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HomeMy WebLinkAboutAuthorizing the City Economic Development Revenue Bonds Bendix Corporation ProjectORDINANCE 1010. 6411 -78 Passed by the Common Council of the City of South Bend, Indiana August 1-4--,-- 19 78 IRENE K. GAMMON Clerk of Common Council Presented by me to the Mayor of the City of South Bend, Indiana A„gu -,t 15, z9-78 City Clerk IRENE K. GAMMON Approved and signed by me ig ORDINANCE NO. (e q It -7 S- ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND, INDIANA TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS, (THE BENDIX CORPORATION PROJECT), SERIES 1978, AND APPROVING OTHER ACTIONS IN RESPECT THERETO STATEMENT OF PURPOSE OF INTENT: The South Bend Economic Development Commission (the "Commission ") has rendered its Project Report for THE BENDIX CORPORATION PROJECT regarding the financing of proposed economic development facilities for THE BENDIX CORPORATION (the "Company "), and the South Bend Plan Commission has commented favorably thereon; and The Commission conducted a public hearing on July 21, 1978 and also adopted a Resolution on July 21, 1978, which Resolution has been transmitted hereto, finding that the financing of certain economic development facilities for the Company consisting of certain machinery and equipment comprising • portion of an industrial facility to consist of a building, • stamping press, a seam welding line, tooling and related property for use in the production of steel "I" beams by the Company (the financing of the acquisition and installation of such machinery and equipment by the issuance of the Bonds being hereinafter referred to as the "Financing ") will be of benefit to the health and welfare of the City of South Bend, Indiana (the "City ") and its residents and complies with the purposes and provisions of Indiana Code Title 18, Article 6, Chapter 4.5 (the "Act "); and By said Resolution of July 21, 1978, the Commission approved the form of this Ordinance and recommended its adoption by the Common Council, and approved the form and terms of the following documents and directed that they be transmitted to the Common Council: a Loan Agreement, dated as of September 1, 1978, between the City and the Company with a form of Promissory Note, dated as of September 1, 1978, from the Company to the City attached as Exhibit "A" thereto (said Loan Agreement and Note being collectively referred to as the "Financing Agreement "); a Trust Indenture (including the forms of Bonds set out therein), dated as of September 1, 1978, between the City and the First Bank & Trust Company of South Bend (the "Indenture "); a Bond Purchase Agreement, dated as of September 1, 1978, between the City and Thornton, Farish & Gauntt, Inc., as purchaser (the "Bond Purchase Agreement "); and the Official Statement of the City relating to the Bonds (the "Official Statement "), NOW THEREFORE BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, as follows: Section 1. The proposed Financing will be of benefit to the health and welfare of the City and its residents and complies with the purposes and provisions of the Act. Section 2. The proposed Financing is hereby approved. The Bonds are authorized to be issued in the aggregate principal amount of $1,000,000, shall be dated (initially) as of September 1, 1978, shall mature on September 1, 2003, shall bear interest at the rate of % per annum payable semiannually on each March 1 and September 1 until paid, and shall be issued as either coupon bonds in denominations of $5,000 or, fully registered bonds in integral multiples of $5,000. The forms of the Bonds and the provisions for registration, execution, payment, redemption and authentication shall be as set forth in the Indenture. By this reference thereto all of the terms, conditions and provisions of the Indenture are incorporated herein as a part of this Ordinance. Section 3. The payments to be received by the City under the terms of the Financing Agreement are determined to be sufficient to pay the principal of, redemption premium, if any, and interest on the Bonds as the same become due and payable, and all of said payments received under the Financing Agreement are hereby pledged for that purpose. The Bonds shall not in any respect be a general obligation of the City, nor shall they be payable in any manner from funds raised by taxation. By this reference thereto all of the terms, conditions and provisions of the Financing Agreement are incorporated herein as a part of this Ordinance. Section 4. In order to secure the payment of the principal of, redemption premium, if any, and interest on the Bonds herein authorized, and in order to secure the performance and observance of all the agreements and conditions in the Bonds, the execution, delivery and performance of the Indenture and the Financing Agreement by the City is hereby authorized. The Indenture and the Financing Agreement shall be in substantially the forms approved by the Commission (which forms shall be inserted in the minutes of the Common Council and kept on file by the Clerk), subject to such changes, insertions or omissions as may be approved by the Mayor, and the execution of the Indenture and Financing Agreement by the Mayor, which is hereby authorized and directed, shall be conclusive evidence of any such approval. Section 5. In order to accomplish the sale of the Bonds, the execution, delivery and performance of the Bond Purchase Agreement and the execution and delivery of the Official Statement are hereby authorized. The Mayor, Clerk and Controller are authorized and directed to sell the Bonds to the purchaser thereof at a price of 98.50 of the principal amount thereof, plus accrued interest thereon to date of delivery, pursuant to the terms and provisions of the Bond Purchase Agreement. By this reference thereto all of the terms, conditions and provisions of the Bond Purchase Agreement and the Official Statement are incorporated herein as a part of this Ordinance. The Bond Purchase Agreement and the Official Statement shall be in substantially the forms approved by the Commission (which forms shall be inserted in the minutes of the Common Council and kept on file by the Clerk), subject to such changes, insertions or omissions as may be approved by the Mayor, and the execution of the Bond Purchase Agreement and Official Statement by the Mayor, which is hereby authorized and directed, shall be conclusive evidence of any such approval. -2- t ' Section 6. The Mayor and Clerk are authorized and directed to take any and all further action and execute and deliver any and all other documents on behalf of the City as may be necessary or desirable to consummate the proposed Financing and to effect the issuance and delivery of the Bonds. The execution of the Bonds in the manner provided in the Indenture is hereby authorized. The signatures of the Mayor and Clerk on the Bonds may be facsimile signatures. The Clerk and /or Controller are authorized to arrange for delivery of such Bonds to the Trustee named in the Indenture, payment for which will be made to the Trustee named in the Indenture for the account of the City to be applied pursuant to the provisions of the Indenture. The Bonds will be delivered by the Trustee to the purchaser thereof. Section 7. The provisions of this Ordinance and the Indenture securing the Bonds shall constitute a contract binding between the City and the holders of the Bonds, and after the issuance of said Bonds, this Ordinance shall not be repealed or amended in any respect that would adversely affect the rights of such holders so long as any of said Bonds or the interest thereon remains unpaid. Section 8. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA By: PASSED, 1st READING A � _ 79 PUBLIC HEARING 14' '7 g 2nd READING NOT APPROYEd REFERRED PASSED _ ti y�yk , 1978. s FILED IN CLERK'S OFFICE JUL 19 IM Irene Gammon CITY CLERK, SOUTH SEND, IND.