HomeMy Public PortalAbout018-1983 - Revenue Bonds - Amedco Casket StampingORDINANCE NO. 18-1983
AN ORDINANCE AUTHORIZING THE CITY OF
RICHMOND, INDIANA, TO ISSUE.ITS "CITY OF RICHMOND
ECONOMIC DEVELOPMENT REVENUE BOND, SERIES 1983
(AMEDCO STEEL INC. d/b/a AMEDCO CASKET STAMPING
CO. PROJECT)", LEND THE PROCEEDS THEREOF TO
AMEDCO STEEL INC. d/b/a AMEDCO CASKET
STAMPING CO. AND APPROVING AND AUTHORIZING
OTHER ACTIONS IN RESPECT THERETO
WHEREAS, the City of Richmond, Indiana (the "City"), is a
municipal corporation and political subdivision of the State of
Indiana and by virtue of Ind. Code §§ 36-7-12-1 et sec., as
amended (the "Act"), is authorized and empowered to adopt this
Ordinance (the "Ordinance") and to carry out its provisions; and
WHEREAS, Amedco Steel Inc. d/b/a Amedco Casket Stamping
Co., an Oklahoma corporation (the "Borrower"), has agreed to
acquire certain premises located at 620 South "J" Street,
Richmond, Indiana, together with all machinery and equipment
located thereon necessary to its operation (the "Project") if
the City will finance a portion of the cost of such acquisition
with the proceeds from the sale of the City of Richmond
Economic Development Bond, Series 1983 (Amedco Steel Inc. d/b/a
Amedco Casket Stamping Co. Project) in the principal amount of
$1,600,000 (the "Bond"); 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 May 1,
1983, among the City, the Borrower and Mark Twain National Bank
in its commercial lending capacity (the "Bank"), providing for
the issuance and sale of the Bond by the City to the Bank, and
a loan by the City to the Borrower of the proceeds from the
sale of the Bond; (2) the promissory note or notes of the
Borrower ("Borrower's Note") dated as of May 1, 1983, in the
principal amount of $1,600,000 made by the Borrower to the City
and endorsed to the Bank to evidence the City's loan of the
proceeds of the Bond to the Borrower; (3) the Bond; (4) the
Mortgage and Security Agreement (the "Mortgage") dated as of
May 1, 1983, from the Borrower and the City to the Bank to
secure the Bond; (5) a Bond Guaranty Agreement dated as of May
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
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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, intending to overcome insuffi-
cient 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 Bond. In order to pay a
portion of the cost of the Project, the Bond is hereby author-
ized to be issued, sold and delivered. Any additional costs
of the Project will be paid for by the Borrower.
Section 3. Terms of the Bond. The Bond shall (i) be in
the total principal amount of $1,600,000, (ii) be dated May 1,
1983, (iii) be executed at or prior to the Closing Date by the
manual or facsimile signatures of the Mayor and Clerk of the
City, (iv) bear interest from the date thereof at the rate or
rates per annum not to exceed 70% of the Prime Rate, provided
however, that in the event of a Determination of Taxability and
upon maturity whether by acceleration or otherwise, the Bond
shall bear interest equal to the Prime Rate per annum, however,
in no event shall such interest rate exceed 22%. (v) be pay-
able as to interest in semi-annual installments on the lst
day of May and November commencing November 1, 1983 and con-
tinuing to May 1, 1983, (vi) mature and be payable serially as
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provided in the Bond but not later than May 1, 1993, (vii) be
issuable in such denominations as may be requested by the Bank,
(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 Bond 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
of the City payable soley 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 Bond. The Mayor and the Clerk are
hereby authorized and directed to sell the Bond to or upon the
order of the Bank, pursuant to the Financing Agreement, payment
of which shall be made to the City under the Financing Agree-
ment.
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Section 5. Financing Agreement. In order to provide for
the commitment of the City to sell the Bond, of the Bank to
purchase the Bond, and to provide for the loan of the proceeds
of the Bond to the Borrower and the payment, by the Borrower,
of amounts sufficient to pay the principal of, premium, if any,
and interest of the Bond, 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 Borrcwer's Note. In connection
with the issuance and sale of the Bond, the City accepts as
security for the Bond the Borrower's Note. The Borrower's Note
shall be in substantially the form submitted to this Common
Council and is hereby approved in all respects. The Mayor and
Clerk shall endorse the Borrower's Note to the Bank.
Section 7. Security for the Bond. In order to provide
security for the Bond and to assign the City's rights under the
Financing Agreement, the Mayor and Clerk shall execute and
deliver, on behalf of the City, the Mortgage 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
authorized to execute and deliver, on behalf of the City, the
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Bond, the Financing Agreement, the Mortgage and endorse the
Borrower's Note to the Bank. 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.
Section 9. General. The Mayor and the Clerk be and they
are each hereby authorized 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 Bond, and the securing of the Bond under the Loan
Documents.
Section 10. Binding Effect. The provisions of this
Ordinance and the Loan Documents to which the City is a party
shall constitute a binding contract between the City and the
holders of the Bond, and after issuance of the Bond this
Ordinance shall not be repealed or amended in any respect which
would adversely affect the rights of*the holders of the Bond
as long as the Bond 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 and effect immediately 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 Indiana Code Section 36-1-5-4.
Section 14. Approval. This ordinance was adopted by the
Common Council of the city after notice in public hearing occurred
in conformity with applicable Indiana law in Section 103 (K)(2)
of the Indiana Revenue Code of 1954, as amended (the "Code"), and
constitute and evidences the formal approval of the issuance
of the Bond 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 103 (b)(6)(D) of the Code applied to the Bond
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and the Mayor and Clerk, or either of them, are hereby autho-
rized, 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 Bond.
PASSED BY THE COMMON COUNCIL of the City of Richmond,
Indiana, on the,=fh day of 1983, and on
said date signed by the Presiding Officer of the Common Council
and attested by the Clerk.
Presiding Officer
Att
JoEl en Trimble, Clerk
PRESENTED by me, the undersigned Clerk of the City of
Richmond, Indiana, to the Mayor of said City, this Z164 day of
1983, at f" ,3-s— o'clock .m. , for his
consideration and action thereon.
JoE Isn Trimble, Clerk
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 Bond authorized
thereby, and return the same to the Clerk this day of
1983 at �� -� �� o' clock ,j,.m.
C1' ord46ickman, Mayor
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