Amendment of Lease for Renovation and Equipping the former O'Brien School for Recreation Center & Park Dept. Administrative Office Space

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RESOLUTION NO. Z p ZZ" J'\ A RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA, COMMON COUNCIL REGARDING THE AMENDMENT OF THE LEASE WITH THE CITY OF SOUTH BEND BUILDING CORPORATION FOR THE RENOVATION AND EQUIPPING OF THE FORMER O'BRIEN SCHOOL FOR USE AS A RECREATION CENTER AND PARK DEPARTMENT ADMINISTRATIVE OFFICE SPACE AND REGARDING CERTAIN RELATED MATTERS WHEREAS, the Common Council previously determined that a need exists for the renovation and equipping of the former O'Brien School for use as a recreation center and for Park Department administrative office spaces (the "Project ") and that the funds needed therefor exceeded the funds presently available to 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 $600,000; 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 Project; and WHEREAS, the Building Corporation expects to sell its First Mortgage Bonds, Series 1999C (the "Bonds ") in an aggregate principal amount of $570,000.00 to LaSalle Bank National Association at a net interest cost of approximately 5.53 %, which interest rate is lower than the interest rate used to calculate the maximum lease rental under the Lease; and WHEREAS, the Common Council is desirous of amending 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; and WHEREAS, the Common Council is desirous of further amending the Lease to enlarge the Project, as the same is defined in the Lease, to include additional work which may be financed as the result of favorable bids; NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: