HomeMy Public PortalAbout1989-19" O R D I N A N C E N O . 1 9 8 9 - 1 9
O R D I N A N C E A U T H O R I Z I N G T H E C I T Y O F G R E E N C A S T L E T O I S S U E I T S
" F L O A T I N G / F I X E D R A T E E C O N O M I C D E V E L O P M E N T R E V E N U E B O N D S ,
S E R I E S 1 9 8 9 ( P E D C O R I N V E S T M E N T S - 1 9 8 9 - V I I , L . P . P R O J E C T ) "
A N D A P P R O V I N G O T H E R A C T I O N S I N R E S P E C T T H E R E T O
W H E R E A S , t h e G r e e n c a s t l e E c o n o m i c D e v e l o p m e n t C o m m i s s i o n h a s r e n d e r e d i t s
P r o j e c t R e p o r t f o r t h e P e d c o r I n v e s t m e n t s - 1 9 8 9 - V I I , L . P . P r o j e c t r e g a r d i n g t h e f i n a n c i n g o f
p r o p o s e d e c o n o m i c d e v e l o p m e n t f a c i l i t i e s f o r P e d c o r I n v e s t m e n t s - 1 9 8 9 - V I I , L . P . a n d t h e
G r e e n c a s t l e P l a n C o m m i s s i o n h a s c o m m e n t e d f a v o r a b l y t h e r e o n ; a n d
W H E R E A S , t h e G r e e n c a s t l e E c o n o m i c D e v e l o p m e n t C o m m i s s i o n a n d t h e C o u n t y
C o u n c i l o f P u t n a m C o u n t y c o n d u c t e d a j o i n t p u b l i c h e a r i n g o n J u l y 1 1 , 1 9 8 9 , a n d t h e
G r e e n c a s t l e E c o n o m i c D e v e l o p m e n t C o m m i s s i o n a l s o a d o p t e d a r e s o l u t i o n o n J u l y 1 1 , 1 9 8 9 ,
w h i c h R e s o l u t i o n h a s b e e n t r a n s m i t t e d h e r e t o , f i n d i n g t h a t t h e f i n a n c i n g o f c e r t a i n e c o n o m i c
" d e v e l o p m e n t f a c i l i t i e s o f P e d c o r I n v e s t m e n t s - 1 9 8 9 - V I I , L . P . c o m p l i e s w i t h t h e p u r p o s e s a n d
p r o v i s i o n s o f I . C . 3 6 - 7 - 1 1 . 9 a n d 1 2 a n d t h a t s u c h f i n a n c i n g w i l l b e o f b e n e f i t t o t h e h e a l t h
a n d w e l f a r e o f t h e C i t y o f G r e e n c a s t l e a n d i t s c i t i z e n s ; a n d
W H E R E A S , t h e G r e e n c a s t l e E c o n o m i c D e v e l o p m e n t C o m m i s s i o n h a s h e r e t o f o r e
a p p r o v e d a n d r e c o m m e n d e d t h e a d o p t i o n o f t h i s f o r m o f O r d i n a n c e b y t h i s C o m m o n C o u n c i l ,
h a s c o n s i d e r e d t h e i s s u e o f a d v e r s e c o m p e t i t i v e e f f e c t a n d h a s a p p r o v e d t h e f o r m s o f a n d h a s
t r a n s m i t t e d f o r a p p r o v a l b y t h e C o m m o n C o u n c i l t h e L o a n A g r e e m e n t , T r u s t I n d e n t u r e , a n d
M o r t g a g e ; n o w t h e r e f o r e ,
B E I T O R D A I N E D B Y T H E C O M M O N C O U N C I L O F T H E C I T Y O F
G I E E N C A S T L E , I N D I A N A T H A T :
S e c t i o n 1 . I t i s h e r e b y f o u n d t h a t t h e f i n a n c i n g o f t h e e c o n o m i c d e v e l o p m e n t f a c i l i t i e s
r e f e r r e d t o i n t h e L o a n A g r e e m e n t a p p r o v e d b y t h e G r e e n c a s t l e E c o n o m i c D e v e l o p m e n t
C o m m i s s i o n a n d p r e s e n t e d t o t h i s C o m m o n C o u n c i l , t h e i s s u a n c e a n d s a l e o f t h e
4 0
" F l o a t i n g / F i x e d R a t e E c o n o m i c D e v e l o p m e n t R e v e n u e B o n d s , S e r i e s 1 9 8 9 ( P e d c o r
I n v e s t m e n t s - 1 9 8 9 V I I , L . P . P r o j e c t ) ( t h e " B o n d s " ) , t h e l o a n o f t h e p r o c e e d s o f t h e B o n d s t o
P e d c o r I n v e s t m e n t s - 1 9 8 9 V I I , L . P . f o r t h e a c q u i s i t i o n , c o n s t r u c t i o n a n d e q u i p p i n g o f c e r t a i n
e c o n o m i c d e v e l o p m e n t f a c i l i t i e s , t h e p a y m e n t o f t h e B o n d s b y t h e l o a n p a y m e n t s o f P e d c o r
I n v e s t m e n t s - 1 9 8 9 V I I , L . P . u n d e r t h e L o a n A g r e e m e n t , a n d t h e s e c u r i n g o f s a i d B o n d s u n d e r
t h e T r u s t I n d e n t u r e c o m p l i e s w i t h t h e p u r p o s e s a n d p r o v i s i o n s o f I . C . 3 6 - 7 - 1 1 . 9 a n d 1 2 , a n d
w i l l b e o f b e n e f i t t o t h e h e a l t h a n d w e l f a r e o f t h e C i t y o f G r e e n c a s t l e a n d i t s c i t i z e n s .
S e c t i o n 2 . T h e e c o n o m i c d e v e l o p m e n t f a c i l i t i e s w i l l c o n s i s t o f t h e c o n s t r u c t i o n a n d
e q u i p p i n g o f u p t o 1 1 2 a p a r t m e n t s a n d f u n c t i o n a l l y r e l a t e d a n d s u b o r d i n a t e f a c i l i t i e s ,
i n c l u d i n g , b u t n o t l i m i t e d t o , p a r k i n g f a c i l i t i e s a n d r e c r e a t i o n a l f a c i l i t i e s o n a p p r o x i m a t e l y
1 6 . 2 5 a c r e s o f l a n d , t o b e l o c a t e d o n t h e w e s t s i d e o f R o u n d B a r n R o a d a p p r o x i m a t e l y 5 0 0
f e e t n o r t h o f S t a t e R o a d 2 4 0 i n t h e C o u n t y o f P u t n a m , I n d i a n a , w h i c h l a n d i s t h e s u b j e c t o f a
p e n d i n g a n n e x a t i o n b y t h e C i t y o f G r e e n c a s t l e , I n d i a n a ( t h e " P r o j e c t " ) .
" S e c t i o n 3 . A t t h e p u b l i c h e a r i n g h e l d b y t h e G r e e n c a s t l e E c o n o m i c D e v e l o p m e n t
C o m m i s s i o n a n d t h e C o u n t y C o u n c i l o f P u t n a m C o u n t y , t h e C o m m i s s i o n c o n s i d e r e d w h e t h e r
t h e e c o n o m i c d e v e l o p m e n t f a c i l i t i e s w o u l d h a v e a n a d v e r s e c o m p e t i t i v e e f f e c t o n a n y s i m i l a r
f a c i l i t i e s l o c a t e d i n o r n e a r t h e C i t y o f G r e e n c a s t l e o r P u t n a m C o u n t y , a n d f o u n d , b a s e d o n
s p e c i a l f i n d i n g s o f f a c t s e t f o r t h i n t h e R e s o l u t i o n t r a n s m i t t e d h e r e t o , t h a t t h e f a c i l i t i e s w o u l d
n o t h a v e a n a d v e r s e c o m p e t i t i v e e f f e c t . T h i s C o m m o n C o u n c i l h e r e b y c o n f i r m s t h e f i n d i n g s
s e t f o r t h i n t h e C o m m i s s i o n ' s R e s o l u t i o n , a n d c o n c l u d e s t h a t t h e e c o n o m i c d e v e l o p m e n t
f a c i l i t i e s w i l l n o t h a v e a n a d v e r s e c o m p e t i t i v e e f f e c t o n a n y o t h e r s i m i l a r f a c i l i t i e s i n o r n e a r
t h e C i t y o f G r e e n c a s t l e o r P u t n a m C o u n t y , a n d t h e f a c i l i t i e s w i l l b e o f b e n e f i t t o t h e h e a l t h
a n d w e l f a r e o f t h e c i t i z e n s o f t h e C i t y o f G r e e n c a s t l e .
S e c t i o n 4 . T h e s u b s t a n t i a l l y f i n a l f o r m s o f t h e L o a n A g r e e m e n t , T r u s t I n d e n t u r e , a n d
M o r t g a g e , a p p r o v e d b y t h e G r e e n c a s t l e E c o n o m i c D e v e l o p m e n t C o m m i s s i o n a r e h e r e b y
e a p p r o v e d ( h e r e i n c o l l e c t i v e l y r e f e r r e d t o a s t h e " F i n a n c i n g A g r e e m e n t " r e f e r r e d t o i n I . C . 3 6
2
7 -11.9 and 12), and the Financing Agreement shall be incorporated herein by reference and
shall be inserted in the minutes of the Common Council and kept on file by the
Clerk— Treasurer. In accordance with the provisions of I.C. 36- 1 -5 -4, two (2) copies of the
Financing Agreement are on file in the office of the Clerk— Treasurer for public inspection.
Section 5. The City of Greencastle shall issue its Bonds in the total principal amount
not to exceed Four Million Dollars ($4,000,000) and maturing no later than July 1, 2019. Said
Bonds are to be issued 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 Trust Indenture and Loan Agreement incorporated herein by reference, which Bonds
will be payable as to principal, premium, if any, and interest from the loan payments made by
Pedcor Investments- 1989 —VII, L.P. under the Loan Agreement, during the Initial Rate Period
(i) a pledge of syndication proceeds of Pedcor Investments- 1989 —VII, L.P. and (ii) personal
guaranties of certain principals of the general partner of Pedcor Investments - 1989 —VII, L.P.,
. or as otherwise provided in the above described Trust Indenture and shall also be subject to
mandatory sinking fund redemption on the dates and in the amounts set forth on Exhibit A
attached hereto and made a part hereof. The Bonds shall be issued in fully registered form
initially in the denomination of $5,000 or integral multiples thereof, and shall be redeemable
as provided in Article IV of the Trust Indenture. 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 owners 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 Greencastle, nor are
the Bonds payable in any manner from revenues raised by taxation.
Section 6. The Mayor and Clerk — "Treasurer are authorized and directed to sell the
Bonds to Merchants National Bank & Trust Company of Indianapolis, as the original
• purchasers thereof, at a price of not less than 100"/ of the principal amount thereof. The
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Bonds shall bear interest at an initial rate not to exceed 12% and thereafter at the rate of
interest established pursuant to the provisions of Section 2.02 of the Trust Indenture.
Section 7. The Mayor and Clerk— Treasurer 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— Treasurer are hereby expressly authorized to approve any
modifications or additions to the documents constituting the Financing Agreement which take
place after the dale 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 modification or addition shall change the maximum principal amount of, maximum
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— Treasurer on the Bonds may be either manual or facsimile signatures. The
Clerk — Treasurer is authorized to arrange for delivery of such Bonds to the Trustee named in
the Trust Indenture, and payment for the Bonds will be made to the Trustee named in the
Trust Indenture and after such payment the Bonds will be delivered by the Trustee to the
purchasers thereof. The Mayor and Clerk— Treasurer shall execute and the Clerk — Treasurer
shall deliver the Bonds to the Trustee within ninety days of the adoption of this ordinance.
The Bonds shall be originally dated the Original Issuance Date, as defined in the Trust
Indenture.
•
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is Section 8. The provisions of this Ordinance and the Trust Indenture securing the Bonds
shall constitute a contract binding between the City of Greencastle and the holder of the
Bonds, 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. The City of Greencastle hereby agrees to
cooperate with Pedcor Investments- 1989 —VII, L.P. in refunding or reissuing the Bonds to
provide for permanent financing for the Project.
Section 9. This Ordinance shall be in full force and effect from and after its passage
and approval as provided by law.
The above and foregoing Ordinance was duty passed and adopted by the Greencastle
Common Council at a regular meeting of said Council held on the 25th day of
July 1989.
• GREENCASTLE COMMON COUNCIL
z (�
Presiding Officer
Attest:
ti-rCcZ
e k— Treasu er
Presented by me to the Mayor of the City of Greencastle on July 25 1989, at
the hour of 8:00 p .m.
CI rk Treasurer
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Approved and signed by me on this 2501 day of July 1989.
/n—
Mayor, City of Greencastle
L
EXHIBIT A
Except during any Fixed Rate Period, the Bonds shall be
subject to mandatory sinking fund redemption prior to maturity at
a redemption price of 100% of the principal amount scheduled to
be redeemed, plus accrued interest to the redemption date, on
July 1 of each year commencing July 1, 1993 in an amount deter-
mined by amortizing the outstanding principal amount of the Bonds
as of the first Conversion Date over 30 equal annual installments
of principal and interest, at the interest rate to be in effect
on the Bonds immediately following such Conversion Date, and
taking the principal component for each year of such 30 -year
amortization period and rounding the same to the nearest $5,000
or integral multiple thereof (the "Principal Installments ");
provided, however, that the principal installment due on July 1,
2019 shall be an amount equal to the remaining unpaid principal
balance of the Bonds as of such date. Once the principal
amortization schedule is calculated as of the first Conversion
Date as described in the immediately preceding sentence, such
schedule shall remain in effect and unchanged notwithstanding any
subsequent Conversion Dates or any subsequent change in the
interest rate or Interest Rate Mode for the Bonds. In the event
of any partial prepayment of the Bonds, an equal principal amount
• of Bonds so prepaid shall be credited toward such Principal
Installments in inverse order of maturity, unless the Borrower
shall direct otherwise, in which., event such Principal Install-
ments shall be credited as the Borrower may direct.
•