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Home My Public Portal About075-1983 - Revenue Bonds - Richmond HotelAMENDED ORDINANCE NO. 75 -1983 ORDINANCE AUTHORIZING THE CITY OF RICHMOND TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS" AND APPROVING OTHER ACTIONS IN RESPECT THERETO WHEREAS, the Richmond Economic Development Commission has rendered its Project Report for the Richmond Hotel, Limited Project regarding the financing of proposed economic development facilities for Richmond Hotel, Limited, a Kentucky Limited Partnership, of which Robert L. Gabbard is a general partner and the Richmond Plan Coiwnission has commented favorably thereon; and WHEREAS, the Richmond Economic Development Commission conducted a public hearing on December 19, 1983, and also adopted a resolution on December 19, 1983, which Resolution has been transmitted hereto, finding that the financing of certain economic development facilities of Richmond Hotel, Limited 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 and has approved the terms and substantially final forms of and has transmitted for approval by the Common Council the Loan Agreement, Trust Indenture and Bond Purchase Agreement, and other supporting documents required to consummate the transaction and; now therefore, THAT: BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA Section 1. The proposed economic development facilities will be a downtown hotel and convention facility and the project will consist of the acquisition of certain real estate, including improvements thereon and certain fixtures, furniture, chattels and equipment located therein, and to make necessary modifications and improvements to the property known as the Leland Hotel and/or the Leland Motor Inn located at 900 South "A" Street, Richmond, Wayne County, Indiana. Section 2. It is hereby found that the financing of the economic development facilities referred to in the Loan Agreement 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 Richmond hotel, Limited for the acquisition, construction and equipping of such facilities, the payment of the revenue bonds by the payments by Richmond Hotel, Limited under the Loan Agreement complies with the purposes and provisions of I.C. 36-7-12 and will be of )enefit to the health and welfare of the City of Richmond and its citizens. Section 3. The findings that (a) the proposed economic development facilities will not have an adverse competitive affect on already existing and operating facilities within the City of Richmond and (b) the proposed facilities are within an "economic development targeted area", as defined in I.C. 36-7-12-2 and as stated in the Inducement Resolution No. 11-1983 adopted by this Council on June 20, 1983, are confirmed, ratified and approved. Section 4. The substantially final forms of the Loan Agreement, Trust Indenture and Bond Purchase Agreement, approved by the Richmond Economic Development Commission are 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 5. The City of Richmond shall issue its Economic Development Revenue Bonds Richmond Hotel, Limited Project, in the total principal amount not exceeding Three Million Six Hundred Seventy Five Thousand Dollars ($3,675,000) and maturing not later than December 1, 1998 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 Loan Agreement incorporated herein by reference, which bonds will be payable as to principal, premium, if any, and interest from the payments made by Richmond Hotel, Limited under the Loan Agreement. The bonds shall be originally issued as a single fully registered master bond, and shall be redeemable as provided in the Bond Purchase Agreement. 2 Payments of principal and interest are payable in immediately available funds in lawful money of the United States of kmerica at the address provided by the holder of the Bond. The bonds shall never constitute a general obligation of, an indebtedness of, or a charge against the general credit of the City of Ri.ciimond, 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 on a negotiated basis to the investment banker firm of Season - good 5 Mayer, Cincinnati, Ohio, for underwriting to the public in ac- cordance with the terms and coriiditions set forth in the Bond Purchase Agreement. The Bonds will mature and bear interest as follows: Estimated Maturing December 1 Principal Amount Interest 1984 $ 50,000.00 10.0 1985 425,000.00 11.0 1986 550,000.00 11.5 1987 50,000.00 11.75% 1988 50,000.00 12.0 1989 50,000.00 12.0 1990 50,000.00 12.0 1991 50,000.00 12.0 1992 50,000.00 12.0 1993 50,000.00 12.0 1998 2,300,000.00 12.5 Section 7. The Official Statement, in substantially final for,n is hereby approved, and such document shall be incorporated herein by reference and shall be inserted in the minutes of the Common Council and kept on file by the Clerk. The Mayor and Cleric are authorized to execute, attest, affix or imprint by any means the City seal on the Official State- ment, and by doing so, authorize the use thereof by the original purchaser of the Bonds. Section 8. 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 of Richmond 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 and the Official Statement which take place after the date of 3 this Ordinance with the review and advice of the City Attorney; it being the express understanding of this Common Council that said Financing Agreement and 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; i provided, however, that no such modification or addition shall change the I maximum principal amount or term of the bonds as approved by the Common Council by this Ordinanace 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 Mayor and Clerk shall execute and the Clerk shall deliver the bonds to the purchaser thereof within ninety days of the adoption of this ordinance. The bonds shall be dated December 1, i 1983. The Mayor and/or Clerk are hereby further authorized to take such other action and sign such other documents and certificates as may be necessary to effectuate the bond closing, including filing with the Internal Revenue Service the tax election letter required by Section 103 of the Internal Revenue Code of 1954, as amended, and form 8036 of the Internal Revenue Service. Section 9. The provisions of this Ordinance shall constitute a contract binding between the City of Richmond and the holders of the i Economic Development Revenue Bonds (Richmond Hotel, Limited 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 10. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. 4 Passed and adopted this /,)t4day of o� �� 1983. RICHMOND COMMON COUNCIL Presiding Officer Att st: Cler Pr ented try me to the Mayor of the City of Richmond, on this�jZ��day of �� 1983, at the hour of -i .M. Cler Approved and signed by me on thi�� day ofC, 1983. At st: Cler 5 RESOLUTION RICHMOND ECONOMIC DEVELOPMENT COMMISSION RICHMOND, INDIANA BE IT RESOLVED BY THE RICHMOND ECONOMIC DEVELOPMENT COMMISSION THAT: Section 1. The proposed economic development facilities will be a downtown hotel and convention facility and the project will consist of the acquisition of certain real estate, including improvements thereon and certain fixtures, furniture, chattels and equipment located therein, and to make necessary modifications and improvements to the property known as the Leland Hotel and/or the Leland Motor Inn located at 900 South "A" Street, Richmond, Wayne County, Indiana. Section 2. It finds that the proposed financing of economic development facilities referred to in the Financing Agreement (as defined in the minutes) presented to this meeting for Richmond Hotel, Limited ("Company") 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 terms and substantially final forms of Loan Agreement, Trust Indenture and Bond Purchase Agreement, and a proposed form of Ordinance for the Common Council presented to this meeting are hereby approved. Section 4. It has previously considered whether the proposed economic development facilities will have an adverse competitive impact on any similar facilities, and based on probative evidence it found that 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 documents approved by this Resolution in the Liinute Book of this Commission. 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 Common Council. Adopted this 19 day of December, 1983. Secretary, Arthur M. Vivian 2 RICh1OND ECONOMIC DEVELOPMENT COMMISSION By President, Wilbur C. Thomas