HomeMy Public PortalAbout102-1996- ORDINANCE AUTHORIZING THE CITY OF RICHMOND TO ISSUE IORDINANCE NO.
ORDINANCE AUTHORIZING THE CITY OF RICHMOND TO
ISSUE ITS "ADJUSTABLE RATE ECONOMIC DEVELOPMENT REVENUE
BONDS, SERIES 1996 (HOLLAND COLORS AMERICAS INC.
PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO
WHEREAS, the Richmond Economic Development Commission has rendered its Project
Report regarding the financing of proposed economic development facilities for Holland Colors
Americas Inc. to the Richmond Plan Commission; and
WHEREAS, the Richmond Economic Development Commission conducted a public
hearing on October 7, 1996 before the Commission, and adopted a Resolution on October 7,
1996, which Resolution has been transmitted hereto, finding that the financing of certain
economic development facilities for Holland Colors Americas 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 Richmond and its citizens; and
WHEREAS, the Richmond 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; the Note; the Bond
Placement Agreement; the Trust Indenture; and the Preliminary Private Placement
Memorandum; now, therefore
BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF RICHMOND,
INDIANA THAT:
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Section 1. It is hereby found that the financing of the economic development facilities
referred to in the Loan Agreement approved by the Richmond Economic Development
Commission and presented to this Common Council, the issuance and sale of the City of
Richmond, Indiana Adjustable Rate Economic Development Revenue Bonds, Series 1996
(Holland Colors Americas Inc. Project) (the "Bonds"), the loan of the proceeds of the Bonds to
Holland Colors Americas Inc. (the "Borrower") for the acquisition, construction and equipping
of such facilities, the payment of the Bonds by the note payments of the Borrower under the
Loan Agreement and Note, the issuance of a letter of credit to secure the payment of interest
on or principal of the Bonds, and the securing of such Bonds under the Trust Indenture 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 Richmond and its citizens.
Section 2. The economic development facilities will consist of the acquisition,
construction and equipping of an approximate 30,000 square foot addition to the existing
manufacturing facilities of the Borrower, to be used in the manufacturing of encapsulated color
pigment used primarily in the plastics industry, located at 1501 Progress Drive, Richmond,
Indiana (the "Project").
Section 3. At the public hearing held before the Richmond Economic Development
Commission, the Commission considered whether the economic development facilities would
have an adverse competitive effect on any similar facilities located in or near Richmond, and
subsequently found, based on special findings of fact set forth in the Resolution 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 Resolution, and concludes that the
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economic development facilities will not have an adverse competitive effect on any other similar
facilities in or near the City of Richmond, and the facilities will be of benefit to the health and
welfare of the citizens of the City of Richmond.
Section 4. The substantially final forms of the Loan Agreement; the Note; the Bond
Placement Agreement; the Preliminary Private Placement Memorandum; and the Trust indenture
approved by the Richmond Economic Development Commission are hereby approved (herein
collectively referred to as the "Financing Agreement" referred to in T.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 of Richmond shall issue its Bonds in the total principal amount not
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to exceed $2,OW,000 and maturing no later than twelve (12) years from the date of the first
principal payment thereon. Such Bonds are to be issued for the purpose of procuring funds to
pay the costs of acquisition, construction and equipping of the economic development facilities
as more particularly set out in the Trust Indenture and Loan Agreement, incorporated herein by
reference, which Bonds will be payable as to principal, premium, if any, and interest from the
note payments made by the Borrower under the Loan Agreement and, Note or as otherwise
provided in the above -described Trust Indenture. The Bonds shall be issued in fully registered
form in denominations of $100,000 or $5,000 integral multiples in excess thereof or as otherwise
provided in the Trust. Indenture, and shall be redeemable as provided in Article IV of the Trust
Indenture. Payments of principal and interest are payable in lawful money of the United States
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of America by check or draft mailed or delivered to the registered owners or by wire transfer
to an owner holding Bonds in the amount of at least $1,000,000, if requested by such owner,
as provided in the Trust Indenture. The Bonds shall never constitute a general obligation of, an
indebtedness of, or a charge against the general credit of the City of Richmond nor are the
Bonds payable in any manner from revenues raised by taxation.
Section 6. The Mayor and Clerk are authorized and directed to sell the Bonds to the
original purchasers thereof at the price of 100 % of the principal amount thereof. The Bonds
shall bear interest at the rates per annum established pursuant to Section 2.03 of the Trust
Indenture, provided that the interest rate on the Bonds shall not exceed the Maximum Rate, as
such term is defined in the Trust Indenture. The Placement Agent, Banc One Capital.
Corporation, shall be entitled to a placement fee not to exceed 1 % of the face amount of the
Bonds.
Section 7. The Mayor and Clerk 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 prior to, on or after the date hereof to consummate or facilitate the transaction,
including the Bonds authorized herein. The Preliminary Official Statement may be converted
to a final Official Statement upon approval of the changes and modifications by Issuer's Counsel
and further the distribution thereof in connection with the sale of the Bonds is hereby approved.
The Mayor and Clerk are hereby expressly authorized to deem the Preliminary Private
Placement Memorandum relating to issuance of the Bonds as nearly final and the distribution
of the nearly final Private Placement Memorandum is hereby approved. The Mayor and Clerk
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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 counsel to the City; it being the express understanding of this Common
Council that such Financing Agreement is in substantially final form as of the date of this
Ordinance. The approval of such 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 Trustee named in the Trust
Indenture, and payment for the Bonds will be made to the Trustee named in the Trust Indenture
and after such payment, the Bonds will be delivered by the Trustee to the purchasers thereof.
The Bonds shall be originally dated the date of issuance and delivery thereof.
Section 8. The provisions of this Ordinance and the Trust Indenture securing the Bonds
shall constitute a contract binding between the City of Richmond and the holders of the Bonds,
and after the issuance of such Bonds, this Ordinance shall not be repealed or amended in any
respect which would adversely affect the rights of such holders so long as such Bonds or the
interest thereon remains unpaid.
Section 9. The City of Richmond, Indiana hereby elects to issue the Bonds pursuant
to the $10,000,000 small issue exemption set out in Section 144(a)(4) of the Internal Revenue
Code of 1986, as amended.
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Section 10. This Ordinance skull be in full force and effect from and after its passage.
Passed and adopted this 7th day of October, 1996.
RICHMOND COMMON COUNCIL
Presiding Officer
(SEAL)
Attest:
Cler
Presented by me to the Mayor of the City of Richmond, on the 2day of October,
1996.
Approved and signed by the Mayor c
1996.
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DISPOSITION OF ORDINANCE NO. 19 '19 6
RESOLUTION NO. - 19
by Common Council
Ordinance Na./—
Resolution No.
Date - 3
Elstro
Lundy
Wissel
Stamper
Welch
Parker
Aller
Dickman
Hutton
Susp. rules 1 st reading
Title Only
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Passage
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Rejection
Date Passed
COMMrrTEE ASSIGNMENTS:
Committee Date
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