Approving and Authorizing a lease for construction and equipping of a new public works service center

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ORDINANCE NO. 1 2 ~ 3" o' 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 PUBLIC WORKS SERVICE CENTER, PLEDGING COUNTY OPTION INCOME TAX REVENUES TO THE PAYMENT OF RENTALS THEREFORE 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 public works service center located at 730 United Drive in the City (the "Project"). The City has also previously investigated alternative methods for paying for the Project. 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 Project will be completed with the assistance of a not-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 Project, 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 Project for a term not to exceed twenty (20) years (the "Term"). The Term under the proposed Lease would begin with respect to the Project on the date the Project is completed. The lease rentals payable under the Lease (the "Rentals") by the City with respect to the Project shall not exceed $900,000 per year and shall be payable semiannually on each July 15 and January 1 S, beginning on the later of: (i) the date that the Project is completed; or (ii) July 15, 2002. 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 IC 6-1.1-18.5