are authorized to arrange for the delivery of such Bonds
to the purchasers thereof, payment for which will be made
to the Trustee named in the First Supplemental Mortgage
and Trust Indenture.
SECTION 6. The provisions of this Ordinance and
the First Supplemental Mortgage and Trust Indenture and the
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original Mortgage and Trust Indenture securing the Bonds shall
constitute a contract binding between the City of South Bend
and the holders of the City of South Bend, Indiana Economic
Development Mortgage Revenue Bonds, Series 1980 (Express
Freight Lines, Inc., Project), and after the issuance of
said Bonds, this Ordinance shall not be repealed or amended
in any respect which would adversely affect the rights of
such holders so long as any of said Bonds or the interest
thereon remains unpaid.
SECTION 7. This Ordinance shall be in full force
and effect from and after compliance with the procedures
required by law.
1st READING
PUBLIC HEARING J—/ 0,
2nd READING �— ✓® 8c'�
NOT APPROVED
REFERRED
PASSED
er of Common Council
1tEd 1'
-5- CLE w"1'S OFFICE
FEB 2 0 1980
Irene Gammon
CITY CORK, MM BEND, IND.
Economic Development Commission
Jerry Hammes, President
Frank Horvath, Vice- President
Walter A. Mucha, Secretary
Kenneth P. Fedder, Counsel
CITY of SOUTH BEND
PETER J. NEMETH, Mayor
SOUTH BEND, INDIANA 46601
Members of the South Bend Common Council
County -City Building
South Bend, Indiana 46601
RE: Supplemental Revenue Bond Application
EXPRESS FREIGHT LINES, INC.
Dear Councilmen:
230 West Jefferson Boulevard
( 219) 234 -0051
Application of a Supplemental Revenue Bond Issue for
Five Hundred Thousand ($500,000.00) Dollars for and on behalf
of EXPRESS FREIGHT LINES, INC., for the completion of the
acquisition and construction of a truck terminal located at
the intersection of U. S. Highway 20 and Olive Road, German
Township, St. Joseph County, Indiana.
The facility will initially employ approximately ten
people with a beginning payroll of approximately $250,000.00.
It is properly zoned and it will be a further expansion
of business herein our South Bend area.
KPF /Mb
pectfully,
ATTORNEY FOR THE SOUTH BEND
ECONOMIC DEVELOPMENT COMMISSION