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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 - 2 - 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 - 3 - 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 - 4 - 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 - 5 - 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 . 2 -