HomeMy Public PortalAbout054-2014 - Revenue Bonds - Johns ManvilleORDINANCE NO. 54-2014
ORDINANCE AUTHORIZING THE CITY OF RICHMOND,
INDIANA TO ISSUE ITS "ECONOMIC DEVELOPMENT
REVENUE BONDS, SERIES 2014 (JOHNS MANVILLE
PROJECT)" AND APPROVING OTHER ACTIONS IN
RESPECT THERETO
WHEREAS, the Richmond Economic Development Commission ("Commission") has
rendered its Project Report regarding the financing of proposed economic development facilities
for Johns Manville ("Company") and the Project Report will be submitted to the Richmond Plan
Commission for comment thereon; and
WHEREAS, the Commission conducted a public hearing on October 20, 2014 and
adopted a resolution and the Project Report, which resolution and Project Report have been
transmitted hereto, finding that the financing of certain economic development facilities,
including the expansion of a manufacturing facility, together with all necessary appurtenances,
related improvements and equipment to be constructed by the Company, complies with the
purposes and provisions of IC 36-7-11.9 and -12 and that such financing will be of benefit to the
health and welfare of the City and its citizens; and
WHEREAS, the Commission has heretofore approved and recommended the adoption of
this form of ordinance by this Common Council, has considered the issue of adverse competitive
effect and has approved the forms of and has transmitted for approval by the Common Council
the Financing Agreement, the Bond Purchase Agreement and the Trust Indenture;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF RICHMOND, INDIANA, THAT:
Section 1. It is hereby found that: (i) the financing of the economic development
facilities, including the expansion of a manufacturing facility, together with all necessary
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appurtenances, related improvements and equipment referred to in the Financing Agreement
approved by the Commission and presented to this Common Council; (ii) the issuance and sale
of the City of Richmond, Indiana ("City") Economic Development Revenue Bonds, Series 2014
(Johns Manville Project) ("Bonds"); (iii) providing the proceeds of the Bonds to Company for
the construction of such facilities; (iv) the payment of the Bonds from TIF Revenues (as defined
in the Trust Indenture); and (v) the securing of the Bonds under the Trust Indenture complies
with the purposes and provisions of IC 36-7-11.9 and -12 and will be of benefit to the health and
welfare of the City and its citizens. The proceeds of the Bonds will be used for the financing of
the construction of the expansion of a manufacturing facility, together with all necessary
appurtenances, related improvements and equipment, in or physically connected to the Johns
Manville Economic Development Area, and the costs of issuance of the Bonds ("Project"). The
Common Council further finds, determines, ratifies and confirms that the promotion of economic
development and increased investment in the City, is desirable to preserve the health, safety and
general welfare of the citizens of the City; and that it is in the public interest that the Commission
and the Issuer take such action as they lawfully may to encourage economic development,
diversification of industry and increased investment in the City.
Section 2. At the public hearing held before the Commission, the Commission
considered whether the Project would have an adverse competitive effect on any similar facilities
located in or near the City, and subsequently found, based on findings of fact set forth in the
Resolution transmitted hereto, that the Project would not have an adverse competitive effect.
This Common Council hereby confirms the findings set forth in the Commission's Resolution,
and concludes that the Project will not have an adverse competitive effect on any other similar
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facilities in or near the City, and the facilities will be of benefit to the health and welfare of the
citizens of the City.
Section 3. The substantially final forms of the Financing Agreement, the Bond
Purchase Agreement and the Trust Indenture approved by the Commission are hereby approved
(herein collectively referred to as the "Financing Agreement" referred to in
IC 36-7-11.9 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. In
accordance with the provisions of IC 36-1-5-4, two (2) copies of the Financing Agreement are on
file in the office of the Clerk for public inspection.
Section 4. The City shall issue its Bonds in the total principal amount not to exceed
$900,000 and maturing no later than fifteen years after the date of issuance of the Bonds. The
Bonds are to be issued for the purpose of procuring funds to pay the costs of the construction of
the Project, as more particularly set out in the Trust Indenture and Financing Agreement,
incorporated herein by reference, which Bonds will be payable as to principal and interest
semiannually on February 1 and August 1 from TIF Revenues and as otherwise provided in the
Trust Indenture. The Bonds shall be issued in fully registered form in denominations of $1,000
and integral multiples thereof or as otherwise provided in the Trust Indenture, and shall be
redeemable at any time as provided in the Trust Indenture. Payments of principal and interest
are payable in lawful money of the United States of America by check mailed or delivered to the
registered owners as provided in the Trust Indenture. The Bonds shall never constitute a general
obligation of, an indebtedness of, or a charge against the general credit of the City nor are the
Bonds payable in any manner from revenues raised by taxation except for TIF Revenues. It will
use its best efforts to assist the Company in procuring the issuance of'additional economic
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development revenue bonds, if such additional bonds become necessary for refunding or
refinancing the outstanding principal amount of the economic development revenue bonds, for
completion of the Project and for additions to the Project, including the costs of issuing
additional bonds.
Section 5. The Mayor, the Controller and the Clerk are authorized and directed to sell
the Bonds to the original purchasers thereof at a price of not less than the par value thereof. The
Bonds shall bear interest at a rate not to exceed 6.0%.
Section 6. The Mayor, the Controller and the 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 prior to, on or after the date hereof to consummate or facilitate the
transaction, including the Bonds authorized herein. The Mayor, the Controller and the 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 counsel to the City; it being the express understanding of this Common
Council that the Financing Agreement is in substantially final form as of the date of this
ordinance. The approval of these 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, 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, the Controller and the 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
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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 Bonds shall be originally dated the date of issuance and delivery thereof.
Section 7. The provisions of this ordinance and the Trust Indenture securing the
Bonds shall constitute a contract binding between the City and the holders of the Bonds, and
after the issuance of the Bonds, this ordinance shall not be repealed or amended in any respect
which would adversely affect the rights of such holders so long as the Bonds or the interest
thereon remains unpaid.
Section 8. This ordinance shall constitute 'official action" for purposes of
compliance with state laws requiring governmental action as authorization for future
reimbursement from the proceeds of bonds.
Section 9. This ordinance shall be in full force and effect from and after its passage
and execution by the Mayor.
Passed and adopted by the Common Council of the City of Richmond, Indiana, this 1I
1
day
COMMON COUNCIL OF THE CITY OF
RICHMOND, INDIANA
r, President
2ott o(-Ea.- ✓to
Attest:
Clerk
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Presented by me to the Mayor of the City of Richmond, Indiana, on the /_y day
of , 2014.
Clerk
This ordinance approved and signed by me, the Mayor of the City of Richmond, Indiana,
on the j day of M V" , 2014.
Mayor
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