9415-03 Approving and Authorizing the Execution of a lease for the construction and equipping of a new Fire Stationand the Renovation

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f 't ORDINANCE NO. ~ ~ ~ S - D 3 AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, COMMON COUNCIL APPROVING AND AUTHORIZING THE EXECUTION OF A LEASE FOR THE CONSTRUCTION AND EQUIPPING OF A NEW FIRE STATION AND THE RENOVATION AND EXPANSION OF A POLICE STATION, PLEDGING COUNTY OPTION INCOME TAX REVENUES TO THE PAYMENT OF RENTALS THEREFOR AND REGARDING CERTAIN RELATED MATTERS STATEMENT OF PURPOSE AND INTENT: The City of South Bend, Indiana (the "City"), has previously investigated the necessity for the construction and equipping of a new central fire station to be located on Michigan Street approximately one hundred fifty (150) feet from the intersection of Broadway and Michigan Streets (the "Fire Station Project") and the renovation and expansion of the police station located at 701 W. Sample (the "Police Station Project" and, with the Fire Station Project, the "Projects"). The City has also previously investigated alternative methods for paying for the Projects. There has been filed with the Common Council of the City (the "Common Council") a petition certified by the St. Joseph County Auditor, which petition has been signed by at least fifty (50) owners of real property subject to taxation by the City and addressed to the Common Council, requesting that the Common Council enter into a lease whereby the Projects will be completed with the assistance of anot-for-profit building corporation and leased to the City pursuant to the provisions of Indiana Code 36-1-10, as amended. The City of South Bend Building Corporation (the "Building Corporation") has been organized as an Indiana not-for-profit corporation for the purpose of constructing and leasing public improvements, including the Projects, to the City. A form of lease between the Building Corporation and the City (the "Lease") has been prepared and submitted to the Common Council for its consideration. The Lease, as presented to the Common Council, provides for the lease of the Projects for a term not to exceed twenty-two (22) years (the "Term"). The Term under the proposed Lease would begin with respect to the Fire Station Project and the Police Station Project on the date that each respective project is available for use by the City. The lease rentals payable under the Lease (the "Rentals") by the City with respect to the Projects shall not exceed $1,192,780 per year for the Fire Station Project and $ 1,400,220 per year for the Police Station Project and shall be payable semiannually on each June 30 and December 30, beginning with respect to the Fire Station Project on the later of (i) the date that the Fire Station Project is completed; or (ii) December 30, 2004 and with respect to the Police Station Project or the later of (i) the date the Police Station Project is acquired by the City; or (ii) December 30, 2003. Lease rentals payable under the Lease by the City for the Project shall be payable on such dates solely from the county option income tax revenues (the "COIT Revenues") distributed to the City pursuant to I.C. 6-3.5-6 (the "Act"). As a result, the Project does not constitute a "controlled project" as such term is defined by IC 6-1.1-20-1.1 because such Rentals shall be payable from funds other than property taxes that are exempt from the levy limitations of