REGULAR MEETING - JULY 3, 2001

Transcription

1 REGULAR MEETING - JULY 3, 2001 The Common Council of the City of Michigan City, Indiana, met in regular session on Tuesday Evening, July 3, 2001, at the hour of 7:30 p.m., local time, in the Common Council Chambers, located in the lower level of the City Hall Building, 100 East Michigan Boulevard, Michigan City, Indiana. The meeting was called to order at 7:30 p.m. by Council President Virginia Martin, who presided. The Pledge of Allegiance to the Flag and a short period of silent prayer were observed. In addition, at the request of Councilman LaRocco, the body stood in silence in memory of Police Captain Joel Pacholke. Roll call was authorized and the following were noted present and/or absent: PRESENT: COUNCIL MEMBERS Evelyn D. Baker; Carolyn Harmon; Joseph LaRocco; Charles Lungren; Virginia R. Martin; Willie Milsap; Paul A. Przybylinski; Denzil D. Wilson and JoEileen Winski (9) ABSENT: None (0) NOTE: Councilman Przybylinski entered the meeting following the vote on the first Resolution. A QUORUM WAS NOTED PRESENT. APPROVAL of MINUTES President Martin inquired whether there were any corrections, deletions, or additions to the minutes of the Regular Meetings of June 5 and June 19, 2001, and, there being no objections, declared the minutes approved as printed. REPORTS of STANDING, SPECIAL, or SELECT COMMITTEES Councilman LaRocco announced a Tree Board meeting on July 11. REPORTS of SPECIAL or SELECT COMMITTEES There were no reports. REPORTS of OTHER CITY OFFICERS and DEPARTMENTS There were no reports. PETITIONS There were no petitions. COMMUNICATIONS There were no communications. RESOLUTIONS The Clerk read by title only, there being no objections, RESO LUT ION N O A RESOLUTION FOR INCREASING AND DECREASING CERTAIN APPROPRIATIONS WITHIN THE BUDGET OF THE MUNICIPAL COACH DEPARTMENT, IN GENERAL FUND #0101, FOR THE YEAR 2001, IN MICHIGAN CITY, INDIANA WHEREAS, there exist certain circumstances within the budget of the Municipal Coach Department of Michigan City which require the increasing and decreasing of appropriations for the year Section 1. It is deemed advisable and necessary, in order to meet the circumstances facing said Municipal

2 Page 2 July 3, 2001 Coach Department of the City, that the Common Council make the following transfer of appropriations, as listed, towit: GENERAL FUND #0101 Municipal Coach Department DECREASE: GENERAL FUND #0101 Unappropriated $1, INCREASE: A/C # Contractual Services $1, Section 2. This Resolution shall be in full force and effect after passage and approval by the Mayor. INTR ODU CED BY: /s/ JoEileen Winski Councilman Winski moved to adopt the Resolution, seconded by Councilman Wilson. The motion carried and the Resolution was adopted by the following vote: AYES: COUNCIL MEMBERS Wilson, Winski, Baker, Harmon, LaRocco, Lungren, Martin, and Milsap (8). NAYS: None (0). At this time, Councilman Przybylinski entered the meeting. The Clerk read by title only, there being no objections, RESO LUT ION N A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF MICHIGAN CITY AUTHORIZING THE SUBMISSION OF A USEPA GRANT AND ESTABLISHING A FINANCIAL CONTROL FUND WHEREAS, the City of Michigan City has been invited to submit a formal application for a USEPA Brownfields Assessment Demonstration Pilot Grant to help reclaim the former Karwick Road landfill, Schmock Brothers Oil Facility at 1111 W. Garfield St. and Interroyal Metals plant at 600 N. Carroll Ave.; and WHEREAS, the City's liability under the grant is limited to providing technical, in-kind support through the offices that will be affected or are responsible for redevelopment oversight, and WHEREAS, it is projected that the grant project timetable is anticipated not to exceed twenty-four (24) months, and funds. WHEREAS, state law requires all funds from state and federal grants to be placed in separate accounting NOW THEREFORE BE IT RESOLVED, SECT ION I. T hat the Comm on Council of the C ity of Michigan City authorizes the su bmission, and states its support for, the USEPA grant. SECT ION 2. That tie City Controller is au thorized to establish a fund to receive the grant m onies an d to distribute the m witho ut further appropriation for the purpose s identified in s aid grant. SECTION 3. This resolution shall be in full force and effect after its adoption by the Michigan City Common Council and signature of the Mayor. Introduced by: Co-Introduced by: /s/ Evelyn Baker /s/ JoEileen Winski Councilwoman Winski moved to adopt the Resolution, seconded by Councilwoman Baker. There was discussion among Council Members Baker, Milsap, Przybylinski, Lungren, Baker, and Wilson and Economic Development Corporation Director Tony Rodriguez. The motion carried and the Ordinance was adopted as follows: AYES: COUNCIL MEMBERS Winski, Baker, Harmon, LaRocco, Lungren, Martin, Milsap, Przybylinski, and Wilson (9). NAYS: None (0). There being no objections, the Clerk read by title only, RESO LUT ION N O A RESOLUTION FOR INCREASING AND DECREASING CERTAIN APPROPRIATIONS WITHIN THE BUDGET OF THE PARK AND RECREATION DEPARTMENT, IN PARK FUNDS #1315 AND #1301, FOR THE YEAR 2001, IN MICHIGAN CITY, INDIANA

3 July 3, 2001 Page 3 WHEREAS, there exist certain circumstances within the budget of the Park and Recreation Department of Michigan City which require the increasing and decreasing of appropriations for the year Section 1. It is deemed advisable and necessary, in order to meet the circumstances facing said Park and Recreation Department of the City, that the Common Council make the following transfer of appropriations, as listed, to-wit: PARK FUND # Park Department DECREASE: PARK CONCESSION FUND # Unappropriated $7, INCREASE: PARK ZOO FUND # Unappropriated $7, Section 2. This Resolution shall be in full force and effect after passage and approval by the Mayor. INTR ODU CED BY: /s/ Joseph LaRocco Councilman LaRocco moved to adopt the Resolution, seconded by Councilman Przybylinski. The motion carried and the Resolution was adopted by the following vote: AYES: COUNCIL MEMBERS Baker, Harmon, LaRocco, Lungren, Martin, Milsap, Przybylinski, Wilson, and Winski (9). NAYS: None (0). There being no objections, the Clerk read by title only, RESO LUT ION N O RESO LUT ION AP PRO VING STAT EMENT OF B ENEF ITS IN SUPPORT OF APPLICATION FOR PROPERTY TAX ABATEMENT: T& E. LLC / LIGHTHOUSE INDUSTRIES, INC. WHEREAS, the Michigan City Common Council by Ordinance No. 2648, entitled AN ORDINANCE OF THE MICHIGAN CITY COMMON COUNCIL APPROV1NG AND CONFIRMING THE DECLARAION OF A TAX ABATEMENT ARE IN THE CITY OF MICHIGAN CITY, INDIANA, established a Tax Abatement Area n the City of Michigan City, Indiana, and a Tax Abatement Program under the term of LC. 6-1, 1-12, 1-1, et seq.: and WHEREAS, under the terms of said program, the abatement benefits were made available to owners of new manufacturing equipment and owners of property upon which new construction of any kind had occurred and owners of property who rehabilitated, remodeled or expanded any existing building and all of said benefits were made available to owners of any such property located anywhere within the city limits of Michigan City; and WHEREAS, Ordinance No amending said Ordinance No extended the life of said Tax Abatement Program to and including December 31, 1989; and WHEREAS, Ord inanc e No am ending sa id Ordinan ce N o an d No extended the life of said Tax Abatement Program to and including December 31, 1991; and WHEREAS, Ordinance No amending said Ordinance No extended the life of said Tax Abatement Program to and including December 31, 1993; and WHEREAS, Ordinance No amending said Ordinance No extended the life of said Tax Abatement Program to and including December 31, 1995; and WHEREAS, Ordinance No amending said Ordinance No extended the Iife of said Tax Abatement Program to and including December 31, 1997; and WHEREAS, Ordinance No amending said Ordinance No extended the life of said Tax Abatement Program to and including December 31, 1999; and WHEREAS, Ordinance No amending Ordinance No extended the life of said Tax Abatement Program to and including December 31, 2001; and WHEREAS, T & E, LLC /LIGHTHOUSE INDUST RIES, INC., the petitioner herein, of 107 Eastwood Rooad, Michigan City, Indiana, has filed with this Council its Statem ent of Benefits on the form provided by the Indiana State Board of Tax Commissioners and has provided this Council with a presentation in support thereof; and WHEREAS, this Council is satisfied that the Petitioner's Statement of Benefits meets with the requirements of Resolution Num bers 31 99, 3471, 3676, and 3931, as well as a ll of the afore-referen ced O rdinance Num bers. NOW, THEREFORE, BE IT RESO LVED: SECTIO N 1. That the matters and things recited in the preamble hereof are hereby adopted and made a part of this Resolution by incorporation and reference repeated in full. SECT ION 2. That the Com mon Council of the City of M ichigan C ity hereby determines:

4 Page 4 July 3, 2001 a. That the number of individuals whose employment will be retained, to wit: 810 individuals, the annual salaries of those individuals is $35,000 - $400,000; the Petitioner will hire individuals over the next 3-5 years; the annual salaries for those individuals is estimated to be $300,000 - $500,000; the additional value of the redevelopment and improvements described in the Statement of Benefits are benefits which ca n be reasonable expec ted to resu lt from the propos ed project. b. hat the be nefits des cribed jus tify the deduc tions, which will occur in tax abate men t for this proje ct. c. That as a result of the above-referenced Resolutions and Ordinances, the deductions to which the petitioner is entitled to is ten (10) years in the case of new manufacturing equipment and ten (10) years in the case of improvements made to existing real property that would increase the current assessed valuation. d. Tha t the location of th e Petitione r's m anufactu ring p lant described is with the M ichiga n City E conom ic Revitalization Area. e. That the Statement of Benefits filed by the Petitioner meets the requirements of the Council and should be approved as submitted. f. That the grant of approval and the deductions referred to herein are subject to the reporting, oversight, cancellation notification and publication provisions of Sections 5, 7 and 8 of Ordinance No SECTION 3. The Comm on Council hereby accepts and approves the Statement of Benefits of the Petitioner dated (date) , and hereby authorizes the signature thereof by the President of this Council and the attestation thereof by the City Clerk. SECTION 4. That said Statement of Benefits shall be treated as confidential in the manner provided by law. SECTION 5. This Resolution shall be in full force and effect after its adoption by the Michigan City Common Cou ncil. Introduced by: /s/ Carolyn Harmon /s/ Joseph LaRocco T&E, LLC/Lighthouse Industries, Inc. 107 Eastwood Road Proposed New Manufacturing Project Attachment #1 Description of Real Property improvements and New Manufacturing Equipment: Lighthouse Industries intends to purchase and renovate the 39,000 + or - square foot manufacturing facility located at 107 Eastwood Road. - Plas tic inje ction mo lding e quipm ent and tool and die m akin g equ ipm ent will be ins talled to support the n ewly relocated corporate office and manufacturing operations, developmental tool and die work and engineering for the medical, automotive, new construction and consumer markets. Councilman LaRocco moved to adopt the Resolution; Councilwoman Harmon seconded the motion. Councilwoman Winski moved an amendment to change Section 2-c to read as follows: Tha t as a resu lt of the abov e-referenced Re solutions and O rdina nces, the dedu ctions to which the petition er is entitled to is ten (10) years in the case of new manufacturing equipment and ten (10) years in the case of improvements made to existing real property that would increase the current assessed valuation. The motion, seconded by Councilmen Milsap and Przybylinski, carried by the following vote: AYES: COUNCIL MEMBERS Harmon, LaRocco, Lungren, Martin, Milsap, Przybylinski, Wilson, Winski, and Baker (9). NAYS: None (0). The motion to adopt carried and the Resolution was adopted as follows: AYES: COUNCIL MEMBERS LaRocco, Lungren, Martin, Milsap, Przybylinski, Wilson, Winski, Baker, and Harmon (9). NAYS: None (0). The Clerk read in its entirety, RESO LUT ION N O A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF MICHIGAN CITY, INDIANA HONORING VICTORIA BASSETT AS THE 2001 GIRLS 800-METER STATE TRACK CHAMPION WHEREAS, Victoria Bassett achieved the highest honor by becoming the 2001 Girls 800-Meter State Track Champion; and

5 July 3, 2001 Page 5 WHEREAS, the success and accomplishment of this feat was achieved through dedication, self-sacrifice, perseverance, and hard work during her years at Michigan City High School; and WHEREAS, such an accomplishment could not have been achieved without the support from coaches, students, parents, family members and fans; and WHEREAS, the Community and Citizens of Michigan City, Indiana are proud of your accomplishment and hard work. NOW, THEREFORE, BE IT R ESOLVED, by the Common Council of the City of Michigan City, the Adm inistra tion and the Citize ns of Mich igan C ity, India na co ngra tulate Victo ria Ba ssett for becomin g toe 2001 Girls State 800-Meter State Track Champion. INTRODUCED BY: and /s/ Charles Lungren all Council Members Councilman Lungren moved to adopt the Resolution, seconded by Councilmen Milsap and Przybylinski. Councilman Lungren explained that Miss Bassett was not present but he asked her coach, Mr. Bumber, to speak to the Resolution. The motion carried and the Resolution was adopted as follows: AYES: COUNCIL MEMBERS Lungren, Martin, Milsap, Przybylinski, Wilson, Winski, Baker, Harmon, and LaRocco (9). NAYS: None (0). ORDINANCES The Clerk read on first reading by title only, AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF MICHIGAN CITY, INDIANA AMENDING ORDINANCE NO CURFEW FOR MINORS, introduced by Virginia Martin. Councilman Przybylinski requested amendments be allowed on third reading. There were no objections. Councilman Lungren requested he be shown as co-author of this Ordinance. Following discussion between Council Members Lungren and Martin, the Ordinance was laid over for second reading. The Clerk read on second reading by title only, ADDITIONAL APPROPRIATIONS ORDINANCE, introduced by Virginia R. Martin. (DECREASE Golf Account 1314/000 Unappropriated, INCREASE Building $60, ) There was no discussion; the Ordinance was laid over for third reading and formal public hearing. The Clerk read on second reading by title only, AN ORDINANCE CONFIRMING THE ASSIGNMENT OF RIGHTS AND BENEFITS AND THE ASSUMPTION OF OBLIGATIONS AND LIABILITIES PURSUANT TO THE PURCHASE BY VISY BOARD INDIANA, INC., (AN INDIANA CORP.) OF THE ASSETS OF PERFORMANCE PACKAGING INC. AS PROVIDED IN ORDINANCE NO. 3631, ADOPTED AUGUST 20, 1996, introduced by Joseph LaRocco. Councilman LaRocco requested suspension of the rules to allow third reading at this meeting. There were no objections. The Clerk read on third reading by title only, there being no objections, ORD INANC E NO AN ORDINANCE CONFIRMING THE ASSIGNMENT OF RIGHTS AND BENEFITS AND THE ASSUMPTION OF OBLIGATIONS AND LIABILITIES PURSUANT TO THE PURCHASE BY VISY B OARD INDIANA, INC., (AN INDIANA COR P.) OF T HE ASS ETS OF PERFORM ANCE PACKAGING INC. AS P ROV IDED IN ORDINANCE NO. 3631, ADOPTED AUGUST 20, WHEREAS, the Michigan City Common Council did on the 20 th day of August, 1996 adopt Ordinance No (the "Bond Ordinance"), authorizing the issuance of certain Economic Development Revenue Bonds (the "Bonds"), for the purpose of acquisition by Performance Packaging, Inc. (the "Developer"), of Michigan City, Indiana, of certain economic development facilities; and WHEREAS, this Council has been informed that the said economic development facilities were in fact acquired by the Developer and that said facilities were comprised of physical improvements to the Performance Packaging plant at 251 North Roeske Avenue in Michigan City, and the permanent industrial employment opportunities anticipated were in fact created by said improvements; and WHEREAS, as represented to this Council in 1996, the issuance and sale of said Bonds did result in no expense to this C ity and did not obligate the taxing pow er of the C ity, nor reduce the legal bonding lim it of the City since the principal and interest payable on the Bonds are not payable from any tax or other revenues of the City; and WHEREAS, this Council has been informed that Performance Packaging, Inc. has conveyed and transferred its Michigan City plant, including the said economic development facilities pursuant to an Agreement For The

6 Page 6 July 3, 2001 Purchase And Sale Of Assets to Visy Board Indiana, Inc., a wholly owned subsidiary of Pratt Industries (USA), Inc. of Conyers, Georgia and that Visy Board Indiana, Inc. is an Indiana domestic corporation; and WHEREAS, this Council has been further informed that pursuant to said Agreement, Performance Packaging, Inc. has assigned to Visy Board Indiana, Inc. all of its rights, benefits and obligations under the terms of the B onds and that V isy Board In diana, Inc. h as ag reed to assum e, underta ke and gu aran tee that perform ance of all of the said obligations required by the Bonds and the various documents executed by Performance Packaging, Inc. thereunder; and WHEREAS, this Council has been informed that the said economic development facilities and manufacturing plant, together with all the resulting industrial jobs, shall remain in Michigan City, Indiana as a result of said transfer and that said project has contributed significantly to the economic development of the City of Michigan City and to the benefit and welfare of its citizens; and WHEREAS, Michigan City, Indiana (the "Issuer"), is a municipal corporation and political subdivision of the State of Indiana, and by virtue of the constitution and laws of the State, including Indiana Code, Title 36, Article 7, Chapters 11.9 and 12, as supplemented and amended (the "Act"), is authorized and empowered among other things, to (a) provided funds for the acquisition, construction, installation and equipping of economic development facilities; (b) issue its revenue bonds for the purpose set forth in the Ordinance (the "Bond Ordinance"), the Indenture the Loan Agreement and the Placement Agreement (all hereafter identified), and all other documents executed by it, upon the terms and conditions provided therein; and WHEREAS, the Common Council of the Issuer (the "Common Council"), has found and determined and does here by con firm that th e pro perty a cquired w ith the proc eeds of th e bon d therein a uthorized (the "P rojec t"), did increase busine ss opportunities within the corp orate boundaries of Michigan City, Indiana, and did benefit the health and general welfare of the citizens of Michigan City, Indiana, and that the Issuer by assisting with the financing of the Project th roug h the issua nce of rev enue bon ds in the ag greg ate princip al am ount not to exceed $2,000,000 did act in a manner consistent with and in furtherance of the provisions of the Act; and WHEREAS, pursuant to a Trust Indenture (the "Indenture"), between Peoples Bank and Trust Company as Truste e (the "Trustee"), and the Iss uer, the Iss uer did issue an am ount not to exceed $2, of its V ariable Rate Demand Economic Development Revenue Bonds, Series 1996 (Performance Packaging, Inc. Project), to provide funds for the acquisition, construction, installation and equipping of the Project and lend such funds to Performance Packaging, Inc. (the "Borrower"), pursuant to a loan agreement (the "Loan Agreement"), between the Issuer and the Borrow er, which prescribes the term s and conditions under w hich the B orrower shall repay such loan and pu rsuant to which the Borrower did execute and deliver to the Issuer its promissory note (the "Promissory Note"), in the principal amount equal to the aggregate principal amount of the Bonds; and WHEREAS, the Bonds are secured by a direct-pay letter of credit (the "Letter of Credit"), issued by NBD Bank, N.A. (The "Bank") to the Trustee for the benefit of the holders of the Bonds and for the account of the Borrower, which Letter of Credit has been issued pursuant to a certain Reimbursement and Pledge Agreement (the "Reimbursement Agreement") between the Borrower and the Bank; and WHEREAS, it was determined by the Issuer that the amount necessary to finance the costs of or related to the acquisition, construction, installation and equipping of the Project, did require, the issuance, sale and delivery of not to exceed $2, aggregate principal amount of Variable Rate Demand Economic Development Revenue Bonds, Series 1996 (Performance Packaging, Inc. Project) (the "Bonds"); that: NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF MICHIGAN CITY, Section 1. Definitions. In addition to the words and terms defined in this Ordinance, the words and terms used in this Ordinance shall have the meanings set forth in the Loan Agreement, the Promissory Note, the Indenture, the Placement Agreement (as hereafter defined), and in the form of Bonds unless the context or use indicates another or different meaning or intent, which forms are before this meeting, are hereby incorporated by reference in the Bond Ordinance and the Clerk of the Issuer is hereby directed to inset them into the minutes of the Issuer and to keep them on file as specified in Section 14 thereof. Any re ference here in to the Issuer, o r to an y officers th ereo f, sha ll includ e those which succeed to their functions, duties or responsibilities pursuant to or by operation of law or who are lawfully performing their functions. Section 2. Determination of Issuer. At a meeting opened to the public held on June 14, 1996 by the Michigan City Economic Development Comm ission (the "Commission"), the Commission adopted Resolution No. 96-1, which included a Report, finding, among other things, that the proposed financing will be of benefit to the health and general welfa re of the citizens of Michiga n City, In diana and c om plies w ith the provisions of the Act. T he C om mo n Co uncil in said Bond Ord inance a cknowledges the Co mm ission Re port. At a public hearing held on August 16, 1996 by the Commission pursuant to the provisions of Indiana Code (a) and Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), notice of publication of which was published in the News-Dispatch on August 2, 1996, and in the Herald-Argus on August 2, 1996, the public was given an opportunity to express their views for or against the Project, and no persons appeared nor were written statements received either fo r or agains t the Project. The Issuer has received from the Commission Resolution No dated August 16, 1996 wherein the Commission has found that the proposed financing will be of benefit to the health and general welfare of the citizens of Michigan City, Indiana and that the proposed financing complies with the provisions of the Act, and further reco mm ending the form o f Ord inanc e for appr oval b y the C om mo n Co uncil. Based upon the Report and Resolution of the Commission, the Issuer did find and determine that the financing approved by the Commission in Resolution 96-3 dated August 16, 1996 will be of benefit to the health and genera l welfare of the citizens of Michiga n City, Indiana and complies with the provisions of the Act. Section 3. Small Issue Election of Issuer. The Issuer in said Bond Ordinance elected to have the provisions as to the $10,000,000 limitations in Section 144(a)(4)(A) of the Code apply to the bonds.

7 July 3, 2001 Page 7 Section 4. Authorization of the Bonds. It was thereby determined to be necessary to, and the Issuer did, issue, sell and deliver, as provided and authorized therein and pursuant to the authority of the Act, Bonds in the ma xim um aggr egate prin cipal amount of no t to exceed $2,000,000, designated as "Michigan City, Ind iana V ariab le Rate Demand Economic Development Revenue Bonds, Series 1996 (Performance Packaging, Inc. Project)," the proceeds of which were held by the Trustee under the Indenture and used to make a loan to the Borrower to pay the cost of the acquisition, construction, installation and equipping of the Project, which Project has been used as an economic de velopm ent facility within the meaning of the Act. Section 5. Terms and Execution of the Bonds. The Bonds were issued as fully registered Bonds, without coupons, in the denominations set forth in the Indenture, numbered consecutively as set forth in the Indenture, and are payable at the office of the Trustee, mature as provided in the Indenture and were dated the date of closing. The Bonds have su ch term s, bear such intere st rates (but in no event in excess of 15% per annum ), and are subject to mandatory and optional redemption or tender as provided in the Indenture and Placement Agreement that was presented to the Issuer. The Bonds were executed on behalf of the Issuer by the manual or facsimile signatures of the Mayor of the Issuer and the Clerk of the Issuer, and the seal of the Issuer was impressed thereon or a facsimile of such seal placed thereon. The Bonds are special, limited obligations of the Issuer payable solely from paym ents of principal of, premium, if any, and interest on the Bonds made by the Bank under the Letter of Credit or by the Borrower under the Promissory Note and the Loan Agreement except to the extent that the principal of, premium, if any, and interest on the Bonds m ay be paid out of money attributed to Bond proceeds or from tem porary investments thereof. Section 6. Sale of the Bonds. The Bonds were privately placed by First National Bank of Chicago (the "Placement Agent"), at the purchase price set forth, and on the terms and conditions described in the Placement Agreement (the "Placement Agreement") among the Placement Agent, the Issuer and the Borrower. Section 7. Loan Agreement, Promissory Note, Indenture, Preliminary Private Placement Memorandum, Private Placement Memorandum, Placement Agreement, and all other Documents executed or accepted by the Issuer. In order to better secure the payment of the principal of, premium, if any, and interest on the Bonds as the same shall become due and payable, the Mayor of the Issuer and the Clerk of the Issuer were authorized and directed to execute, acknowledge and deliver, in the name and on behalf of the Issuer, the Indenture, the Loan Agreement, Promissory Note and the Placement Agreement, and all other material documents and assignments to be executed or accepted by it in substantially the forms submitted to the Common Council, with such changes therein not inconsistent with this Bond Ordinance and not substantially adverse to the Issuer as may be permitted by the Act and approved by the Officers executing on behalf of the Issuer. Section 8. This Council hereby consents, approves and confirms the assignment of rights and benefits by Performance Packaging, Inc. to Visy Board Indiana, Inc. as described herein, and further this Council hereby consents, approves and confirms the assumption by Visy Board Indiana, Inc. of all the obligations and liabilities described in the Bonds and all of the various do cum ents described herein, and does further grant such consent, approval, and confirmation without any changes in the term, outstanding principal balance or rate of interest being charged upon or attributed to the Bonds or any other of the various instruments described in said Bond Ordinance. Section 9. This Ordinance shall be in full force and effect upon adoption by the Common Council and approval by the Ma yor. Other than as p rovided herein said Bond O rdinance 3631 shall rem ain in full force and effe ct. Introduced By: /s/ Joseph LaRocco Councilman LaRocco moved to adopt, seconded by Councilwoman W inski. There was discussion by Council Members Winski and Przybylinski and Attorney Patrick E. Donoghue. The motion carried and the Ordinance was adopted by the following vote: AYES: COUNCIL MEMBERS Martin, Milsap, Przybylinski, Wilson, Winski, Baker, Harmon, LaRocco, and Lungren (9). NAYS: None (0). Councilman LaRocco withdrew ADDITIONAL APPROPRIATIONS ORDINANCE, introduced by him, since this transfer was properly accomplished by an earlier Resolution. The Clerk read by title only on third reading, there being no objections, ORD INANC E NO ADDITIONAL APPROPRIATION ORDINANCE W HER EAS, it has been determined that it is now nece ssary to ap prop riate m ore m oney than was approp riated in the annual budget; NO W, THERE FORE, BE IT ORDAINED by the City Council of th e City o f Michigan City, La Porte Co unty, Indiana, that for the expenses of the taxing unit the following additional sums of money are hereby appropriated out of the funds named and for the purposes specified, subject to the laws governing the same: AMOUNT REQUESTED AMOUNT APPROPRIATED DECREASE: Park Fund No. 1304,

8 Page 8 July 3, 2001 Unappropriated $10, INCREASE Account No $10, Senior Center Non-Reverting Fund TOTAL FOR Parks and Recreation $10, INTRODUCED BY: /s/ Joseph LaRocco Councilman LaRocco moved to adopt this Ordinance, seconded by Councilman Przybylinski. There was discussion by Councilmen Przybylinski and LaRocco. The formal public hearing was opened, with President Martin repeating three times Any questions from the public? There was no response and the public hearing was closed. The motion carried and the Ordinance was adopted as follows: AYES: COUNCIL MEMBERS Milsap, Przybylinski, Wilson, Winski, Baker, Harmon, LaRocco, Lungren, and Martin (9). NAYS: None (0). There being no objections, the Clerk read on third reading by title only, ORD INANC E NO ADDITIONAL APPROPRIATION ORDINANCE W HER EAS, it has been determined that it is now nece ssary to ap prop riate m ore m oney than was approp riated in the annual budget; NO W, THERE FORE, BE IT ORDAINED by the City Council of th e City o f Michigan City, La Porte Co unty, Indiana, that for the expenses of the taxing unit the following additional sums of money are hereby appropriated out of the funds named and for the purposes specified, subject to the laws governing the same: AMOUNT REQUESTED AMOUNT APPROPRIATED DECREASE: Cemetery Fund No. 2120, Unappropriated $10, INCREASE Account No Workers Compensation Account No Auto Insurance 3, Account No Liability Insurance 1, Account No Gas & Electric 2, Account No Bottled Gas 2, Account No Diesel TOTAL FOR Cemetery $10, INTRODUCED BY: /s/ Virginia R. Martin Councilman Wilson moved to adopt the Ordinance; Councilwoman Harmon seconded the motion. The formal public hearing was opened, with President Martin repeating three times Any questions from the public? There was no response and the public hearing was closed. The motion carried and the Ordinance was adopted as follows: AYES: COUNCIL MEMBERS Przybylinski, Wilson, Winski, Baker, Harmon, LaRocco, Lungren, Martin, Milsap (9). NAYS: None (0). UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS There was no new business.

9 July 3, 2001 Page 9 COMMENTS FROM THE COUNCIL Councilwoman Winski thanked Mayor Brillson for inviting the Council to a July 11 meeting on the urban park. She requested another meeting in the evening so more people can attend and voice their opinions. There was considerable discussion about monster billboards by Council Members Przybylinski, LaRocco, Lungren, and Winski. At the request of Councilman LaRocco, President Martin appointed Council Members LaRocco, chmn., Baker, and Lungren to a committee for billboard and sign inspection from Ripley Street to St. John Road to see what kind of signs, whether we should repeal the ordinance. Mrs. Martin said she would ask the Mayor to appoint someone from Planning (preferably Mr. Pugh) to this committee. Councilman Lungren commented on the good job being done on curb painting this year; he lauded Ron Howard, Mike Williams, Ken 66Noe, and Shawn Smith. Mr. Lungren wished a Happy Birthday to his son, Nebula. COMMENTS FROM THE PUBLIC Don Przybylinski, 215 Gardena Street, spoke on the monster billboards, as did City Counsel Larry Allen and Council Members Martin, Winski, and Przybylinski. ADJOURNMENT On motion by Councilman Przybylinski, supported by Councilman LaRocco, and there being no further business to transact, President Martin declared the meeting ADJOURNED (approximately 8:45 p.m.). Thomas F. Fedder, City Clerk