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Home My Public Portal About055-1984 - AUTHORIZING THE CITY TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS AND APPROVING ACTIONS IN RESPECT THERETOORDINANCE NO. 55 -- 1984 ORDINANCE AUTHORIZING THE CITY OF RICHMOND TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS (PRO/CAS PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the Richmond Economic Development Commission has rendered its Project Report for the Pro/Cas Project regarding the financing of proposed economic development facilities for Claude T. Cason, Sr., Claude T. Cason, Jr. and Product Components, Inc., a Florida Corporation duly admitted and qualified to do business in the State of Indiana, ('Obligors") and the Richmond Plan Commission has commented favorably thereon; and WHEREAS, the Richmond Economic Development Commission conducted a public hearing on May 7, 1984, and also adopted a resolution on May 7, 1984, which Resolution has been transmitted hereto, finding that the financing of certain economic development facilities for the Obligors complies with the purposes and provisions of I.C. 36-7-12 and that such financing will be of benefit to the health and welfare of the City of Richmond and its citizens, and which Resolution includes special findings of fact as to the competitve effect of the proposed facilities; and WHEREAS, the Richmond Economic Development Commission has heretofore approved and recommended the adoption of this form of Ordinance by this Common Council and has approved the substantially final forms of and has transmitted for approval by the Common Council the Loan Agreement, Mortgage and Security Agreement, ("Loan Agreement") an Indenture of Trust, ("Trust Indenture") lease of the manufacturing plant at 4815 Woodside Drive, Richmond, Indiana, from Claude T. Cason, Sr. and Claude T. Cason, Jr. to Product Components, Inc.; lease of certain machinery, equipment and personal property from Claude T. Cason, Sr. to PCI Manufacturing, Inc.; lease of certain machinery, equipment and personal property from Claude T. Cason, Jr. to PCI Manufacturing, Inc.; lease of certain machinery, equipment and personal property from Product Components, Inc. to PCI Manufaturing, Inc., hereinafter collectively referred to as "Leases", and Guaranty Agreement; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA THAT: Section 1. The proposed economic development facilities will consist of the acquisition by purchase of the Atlas Plastics Plant located at 4815 Woodside Drive, Richmond, Indiana, consisting of a 52,000 square foot building and a 3,300 square foot building, and acquiring certain machinery and equipment to be located and utilized within such manufacturing facility, making certain modificaitons and improvements theretor. Section 2. 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 revenue bonds, the loan of the proceeds of the revenue bonds to Obligors under the Loan Agreement, Mortgage and Security Agreement, and the securing of said bonds by the mortgaging of 2 such facilities under the Trust Indenture complies with the purposes and provisions of I.C. 36-7-12 and will be of benefit to the health and welfare of the City of Richmond and its citizens. Section 3. The substantially final forms of the Loan Agreement, Mortgage, Trust Indenture approved by the Richmond Economic Development Commission are hereby approved (herein collectively referred to as the "Financing Agreement" as defined to in I.C. 36-7-12), and all such documents 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 all such documents are on file in the office of the Clerk for public inspection. Section 4. The City of Richmond shall issue its Economic Development Revenue Bonds, Series A Bonds in the amount of $540,000.00, Series B Bonds in the amount of $134,850.00, Series C Bonds in the amount of $134,850.00, and Series D Bonds in the amount of $590,300.00 (Pro/Cas Project), in the total principal amount not exceeding One Million Four Hundred Thousand Dollars ($1,400,000.00) and maturing not later than July 1, 2004, as to Series A Bonds, and July 1, 1994 as to Series B Bonds, to Series C Bonds and to Series D Bonds, for the purpose of procuring funds to pay the costs of acquiring, equipping and improving 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 payments made by Obligors 3 under the Loan Agreement or as otherwise provided therein and in the above described Trust Indenture. The bonds shall be issued in registered form, may be issued in denominations of $50.00 or a whole multiple thereof, and shall be redeemed as provided in 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 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 5. The Mayor and Clerk are authorized and directed to sell such bonds to the purchasers thereof at a rate of interest per annum on the bonds prior to maturity equal to 75% of the Base Rate of The Second National Bank of Richmond (Tax Exempt Rate) and thereafter at a rate per annum equal to the Base Rate of such Bank plus 2%, or the Base Rate of The Second National Bank of Richmond plus five tenths of one percent (.5%) in the event of Determination of Taxability (as defined in Article X of the Loan Agreement) which rates are to be announced by The Second National Bank of Richmond, Richmond, Indiana, on October 1, 1984, and quarterly thereafter on each January 1, April 1, July 1 and October 1, but not in excess of 30%, and at a price not less than 100% of the principal amount thereof. Section 6. 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 of Richmond and any other documents which may be necessary or 4 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 are 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, 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 dated as of the date of delivery. Section 7. 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 Richmond, Indiana Economic Development 69 Revenue Bonds, Series A Bonds, Series B Bonds, Series C Bonds and Series D Bonds, and after the issuance of said bonds, 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 8. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. Passed and adopted this 7 "tday of 1984. Attest: 222 Clerk Presented by me to the Mayor of the City of Richmond, on this 0 day of , 1984, at the hour of f�r,�r -'L.M. Mar�hanthouse, Clerk Approved and signed by me on this �day of 1984. Frank H. Walt rmann, Mayor City of Richmond 11 COMMON COUNCIL VOTING RECORD ORDINANCE:__ tl iMTE:—L- 222-1WILLIAMS QOKOANK HANKINSON WHITESELL PARKER BODIKER LEMOINE MORRIS EL5TRO � Susp: rules, 1st read. - ,itle only ............... ✓ . ... ......... Seconded Proof of Publication � 77— - ........................... ................... dove to 2nd rend. ... ei ............. ........ ........ . ieconded .....•... .'engrossment ISecanded............... ..`�.... ......... 4 3usp. rules, 3rd read. iTitle only ✓ fni+ NOEDJ................ I..........1..........,........ ......T..... . ... I ... 1 TABLED 1 ..... ....... I ......... I .... _.] ....... - ....... ......... ASSIAGE - ---- --. In�stkurT_OfJ : � I i I I I I I -.. j -- -- - I ....... N I 4L-, ITItle 7t:spend Rule only i........ I.- .......... 1...... I 'Seconded I I r r....... ..r...... ...r... ......�....,....f......... f.......... ITABLED I�wrnrtderl Eu'.�.9!llarv+� c.vea..we�"...� r Y. ,ter, t a ...-........:._'.:........... . .. _:.., .._.._. _ ....:- •__ i- -':, x�_ si: _.._ _ _._ ..... E RESOLUTION RICHMOND ECONOMIC DEVELOPMENT COMMISSION RICHMOND, INDIANA BE IT RESOLVED BY THE RICHMOND ECONOMIC DEVELOPMENT COMMISSION THAT; Section 1. The proposed economic development facilities will consist of the acquisition by purchase of the Atlas Plastics Plant located at 4815 Woodside Drive, Richmond, Indiana, consisting of a 52,000 square foot building and a 3,300 square foot building, and acquiring certain machinery and equipment to be located and utilized within such manufacturing 4 facility, making certain modifications and improvements thereto. Section 2. It finds that the proposed One Million Four Hundred Thousand Dollars ($1,400,000.00) financing of economic development facilities referred to in the Financing Agreement (as defined in the Minutes) presented to this meeting for Claude T. Cason, Sr., Claude T. Cason, Jr. and Product Components, Inc., a Florida corporation, duly admitted and authorized to do business in the State of Indiana, complies with the purposes and provisions of I.C. 36-7-12 and will be of benefit to the health and welfare of the City of Richmond and its citizens. Section 3. The substantially final forms of the Loan Agreement Mortgage and Security Agreement, Guaranty Agreement, lease of the manufacturing plant at 4815 Woodside Drive, Richmond, Indiana, from Claude T. Cason, Sr. and Claude T. Cason, Jr. to Product Components, Inc.; lease of certain machinery, equipment and personal property from Claude T. :Cason, Sr. to PCI Manufacturing, Inc.; lease of certain machinery, equipment and ...»��.....w.._..........—...�.-...:.�...___e.._-. �. ..._.. .._,.�..:.-+.d%.a.Y�i... :.e .. .. ._i'_:.,t v�.s d. -, -. .. ._...t. �mw-�..........n...e..e..--�1�........._.._.s.__.�_„�.V..., «..w..�T....Fbn4a:4�M. �.,w+ii:�� personal property from Claude T. Cason, Jr. to PCI Manufacturing, Inc.; lease of certain machinery, equipment and personal property from Product Components, Inc, to PCI Manufaturing, Inc., hereinafter collectively referred to as "Leases", Indenture of Trust and a proposed from of Ordinance for the Common Council presented to this meeting are hereby i approved. Section 4. It did consider whether the proposed economic development facilities will have an adverse competitive effect on any similar facilities, and now states the following special findings of fact based upon the evidence presented; (1) No members of the public objected to the financing on the basis that the financing would have an adverse competitive effect on similar facilities located in the City of Richmond. (2) Obligors have been in the custom plastic sheet extrusion processing business and were conducting such a business at a leased facility in Richmond, Indiana at 308 N.W. 'Y' Street, Richmond, Indiana 47374, consisting of approximately 24,000 square, feet. The Obligors have been located in Richmond since 1977; its volume of sales have grown consistently since its inception; such leased facilities were outmoded, devoid of area 'for expansion and could not satisfy the Obligors' anticipated growth within the year, The Obligors were employing 65 people in such leased facility and expect to increase such employment by 40 to 45 new employees with an additional payroll of approximately $450,000.00, all which would be lost to the community if it could not acquire such facility, If Obligors were to continue to manufacture in Richmond, Indiana, the facility to be acquired was ... ... ........... ......«......_... n 1 the only suitable and available facility in the Richmond community area. It is a continuation of an existing business and does not displace a competitive business for the reasons set forth below. (3) Atlas Plastics Company, who was also in the plastic sheet extrusion processing business, 'closed its facility in Richmond and completely terminated its operations in Richmond, Indiana. (4) The proposed economic development facilities will not have an adverse competitive effect on any similar facilities already underconstruction. or operation in the City of Richmond, Indiana. Section 5. The Secretary shall initial and then insert a copy of the forms of documents approved by this Resolution in the minute book of this Commission. Section $. A copy of this Resolution and the other form of documents approved by this Resolution and the proposed form of Ordinance shall be presented in their substantially final form by the Secretary of the Economic Development Commission to the Clerk for presentation to the Common Council. Adopted this 7th day of May, 1984. Attest: i ,i.,[�!(�, Arthur M. Vivian, Secretary RICHMOND ECONOMIC DEVELOPMENT COMMISSION Rit and B. Klein necht, Vice President