HomeMy Public PortalAbout039-1983 - Revenue Bonds - Beverly Enterprises' � T
ORDINANCE NO. 39-1983
ORDINANCE AUTHORIZING
THE CITY OF RICHMOND TO ISSUE
ITS "ECONOMIC DEVELOPMENT
REVENUE BONDS
(BEVERLY ENTERPRISES PROJECT)" AND
APPROVING OTHER ACTIONS IN RESPECT THERETO
WHEREAS, the Richmond Economic Development Commission has
rendered its Project Report for the Beverly Enterprises -
Indiana, Inc. Project regarding the financing of proposed
economic development facilities for Beverly Enterprises -
Indiana, Inc. and the Richmond Plan Commission has commented
favorably thereon; and
WHEREAS, the Richmond Economic Development Commission
conducted a public hearing on August 31, 1983, and also adopted
a resolution on August 31, 1983, which Resolution has been
transmitted hereto, finding that the financing of certain
economic development facilities of Beverly Enterprises -
Indiana, Inc. 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 includes special findings of fact as to
the competitive 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 sub-
stantially final forms of and has transmitted for approval by
the Common Council the Loan Agreement, Indenture of Trust,
Mortgage and Security Agreement, Guaranty Agreement and
Official Statement; 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 acquisition and construction of a 66-bed
addition to an existing nursing home facility, including the
real estate on which it is located and machinery and equipment
to be installed therein, located on an approximate 6 acre tract
of land, located at 2001 U.S. 27 South, Richmond, Indiana.
Section 2. It is hereby found that the financing of the
economic development facilities referred to in the Loan Agree-
ment 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
Beverly Enterprises - Indiana, Inc. for the acquisition, con-
struction and equipping of such facilities, the payment of the
revenue bonds by the payments of Beverly Enterprises - Indiana,
Inc. under the Loan Agreement the guaranty of payment of the
principal and interest on the revenue bonds by Beverly
Enterprises under the Guaranty Agreement, and the securing of
said bonds by the mortgaging of such facilities under the
Mortgage and Security Agreement 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 Loan
Agreement, Indenture of Trust, Mortgage and Security Agreement
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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 the
substantially final forms of the Guaranty Agreement and
Official Statement approved by the Richmond Economic Develop-
ment Commission is hereby approved, 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 (Beverly Enterprises Project), in the
total principal amount not exceeding One Million Four Hundred
Fifty Thousand Dollars ($1,450,000) and maturing not later than
twenty-five years from the date of the first maturity and which
in no event may exceed thirty (30) years, for the purpose of
procuring funds to pay the costs of acquisition, construction
and equipping of the economic development facilities as more
particularly set out in the Indenture of Trust, Loan Agreement
and Mortgage and Security Agreement incorporated herein by
reference, which bonds will be payable as to principal,
premium, if any, and interest from the payments made by Beverly
Enterprises - Indiana, Inc. under the Loan Agreement or as
otherwise provided therein and in the above described Indenture
of Trust. The bonds shall be issued in registered form, may be
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issued in denominations of $5,000 or a multiple thereof, and
shall be redeemed as provided in Article III of the Indenture
of Trust. 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 Indenture of Trust. 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 on the bonds calculated from time to time in accor-
dance with Article II of the Indenture of Trust, but not to
exceed 15% per annum during the period prior to the Conversion
Date (as defined in said Indenture) and not to exceed 30% per
annum thereafter (unless the bonds become taxable in which case
they shall bear interest as specified in the Indenture of
Trust) and at a price not less than 97% of the principal amount
thereof.
Section 6. The Mayor and Clerk are authorized and directed
to execute, attest, affix or imprint by any means the City seal
to the documents constituting the Financing Agreement and the
Official Statement approved herein on behalf of the City of
Richmond and any other document which may be necessary or
desirable to consummate the transaction, including the bonds
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authorized herein. The Mayor and Clerk are hereby expressly
authorized to approve any modifications or additions to the
documents constituting the Financing Agreement and the Official
Statement 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 Finan-
cing Agreement and the Official Statement 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; pro-
vided, 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 Indenture of Trust, payment for the bonds will be made to
the Trustee named in the Indenture of Trust 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.
of the date of delivery.
The bonds shall be dated as
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Section 7. The provisions of this Ordinance and the
Mortgage and Security Agreement securing the bonds shall
constitute a contract binding between the City of Richmond and
the holders of the Economic Development Revenue Bonds (Beverly
Enterprises Project), 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 �' day of !z�G,:�_x,v; 1983.
RICHMOND COMMON COUNCIL
st:
Cl6rk JoEllen Trimble
Presiding Officer Kenneth 'k.9ills
Presented by me to the Mayor of the City of Richmond, on
this day of .1 ��c 4 ,,, 1983, , a the hour of ?. m.
Clet'k JoEllen Tri ble
Approved and signed by me on this � t6 day of
i
1983. /J
-Y
C' y of Richmond
C fforcY J. Dickman
Atte t:
It (' :. _.i_ ( 1 z-� .-- L. ((-
JoL' len Trimble, Ci y Clerk — 6 _
RESOLUTION
RICHMOND ECONOMIC DEVELOPMENT COMMISSION
RICHMOND, INDIANA
BE IT RESOLVED By THE RICHMOND ECONOMIC DEVELOPMENT COM-
MISSION THAT:
Section 1. The proposed economic development facilities
will consist of the acquisition and construction of a 66-bed
addition to an existing nurs-ing home facility, including the
real estate or. which it is located and machinery and equipment
to be installed therein, located on an approximate 6 acre tract
of land, located at 2001 U.S. 27 South, Richmond, Indiana.
Section 2. It finds that the proposed financing of economic
development facilities referred to in the Financing Agreement
(as defined ir. the Minutes) presented to this meeting for
Beverly Enterprises - Indiana, Inc. 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 Loan Agree --
meet, Indenture of Trust, Mortgage and Security Agreement,
Guaranty Agreement, official Statement and a proposed form of
Ordinance for the Common Council presented to this .aeeti.ng are
hereby approved
Section 4. It has previously considered whether the pro-
posed economic development facilities will have an adverse
competitive impact on any s1lmilar facilities, aiid now reiterates
the following special findings of fact based upon the evidence
presented:
(1) No members of the public objected to the finan—
cing of the proposed economic development facilities; and
(2) 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 docume-i :s approved by this Resolutien in
the Minute Book of this Comiaissiou.
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 Comcrwon Council..
Adopted this 31st day of August, 1983.
Secretary , Arthur '14. Vivian
RICHMOND ECONOMIC DEVELOPM4,NT
COMMISSION
Fs v
, Wilbur C. Thomas
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