HomeMy WebLinkAbout2016-R-1RESOLUTION NO.
RESOLUTION OF THE COMMON COUNCIL OF THE CITY
OF JEFFERSONVILLE, INDIANA, APPROVING THE
ISSUANCE OF LEASE RENTAL REFUNDING BONDS BY
THE JEFFERSONVILLE REDEVELOPMENT AUTHORITY
AND OTHER MATTERS RELATED THERETO
WHEREAS, the Jeffersonville Building Corporation ("Corporation") has issued its First
Mortgage Bonds, 2006, Series A, B and C ("Refunded Bonds") pursuant to a Trust Indenture
between the Corporation and MainSource Bank, dated December 1, 2006;
WHEREAS, the Corporation, as lessor, entered into three leases with the City of
Jeffersonville, Indiana ("City"), as lessee, each executed on December 28, 2006 (collectively,
"Original Lease");
WHEREAS, the Jeffersonville Redevelopment Authority ("Authority") and the
Jeffersonville Redevelopment Commission ("Commission") have determined that entering into a
lease agreement ("2016 Lease") and proceeding with the advance refunding of the Refunded
Bonds will effect an interest cost savings and reduce the annual lease payments due under the
Original Lease;
WHEREAS, the professionals employed by the City have advised the Authority, the
Commission and the Common Council to refund the Refunded Bonds with the 2016 Lease
instead of utilizing the Corporation as the lessor and such professionals have further advised that
only the 2016 Lease is necessary to replace the Original Lease;
WHEREAS, the Authority has determined to issue is Economic Development Lease
Rental Refunding Bonds, Series 2016 ("2016 Bonds") to refund the Refunded Bonds and pay
costs of issuance of the 2016 Bonds;
WHEREAS, pursuant to IC 36-7-14.5-19(a) and IC 36-7-14-25.2(c), the Common
Council is required to approve the issuance of the 2016 Bonds by the Authority and certain terms
of the 2016 Lease and the 2016 Bonds; and
WHEREAS, pursuant to IC 36-7-14.5-21(b) and (c), the Authority must obtain the
approval of the Common Council to enter into a trust indenture ("2016 Indenture") and any
pledge or assignment made therein;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE
CITY OF JEFFERSONVILLE, INDIANA, THAT:
Section 1. The Common Council hereby approves the issuance of the 2016 Bonds to
finance the refunding of the Refunded Bonds and the incidental costs associated therewith,
including funding of a debt service reserve, if necessary and costs of issuance, in an aggregate
principal amount not to exceed $8,000,000, at a purchase price of not less than 99% of the par
value thereof, with a term ending no later than eleven (11) years after the date of issuance of the
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2016 Bonds and a maximum interest rate of five percent (5%) per annum (actual rates will be
determined by negotiation).
Section 2. The 2016 Bonds maturing on February 15, 2026, and thereafter, are
redeemable at the option of the Commission, on August 15, 2025, or any date thereafter, on
thirty (30) days' notice, in whole or in part, in the order of maturity as determined by the
Commission and by lot within maturities, together with no premium, plus accrued interest to the
date fixed for redemption, and shall be subject to mandatory sinking fund redemption as
determined upon the sale of the 2016 Bonds.
Section 3. The Common Council hereby approves the execution of the 2016
Indenture by the Authority with MainSource Bank and hereby ratifies and approves the pledge
of: (i) the funds established by the 2016 Indenture; (ii) the interest earnings on such funds; and
(iii) the lease rentals provided for under the 2016 Lease.
Section 4. The Common Council hereby approves the 2016 Lease and amendments
thereto with a maximum annual lease rental of $870,000, plus $5,000 for trustee and other
administrative fees, for a maximum term not to exceed eleven years.
Section 5. Providing for the sale of the 2016 Bonds to refund the Refunded Bonds to
reduce lease rentals and produce a savings is in the public interest of the citizens of the City and
it is a proper public purpose for which the Common Council agrees to cooperate with the
Authority to assist in fulfilling the requirements of all agencies of the federal, state and City
government.
Section 6. This resolution shall be in full force and effect from and after its passage
and execution by the Mayor.
PASSED AND ADOPTED by the Common Council of the City of Jeffersonville,
Indiana, this 25th day of January, 2016.
COMMON COUNCIL OF THE CITY OF
JEFFERSONVILLE, INDIANA
Clerk
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Presented by me to the Mayor of the City of Jeffersonville, Indiana, on the 4 day of
, 2016.
I�e
Clerk
Presented to and approved by me, the Mayor of the y y of Jeffersonville, Indiana, and
signed thisc day of J 2016.
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Mayor
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