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HomeMy WebLinkAboutRefinancing of the City's Off-Street Parking Revenue BondsORDINANCE No. 6327 -78 Passed by the Common Council of the City of South Bend, Indiana April 24,.78 City Clerk IRENE K. GAMMON 1020 of Common Council Presented by me to the Mayor of the City of South Bend, Indiana April 25 928 IRENE K. GAMMON Approved and signed by me A . t .? ,r 19�� Ir Clerk ORDINANCE NO. (..5;Z7-?Jr AN ORDINANCE WITH RESPECT TO CERTAIN OFF- STREET PARKING FACILITIES OF THE CITY OF SOUTH BEND, INDIANA AND THE REFINANCING OF THE CITYtS OFF - STREET PARKING REVENUE BONDS, SERIES 1969 PROJECT; AND AUTHORIZING THE CONVEYANCE OF SAID PARKING FACILITIES TO PARKING FACILITIES OF SOUTH BEND, INC. AND THE EXECUTION OF A LEASE AGREEMENT. STATEMENT OF PURPOSE AND INTENT: The City of South Bend, Indiana ( "City ") has heretofore acquired and constructed certain off - street parking facilities ( "Parking Facilities ") situated on the following real estate: Site I located at the Southeast Corner of Colfax and Main Streets in the City of South Bend, Indiana, more particularly Lots 22, 23 and 24 as shown on the recorded original plat of the Town, now City, of South Bend; Site III located at the northwest corner of St. Joseph Street and Jefferson Boulevard in the City of South Bend, Indiana, more particularly Lots 38, 39 and 40 as shown on the recorded original plat of the Town, now City, of South Bend; For the purpose of paying the cost of constructing the Parking Facilities the City has heretofore issued its Off- Street Parking Revenue Bonds, Series 1969 Project ( "1969 Bonds "), which bonds are now outstanding in the principal amount of $3,250,000. Officers of the City have determined that it would be advantageous to the City to refinance the 1969 Bonds pursuant to the provisions of Indiana Code 18- 5- 3.3 -8.5, by the conveyance of the Parking Facilities to Parking Facilities of South Bend, Inc. ( "Corporation "), an Indiana corporation not - for - profit organized for the purpose of effecting such refinancing, and the leasing of the Parking Facilities from the Corporation to the City at rentals sufficient to retire revenue bonds issued by the Corporation for the purpose of acquiring the Parking Facilities. Officers of the City have caused to be prepared a form of Lease Agreement ( "Lease ") between the Corporation as lessor and the City as lessee, theterms of which Lease have been agreed upon by the Corporation and officers of the City. A petition requesting such refinancing and leasing, signed by not less than 50 tax - paying citizens of the City, has been filed with the Mayor and this Common Council. A public hearing was held on April 24, 1978 on the necessity for the execution of the Lease and fairness and reasonableness of the rentals provided therein, notice of such hearing having been given in the manner required by the first paragraph of Indiana Code 18-5-3.3-7 . It is now advisable to authorize the execution of the Lease and the conveyance of the Parking Facilities to the Corporation; to give notice of the authorization of the Lease in the manner required by the second paragraph of Indiana Code 18- 5- 3.3 -7; to approve the proposed financing by the Corporation on behalf of the City; and to seek approval of the State Board of Tax Commis- sioners for the conveyance and lease of the Parking Facilities, as required by Indiana Code 18- 5- 3.3 -8.5. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The proposed Lease, attached hereto as Exhibit A, is hereby approved subject to such changes as may be approved by the Mayor and the Board of Public Works, and the Mayor and the City Clerk are hereby authorized to execute the Lease on behalf of the City, and notice of the authorization to execute the Lease shall be given in the manner required by Indiana Code 18- 5- 3.3 -8.5. SECTION II. The Mayor and City Clerk are hereby authorized to convey the Parking Facilities to the Corporation after approval by the State Board of Tax Commissioners as required by Indiana Code 18- 5- 3.3 -8.5, and upon the consummation of the refinancing of the 1969 Bonds. SECTION III. This Common Council does hereby request the Corporation to acquire and finance the Parking Facilities on behalf of the City, and to lease it to the City at the earliest time possible. SECTION IV. The Articles of Incorporation of the Corporation and its proposed By -Laws, presented to this Common Council, are hereby approved. SECTION V. The proposed financing by the Corporation of its acquisition of the Parking Facilities is hereby approved, subject to final approval by the Common Council of any trust indenture of the Corporation securing the bonds to be issued by the Corporation for such purpose. SECTION VI. The City agrees that it will accept the gift of the Parking Facilities, free of any lien or encumbrance, at the time the Corporation shall tender the Parking Facilities to the City. SECTION VII. The Director of Administration and Finance is hereby authorized and directed to obtain from the State Board of Tax Commissioners approval of the conveyance of the Parking Facilities to the Corporation, and the leasing of the Parking Facilities from the Corporation by the City, as required by Indiana Code 18- 5- 3.3 -8.5. SECTION VIII. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. e Common Counc Passed, as amended, April 24, 1978. 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 South Bend Common Council 4th Floor Council Chambers County -City Building 227 W. Jefferson Boulevard South Bend, Indiana April 5, 1978 Re: Ordinance and Resolution for Refinancing of Off- Street Parking Facilities. Dear Council Members: 219/284 -9241 There is herewith submitted a Resolution for the purpose of ordering public hearing on the proposed lease arrang -ement which is'an integral part of the refinancing of the presently outstanding bond issue on the two City parking garages. The purpose of this Resolution is to comply with the statute requiring the Clerk to give notice of public hearing on the terms of the proposed lease. The statute requires ten day notice of the public hearing and we would request that the notice be ordered at the Council meeting on April 10 so that public hearing may be had on April 24, 1978. Also attached is an Ordinance with respect to the off - street parking facilities which authorizes the conveyance of the facilities to the not - for - profit corporation and the execution of the lease agreement. It is requested that first reading of this Ordinance be had on April 10 and public hearing set for April 24 at the same time as the hearing on the lease agreement itself. The statement of purpose and intent in the Ordinance out- lines the necessary statutory requirements step by step for the lease approval. The body of the Ordinance complies with the statutory requirements of I.C. 18- 5- 3.3 -8.5 providing for refinancing of oustanding bond issues for off - street parking facilities. South Bend Common Council April 5, 1978 Page_ Two Attached to the Ordinance as Exhibit A provided for therein is a copy of the proposed lease agreement. Sincerely, `-Ober M. P rker Chief Deputy City Attorney RMP:az Attachment