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Home My Public Portal About028-1994 - SPECIAL ORDINANCE AUTHORIZING AND COMMITTING THE CITORDINANCE NO. 28-1994 A SPECIAL ORDINANCE AUTHORIZING AND COMMITTING THE CITY TO PROCEED WITH FINANCING ECONOMIC DEVELOPMENT FACILITIES WHEREAS the City of Richmond, Indiana ("City"), is authorized by IC 36-7-12 ("Act"), to issue revenue bonds for the financing of economic development facilities and to loan the proceeds of such bonds; and WHEREAS the City has been advised that there is under consideration a proposal by Schuller International, Inc. ("Company") for the acquisition, construction and installation of various and numerous items of machinery, equipment and fixtures for a proposed facility in Richmond, Indiana, that will constitute an economic development facility, which is located at 814 Richmond Avenue in the City and which will be used in the Company's business of manufacturing and distributing unbonded blowing wool and related products ("Project"); and WHEREAS the Company has further advised the City that a determination by the City to issue its revenue bonds under the Act to finance the acquisition, construction and installation of the Project, under contractual arrangements whereby the City would make a loan to the Company of the net proceeds derived from the issuance and sale of such bonds for the financing of the Project, will constitute a substantial inducement to the Company to proceed with the Project, and the Company has agreed to pay the costs of the City, whether or not such bonds are issued and the loan made; and WHEREAS this Common Council has determined that the Project will provide opportunities for gainful employment, business opportunities and economic diversification and will be of public benefit to the health, prosperity and general welfare of the City and of its citizens; and WHEREAS this Common Council recognizes that the providing of opportunities for gainful employment, business opportunities and economic diversification to be achieved by the acquisition, Construction and installation of the Project will be of public benefit to the health, safety and general welfare of the City and of its citizens; and WHEREAS, subject to all of the required approvals under the Act and otherwise, it would appear that the financing of the Project would be of public benefit to the health and general welfare of the City and of its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA: Section 1. The Common Council finds and determines that the issuance and sale of revenue bonds of the Citv under the Act, and the loaning of the net proceeds derived therefrom to finance the acquisition, construction and installation of the Project will enable the Company to complete the Project, will be of benefit to the health and general welfare of the City and its citizens and will comply with the purposes and provisions of the Act. Section 2. In order to induce the Company to proceed with the acquisition, construction and installation of the Project, the Common Council hereby undertakes that: (i) it will authorize and issue one or more series of revenue bonds of the Citv pursuant to the Act, in an aggregate principal amount not exceeding $8,0(X),(H)O to finance the cast of the acquisition, construction and installation of the Project, including reimbursement or repayment of the Company of any monies expended by the Company for planning, engineering, interest during construction, underwriting expenses, and other costs of the Project, attorney and bond counsel fees, and will enter into contractual arrangements to make a loan to the Company of the net proceeds derived from the issuance and sale of such revenue bonds for the financing of the acquisition, construction and installation of the Project whereby the payments to be made by the Company shall be sufficient to pay the principal of, premium, if any, and the interest on such bonds when the same shall become due and payable; (i i) it will adopt such ordinances and authorize the execution and delivery of such instruments and the taking of such actions as may be necessary or advisable for the authorization, issuance and sale of said bonds; and (i i i) it will take or cause to be taken such other actions as may be required to implement the aforesaid, or as it may deem appropriate in pursuance thereof; provided that all of the foregoing shall be as authorized by law and as mutually acceptable to the City and the Company. Section 3. It is hereby recognized that the issuance and sale of revenue bonds by the City uncter the Act for the purposes set forth herein shall be subject to the City obtaining all approvals as may be required under the Act and otherwise. Section 4. To the extent permitted by the Act, the Company may make such changes in the Project as it may deem necessary or desirable, provided that after such changes the Project will constitute an economic development facility under the Act. Section 5. The revenue bonds, if issued, shall never constitute a general obligation of, or indebtedness of, or a charge against the general credit of the City and shall not be payable to any extent from revenue raised by taxation. All costs and expenses incurred by the City from and after this date in connection with the revenue bonds shall be paid or reimbursed by the Company whether or not the revalue bonds are actually issued. Section 6. The Common Council recognizes that theaggregate principal amount of revenue bonds herein authorized may not be sufficient to complete the Project and agrees that the documents relating to the bonds issue may permit the issuance of additional bonds from time to time to complete the Project. Section 7. This Ordinance shall be in full force and effect immediately upon compliance with the procedures required by law. Passed and adopted this 4th day of April, 1994, by the C m Council of e City of Richmond, III'd iana. sident La Parker) ---- ATTEST: _ _ City Clerk (Norma Carnes) --, ---- PRESENTED to the Mayor of the City of Richm nd, Indiana, n 5th day of April, 1994, at 9:00 a.m. City Clerk (Norma C rnes) .APPROVED by me, Roger Cornett, Mayor of the Ci o m 1 , ndiana this 5th day of April, 1994, at tea :; .l.m. --- --- ----- ----- a v o r o er Cornett) ATTES _ _ ___________,City Clerk _ -(Norma Carnes) RESOLUTION NO. 1-1994 RICHMOND ECONOMIC DEVELOPMENT COMMISSION WHEREAS, the Richmond Economic Development Commission ("Commission") is a commission operating and existing under and pursuant to the authority of IC 36-7-12 ("Act"); and WHEREAS, the Commission is authorized by the Act to investigate, study and survey the need for and the availability of economic development facilities in the City of Richmond, Indiana ("City"); and WHEREAS, Schuller International, Inc. ("Company") has' requested the Commission to consider a proposal to finance for it under the Act certain economic development facilities for the Company in the City and to be located at and used in conjunction with the Company's existing facility at 814 Richmond Avenue in the City, which facility will consist of various and numerous -- items of machinery, equipment and fixtures for the manufacturing and processing of unbonded blowinL, wool and related products ("Projects"); and WHEREAS, the Commission has considered the Project and the proposed financing of the Project and the effect on opportunities for gainful employment and business opportunities and the health, prosperity and general welfare of the City and its citizens; and WHEREAS, subject to all required approvals under the Act, it appears that the proposed financing of the Project will provide opportunities for gainful employment and business Opportunities and will benefit the health, prosperity and general welfare of the City and its citizens. and WHEREAS, the.acquisition of the Project will not have an adverse competitive effect on anv similar facilities already constructed or operating in the City; and WHEREAS, the Commission has considered an Ordinance, a copy of which is attached to the minutes of this meeting, and has considered recommending that the Common Council of the City ("Common Cotiilcil") adopt such Ordinance in such form. NOW THEREFORE, BE IT RESOLVED by the Richmond Economic Development Commission, that the Commission hereby finds that because of the need to create opportunities for <(Tainful employment and business opportunities in the City, and because the Project will create opportunities for gainful employment and business opportunities in the City, the proposed financing of the Project through revenue bonds issued under the Act in an amount not to exceed S8,000,000 will provide opportunities for gainful employment and business opportunities and will benefit the health, prosperity and general welfare of the City and its citizens and complies with the purposes and provisions of the Act. BE IT FURThiER RESOLVED, that in order to induce the Company to proceed with 311t acquisition of the Project, this Commission hereby undertakes that (i) it will take or cause to be taken such actions pursuant to the Act as may be required to implement the aforementioned f'inancino, or as it may deem appropriate in pursuance thereof; provided that all of the foregoing shall be authorized by law and is mutually acceptable to the City and the Company; and (ii) it will adopt such i-es01u1i0ns and authorize the execution and delivery of such instruments and the taking of'such action as may be necessary and advisable for the authorization, issuance and sale of said rcvenuc bonds. subject 10 all required approvals as may be required under the Act. BE IT FURTHER RESOLVED, that the Commission hereby approves the attached Ordinance and recommends that it be adopted by the Common Council, and the Commission hereby directs that copies of this Resolution and attached Ordinance be transmitted to the City Clerk for presentation to the Common Council, with the recommendation that the Ordinance be adopted by the Common Council at its April 4, 1994, meeting. Adopted this 28th day of March, I994. RICHMOND ECONOMIC DEVELOPMENT COMMISSION Ricer,. K1eipknecht,�r�sid"t n ,- Charles K. Robinson, Vice President Arthur M. Vivian, Secretary CITY OF RICHMOND DEPARTMENT OF LAW 50 North 5th Street Richmond, Indiana 47374 Phone (317) 983-7220 Fax (317) 966-2255 March 29, 1994 Common Council Richmond, Indiana RE: Ordinance No. 28-1994 Dear Council Member: ROGER CORNETT Mayor THOMAS S. MILLIGAN City Attorney This ordinance authorizes the City's Economic Development Commission composed of Richard B. Kleinknechl, Charles K. Robinson, Jr., and Arthur M. Vivian to proceed with the financing of a third production line in the former Johns -Manville plant, now doing business as Schuller international, [TIC. a wholly owned subsidiary of Manville Corporation. The Company currently manufactures and distributes unbonded blowing wool and related products to the construction industry. They propose to finance this expansion with the City issuing its revenue bonds under Indiana Code 36-7-12 in an aggregate principal amount not exceeding $8,000,000.00. Although the City issues the bonds, the bonds do not constitute a general obligation of, or indebtedness of, or a charge against the general credit of the City and shall not be payable from revenue raised by taxation. As a rvsult of the passage of this ordinance, also commonly known as an inducement resolution, all costs and expenses incurred by the City from and after this date in connection with the revenue bonds shall be Paid or reimbursed by the company whether or not the revenue bonds are actually issued. The ordinance can be passed in a single meeting with motions to suspend the rules. This procedure enables a manufacturer to obtain a favorable interest rate on its borrowed capital. After completion of - the financing documents and a public hearing before the Economic Development Commission, the subject matter of this ordinance will return to Common Council in the form of a bond ordinance under Indiana Code 36-7-12-25 for final approval. Sincerely yours, Thom<7s Si. Milligan City Attorney Enclosure TSIv1 /ags DISPOSITION OF ORDINANCE" NO. -199 RESOLUTION NO. by Common Council ordinance Noo_,W Resolution No. _ Elstro Lundy Brookbank Donat McBride Parker Dickman Allen Hutton Date Susp. rules Ist road / Title only -------- I ------ I -------- ------ --- Proof of Publicaton t ...... Seconded Move to 2nd read j ,-- Seconded ✓ Engrossment ................................ ----...------ ------ ................ Seconded Susp rules 3rd read ✓ ......... Seconded ✓ Passage ✓ ✓ ✓ Rejection Dare Passed IY COMMITTED: ASSIG ME T5: Committee Date Commttee Hearing Date Reassigned to Council Agenda PUBLICATION DATES: AMENDMENTS: COMMENTS: