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HomeMy Public PortalAbout004-1983 - Revenue Bonds - Heritage RegencyORDINANCE NO. 4-1983 AN ORDINANCE AUTHORIZING THE CITY OF RICHMOND, INDIANA, TO ISSUE ITS "CITY OF RICHMOND ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES A (HERITAGE REGENCY, INC. PROJECT)", LEND THE PROCEEDS THEREOF TO HERITAGE REGENCY, INC. AND APPROVING AND AUTHORIZING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the City of Richmond, Indiana (the "City"), is municipal corporation and political subdivision of the State of Indiana and by virtue of Ind. Code §§ 36-7-12-1 et seq., as amended (the "Act"), is authorized and empowered to adopt this Ordinance (the "Ordinance") and to carry out its provisions; and WHEREAS, Heritage Regency, Inc., an Indiana corporation (the "Borrower"), has agreed to construct and equip an approximately 44,000 square foot, 132-bed nursing facility on 6.94 acres of land located at 2050 Chester Blvd., Richmond, Indiana (the "Project") if the City will finance a portion of the cost of such acquisition, construction and equipping with the proceeds from the sale of the City of Richmond Economic Development Bonds, Series A ( Heritage Regency, Inc. Project) in the principal amount of $2,265,000 (the "Bonds"); and WHEREAS, the Richmond Economic Development Commission has performed all actions required of it by the Act preliminary to the adoption of this Ordinance and has approved and forwarded to this Common Council the forms of (1) a Bond Purchase and Loan Agreement (the "Financing Agreement") dated as of March 1, 1983, among the City, the Borrower, Merchants National Bank & Trust Company of Indianapolis, as trustee (the "Trustee") and Merchants National Bank & Trust Company of Indianapolis, as agent for the purchasers of the Bonds (the "Bond Purchasers"), providing for the issuance and sale of the Bonds by the City to the Bond Purchasers, and a loan by the City to the Borrower of the proceeds from the sale of the Bonds; (2) the promissory note or notes of the Borrower ("Borrower's Note") dated as of March 1, 1983, in the principal amount of $2,265,000 made by the Borrower to the City and endorsed to the Trustee to evidence the City's loan of the proceeds of the Bonds to the Borrower; (3) the Bonds; (4) the Mortgage, Security Agreement and Trust Indenture (the "Indenture") dated as of March 1, 1983, from the Borrower and the City to the Trustee to secure the Bonds; (5) a - 2 - Bond Guaranty Agreement dated as of March 1, 1983; and (6) this Ordinance (the foregoing documents are hereinafter referred to, collectively, as the "Loan Documents"). NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA, THAT: Section 1. Findings; Public Benefits. The Common Council of the City hereby finds and determines that the Project is an "economic development facility" as that phrase is used in the Act; that the acquisition, construction and equipping of the Project will increase employment opportunities and increase diversification of economic development in and near the City, will improve and promote the economic stability, development and welfare of the area in and near the City, will encourage and promote the expansion of industry, trade and commerce in the area in and near the City and the location of other new businesses in such area; and that the public benefits to be accomplished by this Ordinance, in tending to overcome insufficient employment opportunities and insufficient diversification of industry, are greater than the cost of public services (as that phrase is used in the Act) which will be required by the Project. Section 2. Authorization of the Bonds. In order to pay a portion of the cost of the Project, the Bonds are hereby authorized to be issued, sold and delivered. Any additional costs of the Project will be paid for by the Borrower. Section 3. Terms of the Bonds. The Bonds shall (i) be in the tota principa amount of 2,265,000, (ii) be dated March 1, 1983, (iii) be executed at or prior to the Closing Date by the manual or facsimilie signatures of the Mayor and Clerk of the City, (iv) bear interest from the date thereof a at th the rate or rates per annum not to exceed 13%, (v) b interest in semi-annual installments commencing September 1, 1983 and continuing to March 1, 1993, (vi) mature and be payable serially as provided in the respective Bonds but not later than March 1, 1993, (vii) be issuable in such denominations as may be requested by any Bond Purchasers, (viii) be issuable in fully registered form or, if permitted by law, to bearer, (ix) be payable through such medium and at such places as provided therein, (x) be subject to optional and mandatory redemption as provided in the Financing Agreement, and (xi) be delivered at such time or times and in such amounts as may be authorized by the Financing Agreement. The Bonds and the interest thereon do not and shall never constitute an indebtedness of, or a charge against the general credit or taxing power of the City, but are limited obligations - 3 - of the City payable solely from revenues and other amounts derived from the Loan Documents. Forms of the Loan Documents are before this meeting and are by this reference incorporated in this Ordinance, and the Clerk is hereby directed to insert them into the minutes of the Common Council and to keep them on file. Capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Financing Agreement. Section 4. Sale of the Bonds. The Mayor and the Clerk to are hereby auri zed an e rected to sell the Bonds to or upon the order of the Bond Purchasers, pursuant to the Financing Agreement payment of which shall be made to the Trustee, but for the account of the City, under the Financing Agreement. Section 5. Financing Agreement. In order to provide for the commitment of tFe City to se the Bonds, of the Bond Purchasers to purchase the Bonds, and to provide for the loan of the proceeds of the Bonds to the Borrower and the payment, by the Borrower, of amounts sufficient to pay the principal of, premium, if any, and interest on the Bonds, the Mayor and the Clerk shall execute and deliver in the name of and on behalf of the City, the Financing Agreement in substantially the form submitted to this Common Council, which is hereby approved in all respects. Section_6. Acceptance of Borrower's Note. In connection with the issuance and sa e of the Bonds, the City accepts as security for the Bonds the Borrower's Note. The Borrower's Note shall be in substantially the form submitted to this Commom Council and is hereby approved in all respects. The Mayor and Clerk shall endorse the Borrower's Note to the Trustee. Section 7. Security for the Bonds. In order to provide security for tfie Bonds a`n3 to assign tt— e -City's rights under the Financing Agreement, the Mayor and Clerk shall execute and deliver, on behalf of the City, the Indenture in substantially the form submitted to this Common Council, which is hereby approved in all respects. Section 8. Execution. The Mayor and the Clerk are hereby author zed to execute and deliver, on behalf of the City, the Bonds, the Financing Agreement, the Indenture and endorse the Borrower's Note to the Trustee. The Mayor and Clerk are hereby authorized, without further approval of this Common Council or the City's Economic Development Commission to approve such changes in the Loan Documents as may be permitted by Act, such approval to be conclusively evidenced by their execution thereof. - 4 - Section 9. General. The Mayor and the Clerk be and they are each hereby Jaut orTze and directed, in the name and on behalf of the City, to execute any and all other agreements, documents, and instruments, perform any and all other acts, approve any and all matters, and do any and all things deemed by them, or either of them, to be necessary or desirable in order to carry out and comply with the intent, conditions and purposes of this Ordinance (including the preambles hereto and the documents mentioned herein), the acquisition, construction and equipping of the Project by the Borrower, the issuance and sale of the Bonds, and the securing of the Bonds under the Loan Documents. Section 10. Binding Effect. The provisions of this Ordinance an the Loan Documents to which the City is a party shall constitute a binding contract between the City and the holders of the Bonds, and after issuance of the Bonds this Ordinance shall not be repealed or amended in any respect which would adversely affect the rights of the holders of the Bonds as long as any Bonds or interest thereon remains unpaid. Section 11. Repeal. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Section 12. Effective Date. This Ordinance shall be in full force an6-4e7fect Tmme Tate y upon its adoption by the Common Council and approval by the Mayor. Section 13. Incorporation. Two copies of the Loan Documents incorporated into this Ordinance were duly filed in the office of the Clerk of the City and are available for public inspection in accordance with Ind. Code § 36-1-5-4. Section 14. Approval. This Ordinance was adopted by the Common Council of the City after notice and public hearing occurring in conformity with applicable Indiana law and Section 103(k)(2) of the Internal Revenue Code of 1954, as amended (the "Code"), and constitutes and evidences the formal approval of the issuance of the Bonds by the Common Council of the City as the legislative body of the City. Section 15. Election. The City elects to have the provisions of Section 103C16T(6)(D) of the Code apply to the Bonds, and the Mayor and Clerk, or either of them, are hereby authorized, empowered and directed to file or cause to be filed such election with the Internal Revenue Service for and on behalf of the City, as issuer of the Bonds. PASSED BY THE COMMON COUNCIL"of the City of Richmond, Indiana, on the day of �Y+xr ,. 1983, and on said V - 5 - date signed by the Presiding Officer of the Common Council and attested by the Clerk. Presiding Officer A tit e� t : J 1'T'Crn Trimb el Clerk PRESENTED by me, the undersigned Clerk of the City of Richmond, Indiana, to the Mayor of said City, this ---/;° day of 1983, at o'clock , .m., for—Fiis consideration and action thereon. o en rim eS `CTe k HAVING EXAMINED the foregoing Ordinance and the minutes of the public hearing at which it was adopted, I do now, as Mayor of the City of Richmond, the chief elected executive, hereby approve the Ordinance, the issuance of the Bonds authorized thereby, and return the same to the Clerk this day of.%t�1 .<y, 1983 at ,' _ o'clock .m. ,1 or is man, Mayor RESOLUTION RICHMOND ECONOMIC DEVELOPMENT COMMISSION RICHMOND, INDIANA BE IT RESOLVED BY THE RICHMOND ECONOMIC DEVELOPMENT COMMISSION THAT: Section 1. It finds that the proposed financing of economic development facilities referred to in the Financing Agreement presented to this meeting for Heritage Regency, Inc., complies with the purposes and provisions of Ind. Code §§ 36-7-12-1 et seq. and will be of benefit to the health and welfare of the City of Richmond and its citizens. Section 2. The forms of the Bond Purchase and Loan Agreement-;ortgage, Security Agreement and Trust Indenture; Promissory Note of Heritage Regency, Inc.; Bond Guaranty Agreement; form of City of Richmond Economic Development Revenue Bond, Series A (Heritage Regency, Inc. Project); and proposed form of Ordinance presented to this meeting are hereby approved, subject to such changes as the City of Richmond Common Council deems necessary to eliminate any ambiguity or correct technical defects, including dates and such further changes as are permitted by Ind. Code § 36-7-12-25. Section 3. The proposed economic development facilities well not have an adverse competitive effect on any similar facilities already under construction or in operation in the City of Richmond. Section 4. The Secretary of the Commission shall initia an then insert a copy of the forms of documents approved by this resolution in the minute book of this Commission. Section 5. A copy of this Resolution and the other documents approved by this Resolution and the proposed form of Ordinance shall be presented by Counsel for this Commission or by any member of the Commission to the Clerk of the City of Richmond for presentation to the Common Council of the City of Richmond. Adopted this 19th day of January, 19$3. Arthur M. Vivian, Secretary qr � 1 u Thomas, President Inv.4 0.557Q4 Foam proscribed by state Soard of Account. Generai•Form No. fa P (Rev. 19117) Reller, Mendenhall, i%leinknecht & (Governmental Unit) Milligan . ..Wayne...,,,.,County, Indiana To Palladium Publishing Corporation Dr. 1175 North t Sirret ...... 4ichM-PPd...144iXRP. 47374...... . PUBLISHER'S CLAIM LINE COUNT Display flatter ( Must not exceed two actual lines, neither of which shall total more than four solid lines of the type in which the body of the advertisement is set t number of equivalent Imes .......... . . . . Head —number of lines J. ................ t; 2 Body —number of lines 3 Tail —number of lines ................ Total number of lines in notice b ................ COMPUTATION OF CHARGES 66 one 66 . .......lines . ...............columns wide equals ............... equivalent 13.3 3 lines at ... '.20.2 cents ner tine Additional charge for notices containing rule or tabular work L5o oer cent of above amount) ................ Charge for extra proofs of publication (50 cents for each proof in excess of two) , • • , • • • , , . , , • , , • TOTAL AMOUNT OF CLAIM $ 13.33 DATA FOR COMPUTING COST Width of single column 9 ems Size of type 6 point 1 .Nu mher of insertions . ... _ Size of quad upon which type is cast .... Pursuant to the provisions and penalties of Ch. 155, Acts 1953, 1 h,-rchy certify that the foregoing account is just and correct, that the amount claimed is legally due, after allowing all lust crcdil,, and that no part of the same has been paid. January , Date: ................................24..... 19...83..... Title......Caahier ......................... .................. NOTICE OF PUBLIC NEARIN Nolks k hanby gi a that the Common Cauncll M Ili. City of bch- and, Indiana, will hold o public heoringy a T:00 o'clock p.m., EST. on cCouncl'Cha Chambers Gated on th PUBLISHER'S AFFIDAVIT third floor of the Munkipal Buildingg, Fihb and East Mom Street, mand. Indiana, on on ordinance to Slate of Indiana ) outhoAa the proposed financing of ss economic dweloumerot fecilirhs b Issuance, delivery o1 sees . ,. Wayne ...... 'County) the co el and "City of Richmond honomk Devol- apinent RovenV. gouda. Series A lipment I Regency. Inc.. ►rot ties in Personally appeared before rue, a notary PP y public in and for said county and state, the principal amount of Two Mi It*n Two Hundred SI.1ydive Thousand Bruce E. Coury Dollors(57.26S.000.OD)andthelend- Ing of the .40 pran ede to Norltag. the undersigned.....................................................................who, Regency, Inc., on In lend corpa- ration. todelral, a portion of the costs of financing1 9 acqq.l.mam, can-- o—tbn and egvippioff of certain being duly sworn, says that ...he is. Advertising Director ........................ economic dwatopmard foclhtin to beIscatodtoRichmond, lndwna.the of the...... Palladium -Item ..:......... ....... a ...._Dailyr........ economic development raven.. bMM will not be all Indebtedness 1 ....... m�onE,dwl�dlw li no be" abble I. newspaper of general circulation printed and published in the English language in the monner by the losing bower of the Chy, but sold bads, oust tin inter", pie obi. • from (city) oL.. Ricmond, Indiana,,.,..,.,..................PY state and county .... _ _ _ .......... - . all, tin .aprymenr o the loon and from such other re, ..se as rot the nwa� of are derived from and dasal In the toot Documents. . the aforesaid, and that the printed matter attached hereto is a true co which was dui proposed loan DacilmMN Mclud bmqp the propesod 'land ►urc .. and one Loan Agreement. Lire "Marcfego Security AirsetMnI and Truit ln- published in said paper for........ time..., the dates of publication being as follows: denture.".tro .d ether taloiod dacu• moron) a. an kle coke the clerk of r�CM of Richmond and are eycul. Ik January 22, 1983 sees .. . ...............pou.lbb .. .of"W ..........................d��. ls tar InsPeOleninthe ottko CJark durNg legulw business hours from 0:30 a.m. uaa e:70 p•m., daily s.capl faturdoys,and ....ees... sees. sees �.. .. .. .. .... ............ 1pal ho1r.po; Ths proposed «anamk dw.I- opmem facilities will consist of ° 24th Janus 83 Subscribed and sworn to before me tjds........... day of......... y. . ........ 19.... "' M,000•sgCa•fool, 19i•bed nursing Mine b W constructed on oppress- ' =fmaely T ocras of land f«.tad a CMsto /outward. Richmond. ; .......'..... .}...-.:.'..................:................ sees. Indiana. . Notary Public Anyone wishing to speak in au�- part of or opposition 10 sale ordi- JanuaC l� 1987 y nonce, 0. d..crlbed abwo, is invited tq ar tend to Rubric hearing and be then and the• heard by thi.common My commission expires........... ......!. - - -' - • • - Council. Doted this 92nd day of Jw..Iv, 111113, COMMON COUNCIL OF THE t 40 '141COPeet W. 9;?eed Comitractiox eo, 9iae. 2315 SOUTH MILLER STREET SHELBY"ILLE, INDIANA 46176 - (3171 398.6809 bruary 2, 19'-3 she jel'-C,rt , . Heed Con:-t-c —� 1',(,,",kpany, will be accentc LAds from 5, -Ly r �e "ounty on t, iteritage ;1ci,,e!icv *4Lirsing Facility in Richmond, Indiana, as soon as finall. plans and specifications are stl*bmituted and approved by the AdT.Anistrative B1)1-!d!rq-,, Council of the State of `D BER'W. CONSTRUCTION_ 0. , INC. Ro'bert W. Reed President