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STATE OF INDIANA DEPARTMENT OF LOCAL GOVERNMENT FINANCE Indiana Government Center North Room N1058 (B) Indianapolis, Indiana 46204 IN THE MATTER OF THE REQUEST OF ) SOUTH BEND COMMUNITY SCHOOL ) CORPORATIONAT. JOSEPH COUNTY, FOR ) THE APPROVAL OF A LEASE WITH THE ) No. 08-005 SOUTH BEND COMMUNITY SCHOOL ) CORPORATION 2002 BUILDING ) CORPORATION. ) A petition was filed on behalf of the South Bend Community School Corporation (SBCSC) for approval of a lease rental agreement with SBCSC providing for the lease,, containing an option to purchase, which provides for the following project ("Project's: Monroe Primary Center and Marquette Primary Center; and in connection with the undertaking of the Project, the School Corporation will apply a portion of the funds it receives from the sale of the above -referenced schools to the South Bend Community School Corporation 2002 Building Corporation (`Building Corporation') "for the cost of any or all or any portion of the improvements to Washington High School and Clay High School as described in the Petition for Approval. The annual maximum lease rental payment is $2,950,000 payable in semiannual installments on June 30 and December 30 beginning not later than June 30, 2009. The total term of the Lease shall not exceed twenty-three (23) years. The total project costs are $36,165,000. The Department of Local Government Finance ("Department'j, pursuant to Executive Order 05-19, has reviewed the proposed lease and the Project, and has applied the guidelines set forth in the Guidance for Review of School Building Project Financing and the factors set forth in IC 20-46-7- 11. The school has complied with the appropriate provisions of IC 6-1.1-20 and IC 2046-7-8. After careful consideration of all facts, the Department FINDS the following: 1. SBCSC petitioned the Department for approval of the Project on January 18, 2008. The petition was received by the Department on January 23, 2008. SBCSC Petition for Approval, January 18, 2008. 2. The preliminary determination to enter into.the lease rental agreement, which occurred on June 4, 2007, included the required information in accordance with IC 6-1.1-20-3.1 and IC 6-1.1-20-3.2, and was properly published in the newspaper on June 8, 2007: — •- --a. The maximum term of the lease is .23 years. b. The maximum annual lease rental payment is $2,950,000. c. The estimated interest rate that will be paid is expected to not exceed six percent (6%); and the total interest costs associated with the bonds are expected to not exceed $21,688,795. d. The purpose of the lease is briefly summarized below, and does not contain the entire . description of the project as published in the preliminary determination notice: a5xh%6t4--G Page 1 of 6