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
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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
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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.
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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
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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