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NOTICE OF PRELIMINARY DETERMINATION TO ENTER INTO LEASE AND HEARING ON PROPOSED LEASE Notice is hereby given that the Board of School Trustees of Tippecanoe Valley School Corporation (the "Board" and the "School Corporation", respectively), having held a meeting and public hearing pursuant to IC 6-1.1-20-3.1 and IC 5-3-1, on March 7, 2011 at 7:30 p.m in the Tippecanoe Valley High School Lecture Room, and having complied in all respects with IC 6-1.1-20-3.1, hereby gives notice of the Board's adoption of a resolution making a preliminary determination to enter into a lease with the Tippecanoe Valley 2011 School Building Corporation, a building corporation organized under IC 20-47-3 (the "Building Corporation"), (the "Lease") for the construction of a wind generation facility (the "Project"). The maximum term of Lease will be fifteen and one-half (15-1/2) years. The maximum annual lease rental under the Lease will be approximately $388,000. The estimated interest rate for the bonds associated with the Lease is six and one-half percent (6.5%), and the total interest cost associated with the Lease, assuming such interest rate, is estimated at $2,239,156. The School Corporation does not anticipate additional costs of operating the Project and does not expect to file a New Facility Appeal. Owners of real property within the School Corporation may file a petition requesting the application of a petition/remonstrance process against the proposed lease payments by filing a petition which complies with IC 6-1.1-20-3.1 (4) and (5), not later than thirty (30) days after the date of publication of this notice. Notice is further given that the School Corporation will conduct a public hearing, as required by IC 20-47-3-9, on the proposed Lease on April 11, 2011, at 7:30 p.m. in the Board Room of the School Corporation's Administrative Offices, 8343 S. State Road 19, Akron, Indiana. As additional rental, the School Corporation shall maintain insurance on the Project as required in the Lease, and shall pay all taxes and assessments against such property, as well as the cost of alterations and repairs. If the net interest cost to the Building Corporation on the First Mortgage Bonds to be issued by the Building Corporation to pay the cost of the Projects, including the acquisition of the sites thereof and other expenses incidental thereto, is less than 6.5%, the annual rental shall be reduced to an amount equal to the actual debt service required to amortize the Bonds according to their terms. The Lease contains an option to purchase the Projects in advance of the final rental payment. The drawings, plans and specifications, including estimates for the cost of the Projects, 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 administrative office of the School Corporation, 8343 S. State Road 19, Akron, Indiana. At such hearing, all persons interested shall have a right to be heard on the necessity for the execution of such lease, upon whether the lease rental provided for therein to be paid to the Building Corporation is a fair and reasonable rental for the proposed Projects. Such hearing may be adjourned to a later date or dates, and following such hearing, the Board of School Trustees may either authorize the execution of such Lease as originally agreed upon or may make modifications thereto as may be agreed upon with the Building Corporation. Dated: March 7, 2011 BOARD OF SCHOOL TRUSTEES OF TIPPECANOE VALLEY SCHOOL CORPORATION By: Hal Hoffman, Secretary m11
