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HomeMy WebLinkAboutAuthorizing issuance of Economic Development Revenue Bonds, Series 1999 (Southfield Village), not to exceed $20,000,000ORDINANCE No. Passed by the Common Council of the City of South Bend, Indiana. 8994-99 March 22, 19 99 Attest: ~ -~ LORETT J. DU A Attest: C Ciry Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana March 23, 19 99 City Clerk Approved and signed by me March 23, 19 99 Mayor i SUBSTITUTE BILL ORDINANCE NO. 1 1 ' AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ISSUANCE OF ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1999 (SOUTHFIELD VILLAGE, INC. PROJECT), IN ONE OR MORE SERIES IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED TWENTY MILLION DOLLARS ($20,000,000) AND APPROVING AND AUTHORIZING OTHER ACTIONS IN RESPECT THERETO STATEMENT OF PURPOSE AND INTENT: The South Bend Economic Development Commission (the "Commission") has rendered a Report concerning the financing of economic development facilities described as (i) the acquisition of real property (the "Property"); (ii) the acquisition, construction, installation and equipping of a senior living facility consisting of a sixty (60) bed skilled nursing facility, sixty-four (64) assisted living units, and a multipurpose common area containing a resident activity area, dining area and an administrative office area on said Property; (iii) the construction of an extension to Ridge Trail located in the City so that it intersects with Miami Road and which will be adjacent to such facilities; (iv) establishing a debt service reserve fund for the payment of principal of and interest on the Bonds; (v) paying a portion of the interest on the Bonds; and (vi) paying certain costs associated with the issuance of the Bonds (collectively, the "Project"). The Property on which the Project will be constructed is located in the City and is southeast of the intersection of Miami and Kern Roads, west of Southfield Circle and south of Ridge Trail (once extended from Southfield Circle to Miami Road). The Project will be owned and operated by Southfield Village, Inc., an Indiananonprofiteorporation (the "Borrower"). On March 8,1999, the Common Council of the City (the "Council") adopted an inducement resolution relating to the proposed financing of the Project (the "Inducement Resolution"). The Borrower is now prepared to proceed with the proposed Project as described in the Council's Inducement Resolution. The Commission, after a public hearing, adopted a resolution, which resolution has been previously transmitted hereto, finding that the financing of the Proj ect of the Borrower complies with the purposes and provisions of IC 36-7-11.9 and 36-7-12 and that such financing will be of benefit to the health, prosperity, economic stability and general welfare of the Cit}~ and its citizens. The Commission also has approved by resolution the substantially final forms of the Loan ODMAU'CDOCSISBDOCS 133484\6 ~ ~ . . Agreement, the Trust Indenture, the Preliminary Official Statement, and Bond Purchase Agreement (as such terms are defined in such resolution) (collectively, the "Financing Documents"), which resolution has been transmitted hereto. The City now desires to establish a program for financing economic development facilities pursuant to I.C. 36-7-12-18.5 for the purpose of permitting the funding of working capital expenditures from the proceeds of taxable bonds, if necessary. No member of the Council has any pecuniary interest in any employment, financing agreement or other contract made under the provisions of IC 36-7-11.9 and IC 36-7-12 and related to the Bonds authorized herein, which pecuniary interest has not been fully disclosed to the Council and no such member has voted on any such matter, all in accordance with the provisions of IC 36-7- 12-16. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section 1. It is hereby found that the financing of the Project referred to in the Financing Documents previously approved by the Commission and presented to the Oouncil, the issuance and sale of the Bonds, the loan of the net proceeds thereof to the Borrower for the acquisition, construction, installation and equipping of the Project (the "Loan") and the repayment of the Loan by the Borrower will be of benefit to the health, prosperity, economic stability and general welfare of the City and its citizens and complies with the purposes and provisions of IC 36- 7-11.9 and IC 36-7-12. Section 2. The proposed financing and the forms of the Financing Documents approved by the Commission are hereby approved, and all such documents are incorporated herein by reference and shall be inserted in the minutes of the Council and kept on file by the Clerk of the City. The proposed financing constitutes a program financing pursuant to I.C. 36-7-12-18.5. Section 3. The City shall issue the Bonds in one or more series in an aggregate principal amount not to exceed Twenty Million Dollars (S20,000,000) for the purpose of procuring funds to loan to the Borrower, in order to pay the costs of the acquisition, construction, installation and equipping of the Project, as more particularly set out in the Financing Documents incorporated herein by reference, which Bonds will be payable as to principal and interest solely from the payments made by the Borrower on its Series 1999 Notes (as defined in the Financing Documents) which shall be executed and delivered by the Borrower to evidence and secure the Loan and from other sources under the Loan Agreement. Section 4. The Mayor and the Clerk of the City are authorized and directed to sell such Bonds at a rate of interest on the Bonds, which rate shall be as set forth in the Financing Documents and incorporated herein by reference but in no event shall such rate be in excess of ten percent (10.0%) per annum. The Bonds shall have a maximum term of thirty-one (31) years and shall be sold at a price equal to not less than 97% of the par amount of the Bonds, plus accrued ::ODMA\PCDOCS\SBDOCS 1\33A 84\6 -2- interest to the date of delivery of the Bonds, if any. The Bonds shall be subject to optional redemption, extraordinary optional redemption and mandatory sinking fund redemption as set forth in the Financing Documents, provided that, for purposes of determining the terms of such optional redemption, the Bonds shall be subject to optional redemption with a premium of two percent (2%) at ten (10) years, declining thereafter to one percent (1 %) and then to redemption with no premium, it being understood that such optional redemption terms may be adjusted on the date the Bonds are sold if more favorable optional redemption terms may be secured. Section 5. Rule 15c2-12(b)(1) of the Securities Exchange Act of 1934, as amended (the "SEC Rule"), provides that, prior to the time a participating underwriter bids for, purchases, offers or sells municipal securities, the participating underwriter shall obtain and review an official statement that an issuer of such securities deems a "near final" official statement. The Preliminary Official Statement is hereby deemed final as of its date, except for the omission of no more than the following information: the offering prices}, interest rate(s), selling compensation, aggregate principal amount, principal amount per maturity, delivery dates, ratings and other terms of the securities depending on such matters. The Mayor is hereby authorized to execute the Preliminary Official Statement and an Official Statement substantially in the form of the Preliminary Official Statement with such additions or changes thereto as shall be approved by the Mayor executing the same with such execution evidencing approval of such additional changes. The Mayor, the Controller, the Clerk or any other officer of the City familiar with the matters with respect to the City set forth in the Preliminary Official Statement is hereby authorized to certifi~ to the Underwriter (as defined in the Financing Documents) that the information in the Preliminar}~ Official Statement with respect to the City is deemed to be final within the meaning of the SEC Rule prior to the distribution of the Preliminary Official Statement. Section 6. The Mayor and the Clerk are authorized and directed to execute the Loan Agreement, the Trust Indenture, the Bond Purchase Agreement, and the Bonds approved herein on behalf of the City and any other documents which may be necessary or desirable to consummate the transaction and, by their execution of such documents, may approve such further changes therein without further approval of the Commission or the Council excepting, however, such changes as must be approved by the Council and the Commission pursuant to IC 36-7-12-27. The signatures of the Mayor and the Clerk on the Bonds shall be manual or facsimile signatures. The Clerk is authorized to arrange for the delivery of the Bonds as provided in the Bond Purchase Agreement. Section 7. The Bonds shall not constitute a debt or pledge of the faith and credit of the City, the State or any political subdivision thereof, and the holders, or o~~ners thereof shall have no right to have taxes levied by the City, the State or of any political subdivision, for the payment of the principal thereof or interest thereon. Moneys raised by taxation shall not be obligated or pledged for the payment of principal of or interest on the Bonds, and the Bonds shall be payable solely from the revenues and security interests pledged for their payment as authorized by the Trust Indenture. ODMA\PCDOCS\S[3DOCS 1 \33484\6 -~ - Section 8. The provisions of this Ordinance and the Bond Purchase Agreement shall constitute a contract binding between the City and the holders of the Bonds, and after the issuance of the Bonds, this Ordinance shall not be repealed or amended in any respect which would adversely affect the right of such holders so long as any principal of the Bonds or the interest thereon remains unpaid. Section 9. This Ordinance shall be in full force and effect from and after passage b~~ the Common Council and its approval by the Mayor of the City. COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA By: 1 st READING 3- z~R9~ PUi?LiC HEARING 3 rd READING 3.~2, 9 NOT APPROVED F.E. ERRED p PASSED 3--~~`~ / AS S UaST IT11T~Q C'e Member of the Common Council ODMA\PCDOCS\SE3DOCS I\33484\6 -[l- -;~,~? 1 ~ 1°99 CONIlVIITTEE REPORT TO THE CONIMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was refereed: BILL NO. 22-99 A BILL OF THE COMMON COUNCIL OF THE CITY OF BEND, INDIANA, AUTHORIZING THE ISSUANCE OF "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES (SOUTHFIELD VILLAGE, INC. PROJECT), IN ONE SERIES IN AN AGGREGATE PRINCIPAL AMOUNT NOT EXCEED TWENTY MILLION DOLLARS ($20,000,000) APPROVING AND AUTHORIZING OTHER ACTIONS IN THERETO SOUTH ITS 1999 OR MORE TO AND RESPECT Respectfully report that they have examined the matter and that in their opinion, this bill comes to the full Council with a favorable recommendation, as substituted. Charlotte Pfeifer Chairman 1200 COUNTY-CI?Y BUILDING SOUTH BEND, INDIANA 46601-1830 PIIONE 219/235-9278 Fax 219/235-9021 TDD 219/ 235-5567 CITY OF SOUTH BEND STEPHEN J• LUECKE, MAYOR ECONOMIC DEVELOPMENT COMMISSION DONALD E. INKS DIRECTOR March 18, 1999 Mrs. Loretta Duda, Clerk City of South Bend, Indiana County-City Building South Bend, IN 46601 Re: South Bend Economic Development Commission -Southfield Village, Inc. Project Public Hearing -March 22, 1999 Dear Mrs. Duda: I am enclosing herewith an original and several copies of a substitute bill for the public hearing scheduled before the Common Council on March 22, 1999. I will be presenting the substitute bill and will request the Council to file the appropriate motion permitting the substitute bill to be scheduled for public hearing. Respec lly, NNET P. EDDER KPF:ram enc. cc: Randolph Rampola, Esq. t~~AR 1~ ~ 1999 LO~~eT~^~J. G~)s~°~ GATHA VAUGHN CAROLYN ANDERSON CARL ELLISON ROLAND KELLY JERRY HAMMES KENNETH FEDDER PRESIDENT VICE PRESIDENT SECRETARY MEMBER MEMBER LEGAL COUNSEL RESOLUTION NO. OZ '~ . RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION A Resolution Making Certain Findings Relating to the Financing and Refinancing of Certain Economic Development Facilities on Behalf of Southfield Village, Inc., an Indiana Nonprofit Corporation (the "Borrower"), and Approving Such Financing and the Forms of the Documents Related Thereto. WHEREAS, on March 8, 1999, the Common Council (the "Common Council") of the City of South Bend, Indiana (the "City"), adopted an inducement resolution relating to the financing of (i) the acquisition of real property; (ii) the acquisition, construction, installation and equipping of a senior living facility consisting of a sixty (60) bed skilled nursing facility, sixty-four (64) assisted living units, and a multipurpose common area containing a resident activity area, dining area and an administrative office area on said real property; (iii) the construction of an extension to Ridge Trail located in the City so that it intersects with Miami Road and which will be adjacent to such facilities; (iv) establishing a debt service reserve fund for the payment of principal of and interest on the Bonds; (v) paying a portion of the interest on the Bonds; and (vi) paying certain costs associated with the issuance of the Bonds (the "Project"); and WHEREAS, the Borrower is now prepared to proceed with the financing of the Project; and WHEREAS, the South Bend Economic Development Commission (the "Commission") has held a public hearing for itself and on behalf of the City, duly noticed, in connection with the financing of the Project by the Borrower; NOW, THEREFORE, BE IT RESOLVED, by the South Bend Economic Development Commission, as follows: Section 1. The Commission finds that the proposed financing ofthe Project referred to in the forms of (i) the Loan Agreement, by and between the Borrower and the City (the "Loan Agreement"), (ii) the Bond Trust Indenture, by and between the City and Lake City Bank, as Trustee (the "Trust Indenture"), (iii) the Preliminary Official Statement (the "Preliminary Official Statement"), and (iv) the Bond Purchase Agreement, by and between the City and B. C. Ziegler and Company (the "Bond Purchase Agreement" and together with the Loan Agreement, the Trust Indenture, and the Preliminary Official Statement, the "Financing Documents") presented to this meeting complies with the purposes and provisions of IC 36-7-11.9, IC 36-7-12 and will be of benefit to the health, prosperity, economic stability and general welfare of the City and its citizens. Section 2. The proposed financing and refinancing of the Project for the Borrower and the substantially final forms of the Financing Documents relating to the issuance and sale of an aggregate principal amount of not to exceed Twenty Million Dollars ($20,000,000) of Economic Development Revenue Bonds of the City in one (1) or more series for such financing and the form of bond ordinance of the Common Council (the "Ordinance"), all as presented to this meeting, are hereby approved. Section 3. The Mayor and the Clerk of the City are authorized to make such changes in the Financing Documents without the subsequent approval of this Commission or of the Common Council as are necessary or appropriate to effect the intent of this Resolution and as are permissible under IC 36-7-11.9 and IC 36-7-12, all to be evidenced by the execution of the Financing Documents by the Mayor and the Clerk. -2- ::ODMAU'CDOCS\SE3DOCS 1\34495\ 1 Section 4. The Commission has held a hearing open to the public and has subsequently considered whether the Project will have an adverse effect on any similar facilities already constructed and operating in or about the City and makes the following special findings of fact based upon the evidence presented: a. No member of the public or competitor has presented any evidence of any kind establishing .that the Project would have any adverse competitive effect in any respect. b. In the absence of any evidence of any adverse competitive effect, the benefits to the public clearly indicate that the Project should be supported by the issuance of the City's Economic Development Revenue Bonds. Section 5. The Report of the Commission relating to the financing of the Project and the filing thereof is hereby approved and ratified, and the Findings of Fact Regarding the Competitive Impact of the Project Regarding Southfield Village, Inc., attached hereto is hereby approved. Section 6. The Secretary of the Commission shall initial and then insert a copy ofthe forms of Financing Documents approved by this Resolution in the Minute Book of this Commission. Section 7. The filing by the Secretary of this Commission to the Clerk for presentation to the Common Council of a copy of this Resolution and the other documents approved by this Resolution and the form of Ordinance in their substantially final forms is hereby approved and ratified. -3- ODMA\PCDOCS\SBDOCS 1\34495\1 Adopted this 19`h day of March, 1999. SOUTH BEND ECONOMIC COMMISSION Member, South Bend Ecor. Development Commission Member, Sou en conomic Development Commission Member, South Bend Economic Development Commission `\ Member, South Bend Economic Development Commission Member, South Bend Economic Development Commission r~AR ~ ~ ~9~9 LVal:.l~h~4,. C.J~h• ctrr cte,r~,, so. c'~;3,j~.. -4- ::ODMAU'CDOCS\SBDOCS 1 \34495\ I FINDINGS OF FACT REGARDING THE COMPETITIVE IMPACT OF THE PROJECT REGARDING SOUTHFIELD VILLAGE, INC. Based on a careful consideration of evidence and testimony submitted to the South Bend Economic Development Commission, the Commission hereby makes the following findings of fact with respect to the competitive impact on similar facilities already constructed or operating in the City of South Bend, Indiana (the "City"), as a result of a proposed economic development facilities project of Southfield Village, Inc. (the "Borrower") 1. The Project consists of (i) the acquisition ofreal property; (ii) the acquisition, construction, installation and equipping of a senior living facility consisting of a sixty (60) bed skilled nursing facility, sixty-four (64) assisted living units, and a multipurpose common area containing a resident activity area, dining area and an administrative office area on said real property; (iii) the construction of an extension to Ridge Trail located in the City so that it intersects with Miami Road and which will be adjacent to such facilities; (iv) establishing a debt service reserve fund for the payment of principal of and interest on the Bonds; (v) paying a portion of the interest on the bonds referred to herein; and (vi) paying certain costs associated with the issuance of said bonds (the "Project"). 2. The total cost of the Project is presently estimated not to exceed Twenty Million Dollars ($20,000,000), plus incidental costs in connection with the issuance of one or more series of economic development revenue bonds of the City, the proceeds of which will be used to finance the Project. 3. It is presently estimated that upon completion of the acquisition, construction, installation and equipping of the Project the Borrower will result in the creation of approximately seventy-two (72) full-time equivalent permanent jobs with an estimated total annual payroll of $1,700,000 and provide continued future opportunities for employment. 4. The Project will be of benefit to the health, prosperity, economic stability and general welfare of the City and its citizens and complies with the purposes and provisions of IC 36-7-11.9 and IC 36-7-12. 5. The Project will not have an adverse competitive effect on similar facilities already constructed or operating in the City, because, not withstanding similar existing facilities, there continues to be a need for quality senior living facilities in the City. -2- :ODMA\PCDOCS\SBDOCS I\34497\ 1 Adopted this 19"' day of March, 1999. 1VIe er, South Bend Econ 'c Development Commission Member, Sout B nd onomic Development Commission Member, South Bend Economic Development Commission ` ~ 1 ~- . Member, South Bend Economic Development Commission Member, South Bend Economic Development Commission ~, , ~ _ f P•9AR 1 ~ 1959 CITY CLE%;;, ~~.,;^d:~, .; e. -3- ::ODMA\PCDOCS\SBDOCS I \34497\ 1 ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ISSUANCE OF ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1999 (SOUTHFIELD VILLAGE, INC. PROJECT), IN ONE OR MORE SERIES IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EMCEED TWENTY MILLION DOLLARS ($20,000,000) AND APPROVING AND AUTHORIZING OTHER ACTIONS IN RESPECT THERETO STATEMENT OF PURPOSE AND INTENT: The South Bend Economic Development Commission (the "Commission") has rendered a Report concerning the financing of economic development facilities described as (i) the acquisition of real property (the "Property"); (ii) the acquisition, construction, installation and equipping of a senior living facility consisting of a sixty (60) bed skilled nursing facility, sixty-four (64) assisted living units, and a multipurpose common area containing a resident activity area, dining area and an administrative office area on said Property; (iii) the construction of an extension to Ridge Trail located in the City so that it intersects with Miami Road and which will be adjacent to such facilities; (iv) establishing a debt service reserve fund for the payment of principal of and interest on the Bonds; (v) paying a portion of the interest on the Bonds; and (vi) paying certain costs associated with the issuance of the Bonds (collectively, the "Project"). The Property on which the Project will be constructed is located in the City and is southeast of the intersection of Miami and Kern Roads, west of Southfield Circle and south of Ridge Trail (once extended from Southfield Circle to Miami Road). The Project will be owned and operated by Southfield Village, Inc., an Indiana nonprofit corporation (the "Borrower"). On March 8, 1999, the Common Council of the City (the "Council") adopted an inducement resolution relating to the proposed financing of the Project (the "Inducement Resolution"). The Borrower is now prepared to proceed with the proposed Project as described in the Council's Inducement Resolution. The Commission, after a public hearing, adopted a resolution, which resolution has been previously transmitted hereto, finding that the financing of the Project of the Borrower complies with the purposes and provisions of IC 36-7-11.9 and 36-7-12 and that such financing will be of benefit to the health, prosperity, economic stability and general welfare of the City and its citizens. The Commission also has approved by resolution the substantially final forms of the Loan Agreement, the Trust Indenture, the Mortgage, the Preliminary Official Statement, and Bond Purchase Agreement (as such terms are defined in such resolution) (collectively, the "Financing Documents"), which resolution has been transmitted hereto. No member of the Council has any pecuniary interest in any employment, financing agreement or other contract made under the provisions of IC 36-7-11.9 and IC 36-7-12 and related ODMA\PCDOCS\SBDOCS ]133484\3 to the Bonds authorized herein, which pecuniary interest has not been fully disclosed to the Council and no such member has voted on any such matter, all in accordance with the provisions of IC 36-7- 12-16. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section 1. It is hereby found that the financing of the Project referred to in the Financing Documents previously approved by the Commission and presented to the Council, the issuance and sale of the Bonds, the loan of the net proceeds thereof to the Borrower for the acquisition, construction, installation and equipping of the Project (the "Loan") and the repayment of the Loan by the Borrower will be of benefit to the health, prosperity, economic stability and general welfare of the City and its citizens and complies with the purposes and provisions of IC 36-7-11.9 and IC 36-7-12. Section 2. The proposed financing and the forms of the Financing Documents approved by the Commission aze hereby approved, and all such documents aze incorporated herein by reference and shall be inserted in the minutes of the Council and kept on file by the Clerk of the City. Section .The City shall issue the Bonds in one or more series in an aggregate principal amount not to exceed Twenty Million Dollars ($20,000,000) for the purpose of procuring funds to loan to the Borrower, in order to pay the costs of the acquisition, construction, installation and equipping of the Project, as more particularly set out in the Financing Documents incorporated herein by reference, which Bonds will be payable as to principal and interest solely from the payments made by the Borrower on its Series 1999 Notes (as defined in the Financing Documents) which shall be executed and delivered by the Borrower to evidence and secure the Loan and from other sources under the Loan Agreement. Section 4. The Mayor and the Clerk of the City aze authorized and directed to sell such Bonds at a rate of interest on the Bonds, which rate shall be as set forth in the Financing Documents and incorporated herein by reference but in no event shall such rate be in excess of eight percent (8.0%) per annum. The Bonds shall have a maximum term of thirty-one (31) yeazs and shall be sold at a price equal to not less than 97% of the paz amount of the Bonds, plus accrued interest to the date of delivery of the Bonds, if any. Section 5. Rule 15c2-12(b)(1) of the Securities Exchange Act of 1934, as amended (the "SEC Rule"), provides that, prior to the time a participating underwriter bids for, purchases, offers or sells municipal securities, the participating underwriter shall obtain and review an official statement that an issuer of such securities deems a "near final" official statement. The Preliminary Official Statement is hereby deemed final as of its date, except for the omission of no more than the following information: the offering price(s), interest rate(s), selling compensation, aggregate principal amount, principal amount per maturity, delivery dates, ratings and other terms of the securities depending on such matters. The Mayor is hereby authorized to execute the Preliminary Official Statement and an Official Statement substantially in the form of the Preliminary Official ::ODMA\PCDOCS\SBDOCS 1\33484\3 -2- Statement with such additions or changes thereto as shall be approved by the Mayor executing the same with such execution evidencing approval of such additional changes. The Mayor, the Controller, the Clerk or any other officer of the City familiar with the matters with respect to the City set forth in the Preliminary Official Statement is hereby authorized to certify to the Underwriter (as defined in the Financing Documents) that the information in the Preliminary Official Statement with respect to the City is deemed to be final within the meaning of the SEC Rule prior to the distribution of the Preliminary Official Statement. Section 6. The Mayor and the Clerk are authorized and directed to execute the Loan Agreement, the Trust Indenture, the Mortgage, the Bond Purchase Agreement, and the Bonds approved herein on behalf of the City and any other documents which may be necessary or desirable to consummate the transaction and, by their execution of such documents, may approve such further changes therein without further approval of the Commission or the Council excepting, however, such changes as must be approved by the Council and the Commissian pursuant to IC 36-7-12-27. The signatures of the Mayor and the Clerk on the Bonds shall be manual or facsimile signatures. The Clerk is authorized to arrange for the delivery of the Bonds as provided in the Bond Purchase Agreement. Section 7. The Bonds shall not constitute a debt or pledge of the faith and credit of the City, the State or any political subdivision thereof, and the holders, or owners thereof shall have no right to have taxes levied by the City, the State or of any political subdivision, for the payment of the principal thereof or interest thereon. Moneys raised by taxation shall not be obligated or pledged for the payment of principal of or interest on the Bonds, and the Bonds shall be payable solely from the revenues and security interests pledged for their payment as authorized by the Trust Indenture. Section 8. The provisions of this Ordinance and the Bond Purchase Agreement shall constitute a contract binding between the City and the holders of the Bonds, and after the issuance of the Bonds, this Ordinance shall not be repealed or amended in any respect which would adversely affect the right of such holders so long as any principal of the Bonds or the interest thereon remains unpaid. Section .This Ordinance shall be in full force and effect from and after passage by the Common Council and its approval by the Mayor of the City. ::ODMA\PCDOCS\SBDOCSI\33484\3 -3- COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA By: Member of the Common Council FUEL!C FiEA;'.'NG 3 rd READ:~1G PSOT ~?PROVED REFERRED PA55ED :ODMA\PCDOCS\SBDOCS 1\33484\3 _4 120 COUNTY-CITY BUILDING $OUTFI BEND, INDIANA 46601-I83O CITY OF SOUTH BEND STEPHEN,J. LUECKE~ MAYOR ECONOMIC DEVELOPMENT COMMISSION DONALD E. INKS DIRECTOR March 3, 1999 Mrs. Loretta Duda, Clerk City of South Bend, Indiana County-City Building South Bend, IN 46601 PHONE 219/235-9278 FAx 219/235-9021 TDD 219/ 235-5567 Re: South Bend Economic Development Commission -Southfield Village, Inc. Project Inducement Resolution -Reading March 8, 1999 Ordinance -First Reading March 8, 1999 Public Hearing -March 22, 1999 Dear Mrs. Duda: I am enclosing herewith an original and several copies of a proposed Resolution, which I would ask be placed on the Council's Agenda for Monday, March 8, 1999. I will be presenting the Resolution. In addition, enclosed is a form Ordinance for the Southfield Village, Inc. Project. Again I would ask if you might place this on the Council's Agenda for March 8,1999 for first reading, and subsequent public hearing for March 22, 1999. Likewise, I will present the Ordinance. I am enclosing preliminary financing documents. Resp .FEDDER KPF:ram enc. cc: Randolph Rampola, Esq. Filed in Cl~a'~~ s ~ific~ LOpcTfA,O.~ DiD,IPi. Ct7Y CLRRtiC, S GATHA VAUGF{N CAROLYN ANDERSON CARL ELI.ISON IZOLAND KELLY JERRY HAMMES KENNETH FEDDER PRESIDENT VICE PRESIDENT SECRETARY MEMBER MEMBER LEGAL COUNSEL