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HomeMy WebLinkAboutD-455 Econ Dev. Bond/Ritron ORDINANCE AUTHORIZING THE CITY OF CARMEL TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1985 (RITRON, INC. PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the Carmel Economic Development Commission has rendered its Project Report for the Ritron, Inc. Project regarding the financing of proposed economic development facilities for l{itron, [nc. and the Carmel Plan Commission has commented favorably thereon; and WHEREAS, the Carmel Economic Development Commission conducted a public hearing on October 10, 1985, and also adopted a resolution on October 10, 1985, which Resolution has been transmitted hereto, finding that the financing of certain economic development facilities of Ritrun, Inc. complies with the purposes and provisions of I.C. 36-7-11.9 and 12 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, has considered the issue of adverse competitive effect and' has approved the forms of and has transmitted for approval by the Common Council the Loan Agreement, Mortgage and Security Agreement, Note and Bond Purchase 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 Agreement, Mortgage and Security Agreement approved by the Carmel Economic Development Commission and presented to this Common Council, the issuance and sale of revenue bond, the loan of the proceeds of the revenue bond to Ritron, Inc. for the construction of such facilities and the equipping thereof, the payment of the revenue bond by the note payments of Ritron, Inc. under the Loan Agreement, Mortgage and Security Agreement and Note, and the securing of said bond by the mortgaging of such facilities complies with the purposes and provisions of I.C. 36-7-11.9 and 12 and will be of benefit to the health and welfare of the City of Carmel and its citizens. Section 2. The economic development facilities will consist of the construction of a 25,000 square foot manufacturing facility of the Company and equipment to be installed therein, located at 50~'~West Carmel Drive in Carmel, Indiana (the "Project'). Section 3. At the public hearing held by the Carmel Economic Development Commission, the Commission considered whether the economic development facilities would have an adverse competitive effect on any similar facilities located in the City of Carmel, and found, based on special findings of fact set forth in the l~esolution transmitted hereto, that the facilities would not have an adverse competitive effect. This Common Council hereby confirms the findings set forth in the Commission's l{esolution, and concludes that the economic development facilities will not have an adverse competitive effect on any other similar facilities in the City of Carmel, and the facilities will be of benefit to the health and welfare of the citizens of the City of Carmel. Section 4. The substantially final forms of the Loan Agreement, Mortgage and Security Agreement, Note and Bond Purchase Agreement approved by the Carmel 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), and the Financing Agreement 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. 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. -2- Section 5. The City of Carmel shall issue its Economic Development Revenue Bond, Series 1985 (Ritron, Inc. Project), in the total principal amount of Eight Hundred Thousand Dollars ($800,000) and mataring ten years from the date of the first principal payment. Said bond is to be issued' for the purpose of procaring funds to pay the costs of construction and equipping of the economic development facilities as more particularly set out in the Bond Purchase Agreement and Loun Agreement, Mortgage and Security Agreement incorporated herein by reference, whinh bond will be payable as to principal, premium, if any, and interest from the note payments made by Ritron, Inc. under the Loan Agreement, Mortgage and Security Agreement and Note or as otherwise provided in the above described Bond Purchase Agreement. The bond shall be issued in fully registered form in the denomination of $800,000 and shall be redeemable as provided in Article V of the Bond Purchase Agreement. Payments of principal and interest are payable in lawful money of the United States of America at the principal office of the Bondholder or its successor or by check or draft mailed or delivered to the registered owner as provided in the 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, nor is the bond payable in any manner from revenues raised by taxation. Section 6. 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 70% of the prime rate announced by The indiana National Bank and Trust Company, Indianapolis, Indiana, to be adjusted periodically (except in the event interest on the bond becomes taxable due to a Determination of Taxability, as defined in the Loan Agreement, Mortgage and Security Agreement, in which ease the interest on the bond will increase to the Taxable Rate, as defined in the Loan Agreement, Mortgage and Security Agreement; or if the maximum corporate tax rate, as defined in the Loan Agreement, Mortgage and -3- Security Agreement, chm~ges, the interest rate will change to the Adjusted Tax Exempt Rate, as defined in the Loan Agreement, Mortgage and Security Agreement); and at a price of not less than 100% of the principal amount thereof. Section 7. The Mayo~ mhd 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 to consummate the transaction, including the bond authorized herein. The Mayor and 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 the City Attorney; 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, interest rate on or term of the bond as approved by the Common Council by this Ordinance without further consideration by the Common Council. The signatures of the Mayor and Clerk-Treasurer on the bond may be either manual or facsimile signatures. The Clerk-Treasurer is authorized to arrange for delivery of such bond to the Bondholder named in the Bond Purchase Agreement, and payment for the bond will be made to the Bondholder named in the Bond Purchase Agreement. The Mayor and Clerk-Treasurer shall execute and the Clerk-Treasurer shall deliver the bond to the Bondholder within ninety days of the adoption of this ordinance. The bond shall be originally dated as of September 1, 1985, but shall have as an issue date the date of authentication by the Bondholder. -4- Section 8. The provisions of this Ordinance and the Bond Purchase Agreement securing the bond shall constitute a contract binding between the City of Carmel and the holder of the Economic Development Revenue Bond, Series 1985 (Ritron, Inc. Project), and after the issuance of said bond, 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 bond or the interest thereon remains unpaid. Section 9. This Ordinance shall be in full force a~ld effect from and after its passage and signing by the Mayor. Passed andadoptedthis ~/ day of :///~P-~:., 1985. Atte~"i ~ / ~ Clerk~-Treasure:~/ CARMEL COMMO~ COUN of Presented by me to the Mayor of the City of Carmel, Indiana, on this ~/(~~1. 985, at the hour of Clerk-Treasur~ me on C~/ day of :~-~, 1985. Approved and signed by this 1 day -5-