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HomeMy WebLinkAboutIndustrial Development Revenue Bonds Authorizing - South Bend Tool and Die Co IncORDINANCE No 6742 -80 Passed by the Common Council of the City of South Bend, Indiana_ January 28 Iq 80 IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana Approved and signed by City Clerk ident of Common Council Januar 29 19 80 l(— IRENE K. GAMMON 19 &O Clerk ORDINANCE NO. k %Y2- fe AN ORDINANCE AMENDING AND SUPPLEMENTING ORDINANCE NO. 6680 -79 APPROVING THE FORM AND TERMS OF LOAN AGREEMENT, TRUST INDENTURE, REAL ESTATE MORTGAGE, SECURITY AGREEMENT AND INDUSTRIAL DEVELOP- MENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF, AND APPROVING RESOLUTION NO. 2 -80 OF THE SOUTH BEND ECONOMIC DEVELOP- MENT COMMISSION RELATING TO THE SOUTH BEND TOOL AND DIE CO., 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, including but not limtied to IC 18- 6 -4.5 -1 through IC 18- 6- 4.5 -303, hereinafter referred to as the "Act "; and South Bend Tool and Die Co., Inc., an Indiana corpora- tion, has filed an application with the Commission to finance the acquisition of real estate and the construction of a manufacturing building located thereon (facilities) which will constitute economic development facilities resulting in a substantial number of new jobs as well as other benefits, and in connection therewith the Commission has prepared and placed on file a report contain- ing the subject matter as specified in IC 18- 6- 4.5 -16 and has forwarded copies thereof to the Chairman of the Area Plan Commis- sion 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 facilities in accordance with the Act after giving the required notice as provided in the Act, and adopted a resolu- tion 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, Trust Indenture, Real Estate Mortgage, Security Agree- ment 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 competitve 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 and In- dustrial Development Revenue Bonds attached as exhibits thereto per- taining 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 South Bend Tool and Die Co., Inc., an Indiana corporation, are hereby approved and adopted. Section 2. Said forms of Loan Agreement, Trust Indenture, Real Estate Mortgage, Security Agreement and Industrial Development Revenue Bonds which are on file with the Commission are hereby incorpo- rated 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 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 South Bend Tool and Die Co., Inc. 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 Six Hundred Thousand Dollars ($600,000.00), repayable with interest thereon at a rate not to exceed eight and one -half percent (8 -1/2 %) per annum, payable in monthly install- ments over a period of fifteen (15) years after the date of such bonds, and that such Trust Indenture and Loan Agreement and such -2- Industrial Development 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. 2 -80 of the South Bend Economic Development Commission passed on January 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. 6680 -79 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. mber o 1st REARING .✓� _��; HEARING /g _ e 0 2nd IIZEADING NOT APPROVED Ali - RED PASSED f^— r� �" _ �� t �'�°.q�,...s' '`7^�.^e-�x.i '� •�.�z..� -3- outn Mend Common Council 61" 9S affItt Irene aMm© D CIr MEW 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 January 21, 1980 Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 230 West Jefferson Boulevard (219) 234 -0051 RE: South Bend Economic Development Commission SOUTH BEND TOOL & DIE CO., INC. PROJECT Dear Councilmen: On November 7, 1979, T directed correspondence to you for the revenue bond application of SOUTH BEND TOOL & DIE CO., INC. for an Economic Development Bond in the amount of $600,000.00. On November 15, 1979, the Common Council of the City of South Bend, by passage of Ordinance No. 6680 -79, approved the forms of the Economic Development financing documents for this project. Because of the necessity in making changes in the financing documents as to the payment dates of the bond as issued, it was determined that the matter should be re- submitted to both the South Bend Economic Development Commission and the South Bend Common Council to approve the said financing documents. In all other respects, the underlying reasons for the issuance of the $600,000.00 Bond for the purpose of the construction of the project, would remain the same. The same estimated new five jobs, with an annual payroll of approximately $80,000.00 would likewise remain the same. Ve truly yours, f RENN FEDDER 1 ! pp i �TTO tNIY FOR THE SOUTH F" 'I "IBS OFFICE BEN , ECONOMIC DEVELOPMENT bTSSION i604 c 3 I. F �� o KPF /mb Irene Gammon CITY CLERK, SOUTH BEND, IND.