04-22-13 Agenda & Packet - Laserfiche WebLink

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NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section I. The petition of taxpayers of the City filed with the Common Council at this meeting is hereby approved. Section II. The Common Council hereby determines that a need exists for the completion of the Projects and the funds needed therefor exceed the funds presently available to the City. Section III. Having held a public hearing regarding the Lease for which notice was provided in accordance with Indiana Code 5-3-1, the Common Council hereby approves the Lease in the form presented to this meeting. The Lease with the Building Corporation as lessor provides for a fair and reasonable rental, and further, the execution of the proposed lease is necessary and wise. The Mayor and Clerk of the City are hereby authorized to execute and attest, respectively, the Lease in the form presented to this meeting with such changes as may be necessary or appropriate on the advice of counsel with such execution and attestation to evidence approval of such changes; provided, however, that any such changes may not (i) increase the term of the Lease or increase the rentals payable by the City under the Lease with respect to the Projects or (ii) alter the scope and nature of the Projects described in the Lease. Section IV. The Clerk of the City shall cause to be published a notice of execution of the Lease according to law following such execution. Section V. All actions taken to publish the notice of the public hearing regarding the Lease are hereby approved and ratified. Section VI. The Common Council hereby approves of the use of the Building Corporation for purposes of financing and Ieasing the Projects to the City. The Common Council hereby further approves of the sale and issuance by the Building Corporation of its first mortgage bonds in one or more series in an aggregate principal amount not to exceed $6,215,000 (the "Bonds") to pay the costs of completing the Projects. Section VIII. The Common Council expects that the Rentals payable under the Lease will be payable from the EMS Revenues and any other revenues that the Common Council may make available for such purpose. To the extent that such funds are not expected to be sufficient to pay such Rentals when due, the City covenants to levy a tax for such purpose. On the July 15 immediately following the date of issuance of the Bonds by the Building Corporation, and on each July 15 thereafter (the "Determination Date"), the Controller of the City (the "Controller") will determine if the EMS Funds and any other revenues that the Common Council may make available for such purpose are sufficient on such Determination Date to pay the Rentals payable under the Lease in the twelve (12) month period beginning on July 1 in the next following year and each twelve (12) month period beginning on each July 1 thereafter (the "Pledge Period"). If such revenues are expected to be sufficient, an amount of such revenues necessary to pay the Rentals during the Pledge Period will be set aside in a separate account for such purpose. If such revenues are insufficient for such purpose, the - 2 - DMS_US 51840778v2