HomeMy WebLinkAboutAmendment of Lease for Renovation and Equipping the former O'Brien School for Recreation Center & Park Dept. Administrative Office SpaceAttest
RESOLUTION
NO. 2822 -99
Passed by the Common Council of the City of South Bend,
December 13, 1e 99
Attest:
Presented by me to the Mayor of the City of South Bend, Indiana
December 14, 19 99
Clerk
of Common Council.
Approved and signed by me ppppffll;pr 15. _ 19- g
City Clerk
Mayor
RESOLUTION NO. Z p ZZ" J'\
A RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA,
COMMON COUNCIL REGARDING THE AMENDMENT OF THE
LEASE WITH THE CITY OF SOUTH BEND BUILDING
CORPORATION FOR THE RENOVATION AND
EQUIPPING OF THE FORMER O'BRIEN SCHOOL FOR USE AS A
RECREATION CENTER AND PARK DEPARTMENT
ADMINISTRATIVE OFFICE SPACE AND REGARDING
CERTAIN RELATED MATTERS
WHEREAS, the Common Council previously determined that a need exists for the
renovation and equipping of the former O'Brien School for use as a recreation center and for Park
Department administrative office spaces (the "Project ") and that the funds needed therefor exceeded
the funds presently available to the City; and
WHEREAS, 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 $600,000; and
WHEREAS, the Building Corporation has previously submitted to the City, and the
City has previously approved and executed after a public hearing, a lease between the Building
Corporation and the City (the "Lease ") upon the Project; and
WHEREAS, the Building Corporation expects to sell its First Mortgage Bonds, Series
1999C (the "Bonds ") in an aggregate principal amount of $570,000.00 to LaSalle Bank National
Association at a net interest cost of approximately 5.53 %, which interest rate is lower than the
interest rate used to calculate the maximum lease rental under the Lease; and
WHEREAS, the Common Council is desirous of amending the Lease to reduce the
semi - annual lease rentals to correspond to the actual debt service as established pursuant to the terms
of the bond sale; and
WHEREAS, the Common Council is desirous of further amending the Lease to
enlarge the Project, as the same is defined in the Lease, to include additional work which may be
financed as the result of favorable bids;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF
THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS:
1. The Common Council hereby agrees to the reduction of the lease rental
payments to the amount set forth in the Addendum to Lease with the Building Corporation dated
December 13,1999, presented to this meeting (the "Addendum ").
2. The Common Council hereby approves the Addendum in the form submitted
to this meeting and authorizes the Mayor and City Clerk to execute and attest, respectively, the
Addendum on behalf of the City, with such changes as may be necessary on the advise of counsel
with the execution and attestation thereof to be evidence of such approval.
This Resolution shall be in full force and effect from and after its passage by
the Common Council and approval by the Mayor.
PRESENTED 12 -13-11
NOT APPROVED
ADOPTED
ODMA\PCDO CS \SBDOCS 1150426\2
COMMON COUNCIL OF THE CITY
OF SOUTH BEND, INDIANA
By: a'mtntanA4IAI �
Member of the Common Council
Filed In Cierk °s Office
-2-
�m LS3 vc'Fis ...