Loading...
HomeMy WebLinkAbout2006-OR-29ORDINANCE NO. 2006-OR-29 CITY OF JEFFERSONVILLE, INDIANA COMMON COUNCIL AN ORDINANCE REGARDING APPROVAL OF A LEASE BETWEEN THE CITY OF JEFFERSONVILLE, INDIANA AND THE JEFFERSONVILLE BUILDLING CORPORATION WHEREAS, the Common Council of the City of Jeffersonville, Indiana ("City") has examined the form of the leases ("Lease") proposed by the Jeffersonville Building Corporation ("Corporation"); and WHEREAS, notice of a hearing on the proposed Lease was given by publication in the The Evening News and The Tribune and the hearing has been held in accordance with this notice; and WHEREAS, the Common Council has carefully considered the comments made and information presented at the public hearing; and WHEREAS, the Jeffersonville Redevelopment Commission ("Commission") did establish the Falls Landing Redevelopment Area, Inner City Road Economic Development Area, Riverside Landing Redevelopment Area, Keystone Industrial Park Economic Development Area, BethNova Economic Development Area, Gateway Economic Development Area, Galvstar Economic Area and Mullis Project Economic Development Area (collectively, "Area") in the City in accordance with IC 36-7-14; and WHEREAS, the Corporation has been created as an Indiana not-for-profit corporation, in and under IC 23-17 for the purpose of financing, constructing, acquiring and leasing public improvements and economic development and redevelopment projects, including the acquisition, construction and equipping of two (2) fire stations and a city services building and related improvements ("Project") to the City; and WHEREAS, the estimated total cost of financing the Project, including capitalized interest, a debt service reserve and issuance expenses, is now estimated not to exceed $11,000,000; and WHEREAS, rentals due under the Lease shall be payable from tax increment revenues collected in the Area and, if tax increment is not sufficient, from ad valorem property taxes. NOW, THEREFORE, BE IT ORDAINED BY THE JEFFERSONVILLE COMMON COUNCIL THAT: Section 1. (a) The Common Council hereby finds that the execution of the Lease is necessary and wise and is for a Project that will promote economic development of the Area and the City, will provide services that will serve the public purpose of the City and is in the best interests of the City's residents, and further finds that the lease rentals provided for in the Lease are fair and reasonable. (b) The execution of the Lease between the City and the Corporation is hereby approved. The Mayor and the Clerk-Treasurer be, and they are hereby, authorized and directed to execute the aforesaid Lease on behalf Of the City and to publish notice of execution of the Lease after the execution of the Lease. (c) Providing for the financing, acquisition and construction of the Project by the Corporation and the leasing of the Project to the City is in the public interest of the citizens of this City and it is a proper public purpose for which the Common Council agrees to cooperate with the Corporation to assist in fulfilling the requirements of all agencies of the Federal, State and City Government. (d) The Clerk-Treasurer is authorized and directed to initial and date a copy of the proposed Lease and to place it in the minute book immediately following the minutes of this meeting, and the Lease is made a part of this ordinance as fully as if it were set forth herein. Section2. Upon the redemption or retirement of the Jeffersonville Building Corporation First Mortgage Bonds, Series 2006 ("Bonds") issued by the Corporation in one or more series, the City will accept from the Corporation title to such Project, free and clear of any and all liens and encumbrances thereon. (a) The issuance, sale and delivery by the Corporation of the Bonds in one or more series in the aggregate principal amount estimated not to exceed $11,000,000 is hereby approved. (b) Upon the redemption or retirement of the Bonds the City, will accept from the Corporation title to the Project, free and clear of any and all liens and encumbrances thereon. (c) The Corporation may issue, sell and deliver the Bonds, pursuant to the applicable laws of the State of Indiana, may encumber any property acquired by it for the purpose of financing the acquiring the Project and may enter into contracts for the sale of the Bonds and the construction of the Project. Section 3. (a) The City in order to secure the payment of lease rentals under the Lease hereby pledges Tax Increment Revenues and, to the extent Tax Increment Revenues are not sufficient, ad valorem property taxes to the payment of lease rentals due under the Lease. (b) The City reserves the right to enter into leases or other obligations entitled to the pledge of Tax Increment Revenues on a parity with the Lease in accordance with the requirements set forth in the Lease for the purpose of raising money for future projects of the City. Section 4. This Ordinance shall be in full rome and effect immediately upon its passage and signing by the Mayor. 2 Adopted by the Common Council of Je£fersonville, Indiana, this 5th day of June, 2006. ATTEST: pgggy ~Clerk-Treasurer 1055600v2