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

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r NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: 1. The petition of taxpayers of the City filed with the Common Council at this meeting is hereby approved. 2. The Common Council hereby determines that a need exists for the completion of the Project and the funds needed therefor exceed the funds presently available to the City. 3. Having held a public hearing regarding the Lease for which notice was provided in accordance with Indiana Code 5-1-3, 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 Project or (ii) alter the scope and nature of the Project described in the Lease. 4. The Clerk of the City shall cause to be published a notice of execution of the Lease according to law following such execution. 5. All actions taken to publish the notice of the public hearing regarding the Lease are hereby approved and ratified. 6. The Common Council hereby approves of the use of the Building Corporation for purposes of financing and leasing the Project to the City. The Common Council hereby further approves of the sale and issuance by the Building Corporation of its lease rental revenue bonds in one or more series in an aggregate principal amount not to exceed $10,000,000 (the "Bonds"). 7. The Rentals payable under the Lease are payable solely from the COIT Revenues distributed to the City pursuant to the Act and set aside as hereinafter provided. Neither the full faith and credit nor the taxing power of the City shall be pledged to the payment of the Rentals. 8. The COIT Revenues distributed to the City pursuant to the Act shall be used and applied by the City only as provided in this Ordinance and in strict accordance with the provisions of the Act. All of such COIT Revenues shall be segregated and kept in special accounts separate and apart from all other funds of the City and shall be used and applied in payment of rentals for leases, including without limitation the Lease, and the principal of and interest on bonds which by their respective terms aze payable from such revenues and to maintain a reasonable reserve, in accordance with this Ordinance. The COIT Revenue Fund is hereby created and is hereby designated and constituted as the fund for the payment of such amounts. Said Fund shall be ::ODMA\PCDOCSI.SBDOCSI\85906\2 - 2 -