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 -