1988-06-14 Minutes - Laserfiche WebLink

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Thomas J. Varga; Jr., President Joseph W. Wroblewski, Vice President Christopher Davey, Secretary/Treasurer On June I2, 1988, the Authority adopted the Bond Resolution (Resolution No. 6) authorizing the issuance of the Lease Rental Revenue Bonds to finance the Parking Facility and related costs. The Lease Agreement executed June I, 1988 authorizes the lease of the Facility to the Commission and obligates the Commission to make lease rental payments to the Authority as well as pay all taxes, insurance and maintenance costs related to the Facility. The Trust Agreement, entered into on June I, 1988 between the Authority and the Trustee, provides the security to the bondholders by pledging to the repayment of the Bonds, sets up the Funds and Accounts, and pledges to the maintenance of insurance and payment of taxes and other charges related to the Facility. Resolution No. 847, known as the "Resolution of the South Bend Redevelopment Commission Establishing Certain Funds and Accounts in Connection with the Lease Dated As of June I, 1988, Between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority Relating to the Saint Joseph/Wayne Parking Facility, and Other Related Matters" creates additional Funds and Accounts of the Commission for the lease rental payments. Summary of Selected Provisions of the Lease Agreement The Lease Agreement entered into on June I, 1988 between the Authority and the Commission sets forth the terms and provisions under which the Authority will lease the Parking Facility to the Commission. The term of the Lease is 2092 years beginning on the date the Facility is completed and ready for occupancy. The term of the Lease may terminate at the earlier of (a) the exercise of the purchase option and payment of option price, or (b) the payment or defeasance of all obligations of the Authority incurred to finance the Facility, to refund such obligations or refunding obligations, or to improve the Facility. During the term of the lease, the Commission agrees to pay rental for the Facility at the rate of $520,000 per year. The first semiannual payment of $260,000 will be due on the day. the garage is completed or December 28, 1989, whichever is later. Rentals in semiannual installments of $260,000 wild be due on June 28 and December 28 of each year. After the sale of the Bonds, the annual rental may be reduced to the multiple of $1,000 next highest to the highest sum of principal and interest due in any maturity year plus $2,000, payable in equal semiannual installments. The Lease will be known as a Net Lease meaning the rent shall be absolutely net to the Authority and all other expenses in connection with the Facility shall be those of the Commission. The Commission shall. be obligated to pay as its expenses, without reimbursement from the Authority, all costs of taxes and assessments, if any, and maintenance and use in connection with the Facility. The Commission, at its own expense, will carry insurance for physical loss or damage, and insurance for public liability and property damage. The Authority grants the Commission the right and option, on any rental payment date, upon 30 days written notice, to purchase the Facility at a price that will enable. the Authority to redeem all outstanding Bonds, all premiums payable at the time of redemption, and accrued and unpaid interest. At the end of the term of the Lease and the full discharge of all obligations pertaining thereto, the Authority will convey title of the Facility to the Commission. For greater detail please refer to the actual Lease Agreement provided in Appendix C of this Official Statement. -3 -