HomeMy Public PortalAbout2000-02 EDIT BondsCOMMON COUNCIL OF THE CITY OF GREENCASTLE, INDIANA
ORDINANCE NO. 2000-2
• AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF
GREENCASTLE INDIANA (THE "CITY'), AMENDING AN ORDINANCE OF
SAID COMMON COUNCIL ADOPTED ON DECEMBER 30, 1999,
AUTHORIZING THE ISSUANCE AND SALE OF COUNTY ECONOMIC
DEVELOPMENT INCOME TAX REVENUE BONDS OF THE CITY IN A
PRINCIPAL AMOUNT NOT TO EXCEED FIVE HUNDRED SEVENTY
THOUSAND DOLLARS ($570,000), FOR THE PURPOSE OF AUTHORIZING
THE ISSUANCE AND SALE OF BOND ANTICIPATION NOTES INT
ANTICIPATION OF THE ISSUANCE AND SALE OF SAID REVENUE BONDS
TO PROCURE INTERIM FUNDS TO BE APPLIED TO A PORTION OF THE
COSTS OF FINANCING CERTAIN ECONOMIC DEVELOPMENT PROJECTS,
TOGETHER WITH EXPENSES INCIDENTAI. THERETO, INCLUDING
EXPENSES IN CONNECTION WITH THE ISSUANCE OF THE BOND
ANTICIPATION NOTES.
WHEREAS, on December 10, 1999, the Common Council of the City (the "Common
Council ") adopted an Ordinance (the 'Bond Ordinance ") authorizing the issuance of county
• economic development income tax revenue bonds of the City in a principal amount not to exceed
Five Hundred Seventy Thousand Dollars ($570,000) (the 'Bonds "), the proceeds of which are to be
applied to pay the costs of a portion of the following economic development proj ects: (a) acquisition
of real estate to provide for office space for the City, and (b) engineering study and design work
relating to Indianapolis Road from Wood Street east to State Road 240 in the City (collectively, the
"Economic Development Projects "); and
WHEREAS, the Common Council now desires to amend and supplement the Bond
Ordinance for the purpose of authorizing the issuance and sale of bond anticipation notes in
anticipation of the issuance of the Bonds in an aggregate principal amount not to exceed Five
Hundred Fifty Thousand Dollars ($550,000) for the purpose of providing interim financing to apply
• to a portion of the costs of the Economic Development Projects;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF GREENCASTLE, INDIANA, AS FOLLOWS:
• SECTION 1_ In anticipation of the issuance and sale of the Bonds authorized by the
Bond Ordinance, and to provide interim financing to apply to a portion of the costs for which the
Bonds are to be issued, the City is hereby authorized to have prepared and to issue and sell
negotiable bond anticipation notes (the "BANs ") of the City, pursuant to Indiana Code 5- 1 -14 -5, in
an aggregate principal amount not to exceed Five Hundred Fifty Thousand Dollars ($550,000) to
be designated "City of Greencastle, Indiana, County Economic Development Income Tax Revenue
Bond Anticipation Notes, Series 2000. The Clerk - Treasurer of the City (the "Clerk- Treasurer ")
shall certify in writing the final principal amount of the BANS prior to the sale thereof. The BANs
shall be issued in fully registered form, shall be numbered consecutively from R -1 upwards, shall
be issued in denominations of One Thousand Dollars ($1,000), or integral multiples thereof, shall
• be dated either the date on which the BANS are issued or the first day of the month in which the
BANS are issued as set forth in the below described BAN Purchase Agreement, and shall bear
interest at a rate not to exceed six percent (6.0 %) per annum (the exact rate of interest to be
determined by negotiations with the purchaser thereof). Principal of and interest on the BANS shall
not be payable and interest shall not accrue on the BANS until such principal amount has been
advanced to the City by the purchaser of the BANs in accordance with the BAN Purchase
Agreement, as hereinafter defined. The BANS shall mature on March 1, 2001. The interest on the
BANs shall be payable on March 1, 2001. Principal and interest on the BANs shall be payable at
the principal office of the Clerk- Treasurer, as Paying Agent. The BANs shall be sold to a financial
institution at a price not less than ninety -eight percent (98.0 %) of the par value thereof (the exact
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price to be determined by negotiations with the purchaser thereof). The BANS shall be subject to
renewal or extension, at an interest rate not to exceed six percent (6.0 %) per annum, with the exact
• rate to be negotiated with the purchaser or purchasers thereof. The tern of the BANS and all renewal
BANs may not exceed five (5) years from the date of delivery of the initial BANTs. The principal of
the BANS shall be refunded and retired solely out of the proceeds from the issuance and sale of the
Bonds pursuant to the Bond Ordinance, when and if issued. The interest on the BANS shall be paid
from the proceeds from the issuance and sale of the Bonds, when and if issued, or from other funds
of the City to the extent legally available therefor. All payments on the BANS shall be made in any
coin or currency of the United States of America which, on the dates of such payments, shall be legal
tender for the payment of public or private debt.
SECTION 2. The BANS are prepayable by the City, in whole or in part (and if in
part, in authorized denominations and by lot in such marmer as may be designated by the Clerk-
Treasurer of the City, as Registrar), at any time upon seven (7) days' notice to the registered owner
or owners of the BAN''s, without any premium. In the case of prepayment, the principal clue on the
BANTs shall be paid only from proceeds of the Bonds and /or any other revenues legally available to
the City and accrued interest due on the BANS shall be paid from any revenues legally available to
the City.
SECTION 3. The BANs shall be sold by negotiated sale to the purchaser thereof at
a price of not less than ninety -eight percent of the par amount thereof (98.0 1 /o), in accordance with
a purchase agreement to be entered into with respect thereto (the "BAN Purchase Agreement "). The
Clerk- Treasurer and other such proper officers of the City arehereby authorized to negotiate, execute
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and deliver the BAN Purchase Agreement on behalf of the City. The Clerk- Treasurer and other such
proper officers of the City are further authorized to carry out, on behalf of the City, the terms and
• conditions set forth in the BAN Purchase Agreement, consistent with the provisions of this
Ordinance.
SECTION 4. The Clerk- Treasurer and other such proper officers of the City are
hereby authorized to execute all documents and take all actions necessary to provide for the issuance
of the BANs, provided such documents or actions are not inconsistent with the terms and conditions
of this Ordinance.
SECTION 5. The BANs shall be executed in the name of the City by the manual or
facsimile signature of the Mayor of the City (the "Mayor ") and attested by the manual or facsimile
signature of the Clerk- Treasurer, who shall cause the seal of the City or a facsimile thereof to be
affixed to each of the BANs. The BANs shall be authenticated by the manual signature of the
• Registrar, and no BAN shall be valid or become obligatory for any purpose until the certificate of
authentication thereon has been so executed. In case any official whose signature appears on any
BAN shall cease to be such official before the delivery of such BAN, the signature of such official
shall nevertheless be valid and sufficient for all purposes, the same as if such official had been in
office at the time of such delivery. Subject to the provisions of this Ordinance regarding the
registration of the BANs, the BANS shall be fully negotiable instruments under the laws of the State
of Indiana.
SECTION 6. The Clerk- Treasurer is hereby authorized and directed to have the
BANs prepared, and the Mayor and the Clerk- Treasurer are each hereby authorized and directed to
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execute the BANS in the form and manner herein provided. The Clerk- Treasurer is hereby
authorized and directed to deliver the BANS to the purchaser or purchasers thereof after sale made
• in accordance with the provisions of this Ordinance. The proceeds derived from the sale of the
BANS shall be and are hereby set aside for application to the costs of the Economic Development
Projects, including all authorized costs relating thereto, including the costs of issuance of the BANS.
The authorized officers of the City are hereby authorized and directed to draw all proper and
necessary warrants and to do whatever other acts and things that may be necessary or appropriate to
carry out the provisions of this Ordinance.
SECTION 7. The proceeds from the sale of the B ANs shall be deposited in a bank
or banks which are legally qualified depositories for the funds of the City, in the special fund created
by the Bond Ordinance and designated as "City of Greencastle, Indiana, Economic Development
Project Construction Fund" (the "Construction Fund "). Amounts in the Construction Fund shall be
• expended only for the purpose of paying the costs of the Economic Development Proj ects, refunding
the BANS, paying the costs of issuance of the BANS, or as otherwise permitted or required by
Indiana Code 6- 3.5 -7, as amended (the "Act "). Any balance or balances remaining unexpended in
the Construction Fund after completion of the Economic Development Projects, which are not
required to meet unpaid obligations incurred in connection with the acquisition, construction or
installation of the Economic Development Projects, shall be used solely for one or more of the
purposes permitted under the provisions of Indiana Code 5 -1 -13, as amended. Pursuant to the Act,
the owners of the BANS shall be entitled to a lien on the proceeds of the BANS, until such proceeds
are applied as required by this Ordinance and by Indiana law.
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The proceeds of the Bonds shall be used to refund the BANs and are hereby pledged
for such purpose, and any proceeds of the Bonds remaining after the BANS have been paid in full
• shall be applied to the remaining costs of the Economic Development Projects or otherwise used in
accordance with law.
SECTION & The Clerk - Treasurer of the City is hereby designated as the Registrar
and Paying Agent for the BANS, with such rights and duties as are set forth in the Bond Ordinance.
SECTION 9. This Ordinance is adopted by the Common Council for purposes of
amending and supplementing the Bond Ordinance, and the terms and conditions of the Bond
Ordinance, to the extent not inconsistent with the terms of this Ordinance, are incorporated herein
by reference and shall apply to the BANTs as if set forth herein.
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