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HomeMy WebLinkAboutAuthorizing the Char-King IncORDINANCE No. 5936 -75 Passed by the Common Council of the City of South Bend, December 15 19 75 7if Clerk IRENE K. GAMMON Of Common Council Presented by me to the Mayor of the City of South Bend, Approved and signed by December 16 i9 7 IRENE K. GAMMON Clerk ORDINANCE OF THE CITY OF SOUTH BEND AUTHORIZING THE ISSUANCE AND SALE OF REVENUE BONDS FOR THE PURPOSE OF LOANING THE PROCEEDS TO CHAR -KING, INC. FOR THE CONSTRUCTION OF CERTAIN INDUSTRIAL FACILITIES AND OTHER MATTERS RELATING THERETO ORDINANCE NO. WHEREAS, the South Bend Economic Development Commission has rendered its Report Making Certain Estimates on the financing of proposed economic develop- ment facilities for Char -King, Inc. and the South Bend Plan Commission has commented favorably thereon; and WHEREAS, the South Bend Economic Development Commission, after public hearing, adopted a resolution on the same date, which resolution has been previously transmitted hereto, finding that the financing of certain economic development facilities for Char -King, Inc. complies with the purposes and pro- visions of I.C. (1971) 18- 6 -4.5, as amended, and that such financing will be of benefit to the health and welfare of the City and its citizens; and 'HEREAS, the South Bend Economic Development Commission has heretofore approved and recommended the adoption of the proposed form of ordinance by this Common Council; now therefore: BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA: Section 1. It is hereby found that the financing of the economic develop- ment facilities referred to in the Loan Agreement, previously approved by the South Bend Economic Development Commission and presented to this Common Council, the issuance and sale of revenue bonds, the use of the net proceeds thereof to loan to Char -King, Inc. for the acquisition and construction of such facilities, the payment of the revenue bonds by the Note payments of Char -King, Inc. under the Loan Agreement and Note, and the securing of said bonds by the mortgaging of such facilities to the Trustee under the Mortgage and Indenture of Trust will be of benefit to the health and welfare of the City of South Bend, and its citizens. It is further found that the proposed facilities will not have an adverse competitive effect on similar facilities already constructed and operating in the City of South Bend, Indiana. Section 2. The forms of the Loan Agreement, Note and Mortgage and Inden- ture of Trust approved by the South Bend Economic Development Commission are hereby approved and all such documents (hereinafter collectively referred to as the "Financing Agreement" referred to in I.C. (1971) 18- 6 -4.5, as amended) shall be incorporated herein by reference and shall be inserted in the minutes of the Common Council and kept on file by the City Clerk. Section 3. The City of South Bend shall issue its Economic Development Revenue Bonds (Char -King, Inc. Project) in the total amount of One Million One Hundred Thousand Dollars ($1,100,000.00) for the purpose of procuring funds to loan to Char -King, Inc. to pay the costs of acquisition and construction of the economic development facilities as more particularly set out in the Mortgage and Indenture of Trust and Loan Agreement incorporated herein by reference, which bonds will be payable as to principal, premium, if any, and interest from the Note payments made by Char -King, Inc. under the Loan Agreement and Note and from other revenues and income realized under the Loan Agreement, or as other- wise provided in the above described Mortgage and Indenture of Trust. The Bonds shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of the City of South Bend, Indiana. Section 4. The City Clerk is authorized and directed to sell such bonds to St. Joseph Bank and Trust Company, at a rate of interest on the bonds not to exceed 7 -3/4% per annum and at a price of 100% of the principal amount thereof. The bonds shall be issuable as fully registered bonds without coupons; dated December 15, 1975, and to mature on December 15 of each of the years and in the principal amounts as follows: Year Principal Amount 1976 $45,000 1977 45,000 1978 50,000 1979 50,000 1980 55,000 1981 60,000 1982 65,000 1983 70,000 1984 75,000 1985 80,000 1986 85,000 1987 95,000 1988 100,000 1989 110,000 1990 115,000 $1,100,000 Section 5. The Mayor and City Clerk are authorized and directed to execute the documents constituting the Financing Agreement approved herein on behalf of the City of South Bend and any other document which may be necessary or desirable to consummate the transaction, including the bonds authorized here- in. The signatures of the Mayor and the City Clerk on the bonds may be manual or facsimile signatures. The City Clerk is authorized to arrange for delivery of such bonds to the purchaser thereof, payment for which will be made to the Trustee named in the Mortgage and Indenture of Trust. The Trustee is hereby authorized to receive and receipt for the proceeds of said bonds on behalf of the City and to hold, invest and disburse said proceeds in accordance with the provisions of the indenture. Section 6. The provisions of the Ordinance and the Mortgage and Indenture of Trust securing the bonds shall constitute a contract binding between the City of South Bend and the holder of the Economic Development Revenue Bonds (Char -King, Inc. Project), and after the issuance of said bonds, this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of such holders so long as any of said bonds or the interest there- on remains unpaid. Section 7. This Common Council hereby elects to have the provisions of Section 103 (c) (6) (D) of the Internal Revenue Code of 1954, as amended, applied to the One Million One Hundred Thousand dollar ($1,100,000.00) principal amount of the bonds herein authorized; and that the Mayor and City Clerk be and they hereby are authorized, empowered and directed to take any and all further action which may be required to implement and effectuate such election, including without limita- tion the preparation and filing of such a statement or statements or other docu- ment or documents as may be deemed by them to be necessary or advisable in order to comply with the procedures set forth in Section 1.103 -10 (b)(2)(VI) of the Income Tax Regulations (26 CFR Part 1) under Section 103 of the Internal Revenue Code of 1954, as amended. Section 8. The provisions of this Ordinance are hereby declared to be separable and if any section, phrase or provision shall for any reason be declared by a court of competent jurisdiction to be invalid or unenforceable, such declar- ation shall not affect the validity of the remainder of the Sections, phrases and provisions hereof. Section 9. All orders and Ordinances and parts thereof in conflict herewith are to the extent of such conflict hereby repealed, and this Ordinance shall take affect and be in full force immediately upon its adoption and signing by the Mayor. Counci man ' Passed and adopted by the Common Council of the City of South Bend, Indiana, on the 15th day of December, 1975. Attest: City Clerk Presented by me to the Mayor of the City of South Bend, Indiana, on the 16,-L day of December, 1975, at the hour of -;Z ,b 0 o'clock 9?i� City Clerk Passed December 15, 1975, as amended.