City of Warsaw

NOTICE TO TAXPAYERS REGARDING A DECISION OF THE CITY OF WARSAW REDEVELOPMENT COMMISSION TO ENTER INTO A PROPOSED LEASE WITH THE CITY OF WARSAW BUILDING CORPORATION RELATING TO THE GATKE PROJECT
The taxpayers of the City of Warsaw Redevelopment District (the “District”) are hereby notified that on January 8, 2024, the City of Warsaw Redevelopment Commission (the “Commission”), the governing body of the District, did adopt a resolution determining that the Commission will take all actions necessary to enter into a lease (the “Lease”) with the City of Warsaw Building Corporation (the “Building Corporation”), which in turn will allow the Building Corporation to pledge the lease rentals received from the Commission pursuant to the Lease to the payment of the principal of and interest on certain Taxable Economic Development Lease Rental Revenue Bonds, Series 2024 (Gatke Project) (the “Bonds”) expected to be issued by the City of Warsaw, Indiana (the “City”), pursuant to a Loan Agreement (the “Loan Agreement”) to be entered into between the City and the Building Corporation. The Bonds shall be issued in one (1) or more series or issues, in an aggregate issued amount not to exceed Forty-three Million Dollars ($43,000,000), and the City will provide the proceeds of the Bonds pursuant to the Loan Agreement to the Building Corporation for the purpose of financing all or any portion of (i) the rehabilitation of the existing Gatke Warehouse located at 2321 E. Winona Ave., Warsaw, Indiana by restoring the current steel structure with beautiful brick, large warehouse style windows, and modern and functional interior finishes, which rehabilitation will result in an approximately 12,000 square foot space comprised of eight (8) flex units (residential or commercial) and approximately 4,300 square feet of commercial space that provides for a mix of residential studios, offices, restaurant, innovation/lab space, or other related uses and (ii) the construction and equipping of the new Gatke Lofts at 2321 E. Winona Ave., Warsaw, Indiana, comprised of seventy-five (75) market-rate one- and two-bedroom Class-A apartments with amenities, including fitness center, a rooftop terrace, indoor/outdoor lounge cafe, courtyard, trail access, bike storage and with modern finishes including quartz counters, stainless steel appliances, full-size washer/dryer, tile backsplash in kitchen and bathrooms, 9-foot ceilings, and private balconies/patios in each unit.
The 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 (defined under the Lease to be a portion of Market Street in the City extending from the intersection of Market Street and Argonne Road to the intersection of Market Street and State Road 15) 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.
This Notice is being provided pursuant to I.C. §6-1.1-20-5.
Dated this 12th day of January, 2024.
CITY OF WARSAW REDEVELOPMENT COMMISSION
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