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HomeMy WebLinkAbout$1,300,000.00 Economic Development Revenue Bonds - Simon Bros. IncORDINANCE No. 6603 -79 Passed by the Common Council of the City of South Bend, Indiana July 9 Iq 79 Attest: ��- City Clerk IRENE K. GAMMON ' Attest: r/�- ✓ President of Common Council Presented by me to the Mayor of the City of South Bend, Ind'ana Approved and signed by July 10 1979 IRENE K. GAMMON Clerk 104 Bill No. 71 -79 ORDINANCE NO. ia%03^ 7 AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $1,300,000 ECONOMIC DEVELOPMENT REVENUE BONDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PURPOSE OF MAKING A LOAN TO SIMON BROS., INCORPORATED, IN ORDER TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES LOCATED IN THE CITY; AUTHORIZING EXECUTION OF A LOAN AGREEMENT; PROVIDING FOR THE DELIVERY OF A NOTE AND ASSIGNMENT THEREOF AS SECURITY FOR SAID BONDS; AUTHORIZING AN INDENTURE OF TRUST APPROPRIATE FOR THE PROTECTION AND DISPOSITION OF THE REVENUES FROM SUCH NOTE; AND AUTHORIZING THE TERMS AND SALE OF SAID BONDS. WHEREAS, the City of South Bend, Indiana (hereinafter called the "City " ") is a municipal corporation and political subdivision of the State of Indiana and by virtue of IC 18 -6 -4.5 as amended (hereinafter called the "Act ") is authorized and empowered to adopt this ordinance (the "Bond Ordinance ") and to carry out its provisions; and WHEREAS, Simon Bros., Incorporated (the "Company ") is a corporation duly organized and existing under and by virtue of the laws of Indiana with its principal office in South Bend, Indiana, and duly qualified to conduct business in the State of Indiana; and WHEREAS, the Company,has agreed to acquire and construct economic development facilities in the City if the City will finance a portion of the cost of such acquisition and construction; and WHEREAS, the South Bend Economic Development Commission has performed all action required of it by the Act preliminary to the adoption of this Bond Ordinance and has approved and forwarded to this Common Council the forms of (1) Indenture of Trust (the "Indenture ") dated as of June 1, 1979, between the City and First Bank and Trust Company of South Bend, South Bend, Indiana (the "Trustee "), containing a form of economic development revenue bond, (2) Loan Agreement (the "Loan Agreement ") dated as of June 1, 1979, between the City and the.Company, containing a form of Series A Note from the Company and a form of Mortgage from the Company to the Trustee, and (3) this Bond Ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section 1. Findings; Public Benefits. The Common Council of the City hereby finds and determines that the building additions, equipment and facilities in connection therewith (the "Project ") to be acquired and constructed with the proceeds of the Economic Development Revenue Bonds herein authorized are "economic development facilities" as that phrase is used in the Act; that acquisition and construction of the Project will increase employ- ment opportunties and increase diversification of 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 industries in such area; and that the public benefits to be accomp- lished by this Bond Ordinance, in tending to overcome insufficient employment opportunities and insufficient diversification of industry, are greater than the cost of public services (as that phrase is defined in the Act) which will be required by the Project. Section 2. Authorization of Economic Development Revenue Bonds. In order to pay a portion of the cost of acquiring and constructing the Project, there are hereby authorized to be issued, sold and delivered $1,300,000 aggregate principal amount of Economic Development Revenue Bonds, Series A (Simon Bros., Incorporated Project) of the City (the "Series A Bonds "). Any additional costs of the Project will be paid for by the Company unless paid for with the proceeds of additional parity bonds (the "Additional Bonds ") as identified in the Indenture. Section 3. Terms for the Series A Bonds. The total principal amount of Series A Bonds that may be issued is hereby expressly limited to $1,300,000; provided that Additional Bonds may be issued upon the terms and conditions and for the purposes provided in the Indenture and in the Loan Agreement. The Series A Bonds shall be represented by one Bond in fully registered form, which shall be dated as of the first day of the month in which delivered and paid for, shall become due and payable in 144 consecutive monthly installments, including both principal and interest at the rate of 7 -3/4% per annum, consisting of (1) 143 equal monthly installments of $13,894.30 commencing on the first day of the month following issuance of the Series A Bonds and (2) a final installment of $13,893.56 payable 12 years from date. Principal and interest and premium, if any, shall be payable at the principal office of the Trustee in South Bend, Indiana. The Series A Bonds shall bear interest at an increased rate upon the occurrence of an Event of Taxability, as defined in the Loan Agreement, shall be executed, shall be in such form, shall have such redemption provisions, and shall be subject to such other terms and conditions as set forth in the Indenture. The Series A Bonds and the interest thereon do not and shall never constitute an indebtedness of or a charge against the general credit or taxing power of the City, but are limited obligations of the City payable solely from revenues and other amounts derived from the Loan Agreement and shall be secured as provided in the Indenture. Forms of the Loan Agreement and the Indenture are before this meeting and are by this reference incorporated in this Bond Ordinance, and the City Clerk is hereby directed to insert them into the minutes of the Common Council and to keep them on file. Section 4. Sale of the Series A Bonds. The Mayor, City Clerk and City Controller of the City are hereby authorized and -2- directed to sell the Series A Bonds to or upon the order of First Bank and Trust Company of South Bend at a price of $1,300,000, plus accrued interest to the date of delivery and payment. Section 5. Indenture. In order to secure the payment of the principa oT and interest on the Bonds, the Mayor and City Clerk shall execute, acknowledge and deliver, in the name and on behalf of the City, an Indenture of Trust in substantially the form submitted to this Common Council, which is hereby approved in all respects. Section 6. Loan Agreement. In order to provide for the loan of the proceeds of the Series A Bonds to acquire and construct the Project and the payment by the Company of an amount sufficient to pay the principal of and premium, if any, and interest on the Series A Bonds, the Mayor and City Clerk shall execute, acknowledge and deliver in the name and on behalf of the City a Loan Agreement in substantially the form submitted to this Common Council, which is hereby approved in all respects. Section 7. Acceptance of Series A Note. In connection with the Series A Bonds, the City accepts as security for such Series A Bonds the Series A Note of the Company. The Series A Note shall be in substantially the form attached as Exhibit B to the Loan Agreement and shall contain the provisions set forth in subsections (a) through (g) of Section 4.2 of the Loan Agreement. Section 8. General. The Mayor, City Clerk, City Controller and County Treasurer ex officio City Treasurer be and they are each hereby authorized and directed, in the name and on behalf of the City, to execute any and all instruments, perform any and all acts, approve any and all matters, and do any and all things deemed by them, or any of them, to be necessary or desirable in order to carry out the purposes of this Bond Ordinance (including the preambles hereto), the acquisition and construction of the Project by the Company, the issuance and sale of the Series A Bonds, and the securing of the Series A Bonds under the Indenture. Section 9. Effective Date. This Bond Ordinance shall be in full force and effect immediately upon its adoption by the Common Council and approval by the Mayor. Presented by Councilman Passed in open Council this day of 1979• ATTEST: City Clerk 1st READING PUBLIC NEARING �• g • i 5 2nd READING NOT APPROVED 7 REFERRED PASSED .7- C3. 7 C 9 — QZ -- r.. , bA 1{eo+k 6f the—Common Council Member IF t j q r'! 'l�" JUN 2 0 1979 C11Y CLERK, SGu-fl BEND, IND. Presented by me to the Mayor this day of , 1979, at the hour of o'clock .M. City Clerk Approved this day of 1979, at the hour of o'clock .M. ATTEST: City Clerk -4- Mayor VOOR, MCMICHAEL, ALLEN, FEDDER 8 HERENDEEN WILLIAM E.VOOR ATTORNEYS 8 COUNSELORS AT LAW AREA CODE 219 GUY H. M. N LLOYD M. ALL EN 300 FIRST BANK BUILDING 234 -6061 ALL - KENNETH P. FEDDER SOUTH BEND, INDIANA 46601 GEORGE E. HERENDEEN OF COUNSEL: ANTHONY D. KOWALS WILLIAM O. JACKSON Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 'RE: Revenue Bond Application SIMON BROTHERS, INC. PROJECT Dear Gentlemen: Application of a revenue bond issue in the amount of $1,300,'000.00 has been initiated by the South Bend Economic Development Commission on behalf of SIMON BROTHERS, INC., an Indiana Corporation, for the purpose of constructing an economic development facility at 1901 North Bendix Drive, South Bend, Indiana. The proposed facilities. consist of the construction of three building additions. to an existing office and warehousing facility now operated by Simon Bros., Incorporated, consisting of (a) an addition containing approximately 1,560 square feet for use as a new office area, (b) an. addition containing approximately 3,658 square fee for use as a freezer compartment, and (c) an addition containing approximately 33,372 square feet for use as a warehouse, together with improvements to the interior of the existing facility in connection with such additions, all as an expansion of the current operation of-the facility: as a distribution center for various types of foods, paper, supplies and other commodities. The new facilities will result in additional employment initially.. of 6 employees- with a gross anxiuual payroll of approximately $•75,000.00. The area is properly zoned, as determined by the'response -of the Area Plan Commission and is a further expansion of an existing business operation in our South Bend area. With the filing of .the various financing documents and proposed form Ordinance, I have also filed an Inducement Resolution, which I would request that you act on at your June 25, 1979, meeting. spectfully, i •r.aa a • Y 1JLLl'J S� ATTORNEY FOR THE ECONOMIC DEVELOPMENT COMMISSION KPF /mb