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Home My WebLink About8486-94 Approving Execution Addendum to the Lease Century Center d • • ORDINANCE No. 8486-94 Passed by the Common Council of the City of South Bend, Indiana April 11, 94 19 Attest: 1 City Clerk IRENE K. GAMMON Attest: 441,16 President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana— April 12, 94 19 City Clerk IRENE K. GAMMON Approved and signed by me a �� - Mayor • ORDINANCE NO. p04-94i AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING OF THE EXECUTION OF AN ADDENDUM TO THE LEASE BETWEEN THE CITY OF SOUTH BEND, INDIANA, AND THE SOUTH BEND CIVIC CENTER BUILDING AUTHORITY FOR THE LAND AND PUBLIC IMPROVEMENTS KNOWN AS THE CENTURY CENTER STATEMENT OF PURPOSE AND INTENT: The City of South Bend, Indiana (the "City") , and the South Bend Civic Center Building Authority, a body corporate and politic organized under Indiana Code 36-10-10 (the "Authority") , entered into a lease dated August 27, 1975 (the "1975 Lease") , whereby the Authority agreed to lease to the City certain land and public improvements now known as the Century Center (the "Century Center") which 1975 Lease was amended by an Amendment to Lease dated as of the first day of June, 1977. (the "Amendment") (the 1975 Lease and the Amendment are hereinafter collectively referred to as the "Lease") . The Authority, in Section 17 of the Lease, grants to the City, the right and the option to purchase the Century Center from the Authority on any rental payment date which dates are June 28 and December 28 of each year at a price equal to the amount required to enable the Authority to redeem all outstanding bonds payable out of rentals provided for in the Lease. Indiana Code 36-10-10-16 requires that the Lease must provide an option to purchase at any time after ten (10) years from the execution of the Lease on the date or dates fixed in the Lease. The City has approved a lease between the South Bend Redevelopment Commission and the South Bend Redevelopment Authority (the "Redevelopment Authority") for the Century Center and the College Football Hall of Fame Project pursuant to which the Redevelopment Authority will issue its lease rental revenue bonds for the purposes of acquiring and constructing certain improvements to the Century Center and constructing and equipping the College Football Hall of Fame. The City desires to exercise the option to purchase the Century Center from the Authority on the date that the Redevelopment Authority issues its lease rental revenue bonds which date will be prior to June 28, 1994 . Therefore, the City desires to enter into an Addendum to Lease with the Authority to amend Section 17 of to the Lease to permit the City to exercise the option to purchase the Century Center on any date rather than only on any rental payment date as Section 17 of the Lease currently provides. • NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: 1. The Common Council approves of the Addendum to Lease attached hereto as Exhibit A and incorporated herein and authorizes execution of the Addendum on behalf of the City in substantially the form of the Addendum to Lease at Exhibit A. 2. This Ordinance shall be in full force and effect from and after passage by the Common Council and approval by the Mayor. COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA // By: /i i ___ Me• •- of the Ce to Council rrrompola\sthbend\hallofam\ccba\leaseamd.ord;3-23-94 Filed in Clerk's Office 1st READING 3/a sr•/9 MAR 2 3 1994 PUBLIC HEARING cif// ( 94 —2— 3 rd READING CF /f ,g( IRENE GAMMON £ CITY CLERK,SO.BEND,INN NOT APPROVEP REFERRED PASSED 4 hi /9 (i • EXHIBIT A ADDENDUM TO LEASE Addendum to Lease Between South Bend Civic Center Building Authority, as Lessor, and the City of South Bend, as Lessee THIS ADDENDUM, entered into as of the 1st day of April, 1994 (the "Addendum") , between the South Bend Civic Center Building Authority, a body corporate and politic organized and existing under I.C. 36-10-10 (the "Authority") , and the City of South Bend, Indiana (the "Lessee") ; WITNESSETH: In consideration of the mutual covenants herein contained, it is agreed that the lease previously entered into between the Authority and the Lessee dated August 25, 1975, and as amended by the Amendment to Lease entered into between the Authority and Lessee dated as of June 1, 1977, both of which were recorded in the office of the Recorder of St. Joseph County, Indiana (recording numbers 200654 in Miscellaneous Record 295 at pages 102 to 123 and 238491 in Miscellaneous Record 307 at pages 10 to 15 respectively) (hereinafter collectively referred to as the "Lease") shall be amended as follows: 1. Section 17 of the Lease is amended to read as follows: Section 17. Option to Purchase. The Authority hereby grants to the City the right and option, on any date from and after ten (10) years from the date of the execution of this Lease and prior to the expiration thereof, upon written notice to the Authority, to purchase the demised premises at a price equal to the amount required to enable the Authority to redeem all outstanding securities payable out of the rentals provided for in this Lease, all premiums payable on the redemption thereof, and accrued and unpaid interest, and to pay all other indebtedness and obligations of the Authority attributable to the construction and leasing of the Civic Center, including the cost of liquidation of the Authority if it is to be liquidated. • Upon request of the City, the Authority agrees to furnish an itemized statement setting forth the amounts required to be paid by the City on the date specified in the request by the City in order to purchase the demised premises in accordance with the preceding paragraph. The statement shall also set forth the name of the Trustee under the trust agreement or agreements securing such outstanding securities and other indebtedness and obligations of the Authority. If the City exercises its option to purchase, the City shall pay to the Trustee referred to above that portion of the purchase price which is required to pay all such securities and to all such other indebtedness and obligations of the Authority, including all premiums payable on the redemption thereof and accrued and unpaid interest. Such payment shall not be made until the Trustee gives to the City a written statement that such amount will be sufficient to retire all such securities and other outstanding indebtedness and obligations of the Authority secured by the trust agreement or agreements between the Trustee and the Authority, including all premiums payable on the redemption thereof and accrued and unpaid interest. The remainder of such purchase price shall be paid by the City to the Authority. Nothing herein contained shall be construed to provide that the City shall be under any obligations to purchase the demised premises, or under any obligation in respect to any creditors or bondholders of the Authority. 2. The parties hereto acknowledge that all remaining terms, covenants and conditions as set forth in the Lease between the parties hereto shall remain in full force and effect. ******* 2 IN WITNESS WHEREOF, the undersigned have caused this Addendum to be executed for and on their behalf as of the day and year first hereinabove written. SOUTH BEND CIVIC CENTER BUILDING AUTHORITY, as Lessor // By: IlL d % LLi.L /, President ATTEST: Secretary CITY OF SOUTH BEND, INDIANA, as Lessee By: Joseph E. Kernan, Mayor (SEAL) ATTEST: Irene K. Gammon, City Clerk 3 STATE OF INDIANA ) ) SS: COUNTY OF ST. JOSEPH ) Before me, the undersigned, a Notary Public in and for said State, personally appeared and personally known by me to be the P esident and Secretary, respectively, of the South Bend Civic Center Building Authority and acknowledged the execution of the foregoing Addendum to Lease for and on behalf of said South Bend Civic Center Building Authority. WITNESS my hand and Notarial Seal this day of , 1994. , Notary Public Residing in St. Joseph County, Indiana (SEAL) My Commission Expires: 4 • STATE OF INDIANA ) SS: COUNTY OF ST. JOSEPH ) Before me, the undersigned, a Notary Public in and for said State, personally appeared Joseph E. Kernan and Irene K. Gammon personally known by me to be the Mayor and City Clerk, respectively, of the City of South Bend, Indiana, and acknowledged the execution of the foregoing Addendum to Lease for and on behalf of said City. WITNESS my hand and Notarial Seal this day of , 1994. , Notary Public Residing in St. Joseph County, Indiana (SEAL) My Commission Expires: THIS INSTRUMENT WAS PREPARED BY RANDOLPH R. ROMPOLA, BAKER & DANIELS, 205 WEST JEFFERSON BOULEVARD, SOUTH BEND, INDIANA 46601. rrrompola\sthbend\hallofam\eeba\addendum.lea;drf;3-23-94 5 f Iammtttn igtpurt • Ws tile Mammon Qlouncil of ttir Titg of 0114 rnh: Your Committee of the Whole to whom was referred __— - - BILL NO. 32-94 SECOND READING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING OF THE EXECUTION OF AN ADDENDUM TO THE LEASE BETWEEN THE CITY OF SOUTH BEND, INDIANA, AND THE SOUTH BEND CIVIC CENTER BUILDING AUTHORITY FOR THE LAND AND PUBLIC IMPROVEMENTS KNOWN AS THE CENTURY CENTER. Respectfully report that they have examined the matter and that in their opinion This bill has been recommended to the Council favorable. Chairman Roland Kelly