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