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

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1316 COUNTY-CITY BUILDIfdG 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PxoNE219/235-9251 Fax 219/235-9171 TDD 219/235-5567 CITY OF SOUTH BEND STEPHEN ,J. LUECKE~ MAYOR DEPARTMENT OF PUBLIC WORKS GARY A. GILOT~ P.E. DIRF.GTUR OF PUBLIC WORKS Ms. Charlotte Pfeifer, President South Bend Common Council 41'' Floor, County-City Building South Bend, Indiana 46601 February 21, 2001 RE: Ordinance to authorize financing for new Public Works Service Center Dear Ms. Pfeifer: -This is to transmit a draft ordinance providing for a lease agreement that will authorize the financing for the Public Works Service Center Project. The draft lease agreement is also attached for the Council's consideration. The Public Works Service Center is indeed an exciting project that has been discussed for some time and was included in part in the 2001 Capital Improvement Plan (CIP). The Public Works Director will be present and take a lead role in presenting this project to the Common Council in any committee hearings and regular Council meetings. The new Public Works Service Center will be located on 7.8 acres of land immediately north of the Municipal Services Facility(MSF) on Sample Street. We have acquired the land and are making good progress on demolishing the old Building 69 warehouse and clearing the land for the new project. The space is needed to effectively and efficiently house the Street Department, Traffic and Lighting, and Sewer Department as one cohesive operation under one roof (rather than the present situation with three separate locations). The area that the Street Department vacates in the Municipal Services Facility is a critical prerequisite element to solving the space needs of the Police and Fire departments. The ordinance authorizes a lease through a Building Corporation that would issue a maximum of $ 10,000,000 in revenue bonds. The bonds would be repaid over a 20 year term through County Option Income Tax (COIT) revenues paid under the terms of the lease and not exceeding $ 900,000 per year. The project schedule calls for the bonds to be sold by May 2, 2001 so that we can have occupancy of the building by December 2001 with our first lease rental payment being due July 15, ENGINEERING ENVIRONMENTAL SERVICES CENTRAL SERVICES CARL LITTRELL, P.E. JOHN J. DILLON, PH.D. MATT CHLEBOWSKI 219/235-9251 219/277-8515 219/235-9316 Fax 219/235-9171 Fax 219/277-8980 FAx 219/235-9007 STREETS SAM HENSLEY 219/235-9244 FAx 219/235-9272 WATER WORKS JOHN F. STANCAT[ 219/235-9322 Fax 219/235-9728