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HomeMy Public PortalAbout062-1990- ORDINANCE AUTHORIZING THE CITY TO ISSUE ITS ECCONOMICORDINANCE NO. 62-1990 ORDINANCE AUTHORIZING THE CITY OF RICHMOND TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1990 (TRANSILWRAP COMPANY, INC. PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the Richmond Economic Development Commission has rendered its Project Report for the Transilwrap Company, Inc. Project regarding the financing of proposed economic development facilities for Transilwrap Company, Inc. and said Project Report has been sent to the Richmond Plan Commission for comment; and WHEREAS, the Richmond Economic Development Commission conducted a public hearing on September 17, 1990, and adopted a resolution on September 17, 1990, which Resolution has been transmitted hereto, finding that the financing of certain economic development facilities of Transilwrap Company, 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, Note, Trust Indenture, Letter of Credit and Bond Purchase Agreement; 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 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 Econor-nic.. Development Revenue Bonds, Series 1990 (Transilwrap Company, Inc. Project) (the "Bonds"), the loan of the proceeds of the Bond to Transilwrap Company, Inc. for the acquisition, construction and equipping of such facilities, the payment of the Bonds by the note payments of Transilwrap Company, Inc. under the Loan Agreement and Note, and the securing of said 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 moving of extrusion lines and fabrication equipment from the Borrower's Chicago facility to the new Richmond facility, and the acquisition of a new extrusion coating line to be used in extrusion coating, to be located at 300 Industrial Parkway, in the City of Richmond, Indiana (the "Project"). Section 3. At the public hearing held by 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 the City of 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 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, Note, Trust Indenture Bond Purchase Agreement and Letter of Credit approved by the Richmond Economic Development Commission are hereby approved (herein collectively 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 Cleric. 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 to exceed Three Million Five Hundred Thousand Dollars ($3,500,000) and with a final maturity on September 1, 2000. Said 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 Transilwrap Company, Inc. 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 the denomination of $100,000 or multiples of $5,000 in excess thereof and shall be redeemable as provided in Article V of the Trust Indenture. Payments of principal and interest are payable in lawful money of the United States of America at the principal office of the Trustee or its successor in trust or by check or draft mailed or delivered to the registered owners 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 purchaser thereof at the price of 100% of the principal amount thereof. The Bonds shall bear interest at a rate not to exceed 7.85% 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 documents constituting the Financing Agreement approved herein on behalf of the City and any other document which may be necessary or desirable to consummate the transaction, including the Bonds authorized herein. The Mayor and Clerk are hereby expressly authorized to approve any modifications or additions to the —3— documents constituting the Financing Agreement which take place after the date of this Ordinance with the review and advice of the City Attorney; it being the express understanding of this Common Council that said Financing Agreement is in substantially final form as of 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 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 Mayor and Clerk shall execute and the Clerk shall deliver the Bonds to the Trustee within ninety days of the adoption of this ordinance. The Bonds shall be originally dated as of September 1, 1990. 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 said Bond, 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 9. The City 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. Section 10. This Ordinance shall be in full force and effect from and after its passage and signing by the Presiding Officer. —4— Passed and adopted this 17th day of September, 1990. Attest Clerk i RICHMOND COMMON COUNCIL Pr i ent Presented by me to the Mayor of the City of Richmond on September 17 , 1990, at the hour of D ' 0 0 1 .m. Clerk Accepted by me this i % day of September, 1990. —5—