HomeMy WebLinkAboutNo. 1087 approving a modification to and reducing the annual rentals on lease for the Palais Royale project and approving the execution of an addendum to the leaseRESOLUTION NO. 1087
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
COMMISSION APPROVING A MODIFICATION TO AND REDUCING THE
ANNUAL RENTALS ON THE LEASE FOR THE PALAIS ROYALE 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 March 1, 1992, pursuant to which the Authority will
lease certain land and a building located thereon commonly known
as Palais Royale (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 Dollars ($1,000)
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 ($2000); and
WHEREAS, the Authority desires to approve a modification
to the Lease changing the amount to be added from $2,000 to Three
Thousand Dollars ($3,000) 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 August 4, 1992, for the
sale of the "South Bend Redevelopment Authority Taxable Lease
Rental Revenue Bonds ( Palais Royale Project)" (the "Bonds ") for the
acquisition of the Project; and
WHEREAS, the lowest and best bid for the Bonds was
received from Robert W. Baird & Co., Inc., 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
with a net interest rate of 7.0189 %, 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
s
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 Dollars ($1,000)
next highest to the highest sum of principal and interest
due in any year ending on a Bond maturity date on such
Bonds plus Three Thousand Dollars ($3,000), 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.
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.
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thereof
to their maturities and deducting
therefrom the
premium
j
bid, if
any, or adding thereto the amount of
any discount,
if any,
with a net interest rate of 7.0189 %, 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
s
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 Dollars ($1,000)
next highest to the highest sum of principal and interest
due in any year ending on a Bond maturity date on such
Bonds plus Three Thousand Dollars ($3,000), 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.
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.
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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 August 7, 1992, at 1308 County -City Building,
227 West Jefferson Boulevard, South Bend, Indiana 46601.
SOUTH BEND REDEVELOPMENT COMMISSION
By:
Paula N. Auburn, President
EST:
%ik
Michael Donoho, Secretary
\rrrompol \palais.roy \rcreduce.1;8 /05/92
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EXHIBIT A
Addendum to Lease Between
�%w the South Bend Redevelopment Authority, as Lessor,
I
and the South Bend Redevelopment Commission, as Lessee
(Palais Royale Project)
THIS ADDENDUM, made and entered into as of this 7th day
of August, 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 (Palais Royale Project)
previously entered into between said parties as of the first day
of March, 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. 1067
of the Commission passed on June 5, 1992,
establishing funds for the payment of leasexentals
for the Project, as defined herein.
"Trust Agreement" means the Trust Agreement
dated as of June 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:
Section 4. Rental Payment Dates and
Amounts. The first semiannual rental installment
in the amount of Ninety -Eight Thousand Five Hundred
Dollars ($98,500) shall be due on the day that the
Project is completed and ready for use, or
January 28, 1993, whichever is later. If
completion is later than January 28, 1993, the
a first installment shall be in an amount which
provides for rental at the rate of $98,500 for the
semiannual period in which the Project is completed
and ready for use, prorated from the date of
completion until the first July 28 or January 28
following such date of completion. Thereafter such
rentals shall be payable in advance in semiannual
installments of $98,500 on July 28 and January 28
of each year. 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).
7. 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 March, 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.
SOUTH BEND REDEVELOPMENT AUTHORITY
By: bi
Vsepll W. Wroblewski, President
ATTE
Donald K. Fewell,
Secretary- Treasurer
SOUTH BEND REDEVELOPMENT COMMISSION
Y
Paula N. Auburn, President
TESTi
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Michael Donoho, Secretary
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 -2w-L---day of
1992.
-- - -
c
(Writte Signature)
(SEAL) a`
My commission expires:
I am a resident of
STATE OF INDIANA )
) SS:
COUNTY OF ST. JOSEPH )
(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.
ITNESS my hand and Notarial Seal this ?4 --"day of
1992.
(Written ignature)
( SEAL)
My commission expires:
I am a resident of
(Printed Signature)
County, Indiana.
This instrument prepared by Randolph R. Rompola, BAKER & DANIELS,
205 West Jefferson Boulevard, South Bend, Indiana 46601
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