Approving and Authorizing lease for renovation and equipping of the former O'Brien School

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ORDINANCE NO. I OZ3-~I AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, COMMON COUNCIL APPROVING AND AUTHORIZING THE EXECUTION OF A LEASE 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 STATEMENT OF PURPOSE AND INTENT: The City of South Bend, Indiana (the "City"), has previously investigated the necessity for the renovation and equipping ofthe former O'Brien School for use as a recreation center and Park Department administrative office space (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 anot-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 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 seven (7) years (the "Term"). The Term under the proposed Lease would begin with respect to the Project on the date it is completed. The lease rentals payable under the Lease by the City with respect to the Project would be an amount equal to $52,196, payable semi-annually on each March 28 and September 28, beginning on March 28, 2000. Lease rentals payable under the Lease by the City for the Project would be payable on such dates from then current revenues of the City appropriated for the purpose of making such lease rental payments. As a result, the Projects would not constitute "controlled projects" as such term is defined by IC 6-1.1-20-1.1 because such lease rentals would be payable from funds other than property taxes that are exempt from the levy limitations of IC 6-1.1-18.5. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: I . The petition of taxpayers of the City filed with the Common Council at this meeting is hereby approved.