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HomeMy WebLinkAboutD-297 Econ.Dev.$525,l00 Bonds23 - q7 ORDINANCE AUTHORIZING THE CITY OF CARMEL TO ISSUE ITS "ECONOMIC DEVELOPMENT FIRST MORTGAGE REVENUE BOND (COOTS, HENKE & WHEELER PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the Carmel Economic Development Commission has rendered its Project Report for the Coots, Henke & Wheeler Project regarding the financing of proposed economic develop- ment facilities for Coots, Henke & Wheeler, a general partner- ship; and WHEREAS, the Carmel Economic Development Commission con- ducted a public hearing on ~ /~ ., 1981, and also adopted ~81 which Resolution has been a resolution on ~. /2 , , U' transmitted hereto, finding that the financing of certain eco- nomic development facilities of Coots, Henke & Wheeler complies with the purposes and provisions of I.C. 18-6-4.5 and that such financing will be of benefit to the health and welfare of the City of Carmel and its citizens; and WHEREAS, the Carmel Economic Development Commission 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 the Common Council the Loan Agreement and Mortgage, Note, Bond Purchase Agreement and Guaranty Agreement; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA THAT: Section 1. It is hereby found that the financing of the economic development facilities referred to in the Loan Agree- ment and Mortgage approved by the Carmel Economic Development Commission and presented to this Common Council, the issuance and sale of a revenue bond, the loan of the proceeds of the revenue bond to Coots, Henke & Wheeler for the acquisition and construction of such facilities and the equipping thereof, the payment of the revenue bond by the note payments of Coots, Henke & Wheeler under the Loan Agreement and Mortgage and Note, the securing of said bond by the mortgaging of such facilities to the City of Carmel under the Loan Agreement and Mortgage, and the guaranty of payment of principal and interest on the revenue bonds by the partners of Coots, Henke & Wheeler and their wives under the Guaranty Agreement, complies with the purposes and provisions of I.C. 18-6-4.5 and will be of benefit to the health and welfare of the City of Carmel and its citizens. Section 2. The forms of the Loan Agreement and Mortgage, Note, Bond Purchase Agreement and Guaranty Agreement approved by the Carmel Economic Development Commission are hereby approved and all such documents (herein collectively referred to as the "Financing Agreement" referred to in I.C. 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. - 2 - Section Development 3. The City of Carmel shall issue its Economic First Mortgage Revenue Bond (Coots, Henke & Wheeler Project), in the total principal amount of Five Hundred Twenty- five Thousand Dollars ($525,000) for the purpose of procuring funds to pay the costs of acquisition, construction and equip- ping of the economic development facilities as more particularly set out in the Bond Purchase Agreement and Loan Agreement and Mortgage incorporated herein by reference, which bond will be payable as to principal, premium, if any, and interest from the note payments made by Coots, Henke & Wheeler under the Loan Agreement and Mortgage and Note or as otherwise provided in the above described Bond Purchase Agreement. The Bond shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of the City of Carmel. Section 4. The Mayor and Clerk-Treasurer are authorized and directed to sell such bond to the purchaser thereof at a rate of interest per annum on the bond not to exceed 12% per annum, or 70% of the prime commercial lending rate announced by Carmel Bank and Trust Company, whichever may be higher, and at a price not less than 100% of the principal amount thereof. 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 and any other document which may be necessary or desirable to consum- mate the transaction, including the bond authorized herein. The Mayor and Clerk-Treasurer are also authorized to approve by - 3 - their execution such modifications in such document, as may be desirable. The signatures of the Mayor and Clerk-Treasurer on the bond may be facsimile signatures. The Clerk-Treasurer is authorized to arrange for delivery of such Bond to the Bond- holder named in the Bond Purchase Agreement. Section 6. The provisions of this Ordinance and the Loan Agreement and Mortgage securing the bond shall constitute a contract binding between the City of Carmel and the holder of the Economic Development First Mortgage Henke & Wheeler Project), and after the this Ordinance shall not be repealed or Revenue Bond (Coots, issuance of said bond, amended in any respect which would adversely affect the rights of such holders so long as the bond or the interest thereon remains unpaid. Section 7. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. this /~ day of~/~.. ., 1981. Passed and adopted Attest: Clefk-Treas~r~ CARMEL COMMON COUNCIL s~id lng orr ic~r ~ Presented by me Indiana, on this /~ day of of ~3 ~-. ~.m. to the Mayor of the City of Carmel, , 1981, at the hour Cler k-Tr ea~er- - 4 - Approved 1981. and signed by me on r~ ~i~ty'"6f ~rmel - 5 - REPORT OF THE CARMEL ECONOMIC DEVELOPMENT COMMISSION CONCERNING THE PROPOSED FINANCING OF ECONOMIC DEVELOPMENT FACILITIES FOR COOTS, HENKE & WHEELER The Carmel Economic Development Commission proposes to recommend to the Common Council of the City of Carmel that it provide funds for acquisition and construction of an economic development facility for Coots, Henke & Wheeler, a general part- nership ("Applicant"). Such economic development facility will be a 7,500 square foot office building for professional offices. The facility will be located on a tract of approximately 1 acre, located at 225 East Carmel Drive, in the City of Carmel, Indiana. The total cost for the construction and equipping of the facilities, including land acquisition, is presently esti- mated to be in an amount of approximately $600,000. The Appli- cant is requesting a bond issue of approximately $550,000 for the project, including incidental costs of issuance of the eco- nomic development revenue bonds. No additional public facilities will be made necessary on account of the proposed facilities since adequate public serv- ices are now available at the proposed location. There are inadequate similar facilities in the City of Carmel and accordingly, construction of the facility will not have an adverse competitive effect on any similar facilities already constructed or operating in Carmel, Indiana. It is further estimated that upon the completion of the new facilities and start of operations, the new operation will immediately furnish facilities to provide employment for approx- imately 10 employees with an estimated payroll of approximately $200,000 annually, and at the end of three years will provide for 30 jobs at an esti~ated annual payroll of $450,000. Adopted this [5 ~day of :~, 1981. CARMEL ECONOMIC DEVELOPMENT COMMISSION -2- RESOLUTION CARMEL ECONOMIC DEVELOPMENT COMMISSION CARMEL, INDIANA for Coots, Henke & with the purposes of benefit to the its citizens. Section 2. BE IT RESOLVED BY THE CARMEL ECONOMIC DEVELOPMENT COMMIS- SION THAT: Section 1. It finds that the proposed financing of economic development facilities referred to in the form of the Financing Agreement (as defined in the Minutes) presented to this meeting Wheeler, a general partnership, complies and provisions of I.C. 18-6-4.5 and will be health and welfare of the City of Carmel and The forms of Loan Agreement and Mortgage, Note, Bond Purchase Agreement and Guaranty Agreement, and a proposed form of ordinance for the CoF~on Council presented to this meeting are hereby approved. Section 3. The Secretary shall initial and then insert a copy of the forms of documents approved by this Resolution in the Minute Book of this Commission. Section 4. A copy of this Resolution and the other form of documents approved by this Resolution and the proposed form of Ordinance shall be presented in their final form by Counsel for the Economic Development Commission or by any member of this Commission to the Clerk-Treasurer Comm6n Council. Adopted this day of for presentation to the , 1981. CARMEL ECONOMIC DEVELOPMENT COMMISSION Approval of the Coots, Henke & Wheeler office building was obtained from the Carmel Plan Commission at their regular meeting held February 17, 1981, per the attached minutes. Virgi~ President Carmel Plan Commission - 2 -