04-22-13 Agenda & Packet - Laserfiche WebLink

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$piJ T$g� 120ONCouNTY-CFTYBLuDiNc � �.\ C PxoNE574/235-9216 227 W.JausoN BLVD. ��reACF/. FAX 574123 5-9928 So=BEND,INDIANA 46601-1830 1865 QTY or So=4 BEND PETE Btl"J°1'irim MAYoR DEPARTMENT OF ADMINISTRATION AND FINANCE April 3, 2013 Mr. Derek Dieter President, South Bend Common Council 0 Floor, County-City Building South Bend, IN 46601 Re: Resolution and Ordinance Concerning Lease for Construction and Equipping of New Fire Station #5 and Fire Safety Training Facility Dear President Dieter: As you know, discussions have been ongoing about the need to replace Fire Station #5 located at 2221 Prairie Avenue in South Bend, and the benefit to the City of constructing a fire safety training facility in South Bend. An ordinance and a resolution are being filed this date which commence the process for lease financing of both of these state of the art facilities. A duplicate original of this letter is being submitted to cover both the Resolution and the Ordinance because they are integrally related. The attached Ordinance approves and authorizes the execution of a Lease whereby construction of both new Fire Station #5 and the fire safety training facility will be achieved through a lease between the City as lessee and the City of South Bend Building Corporation as lessor, for a term not to exceed twenty one years, at a lease rental rate of not more than $561,000 per year, payable in semi-annual installments of$280,500 each. The proposed Lease is also attached. It is expected that lease rental payments shall be payable from the Emergency Medical Services Fund (EMS Funds), and that EMS Funds will fully cover the Lease costs. Should EMS Funds and other revenues be insufficient for this purpose, the Lease has been structured so that the tax levy will serve as back-up only; this will enable marketing of the Building Corporations bonds at a lower rate of interest. Please note that the Project does not constitute a "controlled project" as such term is defined by IC 6-1.1-20-1.1 because such rentals are reasonably expected to be paid from funds other than property taxes that are exempt from the levy limitations of IC 6-1.1-18.5. A pre-curser to passage of the Ordinance is the attached Resolution which authorizes the steps required to approve the proposed Lease under IC 36-1-10. Therefore, the Resolution sets public hearing on the Lease for April 22, 2013 which is intended to coincide with the Council's review, public hearing, and passage of the Ordinance. The Resolution also directs that a petition from at least 50 South Bend real property owners be circulated and signed requesting that the City enter the proposed Lease, all as required by State law(IC 36-1-10-7) .