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HomeMy WebLinkAbout1978-OR-19ORDINANCE NO. 78 OR 19~/_ AN ORDINANCE AUTHORIZING THE CITY OF JEFFERSONVILLE TO ISSUE ITS "ECONOMIC DEVELOPME~r FIRST MORTGAGE REVENUE BONDS (INDUSTRIAL FIBERGLASS SYSTemS PROJECT),, AND APPROVING AND AUTHORIZING OTHER ACTIONS IN RESPECT THERETO %~tEREAS, the Jeffersonville Economic Development Commission has rendered its Report for the Industrial Fiberglass Systems Project regarding the financing of proposed economic development facilities for Industrial Fiberglass Systems, Inc. and the Jeffer- sonville Plan Commission has commented favorably thereon; and WHEREAS, the Jeffersonville Economic Development Commission has heretofore approved and recommended the adoption of this form of Ordinance by this Common Council and has approved the forms of and has recommended for approval and adoption by this Common Council the Lease Agreement, Mortgage and Indenture of Trust, Guaranty Agreement, Construction Letter and Sales Agreement; now therefore, BE IT ORDAINED BY THE CO~ON COUNCIL OF THE CITY OF JEFFER- SON~ILLE, INDIANA THAT: Section 1. It is hereby found that economic development facilities referred the financing of the to in the Lease Agreement approved by the Jeffersonville Economic Development Commission and presented to this Common Council, the issuance and sale of revenue bonds, the use of the net proceeds thereof for the acquisition and construction of such facilities and the equipping thereof, the lease of said facilities to Industrial Fiberglass Systems, Inc., the payment of the revenue bonds by the rent payments of Industrial Fiberglass Systems, Inc., under the Lease Agreement, and the securing of said bonds by the mortgaging of such facilities to the Trustee under the Mortgage and Indenture of Trust and the guaranty of the payment thereof by Industrial Fiberglass Systems, Inc., to the Trustee under the Quaranty Agreement will be of benefit to the health and welfare of the City of Jeffersonville and Clark County and their citizens° Section 2o The forms of the Lease Agreement, MortEage and Indenture of Trust~ Construction Letter, Guaranty Agreement and Sales Agreement approved by the Jeffersonville Economic Develop- ment Commission are hereby approved and all such documents (herein collectively referred to as the "Financing Agreement" referred to in I. C. 1971, 18-~-4.5), shall be incorporated herein by refer- ence and shall be inserted in the minutes of the Common Council and kept on file by the Clerk. Section 3. The City of Jeffersonville shall issue its Economic Development First Mortgage Revenue Bonds (Industrial Fiberglass Systems Project)~ in the total principal amount of Three Hundred Thousand Dollars ($300,000) for the purpose of procuring funds to pay the costs of acquisition, construction and equipping of the economic development facilities, including interest durinE construction, as more particularly set out in the Mortgage and Indenture of Trust and Lease Agreement incorporated herein by reference~ which Bonds will be payable as to principal, premium, if any~ and interest from the rental payments made by Industrial Fiberglass Systems, Inc., under the Lease Agreement, or as other- wise provided in the above described Mortgage and Indenture of Trust, The bonds shall never constitute a general obliEation of, an indebtedness of, or a charge against the general credit of the City of Jeffersonville. Section 40 The Mayor and Clerk are authorized and directed to sell such bonds to the purchasers thereof at ~a rate or rates of interest on the bonds not to exceed ten percent and at a price of one hundred percent (100%) of amount thereof. Section 5o to execute the (10%) per annum the principal The Mayor and Clerk are authorized and directed documents constituting the Financing Agreement approved herein on behalf of the City of Jeffersonville and any other document which may be necessary or desirable to consummate the transaction, including the bonds authorized herein~ The signatures of the Mayor and Clerk on the bonds may be facsimile signatures. The Clerk is authorized to arrange for delivery of such bonds to the Trustee named in the Mortgage and Indenture of Trust, payment for which will be made to the Trustee named in the Mortgage and Indenture of Trust and delivered by the Trustee to the purchasers thereof. Section 6. The provisions of this Ordinance and the Mortgage and Indenture of Trust securing the bonds shall constitute a contract binding between the City of Jeffersonville and Industrial Fiberglass Systems, Inc., and after the issuance of said bonds, this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of such holders so long as any of said bonds or the interest thereon remains unpaid. Section 7. This Ordinance shall be in full force and effect from and after its passage by the Mayor. ATTEST: Clerk of the CitY'of Je~/e; ~nville Presented by me to the Mayor of the City of Jeffersonville, Indiana on this 5th day of June 1978. erk of the Uity of~leffe~sonv~ille Approved and signed by me on this 5th day of June 1978.