City of Nappanee

NOTICE OF PUBLIC HEARING ON PROPOSED LEASE BY
THE NAPPANEE REDEVELOPMENT COMMISSION
You are hereby notified that a public hearing will be held before the Nappanee Redevelopment Commission on August 27, 2024, at the hour of 7:00 a.m. (local time) in the Nappanee City Hall, 300 West Lincoln Street, Nappanee, Indiana, upon a proposed lease ("Lease") to be entered into between the Nappanee Redevelopment Authority ("Authority"), as lessor, and the Nappanee Redevelopment Commission ("Commission"), as lessee. The Lease is for the benefit of the citizens of the City of Nappanee, Indiana ("City").
The proposed Lease upon which the hearing will be held is for a maximum term of twenty (20) years, commencing upon completion of the Project (as described below). The Project consists of the construction of a new fire station located in the City, together will all necessary appurtenances, related improvements and equipment, as further described in Exhibit A attached to the Lease, and incidental costs associated therewith. With regard to Tract I (as defined in the Lease), the Lease provides for interim Lease rentals at the maximum annual rate of $520,000 payable semiannually on January 15 and July 15 beginning on January 15, 2025, and ending upon completion of the Project for lease of the Leased Premises (as defined in the Lease) ("Interim Period"). At the end of the Interim Period, the Lease provides for a maximum annual lease rental of $520,000 payable semiannually on January 15 and July 15 of each year during the term of the Lease. At the end of the Interim Period, the first rental installment shall be due on the day the Project constructed on Tract II (as defined in the Lease) is completed and ready for use and occupancy or January 15, 2026, whichever is later.
After the sale by the Authority of its Lease Rental Revenue Bonds, Series 2024 ("Bonds"), issued to pay for the cost of the Project and other expenses incidental thereto, including funding costs of issuance, the annual rental shall be reduced to an amount equal to the multiple of $1,000 next higher than the sum of principal and interest due on the Bonds in each twelve-month period ending on February 1 (Bond Year) plus Five Thousand Dollars ($5,000), payable in semiannual installments. Lease rentals shall be payable from General Revenues and, to the extent General Revenues (as defined in the Lease) are not sufficient, from a redevelopment district special benefits tax levy.
The Lease gives an option to the lessee to purchase the Leased Premises on any rental payment date. The estimates for the cost of the Project, as well as a copy of the proposed Lease, are available for inspection by the public on all business days, during business hours, at the office of the Clerk-Treasurer, 300 West Lincoln Street, Nappanee, Indiana.
Dated August 16, 2024
NAPPANEE REDEVELOPMENT COMMISSION
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