08-12-74 Council Meeting Minutes

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REGULAR MEETING AUGUST 12, 1974 REGULAR MEETING - RECONVENED (CONTINUED) RESOLUTION NO. 438 -74 (CONTINUED) WHEREAS, by resolution the Commission has found that the financing of certain economic development facilities ( "the Project ") to be located in the City complies with the purposes and provisions of the Act and has approved.the financing, including the form and terms of the necessary documents; and WHEREAS, said resolution has been transmitted by the Commission to the Common Council of the City together with this form of city resolution; and WHEREAS, the City is authorized under the Act to acquire, own, lease and sell economic development facilities; to issue revenue bonds secured by a mortgage on all or any part of the facilities and payable solely from the revenues derived from the leasing or other disposition of the facilities thus acquired or constructed through the issuance of such revenue bonds; and WHEREAS, at or before the time of the issuance of any of said revenue bonds the City will enter into a Lease of the Project dated February 1, 1974 ( "the Lease ") with Marilyn Brown, Rael F. Brown, Shirley B. Waks and Beatrice L. Nevel, and St. Joseph Insurance Agency, Inc., or any of them, doing business as St. Joseph -Brown Building Company ( "the Company "), an Indiana general partnership; and the Company will enter into a Sublease of the Project with St. Joseph Bank and Trust Company dated February 1, 1974 ( "the Sublease "); and WHEREAS, the City has determined that the amount necessary to pay the cost of acquiring and constructing the Project, including necessary expenses incidental thereto, requires that revenue bonds of the City in the principal amount of $995,000 be authorized as hereinafter provided; and WHEREAS, the City has made the necessary arrangements for the issuance and sale of such revenue bonds; and WHEREAS, it is necessary, in connection with the issuance and sale of said bonds, that the City execute and deliver an Indenture of Mortgage and Trust dated as of February 1, 1974 ( "the Indenture ") to Indiana Bank and Trust Company of Fort Wayne, Fort Wayne, Indiana, as Trustee for the bondholders ( "the Trustee "): NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, as follows: Section 1. The financing and construction of the Project in accordance with the plans and specifications referred to in the Indenture and the leasing of the Project to the Company and the subleasing of the Project to St. Joseph Bank and Trust Company by the Company as hereinafter provided are hereby authorized and determined to be in the public interest and in furtherance of the public purposes contemplated by the Act and will be of direct benefit to the health and welfare of the City and its citizens. Section 2. For the purpose of acquiring and constructing the Project, including necessary expenses incidental thereto, there are hereby authorized to be issued the bonds of the City in the principal sum of $995,000, which bonds shall be designated Economic Development Revenue Bonds, Series 1974 (One Plaza Place Building) ( "the Series 1974 Bonds "), and shall be payable in lawful money of the'United States of America at the main office of the Trustee, or its successor in trust under the provisions of the Indenture. The Series 1974 Bonds shall be issuable as coupon bonds; registrable as to principal only, or as to principal and interest; $5000 denomination; dated February 1, 1974, shall bear interest at the rate of 6 7/8% per annum unless it is determined by a court or governmental agency having jurisdiction that interest on the 1974 Bonds except 1974 Bonds held by any "substantial user" of the Project or any "related person" is includable in gross income in accordance with Section 103(c) of the Internal Revenue Code, in which event the Series 1974 Bonds shall.bear 9 1/4 %, all as provided in the Indenture; shall be numbered, shall mature, and shall be subject to redemption prior to maturity at the time, under the circumstances, in the manner, at the prices and with the effect, all as provided in the Indenture. The Series 1974 Bonds shall be limited obligations of the City as provided in the Act, the principal of and interest on which shall be payable solely from the income, revenues and property of the Project. Neither the State of Indiana nor any political subdivision thereof shall in any event be liable for the payment of the principal or interest on the Series 1974 Bonds or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever of the City, and none of the Series 1974 Bonds nor any of the City's agreements or obligations shall be construed at any time or in any manner to pledge the general credit or taxing power of the City. Nothing in this resolution or in the Lease, the Sublease or the Indenture shall be construed as an obligation or commitment by the City to expend any of its funds other than (i) the proceeds of the sale of the Series 1974 Bonds, (ii) the income and revenues derived from the Project, (iii) any proceeds accruing to the City of insurance on the project, (iv) any proceeds accruing to the City on account of any taking or con- demnation of title to the whole or any part of the Project, and (v) any money arising out of the investment or reinvestment of said proceeds, income, revenues or monies. Section 3. Each of the Series 1974 Bonds shall be executed in the name of the City by the facsimile signature of the Mayor, shall be attested by the City Clerk, shall have the corporate seal of the City impressed thereon and shall be authenticated by the endorsement of the Trustee. Interest coupons attached to the Series 1974 Bonds shall be executed with the facsimile signatures of the Mayor and City Clerk.