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HomeMy WebLinkAbout1975-OR-29AN ORDINANCE AUTHORIZING THE CITY OF JEFFERSONVILLE TO ISSUE ITS "ECONOMIC DEVELOPMENT FIRST MORTGAGE REVENUE BONDS (S & T INDUSTRIES, INC., PROJECT)" AND APPROVING AND AUTHORIZING OTHER ACTIONS IN RE- SPECT THERETO. WHEREAS, the Jeffersonville Economic Development commis- sion has rendered its Project Report for the S & T Industries, Inc., Project regarding the financing of proposed economic' development facilities for the S & T Industries, Inc., and the Chairman of the Jeffersonville Plan Commission and Super- intendent of the Jeffersonville Conununity School Corporation have commented favorably thereon; and WHEREAS, the Jeffersonville Economic Development Commis- sion conducted a public hearing n __ ~. / , 1975, and also adopted a Resolution on ~. '~ , 1975, which Resolution has.been transmitted hereto, finding that the financing of certain economic development facilities of S & T Industries~ Inc., complies with the purposes and provisions of I. C. 1971, 18-6-4.5 and that such financing will be of benefit to the health and welfare of the City of Jeffersonville and its citi- zens; and WHEREAS, the Jeffersonville Economic Development Commis- sion has heretofore approved and recommended the adoption of this form of Ordinance by this Common Council and has approved the forms of and has transmitted for approval by this Common Council the Lease, Mortgage and Indenture of Trust, Guaranty Agreement and Construction Letter; now therefore BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF JEFFERSONVILLE~ INDIANA THAT: Section 1~ It is hereby found that the financing of the economic development facilities referred to in the Lease ap- proved 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 equip- ping thereof, the lease of said facilities to S & T Industries, Inc., the payment of the revenue bonds by the rent payments of S & T Industries, Inc.~ under the Lease~ and the securing of said bonds by the mortgaging of such facilities to the Trus- tee under the Mortgage and Indenture of Trust and the guaranty of the payment thereof by S & T Industries, Inc., to the Trus- tee under the Guaranty Agreement will be of benefit to the health and welfare of the City of Jeffersonville and its citi- zens. Section ture of Trust, 2. The forms of the Lease, Mortgage and Inden- Construction Letter and Guaranty Agreement ap- proved by the Jeffersonville Economic Development Commission -2- are hereby approved and all such documents (herein collectively referred to as the "Financing Agreement" referred to in I. Co 1971, 18-6-4.5), shall be incorporated herein by reference and shall be inserted in the minutes of the Common Council and kept on file by the Clerk-Treasurer. Section 3. The City of Jeffersonville shall issue its Economic Development First Mortgage Revenue Bonds ($ & T In- dustries, Inc., Project), in the total principal amount of Three Million Two Hundred and Fifty Thousand Dollars ($3,250,000) for the purpose of procuring'funds to pay the costs of acquisi- tion, construction and equipping of the economic development facilities, as more particularly set out in the Mortgage and Indenture of Trust and Lease incorporated herein by reference, which bonds will be payable as to principal, premium, if any, and interest from the rental payments made by S & T Industries, Inc~, under the Lease and from other revenues and income rea- lized under the LeaSe, or as otherwise provided in the above described Mortgage and Indenture of Trust. The bonds shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of the City of Jefferson- ville. Section 4. The Mayor and Clerk-Treasurer are authorized and directed tO sell such bonds to the purchasers thereof at a rate of interest on the bonds not to exceed 8.25% per annum and at a price of 100% of the principal amount thereof. -3- Section 5. The Mayor and Clerk-Treasurer are authorized and directed to execute the documents constituting the Financ- ing Agreement approved herein on behalf of the City of Jefferson- ville and any other document which may be necessary or de- sirable to consummate the transaction, inc%uding the bonds authorized herein. The signatures of the Mayor and Clerk-Treas- urer on the bonds and coupons may be facsimile signatures. The Clerk-Treasurer is authorized to arrange for delivery 0f 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 con- stitute a contract binding between the City of Jeffersonville and.the holder of the Economic Development First Mortgage Reve- nue Bonds (S & T Industries, Inco, Project), 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 -4- effect from and after its passage and signing, by t~ Mayor. Atte~ / Co R. Spencer, J~., Clerk-Treasurer Presented by me to the Mayor of the City of Jefferson- rills, Indiana~ on this ~ day of ~ ~ . ~ 1975. C. R. Spencer, Jr.-~ Approved and signed by me on this ~ 1975. ~Rfchard L. Vissin~Ma-yor City of Jefferso~lle, Indiana -5-