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HomeMy WebLinkAboutApproving Loan Agreement and Trust Indenture Real Estate Mortgage and Industrial Development Revenue Bonds - Weltek IncORDINANCE No. 6606 -79 Passed by the Common Council of the City of South Bend, Indiana_ July 23 19 79 Clerk IRENE K. GAMMON of Common Council Presented by me to the Mayor of the City of South Bend, Indiana Jul 24 rg 79 IRENE K. GAMMON Approved and signed by me 19� Clerk BILL NO. ORDINANCE NO. AN ORDINANCE APPROVING THE FORM AND TERMS OF A LOAN AGREEMENT AND TRUST INDENTURE, REAL ESTATE MORTGAGE AND INDUSTRIAL DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF PERTAINING TO THE WELTEK, INC. 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 limited to IC 18- 6 -4.5 -1 through IC 18 -6- 4.5-34, hereinafter referred to ac the "Act "; and WELTEK, INC., an Indiana Corporation, has filed an application with the Commission to finance the acquisition of real estate and the construction thereon and equipping of an industrial building which will constitute economic development facilities re- sulting in a substantial number of new jobs as well as other bene- fits; and in connection therewith the Commission has prepared and placed on file a report containing the subject matter as specified in IC 18- 6- 4.5 -16 and has forwarded copies thereof to the Chairman of the Area Plan Commission 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 on April 13, 1979, after giving the required notice as provided in the Act, and adopted a Resolution finding that such proposed financing complies with the purposes and Provisions of all applicable Indiana statutes covering the issuance of Industrial Development Revenue Bonds, including but not limited the Industrial Development Revenue Bond pursuant thereto are hereby approved and adopted.. Section 4. Said forms of Loan Agreement and Trust Indenture, Real Estate Mortgage together with the Industrial Development Revenue Bonds which are on file with the Commission, are hereby incorporated 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 5. Said Loan Agreement and Trust Indenture shall be executed on behalf of the City of South Bend, Indiana, by the Mayor and City Clerk and sealed with the corporate seal of such City. Section 6. Said Industrial Development Revenue Bonds, Payable solely and only from the revenues derived from such WELTEK, INC. facilities, pursuant to the aforementioned Loan Agreement and Trust Indenture, may be executed in the amounts not to exceed Five Hundred and Fifty Thousand ($550,000.00) Dollars, repayable with interest thereon at a rate not to exceed eight and one -half (8 -1 /2/y percent tier annum, payable in monthly installments over a period not exceeding fifteen (15) years after the date of such bonds and that such Loan Agreement and Trust Indenture and such Industrial Develop- ment Revenue Bonds shall be executed on behalf of the City of South Bend, Indiana, by the Mayor and City Clerk and sealed with the cor- porate seal of such City. Section 7. That Ordinance No. 6583 -79 enacted by the Common Council of the City of South Bend on the 14th day of May, 1979, is hereby repealed and of no further force or effect. -3- to the Act, and that such economic development facilities will not have an adverse competitive 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 Common. Council of the City hereby finds 'and determines that the real estate, interests in real estate, other improvements thereon and other machinery and equipment, to be ac- quired and constructed with the proceeds of the bonds herein au- thorized are "economic development facilities" as that phrase is used in the Act and that acquisition and construction of the Project will increase employment opportunities and increase diversification of economic development in the City, will improve and promote the economic stability, development and welfare of the area in the city and will encourage and promote the expansion of industry, trade and commerce in the area in the City and the location of other new economic development facilities in such area. Section 2. The Common Council hereby finds that this Ordinance (thef "Bond Ordinance ") is of public benefit to the eco- nomic welfare of the City by tending to overcome the deficiencies previously found to exist, to -wit: insufficient employment oppor- tunities and insufficient diversification of economic development, and that such benefit is greater tham the cost of public facilities (as that nhrase is defined in the Act) which will be required by the Project and further that the proposed financing will be of bene- fit to the welfare of the City and complies with the Purposes and provisions of the Act. Section 3. The form and terms of the Loan Agreement and Trust Indenture, Real Estate Mortgage and Industrial Development Revenue Bcn d Pertaining to VJELTEK, INC. Project and the issuance of 1W-0 Section 8. This Ordinance shall be in full force and effect from and a--':ter its passage by the Common Council and approval by the Mayor. .0 ---------- r/1-11--w1-XW-%0&= of the Common Council I signed only to provide an opportuniluy for public discussion and Council action on th,2 issue- T 10 3- READING 0 L I I _7 9 F"JUIC HEARING7. QY' 7 9 READING Q3 G Y -!� u, �-Tl -,.-j flrH !I; rn "'10T APPROVED REFERRED "ASSED 8M VOOR, MCMICHAEL, ALLEN, FEDDER 8 HERENDEEN WILLIAM MICHA GUY H. M- EL ATTORNEYS 8 COUNSELORS AT LAW LLOYD M. ALLEN ALLEN KENNETH FEEDER AREA CODE 219 300 FIRST BANK BUILDING 234 -6061 E. GEORGE E.HERENDEEN SOUTH BEND INDIANA 46601 ANTHONY D. KOWALS OF COUNSEL: Members of the South WILLIAM O. JACKSON Bend Common Council County -City Building South Bend, Indiana 46601 RE: Ordinance for Revenue BOnd(WELTEK, INC. PROJECT) Dear Council Members: The South Bend Economic Develcpment Commission has acted on an application for -a Revenue Bond Issue for Five Hundred Fifty Thousand ($550,000.00) Dollars, for and on behalf of WELTEK, 'INC., for the acquisition of land and construction of faciliti in. es; Phase III of the Airport Industrial Park, located in Soend, Indiana. uth B The new facility, which manufactures parts in the electronics field, will initially employ approximately ten people with a beginning payroll at approximately $125,000.00. It is properly zoned and it will be a further expansion of business here in our South Bend area. On May 14, 1979, your Council passed Ordinance No. 6583 -79, approving this project; however, because of changes made in the Loan Agreement and Trust Indenture and related documents, it is deemed necessary to have a new Ordinance passed. KPF /mb Respectfully, i ;KENNETH P. FEDDER 1QTTPRNEY FOR THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION JU! -. 1. 119-/% .