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HomeMy WebLinkAbout2000-OR-52GENERAL ORDINANCE ORDINANCE AUTHORIZING THE CITY OF JEFFERSONVILLE, INDIANA TO ISSUE ITS "CITY OF JEFFERSONVILLE, INDIANA MULTIFAMILY HOUSING REVENUE BONDS (ARMSTRONG FARM APARTMENTS PROJECT) SERIES 2000" AND APPROVING AND AUTHORIZING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the Jeffersonville Economic Development Commission conducted a public hearing on August 31, 2000, and adopted a resolution on August 31, 2000; which Resolution has been transmitted hereto, finding that the financing of certain new economic development facilities of Fore Armstrong Farm Apartments Limited Partnership, an Indiana limited partnership, complies with the purposes and provisions of I.C. 36-7-11.9 and -12, as amended, that such financing will be of benefit to the health and welfare of the City of Jeffersonville and the citizens in and near Jeffersonville and, based upon representations made by Fore Armstrong Farm Apartments Limited Partnership, an Indiana limited parmership, that the amount of tax credits to be allocated to the Project (as defined herein) under Section 42 of the Internal Revenue Code of 1986, as amended, does not exceed the amount necessary for the financial feasibility of the project and its viability as a qualified housing project throughout the credit period for the Project and that the Project satisfies the requirements for the allocation of a housing credit dollar mount under the Indiana Housing Finance Authority's qualified allocation plan; and WHEREAS, the Jeffersonville Economic Development Commission has heretofore approved and recommended the adoption of this form of Ordinance by this Common Council, has considered the issue of adverse competitive effect and has approved the substantially final forms of and has transmitted for approval by the Common Council. the Loan Agreement, the Trust Indenture, the 664788.2 Intercreditor Agreement, the Bond Purchase Agreement and the Land Use Restriction Agreement; and WHEREAS, the fiscal body of Clark County, Indiana, pursuant to IC 36-7-12-22, has adopted a resolution consenting to the financing of the Project (as defined herein), which resolution is attached as Appendix A to the Resolution of the Economic Development Commission transmitted hereto; and WHEREAS, the property on which the Project is located is also currently in the process of voluntary annexation by the City of Jeffersonville, which annexation is expected to be final on or before October 23, 2000; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF JEFFERSONVILLE, INDIANA THAT: Section 1. It is hereby found that the financing of the economic development facilities referred to in the Loan Agreement approved by the Jeffersonville Economic Development Commission and presented to this Common Council, the issuance and sale of its Multifamily Housing Revenue Bonds (Armstrong Farm Apartments Project) Series 2000 (the "Bonds"), the loan of the proceeds of the Bonds to Fore Armstrong Farm Apartments Limited Partnership, an Indiana limited partnership (the "Borrower"), to pay a portion of the costs of the acquisition, construction and equipping of such facilities, the payment of debt service on the Bonds from the payments by the Borrower under the Loan Agreement, and the securing of said Bonds under the Trust Indenture complies with the purposes and provisions of I.C. 36-7-11.9 and -12, as amended, and will be of benefit to the health and welfare of the City of Jeffersonville and the citizens in and near Jeffersonville. -2- 664788.2 Section 2. The proceeds of the Bonds will be used to pay a portion of the costs of the acquisition, construction and equipping of a new 168-unit multifamily rental housing facility, located near the intersection of the New Albany-Charlestown Pike, the Charlestown- Jeffersonville Pike and Holmans Lane in or near Jeffersonville, Indiana, to be generally known as Armstrong Farm Apartments (the "Project"). Section 3. At the public hearing held on August 31, 2000, by the Jeffersonville Economic Development Commission, the Commission considered whether the economic development facilities would have an adverse competitive effect on any similar facilities already constructed or operating in or near the City of Jeffersonville, and subsequently found, based on special findings of fact set forth in the Resolution transmitted hereto, that the facilities would not have an adverse competitive effect on any such facilities. This Common Council hereby confirms the findings set forth in the Commission's Resolution, and concludes that the economic development facilities will not have an adverse competitive effect on any other similar facilities already constructed or operating in or near the City of Jeffersonville, and that the facilities will be of benefit to the health and welfare of the citizens in and near the City of Jeffersonville. Section 4. The substantially final forms of the Loan Agreement, the Trust Indenture (including the Form of the Bond), the Intercreditor Agreement, the Bond Purchase Agreement and the Land Use Restriction Agreement approved by the Jeffersonville Economic Development Commission are hereby approved (herein collectively referred to as the "Financing Agreement" referred to in I.C. 36-7-11.9 and -12, as amended), and the Financing Agreement shall be incorporated herein by reference and shall be inserted in the -3- 664788.2 minutes of the Common Council and kept on file by the Clerk-Treasurer. In accordance with the provisions of I.C. 36-1-5-4, two (2) copies of the Financing Agreement are on file in the office of the Clerk-Treasurer for public inspection. Section 5. The City of Jeffersonville shall issue its Multifamily Housing Revenue Bonds (Armstrong Farm Apartments Project) Series 2000 in an mount not to exceed Eight Million Six Hundred Thousand Dollars ($8,600,000) and maturing no later than 40 years from the date of issuance. Said Bonds are to be issued for the purpose of procuring funds to pay a portion of the costs of acquisition, construction and equipping of new economic development facilities as more particularly set out in the above-referenced Trust Indenture and Loan Agreement incorporated herein by reference, which Bonds will be payable as to principal, premium, if any, and interest from payments made by the Borrower under the Loan Agreement or as otherwise provided in the above-referenced Trust Indenture. The Bonds shall be issued in fully registered form in Authorized Denominations (as defined in the Trust Indenture), and shall be redeemable as provided in the Trust Indenture. Payments of principal and interest are payable in lawful money of the United States of America at the principal corporate trust office of the Trustee (as defined in the Trust Indenture) or its successor in trust or by check mailed or delivered to the registered owners or by wire transfer to certain registered owners upon request as provided in the Trust Indenture. The Bonds shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of Jeffersonville, Indiana, nor are the Bonds payable in any manner from revenues raised by taxation. -4- 664788.2 Section 6. The Mayor and the Clerk-Treasurer are authorized and directed to sell the Bonds to the original purchasers thereof at the price of no less than 98% of the principal amount thereof. The Bonds shall bear interest at a rate not to exceed 8%. Section 7. The Mayor and the Clerk-Treasurer are authorized and directed to execute, attest, affix or imprint by any means the City seal to the documents constituting the Financing Agreement approved herein on behalf of the City and any other document which may be necessary or desirable prior to, on or after the date hereof to consummate or facilitate the transaction, including the Bonds authorized herein. The Mayor and the Clerk-Treasurer are hereby expressly authorized to approve any modifications or additions to the documents constituting the Financing Agreement which take place after the date of this Ordinance with the review and advice of counsel to the City; it being the express understanding of this Common Council that said Financing Agreement is in substantially final form as of the date of this Ordinance. The approval of said modifications or additions shall be conclusively evidenced by the execution and attestation thereof and the affixing of the seal thereto or the imprinting of the seal thereon; provided, however, that no such modification or addition shall change the maximum principal amount of, the maximum interest rate on or maximum term of the Bonds as approved by the Common Council by this Ordinance without further consideration by the Common Council. The signatures of the Mayor and the Clerk-Treasurer on the Bonds may be either manual or facsimile signatures. The Clerk-Treasurer is authorized to arrange for delivery of such Bonds to the Trustee named in the Trust Indenture, and payment for the Bonds will be made to the Trustee named in the Trust Indenture and after such payment, the Bonds will be delivered by the Trustee to the purchasers thereof. The -5- 664788.2 Bonds shall be originally dated the date of delivery thereof, unless changed by approval of the Mayor and the Clerk-Treasurer. Section 8. The provisions of this Ordinance and the Trust Indenture securing the Bonds shall constitute a contract binding between Jeffersonville, Indiana and the holders of the Bonds, and after the issuance of said Bonds, this Ordinance shall not be repealed or amended, except in accordance with the amendment provisions of the Indenture, 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 9. The City of Jeffersonville hereby finds and determines that the amount of tax credits to be allocated to the Project under Section 42 of the Internal Revenue Code of 1986, as amended, does not exceed the amount necessary for the financial feasibility of the Project and its viability as a qualified housing proj eot throughout the credit period for the Project. In making the foregoing determination, the City of Jeffersonville has relied upon representations of the Borrower. The foregoing determinations shall not be construed to be a representation or warranty by the City of Jeffersonville as to the feasibility or viability of the Project. The City of Jeffersonville hereby authorizes and directs the Mayor of the City of Jeffersonville to review and make the foregoing determination again for and on behalf of the City of Jeffersonville at the request of the Borrower, following receipt of supporting materials submitted by the Borrower to the Indiana Housing Finance Authority ("IHFA") and either written representations of the Borrower or of IHFA to the effect that (i) the amount of tax credits to be allocated to the Project under Section 42 of the Code does not exceed the amount necessary for the financial feasibility of the Project and its viability as a qualified 664788.2 housing project throughout the credit period for the Project and (ii) the Project satisfies the requirements for the allocation of a housing credit dollar mount under IHFA's qualified allocation plan. Such determinations shall occur on or about the date of the sale of the Bonds to the Purchasers thereof and on or about the date that each building is placed in service. In reliance upon the representations of the Borrower, it is hereby found and determined that the Project satisfies the requirements for the allocation ora housing credit dollar mount under IHFA's qualified allocation plan. Section 10. No recourse under or upon any obligation, covenant, acceptance or agreement contained in this Bond Ordinance, or in the Bonds, the Loan Agreement, the Indenture, the Intercreditor Agreement, the Bond Purchase Agreement, the Land Use Restriction Agreement, or under any judgment obtained against the Issuer or by the enforcement of any assessment or by any legal or equitable proceeding by virtue of any constitution or statute or otherwise, or under any circumstances, under or independent of the Loan Agreement, shall be had against any member, director, or officer or attorney, as such, past, present, or future, of the Issuer, either directly or through the Issuer, or otherwise, for the payment for or to the Issuer or any receiver thereof, or for or to any holder of the Bonds secured thereby, or otherwise, of any sum that may be due and unpaid by the Issuer upon any of such Bonds. Any and all personal liability of every nature, whether at common law or in equity, or by statute or by constitution or otherwise, of any such member, director, or officer or attorney, as such, to respond by reason of any act or omission on his or her part, or otherwise, for, directly or indirectly, the payment for or to the Issuer or any receiver thereof, or for or to any owner or holder of the Bonds, or otherwise, of any sum that may remain due -7- 664788.2 and unpaid upon the Bonds hereby secured or any of them, shall be expressly waived and released as a condition of and consideration for the execution and delivery of the Loan Agreement, the Indenture, the Intemreditor Agreement, the Land Use Restriction Agreement and the Bond Purchase Agreement, and the issuance of the Bonds. Section 11. The Bonds shall not constitute a debt or pledge of the faith and credit of the Issuer, the State or any political subdivision thereof, and the holders or owners thereof shall have no right to have taxes levied by the Issuer, the State or of any political subdivision, for the payment of the principal thereof or interest thereon. Moneys raised by taxation shall not be obligated or pledged for the payment of principal of or interest on the Bonds, and the Bonds shall be payable solely from the revenues and security interests pledged for their payment as authorized by the Indenture. Section 12. This Ordinance shall be in full force and effect from and after its passage, but the terms and provisions hereof shall only apply after, and the Bonds will not be issued until, the annexation referred to herein is final. -8- 664788.2 Passed and adopted this 18th day of September, 2000. JEFFERSONVILLE COMMON COUNCIL Presiding Officer (Seal) Attest: Clerk'~)~e~surer -9- 664788.2