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HomeMy WebLinkAbout10161-12 Amendment to Lease South Bend Building Corporation Centra Fire Station & Police StationORDINANCE No. ,o, Passed by the Common Council of the City of South Bend, Indiana Attest: Attest: May 14, 2012 Presented by me to the Mayor of the City of South Bend, Indiana May 15, Approved and signed by me 20 12 City Clerk President of Common Council 20 1 L City Clerk Mayer ORDINANCE NO. [ () ( (0(— C AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE LEASE WITH THE CITY OF SOUTH BEND BUILDING CORPORATION DATED AS OF APRIL 1, 2003, AS AMENDED, PREVIOUSLY ENTERED INTO FOR THE CONSTRUCTION AND EQUIPPING OF A NEW CENTRAL FIRE STATION AND RENOVATING AND EXPANDING THE POLICE STATION AND REGARDING CERTAIN RELATED MATTERS STATEMENT OF PURPOSE AND INTENT The Common Council (the "Common Council ") of the City of South Bend, Indiana (the "City "), previously approved and authorized the issuance and sale by the City of South Bend Building Corporation (the "Building Corporation ") of its first mortgage revenue bonds to finance the costs of the construction and equipping of a new central fire station and the renovation and expansion of the police station (collectively, the "Project ") pursuant to Ordinance No. 9415 -03 adopted by the Common Council on April 28, 2003. The City previously entered into a lease for the Project with the Building Corporation, which lease is dated as of April 1, 2003, and which lease has been subsequently amended (the "Lease "). The Building Corporation issued its first Mortgage Revenue Bonds, Series 2003, in the aggregate principal amount of Twenty -one Million Three Hundred Thirty -five Thousand and 00 /100 Dollars ($21,335,000.00), which bonds are presently outstanding in an aggregate principal amount of Fourteen Million Five Hundred Five Thousand and 00 /100 Dollars ($14,505,000.00) (the "Prior Bonds ") to finance the costs related to the Project. The Common Council desires that the Building Corporation proceed to refund the Prior Bonds to permit the City and the Building Corporation to reduce the lease rentals payable by the City under the terms of the Lease with the Building Corporation. The proceeds of such refunding bonds will be used to refund of the Prior Bonds and to pay the costs of issuance of the refunding bonds, which refunding bonds would be issued in an aggregate principal amount not to exceed Sixteen Million One Hundred Thousand and 00 /100 Dollars ($16,100,000.00) (the "Refunding Bonds "). Additionally, the Common Council desires that the City and the Building Corporation amend the Lease following the sale of the Refunding Bonds to reduce the semiannual lease payments payable under the Lease by the City to correspond to the debt service for the Refunding Bonds as established pursuant to the terms of sale of the Refunding Bonds. BDDB01 9217411v1 NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section I. The Common Council hereby authorizes the Building Corporation to proceed with the refunding of the Prior Bonds in order 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 Sixteen Million One Hundred Thousand and 00 /100 Dollars ($16,100,000.00). Section II. 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 refunding of the 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 an addendum to lease to amend the Lease to provide for lower annual lease rental payments as a result of the refunding of the 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. Section III. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. i Member, South Bend Common Council Attest: ity C erk Presented by me to the Mayor of the City of South Bend on the day Of , 2012, at : fo o'clock of .m. Ci lerk yiu-,I Approved and signed by me on the kt-, day of 2012, at Y -`ts- o'clock q - .m. 1 st READING q —�,3 —17- PUBLIC HEARING t I- 3 rd READING 5- _ l%A— — NOT APPROVED REFERRED PASSED r— Mayor, City of SodffB n } in Clerk'' Ok 3 TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 16 -12 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE LEASE WITH THE CITY OF SOUTH BEND BUILDING CORPORATION DATED AS OF APRIL 1, 2003, AS AMENDED, PREVIOUSLY ENTERED INTO FOR THE CONSTRUCTION AND EQUIPPING OF A NEW CENTRAL FIRE STATION AND RENOVATING AND EXPANDING THE POLICE STATION 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 favorable recommendation. This bill was heard by the Health and Public Safety Committee. Karen L. White Chairperson, Committee of the Whole 120ON COUNTY --CiTr BUILDING 227 W JEFFERSON BLVD. SOUTH BEND, INDIANA 46601 -1830 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR PHONE 574/ 235-9216 FAx 574/235 -9928 DEPARTMENT OF .ADMINISTRATION AND FINANCE April 18, 2012 Mr. Derek D. Dieter, President City of South Bend Common Council 227 W. Jefferson Boulevard, 4th Floor South Bend, Indiana 46601 RE: Ordinance of the Common Council — Refunding of 2003 City of South Bend Building Corporation ( "Building Corporation ") Bonds Dear President Dieter, Attached please find a Ordinance to authorize the Building Corporation to refund the 2003 Bonds and approve the sale of Refunding Bonds in an amount not to exceed $16,100,000.00 in order to reduce the lease rentals payable by the City under the terms of its Lease with the Building Corporation. The result of this effort is to save the City at least $450,000 over the remaining life of the Refunding Bonds. I will present this bill to the Common Council at the appropriate committee and council meetings. It is requested that this bill be filed for 1St reading on April 23, 2012 with 2nd reading, public hearing and 3`d reading scheduled for May 14, 2012. Thank you for your attention to this request. If you should have any questions, please feel to contact me at 574- 235 -7500. Regards, Mark W. Neal City Controller cc: Pete Buttigieg Mayor Mike Schmuhl, Chief of Staff Kathryn Roos, Deputy Chief of Staff P, j E