HomeMy Public PortalAbout039-1978 - Acquire a Facility and subleasing it to Johnson Sheet MetalORDINANCE NO. 39 - 1978
AN ORDINANCE OF THE CITY OF RICHMOND AUTHORIZING THE ACQUISITION AND
COMPLETION OF AN ECONOMIC DEVELOPMENT FACILITY, THE ISSUANCE AND SALE OF
REVENUE BONDS TO PAY THE COST THEREOF, AND THE LEASING OF SUCH FACILITIES
TO DEVELOPMENT CORPORATION OF RICHMOND, AND OTHER MATTERS RELATING
THERETO.
WHEREAS, the Richmond Economic Development Commission adopted a
Resolution June 2, 1978, approving the financing of certain economic
development facilities to be leased to Development Corporation of Richmond
and subleased to The Johnson Sheet Metal Works Corp., and approving a
form of Ordinance, Lease Agreement (hereinafter referred to as "Lease"),
Sublease (hereinafter referred to as "Sublease"), Mortgage and Indenture
of Trust (hereinafter referred to as "Indenture"), Guaranty Agreement
(hereinafter referred to as "Guaranty") and related documents, and
finding that the proposed financing complies with the purposes and
provisions of I.C. 18-6-4.5-1 through 18-6-4.5-29, inclusive; and further
finding that there are no similar facilities already constructed or
operating in the municipality competitive to the use proposed thereunder;
and
WHEREAS, said Resolution was presented to the Clerk for presenta-
tion to the Common Council of the City of Richmond and was so presented;
now therefore, BE IT ORDAINED, by the Common Council of the City of
Richmond, Indiana.
SECTION 1. It is hereby found that the financing of the economic
development facilities referred to in the Lease previously approved by
the Richmond Economic Development Commission and presented to the
Common Council, the acquisition and completion of such facilities, and
the leasing thereof to Development Corporation of Richmond, and the
subleasing thereof to The Johnson Sheet Metal Works Corp., complies with
the purposes and provisions of I.C. 18-6-4.5-1 through 18-6-4.5-29,
inclusive, and will be of benefit to the health or welfare of the City
of Richmond.
SECTION 2. The forms of Lease, Sublease, Indenture and Guaranty
approved by the Richmond Economic Development Commission are hereby
approved and all such documents collectively should be considered the
"Financing Agreement" referred to in I.C. 18-6-4.5-1 through 18-6-4.5-
29, inclusive. Such documents shall be incorporated herein by reference
and shall be inserted in the Minutes of the Common Council kept on file
by the Clerk.
SECTION 3. The City of Richmond shall issue its Economic Devel-
opment First Mortgage Revenue Bonds, Series 1978 (Development Corporation
of Richmond) in the total principal amount of Five Hundred Fifty Thousand
Dollars ($550,000.00) for the purpose of procuring funds to pay the cost
of acquiring and completing the facilities, as more particularly set out
in the Lease, Sublease, Indenture and Guaranty, incorporated herein by
reference, which Bonds will be payable as to principal, premium, if any,
and interest solely from the rentals, revenues and other income realized
under the Lease and Sublease or as otherwise provided in the above
described Indenture and Guaranty.
SECTION 4. The Mayor and Clerk are authorized and directed to
execute the documents approved herein on behalf of the City of Richmond
and any other documents which may be necessary or desirable to complete
the transaction, including the Bonds authorized herein. The Clerk of
the City of Richmond is authorized to arrange for the delivery of Bonds
to the purchasers thereof, payment for which shall be made to the Trustee
named in the Indenture.
SECTION 5. The provisions of this Ordinance and the Indenture
securing the Bonds shall constitute a contract between the City of
Richmond and the holders of the Economic Development First Mortgage
Revenue Bonds, Series 1978 (Development Corporation of Richmond), 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 remain
unpaid.
SECTION 6. This Ordinance shall be in full force and effect from
and after its passage and signing by the Mayor.
ADOPTED by the Common Council of the City of Richmond, Indiana this
day of June, 1978.
�1 President of Common Council
ATTEST:. �✓2e-„ �< 4�.
Cit3 Clerk
PRESENTED to the Mayor of the City of Richmond, Indiana this
day of June, 1978.
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City Cl6"rk
APPROVED by me, Clifford J. Dickman, Mayor of the City of Richmond,
Indiana this day of June, 1978.
Mayo
ATTEST: v"bt<_..✓
City/ C erk