HomeMy WebLinkAboutD-112 $1.25M EDC/Standard LocknutAN ORDINANCE AUTHORIZING THE CITY OF CA~EL TO
ISSUE ITS "ECONOMIC DEVELOPMENT FIRST MORTGAGE
REVENUE BONDS, (STANDARD LOCKNUT AND LOCKWASHER,
INCo)" AND APPROVING AND AUTHORIZING OTHER
ACTIONS IN RESPECT THERETO-
ORDINANCE
WHEREAS, the Carmel Economic Development Commission has
rendered its Project Report for the Standard Locknut and Lock-
washer, Inc. ("Standard") Project regarding the financing of
proposed economic development facilities for Standard; and
WHEREAS, the Carmel Economic Development Commission con-
dusted a public hearing on~~ 2/ , 1977, and also
adopted Resolution No. ~ ~ .~_ on ~ , 1977, which
Resolution has been transmitted hereto, finding that the
financing of certain economic development facilities of Standard
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 this Common Council the
Lease ~greement and Trust Indenture; 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 Lease
Agreement approved by the Carmel Economic Development Commis-
sion 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
equipping thereoft the lease of said facilities to Standard,
the payment of the revenue bonds by the rent payments of
Standard, under the Lease Agreement, and the securing of said
bonds by the mortgaging of such facilities to the Trustee
under the Trust Indenture will be of benefit to the health and
welfare of the City of Carmel and its citizens and complies
with the purposes and provisions of I.C. 18-6-4.5.
Section 2. The forms of the Lease' Agreement and Trust
in(%antur~_app~o~ed--by~th~ Carmel Economic Develop~Commis--
sion are hereby approved and such documents (herein collec-
tively 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-
Section 3. The City of Carmel shall issue its Economic
Development First Mortgage Revenue Bonds (Standard Locknut and
Lockwasher, Inc.) (the "Bonds"), in the total principal amount
of One Million Two Hundred Fifty Thousand Dollars ($1t250,000)
for the purpose of procuring funds to pay the costs of acquisi-
tion, construction and equipping of the economic development
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Facilities, as more particularly set out in the Trust Inden-
ture and Lease Agreement incorporated herein by reference,
which Bonds will be payable as to principal, premium, if any,
and interest from the rental payments made by Standard, under
the Lease Agreement and from other revenueS and income realized
under the Lease Agreement, or as otherwise provided in the
above described Trust Indenture. The Bonds shall never consti-
tute a general obligation of, an indebtedness of, or a charge
against the general credit of the City of Carmel.
Section 4. The Clerk-Treasurer is authorized and
directed to sell such Bonds to the purchasers thereof at a
rate or rates of interest on the Bonds not to exceed 7-1/4%
per annum and at a price of 100% of the principal amount
thereof-
Section 5. The Mayor and Clerk-Treasurer are author-
~d ~nd ~3~c~-~-~° e~e~clLte~tke~Ocu~en~ c°nsti~q~ing th~ _. _
~ a~roved herein on behalf of the City of
Financing Agreemenu ~
Carmel and any other documentS which may be necessary or des!r-
able to consununate the transaction, including the Bonds author-
ized herein. The Mayor and Clerk-Treasurer are further author-
ized to approve by their execution.the selection of the Trustee
and such modifications, insertions or amendments in the Financ-
ing Agreement as may be deemed appropriate. The Bonds shall be
dated as of the date of closing. The Clerk-Treasurer is
authorized to arrange for delivery of the Bonds to the Trustee
named in the Trust Indenture, payment for which will be made
to the Trustee named in the TruS~. Indenture and delivered by
the Trustee to the purchasers .thereof.
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Section 6. The provisions of this ordinance and the
Trust indenture securing the Bonds shall constitute a contraCt
binding between the City of carmel and the holder of the Bonds
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
effect from and after its passage and signing by the Mayor-
/Attest: I ~
~re~asureL
city of carmel,
Presented bY me to the May°~,e ·
indiana, on this ~ day of ~ ~977' /
~Treasurei
Approved and signed by me on this ~ day of
_,1977.
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