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HomeMy WebLinkAboutAmending Issuance of Revenue Bonds Provide for the Cost of Acquiring Land and Constructing Off-Street Parking FacilitiesORDINANCE No 6372 -78 Passed by the Common Council of the City of South Bend, Indiana- May 2 2 �9 78 IRENE K. GAMMON City Clerk of Common Council Presented by me to the Mayor of the City of South Bend, Indiana May 2 3 z9-L8— City Clerk IRENE K. GAMMON Approved and signed by me� a3„ iq—Iff- ORDINANCE NO. (037a-29 AN ORDINANCE OF THE CITY OF SOUTH BEND AMENDING AND SUPPLEMENTING ORDINANCE NO. 5089 -69 ADOPTED JUNE 9, 1969 PROVIDING FOR THE ISSUANCE OF REVENUE BONDS TO PROVIDE FOR THE COST OF ACQUIRING LAND AND CONSTRUCT- ING OFF- STREET PARKING FACILITIES . STATEMENT OF PURPOSE AND INTENT: This Common Council did on June 9, 1969 adopt Ordinance No. 5089 -69 ( "Ordinance ") entitled "An Ordinance of the City of South Bend concerning the purchase of land and the construction, maintenance, operation and financing of off street parking facilities thereon, the issuance of revenue bonds to provide the cost thereof, the collection, segregation and distribution of the revenues of said project, the safeguarding of the interests of the holders of said bonds, and other matters connected there- with"; and Section 17 of the Ordinance provides that the Ordinance may be supplemented and amended in certain respects upon the consent and approval of not less than 66 -213 percent in aggregate principal amount of the outstanding bonds issued pursuant to the Ordinance; and there have been filed in the Office of the City Controller Instruments of Consent executed by the holder of not less than 66 -2/3 percent in aggregate principal amount of said outstanding bonds requesting that the Ordinance be supplemented and amended to provide for the satisfaction and discharge of the bonds issued under the Ordinance upon certain conditions; and it appears that all of the conditions of said Section 17 of the Ordinance have been complied with; and it appears to this Common Council that it will be advantageous to the City of South Bend to adopt such amendment. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana as follows: SECTION I. Ordinance No. 5089 -69 adopted by this Common Council on June 9, 1969, and referred to in the preamble hereto, is hereby amended and supplemented by adding a new Section 17a to the Ordinance to read as follows: Section 17a. Discharge and Satisfaction of Bonds The covenants liens and pledges entered into, created or imposed urs puant to this ordinance may be fully discharged and satisfied with respect to outstanding bonds in any one or more of the follow- ing ways: (a) by -paying the Bonds when the same shall become due and payable or upon prior redemption in the manner herein provided; (b) by depositing with any paying agent designated hereunder, in trust for such purpose, at or before the date of maturity or redemption, money in the necessary amount to Ray or redeem such bonds, and to pay interest thereon to maturity or the date of redemption; or (c) by depositing with any paying agent or any trustee created for that purpose, at or before the date of maturity or redemption, money or direct obligations of, or obligations the principal of and interest on which are fully guaranteed by, the United States of America, in such amount as together with the income or increment to accrue thereon without consideration of any reinvestment thereof, will be fully sufficient to pay or redeems when redeemable, and discharge, the indebtedness on the Bonds at or before their respective maturity dates; provided that if such bonds are to be redeemed prior to the maturitv thereof, notice of such redemption shall have been duly given or satisfactory arranEements made therefor; and Drovi&d further +-hnt stances which do not render interes subject to federal income taxation Upon such payment or deposit of money or securities in the amount and manner provided by this section all liability of the City with respect to the Bonds shall cease, determine and be completely discharged, and the holders thereof shall be entitled only to payment out of the money or securities so provided. SECTION II. If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance. SECTION III. Ordinance No. 5089 -69, as herein amended and supplemented, is hereby readopted, ratified and confirmed. SECTION IV. All other ordinances, resolutions or orders, or parts thereof, heretofore enacted, adopted or entered, in con- flict with the provisions of this Ordinance, shall be and the same are hereby repealed to the extent of such conflict, and this Ordinance shall be in effect from and after its passage. SECTION V. This Ordinance shall be in full force and effect from and after its enactment, approval by the Mayor and legal publication. 1sf READING S- a d' 7 8 PUBLIC HEARING V- V 2nd READING �'_ j� 2L ?� NOT .APPROVED REFERRED PASSED - 2 - Member of the 7mon Council FILED IN CLERK'S OFFICE MAY 171978 Irene Gammon Cllt OUM SOUTH BEND, IND. Thomas J. Brunner, Jr. City Attorney Robert M. Parker Chief Deputy CITY of SOUTH BEND PETER J. NEMETH, Mayor COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 May 17, 1978 South Bend Common Council County -City Building Council Chambers, 4th Floor 227 W. Jefferson Boulevard South Bend, Indiana 46601 Re: Amendment of Ordinance No. 5089 -69, Revenue Bond Ordinance for Off- .Street Parking Facilities Passed June 9, 1969 Dear.Counc.il Members: 219/284 -9241 Amendment of this 1969 Ordinance is required in order to complete refinancing of the parking garages pursuant to Ordinance and Lease already approved by the Council. A new Section 17a is added to the existing Ordinance by this amendment by providing for the depositing with a trustee before the date of maturity of redemption obligations guaranteed by the United States sufficient to redeem the original bond indebtedness. Upon deposit of such money, all liability of the City with respect to the bond shall cease and the holder shall then be entitled to payment out of the money or securities as provided. There is urgent need for the passage of this Ordinance prior to May 30, 1978, and it is requested that the Council either suspend its rules and have second reading of this Ordinance at its May 22nd reading or schedule a special meeting of the Council for May 24th or May 25th for second reading of the Ordinance. Because of the rising bond interest rates and the fear of change in federal income tax regulations dealing with arbitrage rules which could very adversely affect the proposed refinancing, the underwriters contracted to purchase the bond issues well ahead of the originally contemplated schedule. Final sale of the bonds is now scheduled for June 1, 1978. Every effort is being made to Page 2 Re: Amendment of Ordinance No. 5089 -69, Revenue Bond Ordinance for Off- Street Parking Facilities Passed June 9, 1969 complete a large amount of paper work remaining to be done so that this time schedule can be met. Passage of this Ordinance is essen- tial to the final sale of the bonds. Very truly yours, RMP /klh �RobervM P rke Chief Deput City Attorney RMP /klh