Approving and authorizing the execution of a lease for the construction and equipping of a new fire station and the construction of a new roof for the

Home Browse Search

SUBSTITUTE BILL Q C~ ORDINANCE NO. ~~~ !' 1 AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, COMMON COUNCIL APPROVING AND AUTHORIZING THE EXECUTION OF A LEASE FOR THE CONSTRUCTION AND EQUIPPING OF A NEW FIRE STATION AND THE CONSTRUCTION OF A NEW ROOF FOR THE CITY'S MUNICIPAL SERVICES BUILDING 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 construction and equipping of a new fire station facility near the intersection of Jackson Road and York Road in the City (the "Fire Station Project") and the construction of a new roof on the City's Municipal Services Building located at 701 West Sample Street in the City (the "Services Building Project" and, with the Fire Station Project, the "Projects"). The City has also previously investigated alternative methods for paying for the Projects. 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 Ciry and addressed to the Common Council, requesting that the Common Council enter into a lease whereby the Projects 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, including the Projects, 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 Projects for a term not to exceed seven (7) years (the "Term"). The Term under the proposed Lease would begin with respect to the Projects on the date each of the respective Projects are completed. The lease rentals payable under the Lease by the City with respect to the Fire Station Project would be an amount equal to $121,768, payable semi-annually on each February 26 and August 26, beginning on February 26, 2000. The lease rentals payable under the Lease by the City with respect to the Services Building Project would be an amount equal to $41,696, payable semi-annually on each June 28 and December 28, beginning on June 28, 1999. Lease rentals payable under the Lease by the City for the Projects 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