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Home My WebLink About1992-08-07 Resolution 61RESOLUTION NO. 61 RESOLUTION OF THE SOUTH BEND REDEVELOPMENT AUTHORITY APPROVING A MODIFICATION TO AND REDUCING THE ANNUAL RENTALS ON THE LEASE FOR THE PALMS ROYALS PROJECT, APPROVING THE EXECUTION OF AN ADDENDUM TO THE LEASE, RATIFYING THE SELECTION OF A SUCCESSFUL BIDDER AND THE TERMS OF THE BONDS, AND REGARDING OTHER RELATED MATTERS WHEREAS, the South Bend Redevelopment Authority (the "Authority") at a meeting on June 18, 1992, adopted Resolution No. 56, authorizing the issuance of the "South Bend Redevelopment Authority Taxable Lease Rental Revenue Bonds (Palais Royale Project)" (the "Bonds") in an aggregate amount of One Million Four Hundred Ten Thousand Dollars ($1,410,000) pursuant to IC 36-7- 14.'5-19 to finance the acquisition of certain land and a building located thereon commonly known as the Palais Royale (the "Project"), and to pay the costs of issuance of the Bonds; and WHEREAS, a Notice of Intent to Sell One Million Four Hundred Ten Thousand Dollars ($1,410,000) of the Bonds was published on July 3, 1992 and July 10, 1992 in the South Bend Tribune, the Tri-County News, and the Indianapolis Commercial; and WHEREAS, the South Bend Redevelopment Authority. previously entered into a Lease between the Authority and the South Bend Redevelopment Commission (the "Commission") dated as of March 1, 1992 (the "Lease"), pursuant to which the Authority will lease the Project to the Commission; and WHEREAS, bids were received on August 4, 1992, for the sale of the Bonds by the Secretary of the Authority pursuant to Resolution No. 56; and WHEREAS, the lowest and best bid for the Bonds was received from Robert W. Baird & Co., Inc., ("Baird"), 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 7.0189%, which bid was accepted; 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, the award of the sale of the Bonds will permit a reduction in the annual rental payments on the Lease for the Project pursuant to Section 4 of the Lease as modified; and WHEREAS, the Authority 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 rental payments for the Project and making certain other amendments to the Lease; NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT AUTHORITY, AS FOLLOWS: • -2- . 1. The Authority hereby ratifies and approves the award of the sale of the Bonds to Baird in the amount of One Million Four Hundred Ten Thousand Dollars ($1,410,OOOj, at a price equal to One Million Three Hundred Ninety-three Thousand One Hundred Seventy- seven and 60/100 Dollars ($1,393,177.60), such Bonds to bear a net interest figure of 7.0189%, since said bid was the highest bid submitted in accordance with the Notice of Intent to Sell Bonds published in connection with. the sale of the Bonds. 2. 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. 3. The Lease shall be amended to reduce the annual rental payments as set forth in Exhibit A attached hereto. The Authority hereby approves all other amendments to the Lease set forth in Exhibit A attached hereto. 4. All remaining terms, covenants and conditions as set forth in the Lease shall remain in full force and effect. • -3- • 5. The President and Secretary-Treasurer of the Authority are hereby authorized and directed to execute and attest, respectively, the Addendum. 6. The officers of the Authority are hereby authorized to deliver said Bonds when executed to Norwest Bank Indiana, N.A., as Trustee for delivery to the successful bidder. 7. This resolution shall be in full force and effect after its adoption by the Authority. ADOPTED at a special meeting of the South Bend Redevelopment Authority held on August 7, 1992, at the Office of the Authority, 1200 County-City Building, 227 .West Jefferson Boulevard, South Bend,. Indiana 46601. i• SOUTH BEND REDEVELOPMENT AUTHORITY By : "~ ~ ~ Jos h W. Wroblewski, President ATT T: ~~~~~~ Donald K. Fewell, Secretary-Treasurer \rrrompol\palais.roy\rareduce.l;8/05/92 -4- • EXHIBIT A Addendum to Lease Between the South Bend Redevelopment Authority, as Lessor, 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: i• 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 lease .rentals 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 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 . ~ ~ ~ ~ J seph Wroblewski, President AT T: ~~ Donald K. Fewell, Secretary-Treasurer SOUTH BE D REDEVELOPMENT COMMISSION By : ~~~ /V. Paula N. Auburn, President ATTEST: ~ ~~J ~ ~~, -2- 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. '- (SEAL) , . t'1Y ~t~`~",~~~?~~:~ ~ ~~? My commission expires: WITNESS my hand and Notarial Seal this ~~ day of 1992. ~~~~ ~.` G u - ~-` ~r~~"~t "~ A t ~ .z~.'w,~ar'~ (Writ en Signa ure) tt I am a resident of County, Indiana. STATE OF INDIANA ) SS: COUNTY OF ST. JOSEPH ) - - - ~;. ,'SEAL ~ `-.: _.. ~~;~ ~:~fy. ~.~' ~.. t My commission expires: I am a resident of ~~ 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 1992. County, Indiana. This instrument prepared by Randolph R. Rompola, BAKER & DANIELS, 205 West Jefferson Boulevard, South Bend, Indiana 46601 (Printed Signature) and Notarial Seal this ~ day of ~ ~ /~--. ,~ (Writ~en Signatu e (Printed Signature) -3-