HomeMy Public PortalAbout047-2010 - Economic Development Revenue BondsORDINANCE NO. 47-2010
AN ORDINANCE AUTHORIZING THE CITY OF RICHMOND, INDIANA TO
ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2010
(PERPETUAL RECYCLING PROJECT)"
AND APPROVING OTHER ACTIONS IN RESPECT THERETO
WHEREAS, the Richmond Economic Development Commission (the "EDC")
has rendered its Project Report for the Project (as hereinafter defined) regarding the
financing of an economic development facility for Perpetual Recycling Solutions, LLC;
and
WHEREAS, the EDC conducted a public hearing at 6:00 p.m. on November 15,
2010, and thereafter adopted a resolution regarding the financing for the Project (the
"Resolution") which Resolution has been transmitted hereto, finding that the financing of
such an economic development facility for Perpetual Recycling Solutions, LLC 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 Richmond, Indiana (the "City") and its
citizens; and
WHEREAS, the EDC 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 the Indenture and
Loan Agreement to this Common Council for approval; and
WHEREAS, Wayne County, Indiana (the "County"), in which the Project (as
defined below) is located has been declared a Midwestern Disaster Area under Section
702(b) of the Heartland Disaster Tax Relief Act of 2008;
WHEREAS, the Governor of Indiana's duly authorized designee (the
"Governor"), has designated Perpetual Recycling Solutions, LLC (the "Borrower") as a
"person carrying on a trade or business replacing a trade or business with respect to
which another person suffered such a loss"; and
WHEREAS, pursuant to the determination of the Governor's duly authorized
designee, that an award of volume to the Projects provided assistance to areas where such
assistance is most needed, the Indiana Finance Authority allocated $26,000,000 in
Midwestern Disaster Area Bond Volume to the Project; and
WHEREAS, the Project is expected to create opportunities for gainful
employment in the City, now, therefore
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF
THE CITY OF RICHMOND, INDIANA THAT:
Section 1. It is hereby found that the financing of the economic development
facility referred to in the Indenture and Loan Agreement, approved by the EDC and
presented to this Common Council, the issuance and sale of one or more series of taxable
and tax exempt bonds, known as City of Richmond, Indiana Economic Development
Revenue Bonds, Series 2010 (Perpetual Recycling Project) (the "Bonds"), the loan of the
proceeds of the Bonds to Perpetual Recycling Solutions, LLC (the "Borrower") to be
used for the acquisition, retro-fitting and equipping of the Project, the payment of the
Bonds by the Borrower pursuant to the Indenture and Loan Agreement, and the securing
of said Bonds under such Indenture and Loan Agreement 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 and its citizens.
Section 2. The proceeds of the Bonds will be used for the financing of the
acquisition, retro-fitting and equipping of an existing manufacturing facility located at
1561 Northwest 1 lth Street in the City (the "Project").
Section 3. At the public hearing held before the EDC, the EDC considered
whether the Project would have an adverse competitive effect on any similar facilities
located in or near the City, and subsequently found, based on special findings of fact set
forth in the Resolution transmitted hereto, that the Project would not have an adverse
competitive effect. This Common Council hereby confirms the findings set forth in the
EDC's Resolution, and concludes that the Project will not have an adverse competitive
effect on any other similar facilities in or near the City, and the facility will be of benefit
to the health and welfare of the citizens of the City.
Section 4. The forms of the Indenture and Loan Agreement approved by the
EDC is hereby approved (herein 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. 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 for public inspection.
Section 5. The City shall issue its taxable or tax exempt Bonds in the total
principal amount not to exceed $26,000,000, and maturing in no more than thirty (30)
years. Said Bonds are to be issued for the purpose of procuring funds to pay the costs of
the Project, as more particularly set out in the Financing Agreement, incorporated herein
by reference, which Bonds will be payable as to principal, premium, if any, and interest
from the payments made by the Borrower under the Financing Agreement. The Bonds
shall be issued in fully registered form and shall be redeemable as provided in the final
Financing Agreement, but in all events the Bonds shall be subject to redemption at par in
no more than twelve (12) years. Payments of principal and interest are payable in lawful
money of the United States of America by check or draft mailed or delivered to the
registered owners as provided in the Financing Agreement. The Bonds shall never
constitute a general obligation of, an indebtedness of, or a charge against the general
credit of the City nor are the Bonds payable in any manner from revenues raised by
taxation.
Section 6. The Mayor and Clerk are authorized and directed to approve the
sale of the Bonds to the original purchasers (the "Purchasers") at the price of 100% of the
principal amount thereof. The Bonds shall bear interest at a fixed rate pursuant to the
Financing Agreement, provided that the interest rate on the Bonds shall not exceed 12%
per annum.
Section 7. The Mayor and Clerk are authorized and directed to execute, attest,
affix or imprint by any means the City seal to the Financing Agreement approved herein
on behalf of the City and any other document or certificate which may be necessary or
desirable prior to, on or after the date hereof to consummate or facilitate the transaction,
including the Bonds authorized herein. The Mayor and Clerk are hereby expressly
authorized to deem the Official Statement relating to the issuance of the Bonds as nearly
final and the distribution of the nearly final Official Statement is hereby approved. The
Mayor and Clerk are hereby expressly authorized to approve any modifications or
additions to the Financing Agreement which take place after the date of this Ordinance
with the review and advice of counsel to the City; it being the express understanding of
this Common Council that said Financing Agreement may change; however, the
statutorily required approvals of the Common Council shall not change after 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
Bonds as approved by the Common Council by this Ordinance without further
consideration by the Common Council. The signatures of the Mayor and Clerk on the
Bonds may be either manual or facsimile signatures. The Clerk is authorized to arrange
for delivery of such Bonds to the Purchasers and the Purchasers will make such payment
for the Bonds available to Borrower as provided in the Financing Agreement. The Bonds
shall be originally dated the date of issuance and delivery thereof.
Section 8. The provisions of this Ordinance and the Financing Agreement
securing the Bonds shall constitute a contract binding between the City, the Purchasers
and the Borrower, 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 said Bonds or the interest thereon remains unpaid.
Section 9. This Ordinance shall be in full force and effect from and after its
passage.
Passed and adopted by the Common Council of the City of Richmond, Indiana
this _15th _ day of November 2010.
RICHMOND COMMON COUNCIL
S/S J. Clayton Miller
J. Clayton Miller, President
ATTEST: S/S Karen Chasteen
Karen Chasteen, City Clerk
PRESENTED to the Mayor of the City of Richmond, Indiana, this _16th day of
November , 2010, at 9:00 a.m.
_S/S Karen Chateen , City Clerk
Karen Chasteen, City Clerk
APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this
_16th day of November , 2010, at 9:05 a.m.
S/S Sarah L. Hutton
Sarah L. Hutton, Mayor
ATTEST: S/S Karen Chasteen
Karen Chasteen, City Clerk