HomeMy WebLinkAbout1985-OR-59 BILL NO.
AN O DINANCE .OF CITY OF JEFFERSONVILLE.
INDIANA AUTHORIZING THE ISSUANCE OF ITS ECONOMIC
DEVELOPMENT REVENUE BONDS, SERIES OF 1985
(SELLERSBURG STONE COMPANY, INC. PROJECT), IN THE
PRINCIPAL AMOUNT OF $1,650,000, TO FINANCE THE
cOST OF ACQUIRING, CONSTRUCTING, AND INSTALLING AN
ECONOMIC DEVELOPMENT FACILITY FOR SELLERSBURG
STONE COMPANY, INC.; AUTHORIZING THE EXECUTION AND
DELIVERY OF [1] A TRUST INDENTURE SECURING SAID
BONDS, [2] A LOAN AGREEMENT RESPECTING SAID
PROJECT BETWEEN THE CITY, AS LENDER, AND SAID
COMPANY AS BORROWER, PROVIDING FOR LOAN REPAYMENTS
SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON
SAID BONDS AS THE SAME BECOME DUE, AND [3] A BOND
PURCHASE AGREEMENT PROVIDING FOR THE SALE OF SAID
BONDS; AND TAKING OTHER RELATED ACTION.
Recitals
A. The City of jeffersonville, Indiana (the
"City") is a municipal corporation and city of the third
class organized and existing under the laws of the State of
Indiana (the "State") and as such is authorized under the
Economic
Development and Pollution Control Act, as amended,
IC 36-7-11.9 and 12 (the "Act"),
development revenue bonds and loan
any person to finance the costs ,of acquiring,
and installing an "economic development
defined in the Act), including specifically
manufacturing, warehousing, distribution of,
to issue its economic
the proceeds thereof to
constructing,
facility" (as
facilities for
or processing
of goods, in order to accomplish thereby the public purposes
of the Act and to benefit the economic welfare of the
citizens of the City, provided that such bonds are payable
solely from the loan repayments and other revenues derived
in respect of the loan and do not constitute an indebtedness
of the City within the meaning of the Constitution and laws
of the State.
B. Sellersburg Stone Company, Inc. (the "Borrow-
er"), an Indiana corporation, has applied to the City for
the issuance of the City's economic development revenue
bonds pursuant to the Act and the loan of the proceeds
thereof to the Borrower to finance the cost of the Borrow-
er'S acquisition, construction, and installation of a new
stone crushing system and related support equipment (such
equipment being hereinafter referred to as the "Project") at
the Borrower's existing industrial building located at 1019
East Utica Street within the unincorporated area of Clark
County, Indiana, for use by the Borrower in its business of
quarrying and selling crushed stone.
C. The jeffersonville Economic Development
Commission (the "Commission") adopted on August 22, 1985 a
resolution approving the Company'S application to the City
for issuance of economic development revenue bonds and
adopting and approving its Project Report respecting the
Project.
D. The Common Council of the City of Jefferson-
ville, Indiana (the "Common Council") adopted on Septem-
ber 4, 1985, a resolution (Resolution No. 85R21) (the
"Inducement Resolution") undertaking the issuance and sale
2
of economic development revenue bonds of the City pursuant
to the Act and the loan of the proceeds thereof to the
Borrower to finance the costs of the Project.
E. On September 26~ 1985, pursuant to prior
published notice, the Clark County Council conducted a
public hearing, in accordance with Section 103(k) of the
Internal Revenue Code of 1954, as amended (the "Code"), at
which members of the general public were given an opportuni-
on the proposed issuance
bonds to finance the
such hearing the Clark
adopted a resolution whereby it consented to
pursuant to Section 103(k) of the Code and IC
of the Act, the issuance of said bonds by the
ty to comment, pursuant to the Act,
of economic development revenue
Project. Immediately following
County Council
and approved,
36-7-12-22(b)
City.
F. On October 19, 1985, pursuant to prior
published notice, the Commission conducted a public hearing,
in accordance with Section 103(k) of the Code and IC
36-7-12-24 of the Act, at which members of the general
public were given an opportunity to comment on the proposed
issuance of economic development revenue bonds to finance
the project, after which hearing the Commission found that
the Project will have no adverse competitive effect on
similar facilities already operating in the City; will meet
all applicable zoning laws; and that the forms of Iii the
bond purchase agreement among citizens Fidelity Bank and
Trust Company, as purchaser, the City, the Borrower, and the
guarantor named therein (the "Bond Purchase Agreement"),
[ii] the mortgage and loan agreement between the City, as
lender, and the Borrower, as borrower (the "Loan Agree-
ment''), and [iii] the trust indenture between the City and
First Midwest Bank and Trust, as trustee (the "Indenture")
are in accord with the Act.
G. The Commission has submitted these findings
to the Common Council in a resolution of the Commission
adopted on October 19, 1985 (the "Financing Resolution")
recommending the financing of the Project through economic
development revenue bonds of the City in order to improve
and promote job opportunities and industrial diversification
in the vicinity of the City.
H. In order to accomplish the public purposes of
the Act and to benefit the economic welfare of the citizens
of the City, the Common Council considers it necessary and
proper to Ii] authorize the issuance of the City's Economic
Development Revenue Bonds, Series of 1985 (Sellersburg Stone
Company, Inc. Project) (the "1985 Bonds") and the loan of
the proceeds thereo~ to the Borrower to finance the costs of
the Project, [ii] authorize the execution and delivery of
the Bond Purchase Agreement, the Loan Agreement, and the
Indenture, and [iii] take other related action.
N~W, THEREFORE, BE IT ORDAINED by the Common
Council of the City of jeffersonvilte, Indiana, as follows:
1. Public purpose. The Common Council hereby finds
and declares that the issuance of the 1985 Bonds and the
loan of the proceeds thereof to the Borrower to finance the
costs of the Project, as herein provided, will further the
public purposes of the Act and will be of benefit to the
economic welfare of the citizens of the City.
2. Authorization of the 1985 Bonds and the Project'
For the purposes set forth in the preamble hereto,
hereby authorized and directed:
A. the confirmation and ratification of the
there is
Inducement Resolution;
B. the issuance, execution, sale, and delivery
of the 1985 Bonds, as provided in the Indenture and the Bond
Purchase Agreement; and
C. the loan of the proceeds of the 1985 Bonds to
the Borrower to finance the
vided in the Loan Agreement-
3. Authorization of
Mayor
costs of the Project, as pro-
Bond
is hereby authorized and
Purchase Ag_~reement. The
directed to execute and
deliver on behalf of the City the Bond Purchase Agreement,
substantially in the form attached hereto as Exhibit A.
4. Authorization of Loan ~gree___~men~. The Mayor
the Clerk-Treasurer are hereby authorized and directed
execute,
and
to
acknowledge, and deliver on behalf of the City the
5
Loan Agreement, substantially in the form attached hereto as
Exhibit B.
5. Authorization of Indenture. The Mayor and the
Clerk-Treasurer are hereby authorized and directed to
execute, acknowledge, and deliver on behalf of the City the
Indenture, substantially in the form attached hereto as
Exhibit C.
6. Private Activity Bond Limit. The Mayor or the
Clerk-Treasurer is hereby authorized and directed for and on
behalf of the City to file,
Order 21-84, as amplified by
a Notice of Intent with the
pursuant to Indiana Executive
Indiana Executive Order 23-84,
Indiana Employment Development
Commission applying for an allocation to the 1985 Bonds of
$1,650,000 of the State's "private activity bond limit"
under Section 103(n) of the Code. The Common Council hereby
certifies pursuant to Section 103(n)(12)(A) of the Code
under penalties of perjury that such application is not
being made in consideration of any bribe, gift, or gratuity,
or direct or indirect contribution to any political cam-
paign.
7. Further Acts and Deeds. The Mayor, the Clerk-
Treasurer, and other appropriate officers and employees of
the City are hereby authorized and directed to execute,
acknowledge, and deliver on behalf of the City any and all
papers, instruments, certificates, affidavits, and other
documents and to do and cause to be done any and all acts
6
and things necessary or proper for entering into and effect-
lng this ordinance, the Bond Purchase Agreement, the Loan
Agreement, the Indenture, and the 1985 Bonds, provided that
neither the City nor any of its council members, officers,
employees, or agents incur any general liability thereby.
8. Severability- The provisions of this ordinance
are severable, and if any section, phrase, or provision
hereof shall for any reason be declared invalid or unen-
forceable, such declaration shall not affect the validity of
the remainder of this ordinance.
o
extent
thereof
nance,
Prior Conflicting Actions Superseded. To the
that any ordinance, resolution, order, or part
is in conflict with the provisions of this ordi-
the provisions of this ordinance shall prevail and be
given effect.
10. Effective Date. This ordinance shall be in full
force and effect from and after its enactment.
ENACTED this 19th day of October, 1985.
President
Atteit:
7
. _PRESENTED by me as Clerk,Treasurer to the Mayor
Clerk-T ~- ~-
APPROVED by me this _ . day of October, 1985.
[SEAL]
SELL/308