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Home My Public Portal About043-1989-AUTHORIZING THE CITY TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDORDINANCE NO. 43- 1989 ORDINANCE AUTHORIZING THE CITY OF RICHMOND TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BOND (GOLD STAR COATINGS—RICHMOND, INC. PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the Richmond Economic Development Commission has rendered its Project Report for the Gold Star Coatings —Richmond, Inc. Project regarding the financing of proposed economic development facilities for Gold Star Coatings --Richmond, 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 for itself and the Common Council on May 15, 1989, and adopted a resolution on June 19, 1989, which Resolution has been transmitted hereto, finding that the financing of certain economic development facilities of Gold Star Coatings —Richmond, 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, Mortgage, Security Agreement and Financing Statement, Note 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, Mortgage, Security Agreement and Financing Statement approved by the Richmond Economic Development Commission and presented to this Common Council, the issuance and sale of the Economic Development Revenue Bond (Gold Star Coatings —Richmond, Inc. Project) (the "Bond"), the loan of the proceeds of the Bond to Gold Star Coatings —Richmond, Inc. for the acquisition, construction and equipping of such facilities, the payment of the Bond by the note payments of Gold Star Coatings —Richmond, Inc. under the Loan Agreement, Mortgage, Security Agreement and Financing Statement and Note, and the securing of said Bond by the mortgaging of such facilities to the Bank under the Bond Purchase Agreement, complies with the purposes and provisions of T.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 and construction of an approximate 10,000 square foot manufacturing facility to be used in the application of titanium nitride coatings to metal cutting tools, dies, punches and wear parts, to be located in the Northwest Industrial Park on Progress Drive, in 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 an&welfare of the citizens of the City of Richmond. Section 4. The substantially final forms of the Loan Agreement, Mortgage, Security Agreement and Financing Statement, Note and Bond Purchase Agreement 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 Clerk. In accordance with the —2— 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 Bond in the total principal amount not to exceed One Million Seven Hundred Fifty Thousand Dollars ($1,750,000) and maturing not later than July 1, 1994. Said Bond is 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 Bond Purchase Agreement and Loan Agreement, Mortgage, Security Agreement and Financing Statement incorporated herein by reference, which Bond will be payable as to principal, premium, if any, and interest from the note payments made by Gold Star Coatings —Richmond, Inc. under the Loan Agreement, Mortgage, Security Agreement and Financing Statement and Note or as otherwise provided in the above described Bond Purchase Agreement. The Bond shall be issued as a single fully registered bond in the denomination of $1,750,000 and shall be redeemable as provided in Article V of the Bond Purchase Agreement. 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 owner as provided in the Bond Purchase Agreement. The Bond shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of the City of Richmond, nor is the Bond payable in any manner from revenues raised by taxation. Section 6. The Mayor and Clerk are authorized and directed to sell the Bond to the original purchaser thereof at the price of 100% of the principal amount thereof. The Bond shall bear interest at a rate per annum not to exceed 9 3/4%; provided that said rate may change upon the occurrence of certain events set forth in the Bond Purchase Agreement, and provided further that in no event shall the interest rate exceed the Taxable Rate, as defined in the Loan Agreement, Mortgage, Security Agreement and Financing Statement. —3— 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 Bond authorized herein. The Mayor and Clerk 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 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 Bond 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 Bond may be either manual or facsimile signatures. The Clerk is authorized to arrange for delivery of such Bond to the Bond purchaser named in the Bond Purchase Agreement, and payment for the Bond will be made to the Bond purchaser named in the Bond Purchase Agreement. The Mayor and Clerk shall execute and the Clerk shall deliver the Bond to the Trustee within ninety days of the adoption of this ordinance. The Bond shall be originally dated as of June 1, 1989. Section 8. The provisions of this Ordinance and the Bond Purchase Agreement securing the Bond shall constitute a contract binding between the City of Richmond and the holder of the Bond, 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 holder so long as said Bond or the interest thereon remains unpaid. —4— Section 9. This Ordinance shall be in full force and effect from and after its passage and signing by the Presiding Officer. Passed and adopted this 19th day of June, 1989. Attest: Clerk RICHMOND COMMON COUNCIL n Presiding Officer Presented by me to the Mayor of the City of Richmond on June 20 '�-11989, at the hour of l ,Jc e m. Clerk Accepted by me this 1b 'ay of June, 1989. ayo,r, City of Richmond —5— NOTICE Of A MEETING F THE RI HM D ECONOMIC DE EL PME T COMMISSION JUNE 1.9, 1982 4.00 P.M. A PUBLIC MEETING OF THE RICHMOND ECONOMIC DEVELOPMENT COMMISSION WILL BE HELD ON MONDAY, JUNE 19, 1989, AT 4:00 P.M. IN THE BOARD OF WORKS ROOM IN THE MUNICIPAL BUILDING, RICHMOND, INDIANA. THE PURPOSE OF THE MEETING IS TO CONSIDER A RESOLUTION TO AUTHORIZE THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS IN THE AMOUNT OF $1,750,000. TO BE ISSUED FOR THE PURPOSE OF PROCURING FUNDS TO PAY THE COSTS OF. ACQUISITION, CONSTRUCTION AND EQUIPPING OF THE THE ECONOMIC DEVELOPMENT FACILITIES, WHICH BOND WILL PAYABLE AS TO PRINCIPAL, PREMIUM, IF ANY, AND INTEREST FROM THE NOTE PAYMENTS MADE BY GOLD STAR COATINGS-RICHMOND, INC. UNDER THE LOAN AGREEMENT, MORTGAGE, SECURITY AGREEMENT AND FINANCING STATEMENT AND NOTE OR AS OTHERWISE PROVIDED IN THE BOND PURCHASE AGREEMENT. THE BOND SHALL NEVER CONSTITUTE A GENERAL OBLIGATION OF, AN INDEBTEDNESS OF, OR A CHARGE AGAINST THE GENERAL CREDIT OF THE CITY OF RICHMOND, NOR IS THE BOND PAYABLE IN ANY MANNER FROM REVENUES RAISED BY TAXATION. DATED AND POSTED JUNE 16, 1989 AT 12:00 P.M. MARY MERCHANTHOUSE, CITY CLERK DISPOSITION OF ORDINANCE NO. , `/-3 -198 9 °e RESOLUTION NO. -198— by Common Council Ordinance No. Resolution No_ Elstro Lundy Brookban Hankinson McBri Parke Hutto Paust Morris D ate Susp. rules 1st read Title only - _ ---------- ------ Seconded v Proof of Publicaton --------_----- _ _ _ _ _ _ _ _ - - Seconded Move to 2nd read __________ Seconded cI Engrossment Seconded Susp rules 3rd read _____ __________ Seconded C- Passage % u c_ ------ ------ ---------- Rejection- - O Date Passed " COMMITTEE ASSIGNMENTS. Committee Date Commitee Hearing Date Reassigned to Council Agenda PUBLICATION DATES: AMENDMENTS: COMMENTS: