PROPOSED LEASE BETWEEN THE WARSAW REDEVELOPMENT AUTHORITY AND THE CITY OF WARSAW REDEVELOPMENT COMMISSION
The City of Warsaw Redevelopment Commission (the “Commission”), the governing body of the City of Warsaw Department of Redevelopment and the Redevelopment District of the City of Warsaw (the “District”), on September 10, 2018 adopted a Resolution (the “Commission Resolution”) approving a proposed Lease Agreement, dated as of December 1, 2018 (the “Lease”), between the Warsaw Redevelopment Authority (the “Authority”), as Lessor, and the Commission, as Lessee, of all or a portion of certain rights of way including all or any portion of the following streets located in the City: Anchorage Road, CR 200N, Pound Drive W., Pound Drive N., Cessna Road, Boeing Road, and Biomet Drive, Bell Drive, North Rainbow Drive and Douglas Road to provide for the construction and installation of sewage utility collection improvements and related road improvements to said streets (collectively, the “Project”).
Pursuant to applicable law, the Commission will hold a public hearing on the proposed Lease, as well as the Project, on September 24, 2018, at 4:00 p.m. (local time), in the Common Council Chambers at City Hall, located at 102 South Buffalo Street, Warsaw, Indiana. 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 of Warsaw, Indiana, 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 Authority 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 Authority. The maximum annual lease rental to be paid by the Commission under the proposed Lease is $800,000. The Commission’s lease payments under such Lease will be payable from a special 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 expects not to use the special tax and to pay the lease payments under the Lease from available tax increment revenues from the allocation areas located within the Consolidated Northern Economic Development Area. 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 Authority for the Project, and miscellaneous other matters.
