HomeMy WebLinkAboutAuthorizing Economic Development Bonds American Chain & Cable Co $3,800,000ORDINANCE NO. 5688 -74
AN ORDINANCE AUTHORIZING THE CITY OF SOUTH
BEND TO ISSUE ITS "ECONOMIC DEVELOPMENT BONDS,
SERIES 1974 (AMERICAN CHAIN & CABLE COMPANY,
INC. PROJECT)" IN THE PRINCIPAL AMOUNT OF
THREE MILLION EIGHT HUNDRED THOUSAND DOLLARS
($3,800,000) AND APPROVING AND AUTHORIZING
OTHER ACTIONS IN RESPECT THERETO.
WHEREAS, the South Bend Development Commission has
rendered its Report Making Certain Estimates on the financing of
proposed economid development facilities for American Chain & Cable
Company, Inc., and the Area Plan Commission of St. Joseph County
and thg South Bend Community School Corporation have commented
favorably thereon; and
WHEREAS, the South Bend Development Commission, after
public hearing conducted on May 17, 1974, adopted a Resolution on
that date,.which Resolution has been previously transmitted hereto,
finding that the financing of certain economic development facilities
of American Chain & Cable Company, Inc. complies with the purposes
and provisions of I.C. 1971, 18- 6 -4.5, and that such financing
will be of benefit to the health and welfare of the municipality
and its citizens; and
WHEREAS, the South Bend 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 development facilities referred to in the Lease
Agreement, previously approved by the South Bend Development
Commission and presented to this Common Council, the issuance and
sale of revenue bonds, zhe use of the ryet proceeds thereof for the
acquisition and cc::struction of such facilities and the equipping
thereof, the lease of said facilities to American Chain & Cable
Company, Inc., the payment of the revenue bonds by the rent pay-
ments of P.nerican Cain & Cable Company, Inc, under tha Lease
•
Agreement,a -:d the securing of said bo -.cs by the mortgaging of
such faC il= =e to zhe -'rustee under the Mortgage and Indenture
I
of Trust and the guaranty of the payment thereof by American Chain
& Cable Company, Inc. to the Trustee under the guaranty Agreement,
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 and Underwriting Agreement approved by the
South Bend 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), 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, Series 1974 (American Chain
& Cable Company, Inc. Project), in the total principal amount of
Three Million Eight Hundred Thousand Dollars ($3,800,000) for the
purpose of procuring funds to pay the cost of acquisition, construc-
tion and equipping of the economic development facilities, including
interest during construction, 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 the
American Chain & Cable Company, Inc. under the Lease Agreement and
from other revenues 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 City Controller is authorized and
directed to sell such bonds to Goldman, Sachs & Co. (the "Underwriter ")
at a rate or rates of interest on the bonds not to exceed 7.625%
Pe.- annum and at a price of 98% of the principal amount thereof.
Section 5. The Mayor, City Clerk- and City Controller
are authorized and directed to execute t"-.c cocuments constituting
t:-.e _ Ana nci ng Acreement approved herein on be:-alf of the City of
Scut:: Bend and any other documents which may be necessary or
-2-
Z
desirable to consummate the transaction, including the bonds
authorized herein. The Mayor is also authorized and directed to
execute the final official statement upon printing thereof. The
signatures of the Mayor, City Clerk and City Controller on the bonds
and coupons may be a facsimile signature. The City Controller is
authorized to arrange for.delivery of such bonds to the purchasers
thereof, payment for which will be made to the Trustee named in
the Mortgage and Indenture of Trust.
Section 6. The provisions of the Ordinance and the
Mortgagd -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, Series 1974 (American
Chain & Cable Company, 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 thereon remains unpaid.
Section 7. This Ordinance shall be in full force and
effect from and after its passage by the Common Council and signing
by the Mayor.
President, Common Council
Attest:
Irene K. Ga=oft, Clerk the
City of South Bend
Presented by me to the Mayor of the City of South Bend,
Indiana, on this 11th day of June, 197.
Irene ::. Ga.-::on, Clerk of the
City of South Bend
Approved and signed by me on this day of June, 1974.
Jerry J. Miller, mayor of the
City of South Bend
Passed June 10, 1974, as amended.
-3-