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HomeMy WebLinkAboutAuthorizing the issuance and sale of an aggregate principal amount not to exceed one million five hundred thousand dollars ($1,500,000), Indiana variable rate Economic Development ORDINANCE No. Passed by the Common Council of the City of South Bend, Indiana, August 24, 19 98 Attest: Attest: Presented by me to the Mayor of the Ciry of South Bend, Indiana August 26, 8929-98 ry Clerk President of Common Council 19 98 Ciry Clerk Approved and signed by me August 27, 19 98. Mayor ORDINANCE NO. ! ~~ ~~~ AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEID ONE MILLION FIVE HUNDRID THOUSAND DOLLARS ($1,500,000) OF CITY OF SOUTH BEND, INDIANA VARIABLE RATE ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1998 (SGW REALTY LLC PR03ECT); DESIGNATING THE BONDS AS LIlVIITED OBLIGATIONS OF THE CITY; APPROVING THE FORM OF, AND AUTHORIZING THE EXECUTION AND DELIVERY OF, THE TRUST INDENTURE, LOAN AGREEMENT AND OTHER DOCUMENTS RELATED TO THE ISSUANCE AND SALE OF THE BONDS; AND AUTHORIZING PROPER OFFICERS TO DO ALL OTHER THINGS DEEMED NECESSARY OR ADVISABLE IN CONNECTION THEREWITH AND APPROVING AND AUTHORIZING OTHER ACTIONS IN RESPECT THERETO. STATEMENT OF PURPOSE AND INTENT The City is a political subdivision of the State of Indiana, and by virtue of Title 36, Article 7, Chapters 11.9 and 12, of the Indiana Code, as amended (the "dam"), is authorized and empowered to adopt this Ordinance and to carry out its provisions. The South Bend Economic Development Commission (the "Commission") has rendered its report concerning the proposed financing of economic development facilities for SGW Realty LLC (the "Borrower"). The Commission, after a public hearing held on August 21, 1998, has adopted a Resolution, which has been transmitted to this Council, (i) finding that the acquisition, construction and equipping by the Borrower of the proposed economic development facilities to be financed (the "PrQi~GI") will not have an adverse competitive effect on any similar facilities already constructed or operating in or about the City, (ii) further finding that the proposed financing of such facilities will be of benefit to the health and general welfare of the City and its citizens, (iii) further finding that the proposed financing of such facilities complies with the purposes and provisions of the Act, (iv) approving the financing of such facilities, including the form and terms of the Loan Agreement, the Bonds from the City to the bondholders and the Trust Indenture, more fully described below, and this Ordinance, presented to the Commission, and (v) recommending that this Council find that the proposed financing of such facilities will be of benefit to the health and general welfare of the City and its citizens, and complies with the purposes and provisions of the Act, and that this Council adopt an ordinance approving such financing. This Council believes it is in the best interests of the City and its citizens to provide a program for financing economic development facilities for developers or users thereof through the issuance of taxable or tax-exempt bonds. The City, as requested by the Borrower, has determined to issue, sell and deliver City of South Bend, Indiana, Multi-Mode Variable Rate Economic Development Revenue Bonds, Series 1998 (SGW Realty LLC Project) in an aggregate principal amount not to exceed $1,500,000 to make funds available for the Project (the "Bonds"). There have been submitted to this Common Council (the "Council") proposed forms of: (i) the Trust Indenture (the "Irwiertture") between the City and National City Bank of Indiana, as trustee (the "Trustee"), pursuant to which the Bonds will be issued; and (11) the Loan Agreement (the "Loan Agreement") between the City and the Borrower. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AS FOLLOWS: SECTION 1. Incorporation of Recitals. The recitals contained in this Ordinance are true and correct and are incorporated in this Ordinance by this reference. SECTION 2. Findings: Public Benefits. This Council finds that the facilities to be financed as described in said Loan Agreement are "economic development facilities" within the meaning of the Act and that such facilities will not have an adverse competitive effect on any similar facilities already constructed or operating in or about the City. This Council further finds that the proposed financing of such facilities will be of benefit to the health and general welfare of the City and its citizens. This Council further finds that the proposed financing of such facilities complies with the purposes and provisions of the Act. SECTION 3. Issuance of the Bonds. The Council hereby authorizes the issuance of an aggregate principal amount not to exceed $1,500,000 of the Bonds by the City, for the purpose of procuring funds to loan to the Borrower in order to finance the Project, costs of issuance of the Bonds, and expenses related thereto. The Bonds shall be dated the date of issuance, and shall be fully registered without coupons. The Bonds shall be payable in the medium and at the place or places, shall bear interest, shall have maturities not exceeding twenty (20) years from the date of issuance and shall have redemption terms as set forth in the Indenture approved by the Mayor (the "Executive") and the City Clerk (the "Clerk"). The Bonds shall be executed on behalf of the City by, and bear the manual or facsimile signature of, the Executive and Clerk, and the seal of the City shall be thereunto affixed (or imprinted or engraved if in facsimile). The Bonds shall be in the form set forth in the final form of the Indenture. SECTION 4, jimited Obligation. THE BONDS AND THE IINTERFST THEREON DO NOT AND SHALL NEVER CONSTITUTE AN INDEBTEDNESS OF, OR A CHARGE -2- AGAINST THE GENERAL CREDIT OR TAXING POWER OF, THE CITY, BUT ARE LIMITED OBLIGATIONS OF THE CITY PAYABLE SOLELY FROM REVENUES AND OTHER AMOUNTS DERIVED FROM THE LOAN AGREEMENT. SECTION 5. A~nroval_ of Fin~n_cing Documents. The Indenture and the Loan Agreement are hereby approved in the forms submitted to this meeting, and a copy of each such document shall be kept on file by the Clerk. The Executive and the Clerk are hereby authorized and directed to execute and deliver such documents without further approval of the Council in substantially the forms herein approved with such additions, deletions and modifications thereto as may be approved under the Act, the execution thereof being conclusive evidence of such approval and of the approval of the Council; and the Clerk, or any authorized representative of the City, is hereby authorized and directed to affix the seal of the City to such documents and to attest the same. Two copies of the Indenture and the Loan Agreement, hereby incorporated into this Ordinance, were duly filed in the Office of the Clerk and are available for public inspection in accordance with Section 36-1-5-4 of the Indiana Code. SECTION 6. Trustee. National City Bank of Indiana is hereby appointed as the initial Trustee under the Indenture. SECTION 7. Delivery of Bonds. After execution on behalf of the Executive and the Clerk, the Bonds shall be delivered to the Trustee, which is hereby authorized and requested to authenticate and deliver the Bonds to or upon the order of the purchaser thereof, or to any depository, in accordance with and upon compliance with the provisions of the Indenture. SECTION 8. State Securities Law Actions. The Executive and the Clerk are hereby authorized in the name and on behalf of the City to take any and all action which the Executive and the Clerk may deem necessary or advisable with the advice of counsel for the City in order to effect the registration or qualification (or exemption therefrom) of the Bonds for issue, offer, sale or trade under the Blue Sky or securities laws of any of the states of the United States of America and in connection therewith, to execute, acknowledge, verify, deliver, file or cause to be published any applications, reports, consents to service of process and other papers and instruments which may be required under such laws, and to take any and all further action which such official of the City may deem necessary or advisable in order to maintain any such registration or qualification for as long as the Executive and the Clerk deem necessary or as required by law, provided, however, the Executive and the Clerk need not consent to service of process in any jurisdiction other than the State of Indiana. SECTION 9. Other Action. The Executive and the Clerk are hereby authorized and directed to execute and deliver, in the name and on behalf of the City, any and all additional documents and instruments necessary or proper and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by this Ordinance (including the recitals hereto and the documents mentioned herein) and the issuance and sale of the Bonds, including without limitation the execution of a purchase contract with NatCity Investments, Inc. to underwrite the sale of the Bonds, and deeming final the portions of an official -3- statement relating to the City and finalizing such document in the form of a final official statement, all in accord with applicable laws. The Executive and Clerk may, by their execution of the documents requiring their signatures or imprinting of their facsimile signatures thereon, approve changes therein and also in those documents which do not require the signature of the Executive and/or Clerk without further approval of this Council if such changes do not affect terms set forth in Indiana Code Title 36, Article 7, Chapter 12, Section 27(a)(1) through (a)(10). SECTION 10. No Personal L.iabilit~. No stipulation, obligation or agreement herein contained or contained in the Indenture, the Loan Agreement, the Bonds or in any other agreement or document executed on behalf of the City shall be deemed to be a stipulation, obligation or agreement of any member of the Council, or any officer, agent or employee of the City in his or her individual capacity, and no such member of the Council, officer, agent or employee shall be personally liable on the Bonds or be subject to personal liability or accountability by reason of the issuance thereof. SECTION 11. Action pDroved and Confirmed. All acts of the officers of the City which are in conformity with the purpose and intent of this Ordinance and in the furtherance of the issuance of the Bonds and the execution, delivery and performance of the documents and agreements authorized hereby aze in all respects ratified, approved and confirmed. SECTION 12. Seve~. If any provision of this Ordinance shall be held or deemed to be illegal, inoperative or unenforceable, the same shall not affect any other provision or cause any other provision to be invalid, inoperative or unenforceable to any extent whatsoever. SECTION 13. No Conflict. Any ordinances, resolutions or orders or parts thereof in conflict with this Ordinance are to the extent of such conflict hereby repealed. SECTION 14. Effective Date. This Ordinance shall be in full force and effect from and after its passage and compliance with Indiana law. PASSED AND ADOPTED by the Common Council of the City of South Bend, Indiana this 24th day of August, 1998. COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA By. ~ - / Member of the Common Council SBDS02 PXF 1487'26 1st READING D' ~Q'~U PU~L!C HcARWG ~'.2 ~~~~~ 3 rd REA.D:PdG ~j ~,z ~~~ ' j NOT APPROVED RE ER!;ED PASSED ~r2 y,. ~ f -4- J U L 2 9 5~9 LCi ! TT'C~ J. GU~7:'a CPfl'CL~~raa, w9. ~"t;D, I'~. COMMITTEE REPORT TO THE COMMON COUNCII, OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BII.L NO. 59-98 A BILL AUTHORIZING THE ISSUANCE AND SALE OF AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED ONE MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000) OF CITY OF SOUTH BEND, INDIANA VARIABLE RATE ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1998 (SGW REALTY LLC PROJECT); DESIGNATING THE BONDS AS LIMITED OBLIGATIONS OF THE CITY; APPROVING THE FORM OF, AND AUTHORIZING THE EXECUTION AND DELIVERY OF, THE TRUST INDENTURE, LOAN AGREEMENT AND OTHER DOCUMENTS RELATED TO THE ISSUANCE AND SALE OF THE BONDS; AND AUTHORIZING PROPER OFFICERS TO DO ALL OTHER THINGS DEEMED NECESSARY OR ADVISABLE IN CONNECTION THEREWITH AND APPROVING AND AUTHORIZING OTHER ACTIONS IN RESPECT THERETO Respectfully report that they have examined the matter and that in their opinion, this bill has been recommended to the Council favorably. John Broden Chairman