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HomeMy Public PortalAbout087-1988- AUTHORIZING THE CITY TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDSAN ORDINANCE AUTHORIZING THE CITY OF RICHMOND TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1988 (FRIENDS FELLOWSHIP COMMUNITY, INC. PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECTTHERETO. WHEREAS, the Richmond Economic Development Commission has rendered its Project Report for the Friends Fellowship Community, Inc. Project regarding the financing of proposed economic development facilities for Friends Fellowship Community, 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 November 18, 1988, and adopted a resolution on November 18, 1988, which Resolution ha been transmitted hereto, finding that the financing of certain economic development facilities of Friends Fellowship Community, 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 and Security Agreement, Note and Trust Indenture; 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 and Security Agreement approved by the Richmond Economic Development Commission and presented to this Common Council, the issuance and sale of the Economic Development Revenue Bonds, Series 1988-A and Series 1988-B (Friends Fellowship Community Inc. Project) (the "Bonds"), the loan of the proceeds of the Bond to Friends Fellowship Community Inc. for the acquisition, construction and equipping of such facilities, the payment of the Bonds by the note payments of Friends Fellowship Community Inc. under the Loan Agreement, Mortgage and Security Agreement and Note, and the securing of said Bonds by the mortgaging of such facilities to the Trustee 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 and construction of an additional 70-bed health care facility and the renovation of an existing 38-bed health care center to new uses, to be located at 2030 Chester Boulevard, in Richmond, Indiana (the "Project"). SECTION 3. At the public hearing held by the Richmond Economic 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 and '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, Mortgage and Security Agreement, Note and Trust Indenture 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 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 Two Hundred Thousand Dollars ($3,200,000.) and maturing not later than August 1, 2009. 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, Mortgage and Security Agreement incorporated herein by reference, which Bonds will be payable as to principal, premium, if any, and interest from the note payments made by Friends Fellowship Community Inc. under the Loan Agreement, Mortgage and Security 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 $3,200,000 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 S. 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 Bond shall bear interest at the variable rates set forth in the trust Indenture; provided that said rates may change upon the occurrence of certain events set forth in the Trust Indenture, and provided further that in no event shall the interest rate exceed the Taxable Rate, as defined in the Loan Agreement, Mortgage and Security Agreement. 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 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 Bond 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 purchaser 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 December 1, 1988. 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. This Common Council represents that bonds, warrants and other evidences of indebtedness issued by it or on its behalf, during calendar year 1988, will be less than $10,000,000 principal amount of tax-exempt obligations. The Common Council hereby designates the Bonds as qualified obligations pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, relating to the disallowance of 100% of the deduction for interest expense allocable to the tax- exempt obligations acquired after August 7, 1986. SECTION 10. The Mayor and the Clerk are hereby authorized to amend a Loan Agreement, dated as of June 1, 1981, between the City of Richmond, Indiana and Friends Fellowship Community, Inc. whereby the City of Richmond, Indiana, loaned the proceeds of its Economic Development First Mortgage Revenue Bonds, Series 1981 (Friends Fellowship Community, Inc. Project) to Friends Fellowship Community, Inc. , to permit the Bonds to be secured by a lien on the Project. SECTION 11. This Ordinance shall be in full force and effect from and after its passage and signing by the Presiding Officer. PASSED AND ADOPTED by the Common Council of the City of Richmond, Indiana, this 5 day of ,1988. President of Common Council ATTEST:] City Cle� PRESENTED by me to the Mayor of the City of Richmond, Indiana ,this 71� day of 1988. i APPROVED by me, Frank H. Waltermann, Mayor of the City of Richmond, Indiana, this day of 1988. Mayor ATTEST: -�"Y�i City Clerld