01-28-08 Common Council Minutes - Laserfiche WebLink

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REGULAR MEETING JANUARY 28, 2008 RESOLUTION NO. 3931-08 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 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 Apri123, 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: 4. The Common Council hereby authorizes the Building Corporation to proceed with the refunding of its previously issued County Option Income Tax Lease Rental 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). 5. 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 19