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HomeMy WebLinkAbout1985-OR-54COMMON COUNCIL ORDINANCE NO. A SPECIAL ORDINANCE authorizing the City of Jefferson- ville to issue its "Economic Development Revenue Bonds (Merchants Grain Elevator Partners - Series II Project)" in the principal amount of Six Million Dollars ($6,000,000), and approving and authorizing other actions in respect thereto. 'WHEREAS, the jeffersonville Economic Development Commis- sion has rendered a Report of the Jeffersonville Economic Develop- ment Commission concerning the proposed financing of economic development facilities for Merchants Grain Elevator Partners - Series II, and the jeffersonville City Plan Commission has been given an opportunity to comment thereon; and WHEREAS, the Jeffersonville Economic Development Commis- sion after a public hearing conducted on September 20, 1985, adopted a Resolution on that date, which Resolution has been transmitted hereto, finding.that the financing of certain economic development facilities, said facilities being dock and wharf factlties and related storage and transportation facilities for distributing and warehousing grain and grain related products, fertilizer and other bulk and/or bagged commodities, to be located in the Jeffersonville Maritime Centre, located within the bound- aries of the City of Jeffersonville (the "Project") which will be initially owned and operated by Merchants Grain Elevator Partners - Series II, 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 its citizens, and will not have an adverse competitive impact on any similar facility already constructed and operating or under construction in the City; and WHEREAS, the jeffersonville Economic Development Commis- sion has approved the final forms of the Loan Agreement, including the Note attached thereto, the Leasehold MOrtgage, SeCuritY Agreement, the Trust Indenture, and the Bond Purchase Agreement by Resolution adopted september 20, 1985, which Resolution has been transmitted hereto; NOW, THEREFORE: BE IT ORDAINED BY THE COMMON COUNCIL OF T~E CITY OF JEFFERSONVILLE: SECTION 1. It is hereby found that the financing of the economic development facilities described as the project above and referred to in the Loan Agreement, previously approved by the Jeff~rsonville Economic Development Commission and presented to this Common Council, the issuance and sale of the revenue bonds, the loan of the net proceeds thereof to Merchants Grain Elevator Partners - Series II, for the acquisition, construction and equipping of said facilities and the repayment of said note by Merchants Grain Elevator Partners - Series II, to be, evidenced and secured by a promissory note of Merchants Grain Elevator Partners - Series II, will be of benefit to the health, prosperity, economic stability and general welfare of the City of Jefferson- ville and its citizens and complies with the purposes and provi- sions of IC 36-7-12. SECTION 2. The forms of the Loan Agreement, including the Note attached thereto, the Leasehold Mortgage, Security Agreement, and Trust Indenture and the Bond Purchase Agreement (the "Documents") approved by the jeffersonville Economic Develop- ment 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. Two copies of the Documents are on filed with the Clerk of the Council for public inspection. SECTION 3. The City of jeffersonville shall issue its Economic Development Revenue Bonds (Merchants Grain Elevator Partners - Series II Project) in the principal amount of Six Million Dollars ($6,000,000) (the "Bonds") for the purpose of procuring funds to loan to Merchants Grain Elevator Partners.- Series II ~n order to pay t~e -~:~ ~ ~auisition, construction development facilities, ~ereto~or and equipping of the economic particularly set out in the described as the Project, as more the Leasehold Mortgage, Security Agreement, 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 Merchants Grain Elevator Partners - Series II on its promissory note which will be executed and delivered by Merchants Grain Elevator Partners - Series II, to evidence and secure said loan and from other sources under the Loan Agreement, or as otherwise provided in the above-described Leasehold Mortgage, Security Agreement, 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 to the purchaser set forth in the Bond Purchase Agreement at a price of 100% of the principal amount thereof plus accrued interest, if any, and at a rate of interest on the Bonds of 60% of the Prime Rate of citizens Fidelity Bank and Trust Company, Louisville, Kentucky, plus 2%, all as more full~ described in the Bond Purchase Agreement, provided, however, in no event shall the rate of interest exceed thirty percent (30%) per annum. SECTION 5. The Mayor and Clerk-Treasurer are authorized and directed, to execute the Loan Agreement, the Leasehold Mortgage, Security Agreement, 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 and their execution is hereby confirmed, on behalf of -2- the City. The signatures of the Mayor and Clerk-Treasurer on the Bonds may be manual or facsimile signatures. The Clerk- Treasurer is authorized to arrange for the delivery of the Bonds to the purchaser thereof, payment for which will be made to the Trustee named in the Leasehold Mortgage, Security Agreement, and Trust Indenture. The Mayor and City Clerk-Treasurer may by or · n their executlo of the documents and the Bonds by manual facsimile signature approve changes therein without further approval of this Council if such changes do not affect the terms set forth in I.C. 36-7-12-27(a) (1) thrOugh (a) (11) which terms as set forth in the Leasehold Mortgage, Security Agreement, and Trust Indenture are hereby adopted, approved, and incorporated by reference herein. All action taken or to be taken by the Mayor or'City-Clerk Treasurer in obtaining an allocation from the Indiana Economic Development Commission are hereby approved and ratified. SECTION 6. The provisions of this Ordinance and the Leasehold Mortgage, Security Agreement, and Trust Indenture securing the Bonds shall constitute a contract binding between the City of jeffersonville and the holder of the City of Jefferson- ville, Indiana, Economic Development Revenue Bonds (Merchants Grain Elevator Partners - Series II Project), and after the issuance of said Bonds, this Ordinance shall not be repealed or amended in any respect that would adversely affect the rights of such holder so long as the Bonds or the interest thereon remains unpaid. SECTION 7. This ordinance shall be in full force and effect from and after compliance with the procedures required by law. Presented by me Indiana, on //~-7-- ' to the Mayor Of the City of jeffersonville, , 1985. Approved and signed by me on /~.~'~, 1985. Dale Orem,' Mayor City of Jeffersonville, Indiana