HomeMy WebLinkAboutRevenue Bonds McCormick & Co Inc ProjectORDINANCE No. 5986 -76
Passed by the Common Council of the City of South Bend,
24, ,,, 76
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Presented by me to the Mayor of the City of South Bend,
Clerk
IRENE K. GAMMON
of Common Council
25 ,,,76
Clerk
IRENE K. GAMMON
Approved and signed by me 92q., 29, 19710
(6)
AN ORDINANCE AUTHORIZING THE CITY OF SOUTH BEND TO
ISSUE ITS "ECONOMIC DEVELOPMENT FIRST MORTGAGE
REVENUE BONDS, SERIES 1976 (McCORMICK & COMPANY,
INCORPORATED PROJECT)" AND APPROVING AND AUTHORIZING
OTHER ACTIONS IN RESPECT THERETO.
ORDINANCE NO. es(l $'6 -7 6
WHEREAS, the South Bend Economic Development Commission has
rendered its Project Report for the McCormick & Company, Incorpo-
rated Project regarding the financing of proposed economic develop-
ment facilities for McCormick & Company, Incorporated and the Area
Plan Commission of St. Joseph County has commented favorably thereon;
and
WHEREAS, the South Bend Economic Development Commission conduc-
ted a public hearing on May 24, 1976 and also adopted a Resolution
on May 24, 1976, which Resolution has been transmitted hereto,
finding that the financing of certain economic development facili-
ties of McCormick & Company, Incorporated complies with the pur-
poses and provisions of I.C., 18 -6 -4.5 and that such financing will
be of benefit to the health and welfare of the City of South Bend
and its citizens; and
WHEREAS, the South Bend Economic Development Commission has
heretofore approved and recommended the adoption of this form of
Ordinance by this Common Council and has approved the forms of
and has transmitted for approval by this Common Council the Lease
Agreement,Mortgage and Indenture of Trust, Guaranty Agreement,
Construction Letter, Purchase Contract and Disclosure Materials
Packet; now therefore,
BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA,THAT:
Sectionl. It is hereby found that the financing of the
economic development facilities referred to in the Lease Agreement
approved by the South Bend Economic Development Commission and
presented to this Common Council, the issuance and sale of revenue
Fonds, the use of the net proceeds thereof for the acquisition and
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construction of such facilities and the equipping thereof, the
lease of said facilities to McCormick & Company, Incorporated,
the payment of the revenue bonds by the rent payments of McCormick
& Company, Incorporated under the Lease Agreement, and the securing
of said bonds by the mortgaging of such facilities to the Trustees
under the Mortgage and Indenture of Trust and the guaranty of the
payment thereof by McCormick & Company, Incorporated to the Trustee
under the Guaranty Agreement complies with the purposes and provisions
of I.C., 18 -6 -4.5 and will be of benefit to the health and welfare
of the City of South Bend and its citizens.
Section 2. The forms of the Lease Agreement, Mortgage and
Indenture of Trust, Construction Letter, Guaranty Agreement, Pur-
chase Contract and Disclosure Materials Packet approved by the
South Bend Economic Development Commission are hereby approved and
all such documents (herein collectively referred to as the "Fi-
nancing Agreement" referred to in I.C., 18- 6- 4 -.5), shall be incor-
porated 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 First Mortgage Revenue Bonds, Series 1976 (McCormick
& Company, Incorporated Project), in the total principal amount
of Three Million Three Hundred and Fifty Thousand Dollars ($3,350,000.00)
for the purpose of procuring funds to pay the costs of acquisition,
construction and equipping of the economic development facilities,
as more particularly set out in the Mortgage and Indenture of Trust
and Lease Agreement incorporated herein by reference, which bonds
will be payable as to principal, premium, if any, and interest from
the rental payments made by McCormick & Company, Incorporated under
the Lease Agreement and from other revenue and income realized
under the Lease Agreement, or as otherwise 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.
Section 4. The Mayor, City Clerk and Controller are authorized
and directed to sell such bonds to the purchasers thereof at a rate
of interest on the bonds not to exceed 7% per annum and at a price
of 98.6% of the principal amount thereof, of which Two Million Eight
Hundred and Fifty Thousand Dollars ($2,850,000.00) bears a bond dis-
count of 1 %.
Section 5. The Mayor, City Clerk and Controller 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 herein.
The signatures of the Mayor, City Clerk and Controller on the bonds
and coupons may be facsimile signatures. The Controller is au-
thorized to arrange for delivery of such bonds to the Trustee
named in the Mortgage and Indenture of Trust, payment for which
will be made to the Trustee named in the Mortgage and Indenture of
Trust and delivered by the Trustee to the purchasers thereof.
Section 6. The provisions of this 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 First Mortgage Revenue Bonds, Series
1976 (McCormick & Company, Incorporated Project), and after the
issuance of said bonds, this Ordinance shall not be repealed or
amended in any respect which would aversely affect the rights of
such holders so long as any of said bonds or the interest thereon
remains unpaid.
Section 7. This Ordinance shall be in full force and effect
from and after its passage and signed by the Mayor.
Passed, as amended, May 24, 1976