Amendment of the Lease the Construction and Equipping of a new Fire Station, Renovation ad Expansion of a Police Station

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RESOLUTION NO. 3 � 'O A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, REGARDING THE AMENDMENT OF THE LEASE WITH THE CITY OF SOUTH BEND BUILDING CORPORATION FOR THE CONSTRUCTION AND EQUIPPING OF A NEW FIRE STATION AND THE RENOVATION AND EXPANSION OF A POLICE STATION AND REGARDING CERTAIN RELATED MATTERS WHEREAS, the Common Council previously determined that a need exists for the construction and equipping of a new central fire station to be located on Michigan Street approximately one hundred fifty (150) feet from the intersection of Broadway and Michigan Streets (the "Fire Station Project ") and the renovation and expansion of the police station located at 701 W. Sample (the "Police Station Project" and, with the Fire Station Project, the 'Projects ") and that the funds needed therefor exceeded the funds presently available to the City of South Bend, Indiana (the "City "); and WHEREAS, the Common Council previously approved of the sale and issuance by the City of South Bend Building Corporation (the 'Building Corporation ") of its lease rental revenue bonds in one or more series in an aggregate principal amount not to exceed $26,000,000; and WHEREAS, the Building Corporation has previously submitted to the City, and the City has previously approved and executed after a public hearing, a lease between the Building Corporation and the City (the "Lease ") upon the Projects; and WHEREAS, the Building Corporation has sold its First Mortgage Revenue Bonds of 2003 (the 'Bonds ") in the aggregate principal amount of $21,335,000 to City Securities Corporation at a net interest cost of approximately 4.459 %, which interest rate is lower than the interest rate used to calculate the maximum lease rental under the Lease; and WHEREAS, the Common Council desires to amend the Lease to reduce the semi- annual lease rentals to correspond to the actual debt service as established pursuant to the terms of the bond sale; NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: I. The Common Council hereby ratifies the sale of the Bonds in an aggregate principal amount of Twenty -one Million Three Hundred and Thirty -five Thousand Dollars and 00 /100 ($21,335,000) and the sale thereof to City Securities Corporation. II. The Common Council hereby agrees to the reduction of the lease rental