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HomeMy WebLinkAboutEconomic Development Mortgage Revenue Bonds - Express Freight Lines Inc $1,000,000ORDINANCE No. 6646 -79 Passed by the Common Council of the City of South Bend, Indiana_ A- September 24 Yg 79 Clerk IRENE K. GAMMON of Common Council Presented by me to the Mayor of the City of South Bend, Ind'ana September 25 zg 79 ,qap--� City Clerk IRENE K. GAMMON Approved and signed by me �• t _ /. _ oZ S, Iq PW ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND COMMON COUNCIL ORDINANCE NO.(,4J - ?Q September G1J, 1979 A SPECIAL ORDINANCE authorizing the City of South Bend to issue its "Economic Development Mortgage Revenue Bonds (Express Freight Lines, Inc., Project)" in the principal amount of One Million Dollars ($1,000,000) and approving and authorizing other actions in respect thereto. WHEREAS, the South Bend Economic Development Commission has rendered a Report of the South Bend Economic Development Commission concerning the proposed financing of economic development facilities 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 consented to the South Bend Economic Development Commission and the City of South Bend to the financing of certain economic development facilities for Express Freight Lines, Inc., by the issuance of City of South Bend, Indiana economic develop- ment 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 certain 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 Loan Agreement, including the Note attached thereto, the 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 economic development facilities referred to in the Loan Agreement, previously 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, pros- perity, economic stability and general welfare of the City of South Bend and St. Joseph County and their citizens and com- plies with the purposes and provisions of IC 18- 6 -4.5. SECTION 2. The forms of the Loan Agreement, in- cluding the Note attached thereto, the 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 (Express Freight Lines, Inc., Project) in the total principal amount of One Million Dollars ($1,000,000) for the purpose of -2- procuring funds to loan to Express Freight Lines, Inc., in order to pay the cost of acquisition, construction, installation and equipping of the economic development facilities, as more particularly set out in the Loan Agreement and Mortgage and Trust Indenture incorporated herein by reference, which Bonds will be payable as to principal, premium, if 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 Loan Agreement, or as otherwise provided in the above - described 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 8.00% 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 Loan Agreement, the 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 facimile signatures. The Clerk and -3- 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 Mortgage and Trust Indenture. SECTION 6. The provisions of this Ordinance and the 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 (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 REA7!NG 21 pUBL ?C F'sEARING ! 57 2nd REAVfNG % -may —2 NOT APPROVED REFERRED PASSED 9P —o% Y -%y -4- Member-01 Cq n Council F: raj 1�T v u_ Svp I c 197c CL RK \V September 19, 1979 Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 RE: Industrial Development Revenue Bond Application - EXPRESS FREIGHT LINES, INC. Dear Gentlemen: The South Bend Economic Development Commission has received an application from EXPRESS FREIGHT LINES., INC., for the construction of an economic development facility to be located on a ten (10) acre . tract of land at the intersection of U.S. Highway 20 and Olive Road, German Township, St. Joseph County, Indiana. The new facility will be used in their trucking operation. This expansion will initially employ approximately 10 new, people with a beginning payroll at approximately $250,000.00. It is properly zoned and will be for the expansion of an existing business in our South Bend area. spectfully, ATTORNEY FOR THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION KPF /mb