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Home My Public Portal About1993-02 BondsORDINANCE NO. 1 993 -2 ORDINANCE AUTHORIZING THE CITY OF GREENCASTLE TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1993 B (INDIANA ASBURY TOWERS UNITED METHODIST HOME, INC. PROJECT)" AND APPROVING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the Greencastle Economic Development Commission has rendered its Project Report for the Indiana Asbury Towers United Methodist Home, Inc. Project regarding the financing of proposed economic development facilities for Indiana Asbury Towers United 1vIethodist Home, Inc. and said Project Report has been sent to the Greencastle Plan Commission for comment; and WHEREAS, the Greencastle Economic Development Commission conducted a public hearing on April 13, 1993, and adopted a resolution on April 13, 1993, which Resolution has ® been transmitted hereto, finding that the financing of certain economic development facilities of I II diana Asbury Towers United Methodist Home, Inc. complies with the purposes and provisions of I.C. 35 -7-11.9 and 12 and that such financing will be of benefit to the health and welfare of the City of Greencastle and its citizens; and WHEREAS, the Greencastle 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, "Trust Indenture, Preliminary Official Statement and Bond Purchase Agreement; now therefore, 0 IDD0582a 'Ir'l ` .. !' -, i t �kl�f �:;,��f �� j�b';•. itiii ��C ill � � � �;ir' r! ,:'.. � � ra BE,'IT `ORDAINED'''BY "`TII) ' "COMMON'' COUNCIL OF 'THE CITY OF • GRF-ENCASTLEI'INDIANA'THAT: "I iu k Ii, , Section I. 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 Greencastle Economic Development Commission and presented to this Common Council, the issuance and sale of the Economic Development Revenue Bonds, Series 1993 B (Indiana Asbury Towers United Methodist 1- I0 11 e, Inc. Project) (the "Bonds "), the loan of the proceeds of the Bond to Indiana Asbury Towers United Methodist Home, Inc. for the financing of the acquisition, construction and equipping of the facilities, the payment of the Bonds by the note payments of Indiana Asbury Towers United Methodist Home, Inc. under the Loan Agreement, Mortgage, Security Agreement and Financing Statement and Note, and the securing of said Bonds under the Trust Indenture complies with the purposes and provisions of I.C. 36-7 - e 11.9 and 12, and will be of benefit to the health and welfare of the City of Greencastle and its citizens. Section 2. The proceeds of the Bonds will be used to finance the expansion of the Borrower's existing retirement community by the construction of an additional three floors to the health center wing, which will provide 25 assisted living units and five residential units, plus a dining room for the assisted living residents, located at 102 West Poplar St., in the City of Greencastle, Indiana (the "Project "). Section 3. At the public hearing held by the Greencastle Economic Development Commission, the Commission considered whether the Project would have an adverse competitive effect on any similar facilities located in or near the City of Greencastle, and subsequently S IDD05824 -2- found, based on special findings of fact set forth in the Resolution transmitted hereto, that the 0 Project 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 Project will not have an adverse competitive effect on any other similar facilities in or near the City of Greencastle, and the Project will be of benefit to the health and welfare of the citizens of the City of Greencastle. Section 4. The substantially final forms of the Loan Agreement, Mortgage, Security Agreement and Financing Statement, Note, "Trust Indenture Bond Purchase Agreement and Preliminary Official Statement approved by the Greencastle 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 - Treasurer. 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- Treasurer for public inspection. Section 5. The City of Greencastle shall issue its Bonds in the total principal amount not to exceed Two Million Five Hundred Fifty Thousand Dollars ($2,550,000) and with a final maturity on May 1, 2009, Said Bonds are to be issued for the purpose of procuring funds to pay a portion of the costs of the Project as more particularly set out in the Trust Indenture and Loan Agreement, Mortgage, Security Agreement and Financing Statement, incorporated herein by reference, which Bonds will be payable as to principal, premium, if any, and interest from the note payments made by Indiana Asbury Towers United Methodist Home, Inc. under the • IDD05924 - 3 - Loan Agreement, Mortgage, Security Agreement and 'Financing Statement 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 $100,000 or multiples of $5,000 in excess thereof 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 Greencastle, nor are the Bonds payable in any manner from revenues raised by taxation. Section 6. The Mayor and Clerk - Treasurer are authorized and directed to sell the Bonds to the original purchaser thereof at the price of 100% of the principal amount thereof. The Bonds shall bear interest at a rate not to exceed 7.5% per annum. Section 7. The Mayor and Clerk- Treasurer 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- Treasurer are hereby expressly authorized to deem the Preliminary Official Statement relating to the issuance of the Bonds as nearly final and the distribution of the Preliminary Official Statement is hereby approved. The Mayor and Clerk - Treasurer 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, including but not limited to the conversion of the Preliminary 0 IDD05824 -4- Official Statement to a final Official Statement; 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 teen 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- Treasurer on the Bonds may be either manual or facsimile signatures. The Clerk- Treasurer 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 purchasers thereof. The Mayor and Clerk- Treasurer shall execute and the Clerk - Treasurer shall deliver the Bonds to the Trustee within ninety days of the adoption of this ordinance. The Bonds shall be originally dated as of May 1, 1993. Section 8. The provisions of this Ordinance and the Trust Indenture securing the Bonds shall constitute a contract binding between the City of Greencastle 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 1993, will be less than $10,000,000 principal amount of tax- exempt obligations. The Common Council hereby • IDD05924 - 5 - designates the Bonds as qualified obligations pursuant to Section 265(b)(3) of the Internal 40 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. This Ordinance shall be in full force and effect from and after its passage and signing by the Presiding Officer. Passed and adopted this 28th day of April, 1993. Attest: a Berry - Treasurer L� Michael M. Harmless Presiding Officer Presented by me to the Mayor of the City of Greencastle on April 28, 1993, at the hour of 7:48 p.m. 4 Juli Berry, er c Treasure 1 ), Accepted by me this day of April, 1993. Mich M Mayor Attest: udid Berry, Clerk -1 e.surer gr \a\ rd93 -2 -6-