HomeMy WebLinkAboutNo. 1100 approving a modification to and reducing the annual rentals on the lease for the Blackthorn Golf Course Project and approving the execution of an addendum to the leaseRESOLUTION NO. 1100
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
COMMISSION APPROVING A MODIFICATION TO AND REDUCING THE
ANNUAL RENTALS ON THE LEASE FOR THE BLACKTHORN GOLF
COURSE PROJECT AND APPROVING THE EXECUTION OF
AN ADDENDUM TO THE LEASE
WHEREAS, the South Bend Redevelopment Authority (the
"Authority ") previously entered into a Lease between the Authority
and the South Bend Redevelopment Commission (the "Commission ")
dated as of July 1, 1992, pursuant to which the Authority will
lease certain improvements to be known as the Blackthorn Golf
Course (the "Project ") to the Commission; and
WHEREAS, Section Four of the Lease provides that the
annual rental shall be reduced following the sale of the Bonds to
an amount equal to the multiple of One Thousand and 00 /100 Dollars
($1,000.00) next highest to the highest sum of principal and
interest due in any year ending on a Bond maturity date on the
Bonds plus Two Thousand Dollars and 00 /100 ($2000.00); and
WHEREAS, the Commission desires to approve a modification
to the Lease changing the amount to be added from Two Thousand and
00 /100 Dollars ($2,000.00) to Four Thousand and 00 /100 Dollars
($4,000.00) which modification does not increase the term of the
Lease or the rental amount of the Lease as approved by the State
Board of Tax Commissioners; and
WHEREAS, bids were received on September 28, 1992, for
the sale of the "South Bend Redevelopment Authority Lease Rental
Revenue Bonds (Blackthorn Golf Course Project)" (the "Bonds ") for
the acquisition of the Project; and
WHEREAS, the lowest and best bid for the Bonds was
received from City Securities Corporation, as the bidder offering
the lowest net interest cost to the Authority, determined by
computing the total interest on all of the Bonds from the date
thereof to their maturities and deducting therefrom the premium
bid, if any, or adding thereto the amount of any discount, if any,
with a net interest rate of 6.384 %, which bid was accepted; and
WHEREAS, this will result in a lower annual Lease payment
for the Project; and
WHEREAS, the Commission desires to approve and execute
an addendum to the Lease (the "Addendum "), a copy of which is
hereby attached as Exhibit A, reflecting such lower annual Lease
payments for the Project and making certain other amendments to the
Lease;
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND
REDEVELOPMENT COMMISSION, AS FOLLOWS:
1. The second paragraph of Section Four of the Lease
is amended to read as follows:
After the sale of the Bonds issued by the Authority
to pay the cost of the acquisition of the property
therefor and other expenses incidental thereto, the sum
of the first and second semiannual rental installments
and the sum of the third and fourth semiannual rental
installments, and so on, shall be reduced to an amount
equal to the multiple of One Thousand and 00/100 Dollars
($1,000.00) next highest to the highest sum of principal
and interest due in any year ending on a Bond maturity
date on such Bonds plus Four Thousand and 00 /100 Dollars
($4,000.00), payable in equal semiannual installments.
Such amount of reduced annual rental shall be endorsed
on this Lease at the end hereof by the parties hereto as
soon as the same can be done after the sale of said
Bonds, and such endorsement shall be recorded as an
addendum to this Lease.
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2. The Lease shall be amended to reduce the annual
rental payments as set forth in Exhibit A attached hereto. The
Commission hereby approves all other amendments to the Lease set
forth in Exhibit A attached hereto.
3. All remaining terms, covenants and conditions as set
forth in the Lease shall remain in full force and effect.
4. The President and Secretary of the Commission are
hereby authorized and directed to execute and attest, respectively,
the Addendum.
5. This resolution shall be in full force and effect
after its adoption by the Commission.
ADOPTED at a meeting of the South Bend Redevelopment
Commission held on October 2, 1992, at 1308 County -City Building,
227 West Jefferson Boulevard, South Bend, Indiana 46601.
SOU BEND BEND REDEVELOPMENT COMMISSION
By:
G�=- o /L) , /
Paula N. Auburn, President
TEST:
Michael Donoho, Secretary
rrrompola \sthbend \golfcour.se\ closing .doc \rcreduce.1;llb;10 -1 -92
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EXHIBIT A
Addendum to Lease Between
the South Bend Redevelopment Authority, as Lessor,
and the South Bend Redevelopment Commission, as Lessee
(Blackthorn Golf Course Project)
THIS ADDENDUM, made and entered into as of this 2nd day
of October, 1992, by and between the South Bend Redevelopment
Authority, a body corporate and politic organized and existing
under Indiana Code 36 -7 -14.5 (hereinafter with its successors and
assigns referred to as the "Authority "), and the South Bend
Redevelopment Commission, the governing body of the South Bend
Department of Redevelopment and the Redevelopment District of South
Bend, Indiana (hereinafter called the "Lessee "),
WITNESSETH:
In consideration of the mutual covenants herein
contained, it is agreed that the lease (Blackthorn Golf Course
Project) previously entered into between said parties as of the
first day of July, 1992 (the "Lease "), shall be amended as follows:
1. The following definitions in Section 1 of the Lease
are amended to read as follows:
"Lease Resolution" means Resolution No. 1088
of the Commission passed on August 7, 1992,
establishing funds for the payment of lease rentals
for the Project, as defined herein.
"Trust Agreement" means the Trust Agreement
dated as of September 1, 1992, between the Authority
and the Trustee, securing the bonds.
"Trustee" means Norwest Bank Indiana, N.A.,
112 West Jefferson Boulevard, Post Office Box 1512,
South Bend, Indiana 46634, as trustee pursuant to
the Trust Agreement, and any successor trustee.
2. Section 4 of the Lease is amended to read as
follows:
Exhibit C:
Section 4. Rental Payment Dates and Amounts.
The first semiannual rental installment in the
amount of One Hundred Eighty Thousand Five Hundred
Dollars ($180,500) shall be due on the day that the
Project is completed and ready for use, or February
25, 1997, whichever is later. If completion is
later than February 25, 1997, the first installment
shall be in an amount which provides for rental at
the rate of $180,500 for the semiannual period in
which the Project is completed and ready for use,
prorated from the date of completion until the first
February 25 or August 25 following such date of
completion. Thereafter such rentals shall be
payable in advance in semiannual installments on
February 25 and August 25 of each year as provided
for in the lease payment schedule attached hereto
as Exhibit C. The last semiannual rental payment
due before the expiration of this Lease shall be
adjusted to provide for rental at the amount
specified above for the applicable semiannual period
prorated from the date such installment is due to
the date of the expiration of this Lease (without
taking into account any subsequent early termination
of this Lease pursuant to Section 2 hereof).
3. The Lease is amended to include the following as
EXHIBIT C
LEASE PAYMENT SCHEDULE FOR
BLACKTHORN GOLF COURSE LEASE
Payment Date Amount
02 -25 -97
$180,500
08 -25 -97
180,500
02 -25 -98
180,500
08 -25 -98
200,500
02 -25 -99
200,500
08 -25 -99
224,500
02 -25 -00
224,500
08 -25 -00
246,500
02 -25 -01
246,500
08 -25 -01
275,000
02 -25 -02
275,000
08 -25 -02
301,000
02 -25 -03
301,000
08 -25 -03
327,500
02 -25 -04
327,500
08 -25 -04
344,500
2
02 -25 -05
344,500
08 -25 -05
344,500
02 -25 -06
344,500
08 -25 -06
346,500
02 -25 -07
346,500
08 -25 -07
342,000
02 -25 -08
342,000
08 -25 -08
345,000
02 -25 -09
345,000
08 -25 -09
344,000
02 -25 -10
344,000
08 -25 -10
344,500
02 -25 -11
344,500
08 -25 -11
344,000
02 -25 -12
344,000
08 -25 -12
345,000
02 -25 -13
345,000
4. The parties hereto acknowledge that all remaining
terms, covenants and conditions as set forth in the Lease between
the parties hereto and executed as of the first day of July, 1992
shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this
Addendum to Lease to be executed for and on their behalf on the
day and year first hereinabove written.
ATTEST:
Donald K. Fewell,
Secretary- Treasurer
ATTEST:
Michael Donoho, Secretary
SOUTH BEND REDEVELOPMENT AUTHORITY
By:
Joseph W. Wroblewski, President
SOUTH BEND REDEVELOPMENT COMMISSION
By:
Paula N. Auburn, President
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STATE OF INDIANA )
) SS:
COUNTY OF ST. JOSEPH )
Before me, the undersigned, a Notary Public in and for
said State, personally appeared Joseph W. Wroblewski and Donald K.
Fewell, personally known by me to be the President and Secretary -
Treasurer, respectively, of the South Bend Redevelopment Authority,
and acknowledged the execution of the foregoing Addendum to Lease
for and on behalf of said Authority.
WITNESS my hand and Notarial Seal this day of
October, 1992.
( SEAL)
My commission expires:
I am a resident of
STATE OF INDIANA
SS:
COUNTY OF ST. JOSEPH
(Written Signature)
(Printed Signature)
County, Indiana.
Before me, the undersigned, a Notary Public in and for
said State, personally appeared Paula N. Auburn and Michael Donoho,
personally known by me to be the President and Secretary,
respectively, of the South Bend Redevelopment Commission, and
acknowledged the execution of the foregoing Addendum to Lease for
and on behalf of said Commission.
WITNESS my hand and Notarial Seal this day of
October, 1992.
(Written Signature)
(SEAL) (Printed Signature)
My commission expires:
I am a resident of
County, Indiana.
This instrument prepared by Randolph R. Rompola, BAKER & DANIELS,
205 West Jefferson Boulevard, South Bend, Indiana 46601
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