City of Warsaw

NOTICE OF PUBLIC HEARING CONCERNING A
PROPOSED LEASE BETWEEN THE CITY OF WARSAW, INDIANA,
BUILDING CORPORATION AND THE
CITY OF WARSAW REDEVELOPMENT COMMISSION
The City of Warsaw Redevelopment Commission (the “Commission”), the governing body of the City of Warsaw, Indiana, Department of Redevelopment and the Redevelopment District of the City of Warsaw, Indiana (the “District”), at a meeting held on December 4, 2023, adopted a Resolution approving a proposed Lease Agreement, to be dated as of January 8, 2024 (the “Lease”), between the City of Warsaw, Indiana, Building Corporation (the “Building Corporation”), as Lessor, and the Commission, as Lessee, of a portion of Market Street extending from the intersection of Market Street and Argonne Road to the intersection of Market Street and State Road 15, for the purpose of enabling the Building Corporation to make note payments in support of taxable economic development lease rental revenue bonds to be issued by the City (the “Bonds”) for the purposes of providing a means to finance all or any portion of the rehabilitation of the existing Gatke Warehouse located at 2321 E. Winona Ave. into a mixed use space and the construction and equipping of the new Gatke Lofts at 2321 E. Winona Ave. comprised of seventy-five (75) apartments and related amenities (the “Project”). The proceeds of the Bonds will be loaned to the Building Corporation to finance all or a portion of the Project.
Pursuant to applicable law, the Commission will hold a public hearing on the proposed Lease, as well as the Project, on Tuesday, January 8, 2023, at 4:00 p.m., in the Common Council Chambers of City Hall, 102 S. Buffalo Street, Warsaw, Indiana, or at such other time and/or place as the President of the Commission shall determine. All interested parties will be provided the opportunity to be heard at the hearing. After the public hearing, which may be adjourned from time to time, the Commission may adopt a Resolution authorizing the execution of the proposed Lease if it finds that the service to be provided throughout the term of the proposed Lease will serve the public purpose of the City, and is in the best interests of its residents and that the lease rental provided for is fair and reasonable. The Commission may modify the proposed Lease after the hearing but may not increase the rent as set out in this notice.
The proposed Lease will have a term of no longer than twenty-five (25) years beginning on the date the Building Corporation acquires any interest in the leased premises and ending on the day prior to a date not later than twenty-five (25) years after such date of acquisition by the Building Corporation. The maximum annual lease rental to be paid by the Commission under the proposed Lease is $250,000. After the sale of the Bonds by the City, the annual rental shall be reduced to an amount sufficient to pay the principal and interest due in each twelve (12) month period commencing each year on August 1 rounded up to the next One Thousand Dollars ($1,000), together with incidental expenses as further described in the Lease, payable in advance in semi-annual installments. The Commission’s lease payments under such Lease will be payable from a special benefits tax levied and collected by the Commission on all taxable property within the geographical boundaries of the District pursuant to applicable law, as amended, provided that the Commission reasonably expects not to use the special benefits tax and expects to pay the lease payments under the Lease from any revenues legally available to the Commission including, without limitation, tax increment revenues. The proposed Lease further provides for terms concerning the use, maintenance, repair, operating and utility costs, indemnification and insurance, destruction of the premises, defaults, remedies, option to purchase, reduction of the lease rental and term following the sale of bonds by the Building Corporation for the Project, and miscellaneous other matters.
Dated this 15th day of December, 2023.
CITY OF WARSAW REDEVELOPMENT COMMISSION
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