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HomeMy Public PortalAbout068-1983 - First Mortgage Revenue Bonds - Ahaus Tool CoORDINANCE N0. 68-1983 ORDINANCE AUTHORIZING THE CITY OF RICHMOND TO ISSUE ITS "ECONOMIC DEVELOPMENT FIRST MORTGAGE REVENUE BONDS, SERIES 1983 (AHAUS TOOL CO., INC. PROJECT) " AND APPROVING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the Richmond Economic Development Commission has rendered its Project Report for the Ahaus Tool Co., Inc. Project regarding the financing of proposed economic develop- ment facilities for Ahaus Tool Co., Inc., and the Richmond Planning Commission has commented favorably thereon; and WHEREAS, the Richmond Economic Development Commission con- ducted a public hearing on November 21, 1983, and also adopted a resolution on November 21, 1983, which Resolution has been transmitted hereto, finding that the financing of certain eco- nomic development facilities of Ahaus Tool Co., 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 WHEREAS, the Richmond Economic Development Commission has heretofore approved and recommended the adoption of this form of Ordinance by this Common Council, has considered the issue of adverse competitive impact and has approved the forms of and has transmitted for approval by the Common Council the First Amendment to and Supplement of Mortgage and Indenture of Trust, First Amendment to and Supplement of Lease Agreement and Guaranty Agreement; now therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA THAT: Section 1. It is hereby found that the financing of the economic development facilities referred to in the First Amend- ment to and Supplement of Mortgage and Indenture of Trust and First Amendment to and Supplement of Lease Aqreement approved by the Richmond Economic Development Commission and presented to this Common Council, the issuance and sale of revenue bonds in the aggregate principal amount of $300,000, the loan of the proceeds of the revenue bonds to the City of Richmond for the acquisition, construction and installation of such facilities for lease to Ahaus Tool Co., Inc., the pavment of the revenue bonds by the rental payments of Ahaus Tool Co., Inc. under the First Amendment to and Supplement of Lease Agreement, the guar- anty of payment of the revenue bonds by Frederic A. Ahaus and Galen L. Miller, and the securing of said bonds by mortgaging such facilities to the Trustee under the First Amendment to and Supplement of Mortgage and Indenture of Trust 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 2. The facilities will consist of a 10,800 square foot addition to a manufacturing facility which specializes in the manufacture of special tool and machine parts, including the real estate on which it is located and the machinery and equipment to be installed therein, to be located at 200 Industrial Parkway, adjacent to the existing facility of the Applicant, in Richmond, Indiana, on an approximate 6 acre tract of land. - 2 - Section 3. It is hereby found that the above -described Project of Ahaus Tool Co., Inc. will not have an adverse competitive impact on other facilities of the same kind already operating in the same market area for the following reasons: (a) After published notice of a public hearing to be held before this Commission, no remonstrators or competi- tors have made themselves known or have spoken against the proposed Project on any basis. (b) Ahaus Tool Co., Inc. was founded in the mid 1940's primarily to service an industry in the general location of Wayne County, Indiana, for manufacturing of tool and die, gauges and precision fixturing. (c) Ahaus Tool Co., Inc. has expanded its manufac- turing facilities into new high technology, numerically controlled manufacturing systems. (d) Other local tool and die companies in the City of Richmond, Wayne County area, have not expanded into the numerically controlled high technology manufacturing facilities. (e) Ninety-five percent (95%) of the business of Ahaus Tool Co., Inc. is outside the Wayne County, Indiana, area. (f) Sixty-five percent (65%) of the business of Ahaus Tool Co., Inc. is dedicated and limited to customers that have been serviced by Ahaus in excess of twenty-five (25) years or longer. (g) The current project is to service existing customers in numerically controlled computerized systems that will not compete with other tool companies in the City of Richmond for the reason that Ahaus Tool Co., Inc. has expanded its capabilities to service their existing customers. (h) In the absence of any evidence of any adverse competitive impact, the benefits to the public from the new jobs and payroll to be generated by the Project clearly indicate that the Project should be supported by the issuance of economic development revenue bonds. Section 4. The substantiallv final forms of the First Amendment to and Supplement of Mortgaqe and Indenture of Trust, First Amendment to and Supplement of Lease Agreement and Guar - ants Agreement approved by the Richmond Economic Development Commission are hereby approved (herein collectively referred to as the "Financinq Agreement" referred to in I.C. 36-7-12), 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 5. The City of Richmond shall issue its Economic Development First Mortgage Revenue Bonds, Series 1983 (Ahaus Tool Co., Inc. Project), in the total principal amount of approximately Three Hundred Thousand Dollars ($300,000) and maturinq no later than December 1, 1999, for the purpose of - 4 - procuring funds to pay the costs of acquisition and equipping of the economic development facilities as more particularly set out in the First Amendment to and Supplement of Mortgage and Indenture of Trust and First Amendment to and Supplement of Lease Agreement incorporated herein by reference, which bonds will be payable as to principal, premium, if any, and interest from the rental payments made by Ahaus Tool Co., Inc. under the First Amendment to and Supplement of Lease Agreement or as otherwise provided in the above described First Amendment to and Supplement of Mortgage and Indenture of Trust. The bonds shall be issued in fully registered form in the denominations of $5,000 or whole multiples thereof and shall be redeemed as provided in Article III of the First Amendment to and Supple- ment of Mortgage and Indenture of Trust. Payments of principal and interest are payable in lawful money of the United States of America at the principal office of the Trustee or its successor in trust or by check or draft mailed or delivered to the registered owner as provided in the First Amendment to and Supplement of Mortgage and Indenture of Trust. The bonds shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of the City of Richmond or the State of Indiana nor are the bonds payable in any manner from revenues raised by taxation. Section 6. The Mayor and Clerk are authorized and directed to sell such bonds to the purchasers thereof at a rate of interest on the bonds of two percent (?_$) per annum over the 3-vear BAA Municipal Bond Rate as quoted in the money market - 5 - rate sheet last issued by Wauterlek & Brown, Inc. Chicago, Illinois, its successors and assigns as established on the date of authentication and delivery of the bonds for the period to April 1, 1984 and thereafter as established on April 1, 1984 and on each April 1 of each third year for each succeeding three year interest rate period; provided that the interest rate on the bonds shall in no event exceed 18% per annum. The bonds shall be sold at a price not less than 100% of the principal amount thereof. Section 7. 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 approved herein on behalf of the City and any other document which may be necessary or desirable to consummate the transaction, including the bonds authorized herein. The Mayor and Clerk are hereby expressly authorized to approve any modifications or additions to the documents constituting the Financing Agreement 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 Financing Agreement is 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; provided, however, that no such modifica- tion 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 First Amendment to and Supplement of Mortgage and Indenture of Trust, payment for the bonds will be made to the Trustee named in the First Amendment to and Supple- ment of Mortgage and 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. The bonds shall have a dated date as of November 1, 1983 but shall only bear interest from the date of authentication and delivery thereof. Section 8. The provisions of this Ordinance and the First Amendment to and Supplement of Mortgage and Indenture of Trust securing the bonds shall constitute a contract binding between the City of Richmond and the holder of the Economic Development First Mortgage Revenue Bonds, Series 1983 (Ahaus Tool Co., Inc. 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 9. This Ordinance shall be in full force and effect from and after its passage and signing by the Common Council. - 7 - Passed and adopted this j7�"/ day of November, 1983. Attest: I Cle RI CHMOND COMMON COUN Presented by me to the Mayor of the City of Richmond, Indiana, at 6 �% o'clock .m. on this <<et day of November, 1983. C—le irk Approved and signed by me on this I�day of November, 1983. May. �,-, Clt of Richmond Attest: Cle RESOLUTION RICHMOND ECONOMIC DEVELOPMENT COMMISSION RICHMOND, INDIANA BE IT RESOLVED BY THE RICHMOND ECONOMIC DEVELOPMENT COM- MISSION THAT: /` Section 1. It finds that the proposf�d $300,000 financing of economic development facilities refer ed to in the Financing Agreement presented to this meeting for Ahaus Tool Co., 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 2.:-The economic development facilities will consist of 10,800 square foot addition to a manufacturing facility which ---socializes in the manufacture of special tool and machine parts, including the real estate on which it is located and the machinery and equipment to be installed therein, to be located at 200 Industrial Parkway, adjacent to the exist- inq facility of Ahaus Tool Co., Inc., in Richmond, Indiana, on an approximate 6 acre tract of land (the "Project"). Section 3. The substantially final forms of First Amend- ment to and Supplement of Mortgage and Indenture of Trust, First Amendment to and Supplement of Lease Agreement and Guaranty Agreement and a proposed form of'Ordinance for the Common Council presented to this meeting are hereby approved. Section 4. It has considered whether the Project will have an adverse competitive impact on any other facilities of the same kind already operating in the same market area or under construction in the market area of Richmond and now makes the following special findings of fact based upon the evidence presented:• (a) After published notice of a public hearing to be held before this Commission, no remonstrators or competi- tors have made themselves known or have spoken against the proposed Project on any basis. (b) Ahaus Tool Co., Inc. was founded in the mid 1940's primarily to service an industry in the general location of Wayne County, Indiana, for manufacturing of tool and die, gauges and precision fixturing. (c) Ahaus Tool Co., Inc. has expanded its manufac- turing facilities into new high technology, numerically controlled manufacturing systems. (d) Other local tool and die comp nies in the City of Richmond, Wayne County area, have not expanded into the numerically controlled high technology manufacturing facilities. (e) Ninety-five percent (95%) of the business of Ahaus Tool Co., Inc. is outside the Wayne County, Indiana, area. (f) Sixty-five percent (65%) of the business of Ahaus a Tool Co., Inc. is dedicated and limited to customers that have been serviced by Ahaus in excess of twenty-five (25) years or longer. (g) The current project is to service existing customers in numerically controlled computerized systems - 2 - that will not compete with other tool companies in the City of Richmond for the reason that Ahaus Tool Co., Inc. has expanded its capabilities to service their existing customers. (h) In the absence of any evidence of any adverse competitive impact, the benefits to the public from the new jobs and payroll to be generated by the Project clearly indicate that the Project should be supported by the issuance of economic development revenue bonds. Section 5. The Secretary shall initial and then insert a copy of the forms of documents approved by this Resolution in the minute hook of this Commission. Section 6. A copy of this Resolution and the other rocuments 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 Common Council. Adopted this 21st day of November, 1983. Secretary RICHMO�D CONO DEVELOPMENT COM� I%s President 41 - 3 -