HomeMy WebLinkAboutAmendment of the Lease with the City of South Bend Building CorporationRESOLUTION
3831-08
Passed by the Common Council of the City of South Bend, Indiana
January 28, 20 8
Attest:
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City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
January 29, 2008
Approved and signed by me January 30, 20 08 .
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City Clerk
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RESOLUTION NO.
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A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA, REGARDING THE
AMENDMENT OF THE LEASE WITH THE CITY OF SOUTH BEND
BUILDING CORPORATION DATED AS OF MARCH 1, 2001, AS
AMENDED BY AN ADDENDUM TO LEASE DATED AS OF APRIL 23,
2001, PREVIOUSLY ENTERED FOR THE CONSTRUCTION AND
EQUIPPING OF A NEW PUBLIC WORKS SERVICE CENTER
FACILITY AND REGARDING CERTAIN RELATED MATTERS
WHEREAS, the Common Council of the City of South Bend, Indiana (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 $10,000,000 to finance the costs of the
construction and equipping of a new public works service center facility (the "Project"), pursuant
to Ordinance No. 9203-01 adopted on March 12, 2001; and
WHEREAS, the City of South Bend, Indiana (the "City") previously entered into a
lease upon the Project between the City and the Building Corporation dated as of March 1, 2001,
as amended by an addendum to lease dated as of April 23, 2001 (the "Lease"); and
WHEREAS, the Building Corporation issued and sold its County Option Income
Tax Lease Rental Revenue Bonds of 2001 in the aggregate principal amount of Nine Million Two
Hundred Fifty Thousand and 00/100 Dollars ($9,250,000.00) (the "Prior Bonds") to finance the
costs of the Project; and
WHEREAS, the Common Council desires to have the Building Corporation
proceed to refund the Prior Bonds outstanding after February 1, 2008 in the aggregate principal
amount of Seven Million One Hundred Forty-five Thousand and 00/100 Dollars ($7,145,000.00)
to result in a savings, the proceeds of which will be used to (i) finance the refunding of the Prior
Bonds, and (ii) to pay the costs of issuance of the refunding bonds which bonds would be issued in
an aggregate principal amount not to exceed Seven Million Two Hundred Thousand and 00/100
Dollars ($7,200,000.00) (the "Refunding Bonds"); and
WHEREAS, the Common Council desires that the Lease be amended to reduce the
semiannual lease rentals to correspond to the actual debt service as established pursuant to the
terms of the sale of the Refunding Bonds;
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City
of South Bend, Indiana, as follows:
1. The Common Council hereby authorizes the Building Corporation to
proceed .with the refunding of its previously issued County Option Income Tax Lease Rental
BDDBOI 5104519v2
Revenue Bonds of 2001 outstanding after February 1, 2008 in the aggregate principal amount of
Seven Million One Hundred Forty-five Thousand and 00/100 Dollars ($7,145,000.00) to achieve a
savings for the City. The Common Council hereby approves of the sale of the Refunding Bonds in
an aggregate principal amount not to exceed Seven Million Two Hundred Thousand and 00/100
Dollars ($7,200,000.00).
2. The Mayor, the City Clerk and the Controller, and such other officers of the
City as may be necessary and appropriate, are, and each of them is, hereby authorized to take any
and all actions and to execute all such instruments as may be necessary or appropriate to
accomplish the advance refunding of the outstanding Prior Bonds, in such forms as the officers
executing the same shall deem proper, to be evidenced by the execution thereof, including, without
limitation, (i) executing a second addendum to lease to provide for lower annual lease rental
payments as a result of the refinancing of the outstanding Prior Bonds, and (ii) entering into a
continuing disclosure undertaking agreement to provide continuing disclosure with respect to the
Refunding Bonds as required under the federal securities laws.
3. This Resolution shall be in full force and effect from and after its passage by
the Common Council and approval by the Mayor.
PRESENTED _, ~, - L8 ~~~
NOT APP40YE[~
ADOPTED .~ 1 ~ ~~
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Member of the mon Council
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CALJNT'1-CTCY BUILDING
227 W. JEFFERSON BLVD.
SOUTH BEND, INDIANA 46601-1830
CITY OF SOUTH BEND STEPHEN J. LuECxE, MAYOR
PHONE 574/235-9216
Far 574/ 235-9928
TDD 574/ 235-5567
DEPARTMENT OF ADMINISTRATION AND FINANCE
M. CATHERINE FANELLO
CONTROLLER
January 23, 2008
Mr. Timothy Rouse, President
South Bend Common Council
4th Floor, County-City Building
South Bend, IN 46601
Dear President Rouse:
The attached resolution for your consideration and approval will authorize the City of
South Bend Building Corporation to refund its 2001 County Option Income Tax Lease
Rental Revenue Bonds. Through this refunding, the City is expected to realize savings in
debt service costs of approximately $90,000 per year for the years 2008 through 2021. I
wi).1 present this resolution to the Common Council.
Please feel free to contact me if you have any questions. Thank you for your favorable
consideration of this ordinance.
Sincerely,
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John H. Murphy
Assistant/Acting City Controller
Attachment
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JANICE L. HALL JoI->rr MvxrHY RosERT ALLEN L.
DIRECTOR ASSISTANT CONTROLLER DIRECTOR
HUMAN RESOURCES INFORMATION TECHNOLOGY ~ f
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
08-10 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, REGARDING THE AMENDMENT OF THE
LEASE WITH THE CITY OF SOUTH BEND BUILDING CORPORATION
DATED AS OF MARCH 1, 2001, AS AMENDED BY AN ADDENDUM
TO LEASE DATED AS OF APRIL 2, 2001 PREVIOUSLY ENTERED
FOR THE CONSTRUCTION AND EQUIPPING OF A NEW PUBLIC
WORKS SERVICE CENTER FACILITY AND REGARDING CERTAIN
RELATED MATTERS
Respectfully report that they have examined the matter and that in their opinion, this bill is
being recommended to the full Council with a favorite recommendation.
Derek D. Dieter
Chairperson. Committee of the Whole