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HomeMy WebLinkAboutAuthorizing issuance of bonds to evidence a loan form the IDEM Browns-fields cleanup revolving loan fundORDINANCE No. 9361-02 Passed by the Comntoat Cor~ncil of the Ciry of Soutlr Bend, Indiana October 14, 20 02 Attest: Attest: Presented by me to the Mayor of the Ciry of South Bend, Indiana October 17 20 0 2 City Clerk President of Common Council Ciry Clerk Approved and signed by me_ o~tober 1s. 20 ~_ ORDINANCE NO. 3~0~' 02 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AUTHORIZING THE ~ PRELIMINARY ISSUANCE OF BONDS TO EVIDENCE A LOAN FROM THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT BROWN- FIELDS CLEANUP REVOLVING LOAN FUND ADMINISTERED BY THE INDIANA DEVELOPMENT FINANCE AUTHORITY, PLEDGING A PORTION OF THE CITY'S COUNTY OPTION INCOME TAX REVENUES TO SECURE SUCH BONDS, AND OTHER MATTERS CONNECTED THEREWITH STATEMENT OF PURPOSE AND INTENT The City of South Bend, Indiana (the "City") owns certain Brownfield property near South Bend Avenue and Howard Street in the northeast portion of the City, commonly known as Fredrickson Park, and more particularly described on Exhibit "A" hereto (the "Property"). The City has previously investigated the environmental condition of the Property and has determined to undertake certain non-time critical removal activities and other general environmental activities in connection with the environmental remediation of the Property in order to make the property suitable for future redevelopment (the "Project"). The City has determined to borrow an amount not to exceed $1,000,000 from the Indiana Department of Environmental Management ("IDEM") Brownfields Cleanup Revolving Loan Fund (the "Fund"), administered by the Indiana Development Finance Authority ("IDFA") for the purpose of providing funding from the Fund for the assessment and general remediation of a "Brownfield site" located on the Property (the "Loan"). The City has submitted an application to IDFA (the "Application"), which Application sets forth the request for the Loan and the details of the Project. The St. Joseph County Income Tax Council has imposed a county option income tax ("COIT") pursuant to IC 6-3.5-6 on the adjusted gross income of the County taxpayers. The City shall repay the Loan from then current revenues of the City (the "City Revenues") annually appropriated by the Common Council of the City (the "Common Council") for the purpose of making such Loan payments, and, to the extent available, COIT revenues (the "COIT Revenues ") allocated to the City (the COIT Revenues, together with the City Revenues shall be referred to as the "Available Revenues"), it being the expectation of the City that any such COIT Revenues shall be used by the .City to offset any necessary appropriation of the City Revenues. The bonds which shall evidence the Loan shall constitute a limited obligation of the City payable solely from Available Revenues, and neither the full faith and credit nor the taxing power of the City is pledged to the payment of the principal of and the interest on the bonds. NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AS FOLLOWS: Section 1. The Common Council hereby authorizes revenue bonds of the City (the "Bonds") to be issued upon the terms and conditions set forth herein in the form of the Loan pursuant to I.C. 36-4-6-19 (the "Act") for the purpose of financing all or a portion of the Project. The City shall use the proceeds of the Loan in accordance with the terms to be set forth in the Loan, Servicing and Disbursement Agreement (the "Program Agreement") for purposes of the Project. Section 2. The Bonds to be issued by the City and evidenced by the Loan shall be payable from the Available Revenues, and the Bonds shall constitute a limited obligation of the City payable solely from the Available Revenues and neither the full faith and credit or the 2 taxing power of the City is pledged to the payment of and interest on the Bonds. Furthermore, the Available Revenues shall be subject to annual appropriation by the Common Council. Section 3. The Common Council hereby authorizes the issuance of the Bonds in the form of the Loan in an aggregate principal amount not to exceed the amount of the Loan, all in accordance with the Act and the Program Agreement. The Bonds shall be designated as the "City of South Bend, Indiana Revenue Bonds, Series 2002 (Environmental Remediation Project)" The Bonds will be sold to IDFA pursuant to a negotiated sale, in accordance with I.C. 6-3.5-6-25, for par value as provided in the Program Agreement. The Bonds shall be dated and have an original issuance date as of the date of the Loan. The fonds shall mature on a date not later than twenty (20) years from the date of original issuance thereof and shall bear interest at a rate not to exceed three percent (3.0%) per annum. The bonds maybe prepaid by the City at par on any date and shall be negotiable without registration. Section 4. The Mayor and the Clerk of the City are hereby authorized and directed to execute and deliver and the Clerk is hereby authorized to affix the seal on, when and if appropriate, the Program Agreement and the Bonds, together with any documents, instruments, or certificates they deem necessary or appropriate upon the advice of counsel to complete the transactions contemplated herein. Section 5. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. 1st READING. q '2-342, \ ,` , (~ PUBLIC HEARING \~-~~i ~~ QS S~ ~ 4.p~ ~3 rd READING ~ 0 , w-tJZ 0.S S c~tDS~ NOT APPRQVl;D REFERRED PASSED ~0--1`~-DL GlS ~~~°S' `~'`"~' COMMON COUNCIL OF THE CITY OF SOUTH BEND By: Member of the Common Counci 3 Filed in Cieriz's ®ffi~~ ©CT ~ ~ ~00~ LORRTTA J. ~ ter ct.~RSC, ~~. ~ ~~ EXHIBIT "A" PARCEL. I: A parcel of lnttd being n part of rite Nortltwest Quarter of Section G, 'fownsltip 37 North, Range 3 East, City of South Bend, Portage Township, 5t. Joseph County, Indiana and being more particularly described as follows, viz: Beginning on the North line of a parcel of land ]teretofore conveyed to Stephen A. and Mary J. Knoblock, husband and wife by a Warranty Deed recorded in Deed Record 145, page 108 in the Office of Che Recorder of St. Joseph County, Indiana at a point 165 feet West of_tlte East line of said Nortltwest Quarter, said point being 702.6 feet North and 165 feet West of the center of said Section 6;. thence North 89°26'19" West, a distance of 494.09 feet;•thence South 0°25'01" West (South 0°19'30" West, deed bearing) a distance of 322.01 feet to the North right-af-way line of Howard Street, a 50 foot right-of-way; thence North 89°34'26" West (North 89°26'19" West, deed bearing) along said North right-of=way line, a distance of 293,20 feet; thence North 0°25'4" East, a distance of 150,00 feet; thence North 89°34'26". West (North 89 26'19" West, deed bearing) parallel with said North right-of-way line of Howard Street, a distance of 160.19 feet to a point on the Easterly line of a 12 foot alley, said Easterly alley line being also the Easterly line of Talbot's Plat as re&orded in said St. Jos&plt County Recorder's Office; thence North 30 51'40" West (North 30 54'41" West deed bearing):along Bald Easterly alley line, a distance of 366.41 feet (375.20 feet, deed distance) to a point 141.10 feet S°utheasterly of the Southerly right-of-way line of Soutlt Bend Avenue (State Road 23), as measured along said Easterly alley line; thence North 51°54'39° Eest (North 51°55'20" East, deed bearing) parallel wLtit said Southerly right-of-way line of 5outit Bend Avenue, a distance of 304,16 feet (303.80 feet, deed distance); thence North 38°05'21" Wast (North 38°04'40" West, deed bearing) a distance of 140.00 feet to said. Southerly right-of-way lino of South Bend Avenue; thence North 51°54'39" East (North 51°55'20" East, deed bearing) alongosaid'Southerly right-of-way line, a distance of 27.00 feet; thence South 38 05'21" Gast (Soutlt 38°04'40" Cast, deed bea~ing) a distance of 140.00 feet; thence North 51°54'39" East (North 51 55'20" EasC, deed bearing) parallel with said Southerly right-of-way line, a distance of 179.32 feet to a Westerly line of a parcel of land leased to Sunnyside Beverages, Inc, as described in Deed Record Slld page 578 in said St.oJoseph County Recorder's Office; thence South 37 37'59" East (South 37 42'00" East, deed bearing} along a Uesterly line of said lease parcel, a distance of 219 84 feet (219.97 feet, deed distance); thence North 53°25'38" Gast (North 53b26'40" East, deed bearing) along the Southerly line of said lease parcel, a distance of 324.46 feet; thence North 36°31'02" West (North 36°30'00" West, deed bearing) along the Easterly line of said lease parcel, a distance of 177.96 feet (180.33 feet, deed distance) to the North line of the SoutltlialE of said Nortltwest Quarter of Section 6; thence Soutlt 89°38'17" East (Soutlt 89°21'40" East, deed bearing) along said North line, being also the South litre of Colpaert's Replat of Lots Numbered 14 through 37 in Parker anti Allen's Addition to the Clty of South Bend, a distance of 449.82 feet (451.03 Feet, deed distance) to a point on said line that is 165.00 feet West of the Nortlt-South centerline of Bald Section 6; thence Soutlt 0°21'1G" West (Soutlt 0 21'18" West, deed bearing) parallel wltlt said Nortlt-Soutlt cettterlltte, a distance of G25.07 feet to the place of beginning. PARCEL II: Sub-parcel A, described as follows: A tract of land in Che Soul-heast Quarter of the Northwest Quarter of Section 6, Township 37 North, Range 3 East described as follows: Beginning 441.35 feet Nortlt nrul 660 feet West of the center of said Section 6, thence running North 150 Eeet, thence West 293.5 feet, thence South 150 feet, thence East 293.5 feet to rite place of beginning. -~aC~d ~n Ci~rk'~ ®~fitc OC r ~ ~ 20Qr ~ LORS~TiA J. DS1U~ O!' YY CLEF ~. t~td~~ {?!. ` ~Bted ~n ~a~pl~'~ ®ffic~ t 0 C~ ~ ~ ~0~ OR~7TA J. [~~ 6 . ~7YY 6'L~sA`~e~51. G~Pl~. ~4~' Exhibit A ~. ~1 Pf. asoc I Pf. c a.9i °o ,ti ~ /~ ° ~ I `' aFNO d~M ~'S~ ~~ o ' `~ ' ~ P~ c / .a$ W 1 -50 ~ r I ~\ay ~ R-7sal r, !8-5102 p ,4 / ~y~ „ ~~ pf 3s7t ~ ~, P ~,~ 8-7sc~ ^ _ c -M-7s7c t / G7sc7 . ~ / ps '~~ :' ~ tr tt .. °~ H D-7soa ^ ~.7s7 S ' `' ~ ~ µ7l77 2~'J.r 2 +K"7s7s F-na9 a 1~' ~ Jae 0 -7x71 a ^ ~ . J'7r,3 F' 7570 3 ry`~ a '~ ~ ' $ .: 579 ,: 18- . 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P h °1 V• ul d ..4 ce7.uc ' ~ 9 9 639 h a COMMITTEE REPORT TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 76-02 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AUTHORIZING THE PRELIMINARY ISSUANCE OF BONDS TO EVIDENCE A LOAN FROM THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT BROWNFIELDS CLEANUP REVOLVING LOAN FUND ADMINISTERED BY THE INDIANA DEVELOPMENT FINANCE AUTHORITY, PLEDGING A PORTION OF THE CITY'S COUNTY OPTION INCOME TAX REVENUES TO SECURE SUCH BONDS, AND OTHER MATTERS CONNECTED THEREWITH Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation as substituted as follows: Paragraph one: Add Brownfield and change know to known. Paragraph two: Add non-time critical removal activities and other general environmental. Paragraph three: add the word general. Paragraph eight: change Resolved to Ordained. Karl King Chairman BARNES &THORNBURG Alan B. Feldbaum (574) 237-1114 Email: alan.feldbaumC~btlaw.com VIA HAND DELIVERY South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 Dear Council Members: 6001st Source Bank Center 100 North Michigan South Bend, Indiana 46601-1632 U.S.A. (574) 233-1171 Fax (574)237-1125 www.btlaw.com October 11, 2002 Ann E. Kolata, Senior Redevelopment Specialist for the City of South Bend, has previously delivered to you a proposed Ordinance indicating the intent of the Council to conduct remediation activities at the Frederickson Park site. The Indiana Department of Environmental Management has requested certain changes to the proposed Ordinance, and such changes are incorporated into the revised Ordinance which is enclosed herewith (these are the same changes that were made in the related Resolution that you adopted on September 23rd). Please note that we are also enclosing a "black-lined" version of the proposed Ordinance noting the changes from the original Ordinance. Please feel free to contact Ann Kolata or me if you have any questions concerning the proposed Resolution. Very truly yours, BARNES & THORNBURG Alan B. Feldbaum ABF:Ies Enclosures cc: Ann E. Kolata SBDS02 ABF 2583532 F1[ed in Ct~rk'~ ~ffsc~ OCT ~ ~ 2002 I.OEt87TA J. GLro."a Indianapolis Fort Wayne South Bend Elkhart Chicago Washington, D.C.