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HomeMy WebLinkAbout1981-OR-47ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF JEFFERSONVILLE COMMON COUNCIL 0RDINANCE NO. 1981-O~'~ A special ordinance authorizing the City of Jeffersonville to issue its "Economic Development Mortgage Revenue Bonds (G.E.H. Airway, Inc., Project)" in the aggregate principal amount of Five Hundred Thousand Dollars ($500,000) and approving and authorizing other actions in respect thereto. WHEREAS, the Jeffersonville Economic Development Commission has rendered a Report and an Amended Report of the Jeffersonville Economic Development Commission concerning the proposed financing of economic development facilities for G.E.H. Airway, Inc., and the Jeffersonville City Plan Commission and the Clark County Plan Commission have each been given an oppor- tunity to comment thereon; WHEREAS, the Jeffe~sonville Economic Development Commission after a public hearing conducted on d~r~F~ ~'~ , 1981, adopted a resolution on that date, which resolution has been transmitted hereto, finding that the financing of certain economic development facilities of G.E.H. Airway, Inc., complies with the purposes and provisions of IC 36-7-12 and that such financing will be of benefit to the health, prosperity, economic stability and general welfare of the City of Jeffersonville and Clark County and their citizens; WHEREAS, the Jeffersonville Economic Development Commission has approved the final forms of the Loan Agreement, including the Note attached thereto, the Mortgage and Trust Indenture and the Bond Purchase Agreement by resolution adopted , 1981, which resolution has been transmitted hereto; and WHEREAS, no member of the Common Council of the City of Jeffersonville has any pecuniary interest in any employment, financing agreement or other contract made under the provisions of IC 36-7-12 and relating to the economic development facili- ties project of G.E.H. Airway, Inc., or to the issuance of the economic development revenue bonds authorized herein; now there- fore: BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF JEFFERSONVILLE: Section 1. It the economic development is hereby found that the financing of facilities referred to in the Loan Agreement, previously approved by the Jeffersonville Economic Development Commission and presented to this Common Council, the issuance and sale of mortgage revenue bonds, the loan of the net proceeds thereof to G.E.H. Airway, Inc., for the acqui- sition, construction, installation and equipping of said facil- ities and the repayment of said loan by G.E.H. Airway, Inc., to be evidenced and secured by a promissory note of G.E.H. Airway, Inc., will be of benefit to the health, prosperity, economic stability and general welfare of the City of Jeffersonville and Clark County and their citizens and complies with the purposes and provisions of Section the Note attached the Bond Purchase IC 36-7-12. 2. The forms of the Loan Agreement, including thereto, the Mortgage and Trust Indenture and Agreement approved by the Jeffersonville -2- Economic Development Commission are hereby approved and all such documents shall be incorporated herein by reference and shall be inserted in the minutes of the Common Council and kept on file by the Clerk of the Council. Section 3. The City of Jeffersonville shall issue its Economic Development Mortgage Revenue Bonds (G.E.H. Airway, Inc., Project) in the aggregate principal amount of Five Hundred Thousand Dollars ($500,000) (the "Bonds") for the purpose of procuring funds to loan to G.E.H. Airway, Inc., in order to pay the costs of acquisition, construction, installation and equip- ping of the economic development facilities, as more particularly set out in the Loan Agreement and Mortgage and Trust Indenture incorporated herein by reference. The Bonds will be payable as to principal, premium, if any, and interest solely from the payments made by G.E.H. Airway, Inc., on a promissory note which will be executed and delivered by G.E.H. Airway, Inc., to evidence and secure said loan and from other sources under the Loan Agreement, or as otherwise provided in the above-described Mortgage and Trust Indenture. The Bonds shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of the City of Jeffersonville. Section 4. The Mayor and Clerk-Treasurer are authorized and directed to sell the Bonds the Bond Purchase Agreement at not to exceed 65% of the Prime Mortgage and Trust Indenture as the per annum established by The Chase Manhattan Bank, N.A., to the purchaser set forth in a rate of interest on the Bonds Commercial Rate (defined in the rate of interest New York, New -3- York, as its Prime Rate as in effect on the date of delivery of the original Bonds and on the first day of each calendar quarter thereafter until there are no Bonds outstanding), provided that the interest rate payable on the Bonds shall not exceed 13% per annum or be less than 6% per annum, and at a price of one hundred percent (100%) of the principal interest, if any. Section 5. The Mayor amount thereof plus accrued and Clerk-Treasurer are autho- rized and directed to execute the Loan Agreement, the Mortgage and Trust Indenture and the Bond Purchase Agreement approved herein on behalf of the City of Jeffersonville and any other documents which may be necessary or desirable to consummate the transaction, including the Bonds authorized herein. The signa- tures of the Mayor and the Clerk-Treasurer on the Bonds may be facsimile signatures. The Clerk-Treasurer is authorized to arrange for delivery of the Bonds to the purchaser thereof, payment for which will be made to the Trustee named in the Mortgage and Trust Indenture. Section 6. The provisions of this Ordinance and the Mortgage and Trust Indenture securing the bonds shall constitute a contract binding between the City of Jeffersonville and the holders of the City of Jeffersonville, Indiana Economic Development Mortgage Revenue Bonds (G.E.H. Airway, Inc., Project), and after the issuance of said Bonds, be repealed or amended in any respect the rights of such holders so long as thereon remains unpaid. this Ordinance shall not that would adversely affect the Bonds or the interest -4- Section 7. This Ordinance shall be in full force and effect from and after compliance with the procedures required by law. ADOPTED this ~ day of ~-~. , 1981. C. R~chard Spencer~ Jr.,/// Clerk-Treasurer v Presented by me to the Jeffersonville, 1981. Mayor of thefCitYo Indiana, on this .~- day C. R~chard Spence~T~ Jr., Clerk-Treasurer ~__Approved and signed 1981. by me on this ~"-day of · ard g. Vissing, May. t~y of Jeffersonv~e~ff -5-