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Home My Public Portal About059-1984 - ORDINANCE AUTHORIZING THE CITY TO ISSUE ITS ECONOMIC DEVELOPMENT REVENUE BONDS SERIES A AND SERIES B APPROVING OTHER ACTIONS IN RESPECT THERETOORDINANCE NO. 59 - 1984 ORDINANCE AUTHORIZING THE CITY OF RICHMOND TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS SERIES A AND SERIES B (CARDON III PROJECT)" APPROVING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the Richmond Economic Development Commission has rendered its Project Report for the Cardon III Project regarding the financing of proposed economic development facilities for Cardon III, Inc., an Indiana Corporation ("Company"), and the Richmond Plan Commission has commented favorably thereon; and WHEREAS, the Richmond Economic Development Commission conducted a public hearing on May 18, 1984, and also adopted a resolution on May 18, 1984, which Resolution has been transmitted hereto, finding that the financing of certain economic development facilities for the Company 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 ratifies and confirms their 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, ("Indenture"), and Guaranty Agreement ("Guaranty"); 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 construction and erection of a new nursing care building to be attached to an existing building, Cherish Nursing Home, located at 1811-1813 South 9th Street, Richmond, Indiana, ("Health Facility"), substantially improving the existing building, the moving of buildings not utilized for the accommodation, care or treatment of patients, for paving of parking areas and improvement of grounds, and to pay the cost of acquiring new and additional equipment and personal property to be located within such Health Facility. 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 Company under the Loan Agreement, Mortgage and Security Agreement, and the securing of said bonds by the assignment of the mortgage of such facilities under the 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. 2 Section 3. The substantially final forms of the Loan Agreement, Indenture and Guaranty 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 $100,000.00, and Series B Bonds in the amount of $650,000.00, (Cardon III Project), in the total principal aggregate amount not exceeding Seven Hundred Fifty Thousand Dollars ($750,000.00) and maturing not later than January 1, 1990, as to Series A Bonds, and January 1, 2000 as to Series B 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 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 Company under the Loan Agreement or as otherwise provided therein and in the above described Indenture. The bonds shall be issued in registered form, may be issued in denominations of $5,000.00 or a whole multiple thereof, and shall be redeemed as provided in the Indenture. 3 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 equal to 12% to January 1, 1986 (Series A Bonds) or January 1, 1988 (Series B Bonds) at a periodically adjusted rate equal to two (2%) percent above the bond equivalent yield of United States Treasury Bills with a maturity of one (1) year ("Adjusted Rate"), (hereinafter collectively referred to as the "Tax Exempt Rate"), and after maturity at the Tax Exempt Rate plus 2%, or four and one-half (4 1/2) percent per annum above the bond equivalent yield of United States Treasury Bills with a maturity of one year in the event of Determination of Taxability (as defined in Article X of the Loan Agreement) which adjusted rates are to be recomputed on January 1, 1986, and each one (1) year anniversary thereafter (Series A Bonds), and on January 1, 1988, and each three (3) year anniversary thereafter (Series B Bonds), but not in excess of 30%, and at a price not less than 100% of the principal amount thereafter. Section 6. The Mayor and Clerk are authorized and directed to execute, attest, affix or imprint by any means the City seal to the 4 documents constituting the Financing Agreement approved herein on behalf of the City of Richmond and any other documents 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 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. 5 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 Revenue Bonds, Series A Bonds and Series B 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 )/aeday of t 1984. Attest: Presented by me to the Mayor of the City of Richmond, on this 2 ,2- day of _.t._� / 1984, at the hour of 30 14..M. Mary Me chanthouse, Clerk Approved and signed by me on this day of 1984. Frank H. Waltermann, Mayor City of Richmond 0 COMMON COUNCIL VOTING RECORD ORDINANCE: 9 i FS WILLIAMS BROD(BANV HANKINSON WHITESELL PARKER BODIKER L.EMOINE MORR I S LSTRO 'Susp. rules,. 1st read. Itle only ✓ ............................................ jSeconded ........ ............ ........... ......... jProof of Publication ,Seconded ................ ....... ...... .......................... :Move to 2nd read. ................. ......... Seconded Engrossment ............................................ ;,Seconded .................................. .................................. cusp. rules, 3rd read. "Title only ............. ...................... ....................... ,Seconded ...... ........ iAMENDED . I i ...... ............ ........ «Seconded ................. ........ ............. ...... ........... TABLED ............. ..................... iSeconded ...... ...... ...... .......... ......... �'ASSAGE OR .............. .... �kEJECTION ...................................................................... ........ . W... SDLUT I ON: i�ATE: WILLIAMS BROGKBANX HANKINISON WHITF-SELL PARKER BO01KER LLWINE YOPIR "I S ELSTRO EJspend Rules Gtle only ..................................... !Seconded . .......... ........................ . ................... TABLED ....... ....... ................... Seconded ......... ......................... .......................... Moved fpr Adoption .......... ....................................... ............. ......... ......... ......... Seconded k-- - ----- - -JIL ........... ... . ... .......... ----------- - . ...... . RESOLUTION RICHMOND ECONOMIC DEVELOPMENT COMMISSION RICHMOND. .INDIANA BE IT RESOLVED BY THE RICHMOND ECONOMIC DEVELOPMENT. COMMISSION THAT: Section -I. The proposed economic development facilities will consist of the construction and erection of a new building to be attached to an existing building, the Cherish Nursing Hoene located at 1811-1813 South 9th Street, Richmond, Indiana, ("Health Facility"), substantially improving the existing building, the moving of buildings not utilized for the accommo- dation, care or treatment of patients, for paving of parking areas and improvement of grounds, and to pay the cost of acquiring new and additional equipment and personal property to be located within such Health Facility. Section 2. It finds that the proposed Seven Hundred Fifty Thousand Dollars ($750,000.00) financing of economic development facilities referred to in the Financing Agreement (as defined in the Minutes) presented to this meeting for Cardon III, Inc., an Indiana corporation, 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 Doan Agreement, Mortgage and Security Agreement, Indenture of Trust, Guaranty Agreement, and a proposed form of Ordinance for the Common Council presented to this meeting are hereby approved. Section 4. It has previously considered whether the proposed economic development facilities will have an adverse competitive impact on any similar facilities, and now reiterates and confirms its pertinent special findings of fact based upon the evidence heretofore found and that: (1) No members of the public objected to the financing of the pro- posed economic development facilities; and (2) That twenty-one (21) additional comprehensive beds at the Projected have been approved by the Indiana State Board of Health, as the Designated Planning Agency for purposes of Section 1122 of the Social Security Act, at which time it was administra- tively determined that no adverse competitive effect would result from this part of the Project, which finding this Commission hereby endorses. (3) The proposed economic development facilities will not have an adverse competitive effect on any similar facilities already under construction or in 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 6. 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 18th day of May, 1984. RICHMOND ECONOMIC DEVELOPMENT COMMISSION Attest: