HomeMy WebLinkAboutApproving Economic Development Revenue Bonds - Thomas and Jane Kinnucan ProjectORDINANCE No 6774 -80
Passed by the Common Council of the City of South Bend, Indiana
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May 12, 19 80
City Clerk
IRENE K. GAMMON
Presented by me to the Mayor of the City of South Bend, Ind"ana
Approved and signed by
May 13, ig 80
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of Common Council
IRENE K. GAMMON
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Clerk
ORDINANCE NO. -90
AN ORDINANCE APPROVING THE FORM AND TERMS OF A LOAN AGREEMENT
MORTGAGE AND NOTE, SECURITY AGREEMENT AND A TRUST INDENTURE AND
ECONOMIC DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION
THEREOF AND APPROVING RESOLUTION NO. 9 -80 OF THE SOUTH BEND ECONOMIC
DEVELOPMENT COMMISSION PERTAINING TO THE THOMAS AND JANE KINNUCAN
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 (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
Thomas and Jane Kinnucan have filed an application with the Commission to
finance the construction of an additional building and the purchase of addi-
tional equipment to be used for the manufacturing and warehousing of air tanks
used in freight trailer brake systems (Facilities) which will result in the
creation of a substantial number of jobs as well as other benefits, and
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
The Commission held a public hearing on the proposed financing of such
Facilities on April 18, 1980 after giving the required notice and did find that
the proposed financing complies with the purposes and provisions of the appli-
cable Indiana statutes, and the Commission did also find that the proposed faci-
lity will not have an adverse competitive effect on similar facilities already
constructed and operating in the City of South Bend, Indiana, and
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, Mortgage and
Security Agreement, Note, a Trust Indenture and Bonds pertaining to the Thomas
and Jane Kinnucan project and the issuance of economic development revenue bonds
pursuant thereto are hereby approved.
Section 2. Said form of Loan Agreement, Mortgage and Security
Agreement, Note, a Trust Indenture and Bonds are hereby incorporated by
reference into this ordinance and said forms 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, Mortgage and Security Agreement,
Note, a 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 and sealed with the corporate seal of such City.
Section 4. Said economic development revenue bonds, repayable solely
by Thomas and Jane Kinnucan, the proceeds of which shall be used for the
construction and acquisition of the Facilities, may be issued in a total sum of
not to exceed $300,000 at an annual interest rate of ten percent (1O%) for a
period not to exceed ten years duration from the date of the issuance of such
bonds in accordance with the terms of said Loan Agreement, Mortgage and Security
Agreement, Note, 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. Resolution No. 9 -80 of the South Bend Economic 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 pur-
poses and provisions of IC 18 -6 -4.5 as amended and supplemented.
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.
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CKE LT S OFFICE
1st READING
PUBLIC HEARING
2nd READING �?i;t1
NOT APPROVED Member of South Bend Common Council
PASS Irene Gammon
P;1, s�3"` l"1 CITY CLERK, SOUTH BEND, IND.
VOOR, MCMICHAEL, ALLEN, FEDDER & HERENDEEN
WILLIAM E.VOOR
ATTORNEYS 8 COUNSELORS AT LAW
GUY H. McMICHAEL
LLOYD M. ALLEN
300 FIRST BANK BUILDING
KENNETH P. FEDDER
SOUTH BEND, INDIANA 46601
GEORGE E. HERENDEEN
ANTHONY D. KOWALS
April 23,.1980
Members of the South Bend Common Council
County -City Building
South Bend, Indiana '46601
RE Revenue Bond Application
(THOMAS and JANE KINNUCAN )
Dear Councilmen:
AREA CODE 219
234 -6061
OF COUNSEL:
WILLIAM O. JACKSON
The South Bend Economic Development Commission has
received an application from THOMAS and JANE KINNUCAN for a
Revenue Bond in the amount of Three Hundred Thousand Dollars
($300,000.00), for the construction of an additional building
and the purchase of additional equipment to be located at
2502 Lawton Street, South Bend, Indiana.
It is anticipated that the new facility will create
additional employment of approximately 8 to 10 jobs with an
estimated payroll of $120,000.00 per year.
It is properly zoned and it will be a further expan-
sion of business facilities in our South Bend area.
KPF:jk
tfully,
th P. Fedder
ATTORNEY FOR THE SOUTH BEND
ECONOMIC DEVELOPMENT COMMISSION
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