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HomeMy WebLinkAbout1985-OR-59 BILL NO. AN O DINANCE .OF CITY OF JEFFERSONVILLE. INDIANA AUTHORIZING THE ISSUANCE OF ITS ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES OF 1985 (SELLERSBURG STONE COMPANY, INC. PROJECT), IN THE PRINCIPAL AMOUNT OF $1,650,000, TO FINANCE THE cOST OF ACQUIRING, CONSTRUCTING, AND INSTALLING AN ECONOMIC DEVELOPMENT FACILITY FOR SELLERSBURG STONE COMPANY, INC.; AUTHORIZING THE EXECUTION AND DELIVERY OF [1] A TRUST INDENTURE SECURING SAID BONDS, [2] A LOAN AGREEMENT RESPECTING SAID PROJECT BETWEEN THE CITY, AS LENDER, AND SAID COMPANY AS BORROWER, PROVIDING FOR LOAN REPAYMENTS SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON SAID BONDS AS THE SAME BECOME DUE, AND [3] A BOND PURCHASE AGREEMENT PROVIDING FOR THE SALE OF SAID BONDS; AND TAKING OTHER RELATED ACTION. Recitals A. The City of jeffersonville, Indiana (the "City") is a municipal corporation and city of the third class organized and existing under the laws of the State of Indiana (the "State") and as such is authorized under the Economic Development and Pollution Control Act, as amended, IC 36-7-11.9 and 12 (the "Act"), development revenue bonds and loan any person to finance the costs ,of acquiring, and installing an "economic development defined in the Act), including specifically manufacturing, warehousing, distribution of, to issue its economic the proceeds thereof to constructing, facility" (as facilities for or processing of goods, in order to accomplish thereby the public purposes of the Act and to benefit the economic welfare of the citizens of the City, provided that such bonds are payable solely from the loan repayments and other revenues derived in respect of the loan and do not constitute an indebtedness of the City within the meaning of the Constitution and laws of the State. B. Sellersburg Stone Company, Inc. (the "Borrow- er"), an Indiana corporation, has applied to the City for the issuance of the City's economic development revenue bonds pursuant to the Act and the loan of the proceeds thereof to the Borrower to finance the cost of the Borrow- er'S acquisition, construction, and installation of a new stone crushing system and related support equipment (such equipment being hereinafter referred to as the "Project") at the Borrower's existing industrial building located at 1019 East Utica Street within the unincorporated area of Clark County, Indiana, for use by the Borrower in its business of quarrying and selling crushed stone. C. The jeffersonville Economic Development Commission (the "Commission") adopted on August 22, 1985 a resolution approving the Company'S application to the City for issuance of economic development revenue bonds and adopting and approving its Project Report respecting the Project. D. The Common Council of the City of Jefferson- ville, Indiana (the "Common Council") adopted on Septem- ber 4, 1985, a resolution (Resolution No. 85R21) (the "Inducement Resolution") undertaking the issuance and sale 2 of economic development revenue bonds of the City pursuant to the Act and the loan of the proceeds thereof to the Borrower to finance the costs of the Project. E. On September 26~ 1985, pursuant to prior published notice, the Clark County Council conducted a public hearing, in accordance with Section 103(k) of the Internal Revenue Code of 1954, as amended (the "Code"), at which members of the general public were given an opportuni- on the proposed issuance bonds to finance the such hearing the Clark adopted a resolution whereby it consented to pursuant to Section 103(k) of the Code and IC of the Act, the issuance of said bonds by the ty to comment, pursuant to the Act, of economic development revenue Project. Immediately following County Council and approved, 36-7-12-22(b) City. F. On October 19, 1985, pursuant to prior published notice, the Commission conducted a public hearing, in accordance with Section 103(k) of the Code and IC 36-7-12-24 of the Act, at which members of the general public were given an opportunity to comment on the proposed issuance of economic development revenue bonds to finance the project, after which hearing the Commission found that the Project will have no adverse competitive effect on similar facilities already operating in the City; will meet all applicable zoning laws; and that the forms of Iii the bond purchase agreement among citizens Fidelity Bank and Trust Company, as purchaser, the City, the Borrower, and the guarantor named therein (the "Bond Purchase Agreement"), [ii] the mortgage and loan agreement between the City, as lender, and the Borrower, as borrower (the "Loan Agree- ment''), and [iii] the trust indenture between the City and First Midwest Bank and Trust, as trustee (the "Indenture") are in accord with the Act. G. The Commission has submitted these findings to the Common Council in a resolution of the Commission adopted on October 19, 1985 (the "Financing Resolution") recommending the financing of the Project through economic development revenue bonds of the City in order to improve and promote job opportunities and industrial diversification in the vicinity of the City. H. In order to accomplish the public purposes of the Act and to benefit the economic welfare of the citizens of the City, the Common Council considers it necessary and proper to Ii] authorize the issuance of the City's Economic Development Revenue Bonds, Series of 1985 (Sellersburg Stone Company, Inc. Project) (the "1985 Bonds") and the loan of the proceeds thereo~ to the Borrower to finance the costs of the Project, [ii] authorize the execution and delivery of the Bond Purchase Agreement, the Loan Agreement, and the Indenture, and [iii] take other related action. N~W, THEREFORE, BE IT ORDAINED by the Common Council of the City of jeffersonvilte, Indiana, as follows: 1. Public purpose. The Common Council hereby finds and declares that the issuance of the 1985 Bonds and the loan of the proceeds thereof to the Borrower to finance the costs of the Project, as herein provided, will further the public purposes of the Act and will be of benefit to the economic welfare of the citizens of the City. 2. Authorization of the 1985 Bonds and the Project' For the purposes set forth in the preamble hereto, hereby authorized and directed: A. the confirmation and ratification of the there is Inducement Resolution; B. the issuance, execution, sale, and delivery of the 1985 Bonds, as provided in the Indenture and the Bond Purchase Agreement; and C. the loan of the proceeds of the 1985 Bonds to the Borrower to finance the vided in the Loan Agreement- 3. Authorization of Mayor costs of the Project, as pro- Bond is hereby authorized and Purchase Ag_~reement. The directed to execute and deliver on behalf of the City the Bond Purchase Agreement, substantially in the form attached hereto as Exhibit A. 4. Authorization of Loan ~gree___~men~. The Mayor the Clerk-Treasurer are hereby authorized and directed execute, and to acknowledge, and deliver on behalf of the City the 5 Loan Agreement, substantially in the form attached hereto as Exhibit B. 5. Authorization of Indenture. The Mayor and the Clerk-Treasurer are hereby authorized and directed to execute, acknowledge, and deliver on behalf of the City the Indenture, substantially in the form attached hereto as Exhibit C. 6. Private Activity Bond Limit. The Mayor or the Clerk-Treasurer is hereby authorized and directed for and on behalf of the City to file, Order 21-84, as amplified by a Notice of Intent with the pursuant to Indiana Executive Indiana Executive Order 23-84, Indiana Employment Development Commission applying for an allocation to the 1985 Bonds of $1,650,000 of the State's "private activity bond limit" under Section 103(n) of the Code. The Common Council hereby certifies pursuant to Section 103(n)(12)(A) of the Code under penalties of perjury that such application is not being made in consideration of any bribe, gift, or gratuity, or direct or indirect contribution to any political cam- paign. 7. Further Acts and Deeds. The Mayor, the Clerk- Treasurer, and other appropriate officers and employees of the City are hereby authorized and directed to execute, acknowledge, and deliver on behalf of the City any and all papers, instruments, certificates, affidavits, and other documents and to do and cause to be done any and all acts 6 and things necessary or proper for entering into and effect- lng this ordinance, the Bond Purchase Agreement, the Loan Agreement, the Indenture, and the 1985 Bonds, provided that neither the City nor any of its council members, officers, employees, or agents incur any general liability thereby. 8. Severability- The provisions of this ordinance are severable, and if any section, phrase, or provision hereof shall for any reason be declared invalid or unen- forceable, such declaration shall not affect the validity of the remainder of this ordinance. o extent thereof nance, Prior Conflicting Actions Superseded. To the that any ordinance, resolution, order, or part is in conflict with the provisions of this ordi- the provisions of this ordinance shall prevail and be given effect. 10. Effective Date. This ordinance shall be in full force and effect from and after its enactment. ENACTED this 19th day of October, 1985. President Atteit: 7 . _PRESENTED by me as Clerk,Treasurer to the Mayor Clerk-T ~- ~- APPROVED by me this _ . day of October, 1985. [SEAL] SELL/308