NOTICE OF HEARING ON PROPOSED LEASE WARSAW COMMUNITY SCHOOLS You are hereby notified that a public hearing will be held before the Board of School Trustees (the “Board”) on September 21, 2015 at the hour of 7:00 p.m. (Local Time) at the Administration Building at 1 Administration Drive, Warsaw, Indiana, upon a proposed Lease Agreement (the “Lease”) to be entered into between Warsaw Multi-School Building Corporation (the “Building Corporation”), as lessor, and Warsaw Community Schools (the “School Corporation”), as lessee. The proposed Lease upon which the hearing will be held is for a term of twenty-two (22) years, commencing with the acquisition of title to the real estate upon which school facilities will be constructed and renovated by the Building Corporation. The Lease provides for rental during renovation in the maximum amount of $1,200,000 per payment payable on June 30 and December 31, beginning on June 30, 2016, and continuing through completion of construction. Thereafter, the lease provides for full annual rental of $3,415,000, payable on June 30 and December 31 of each year during the term of the lease, commencing with the completion of construction or December 31, 2017, whichever is later. As additional rental, the lessee shall maintain insurance on the buildings as required in the Lease, shall pay all taxes and assessments against such property, as well as the cost of alterations and repairs, and shall pay rebate amounts to the United States Treasury, if so required. After the sale by the Building Corporation of its first mortgage bonds to pay for the cost of said buildings, including the acquisition of real estate and other expenses incidental thereto, 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 such bonds in each twelve-month period ending on January 15 plus an amount not to exceed $10,000, payable in equal semiannual installments. The Lease gives an option to the lessee to purchase the properties on any rental payment date. The building to be constructed pursuant to the Lease will be a new Lincoln Elementary School. In addition, pursuant to the Lease and by the sale of real estate to the Building Corporation, the School Corporation and the Building Corporation shall collectively finance the renovation of and improvements to Washington Elementary School and Edgewood Middle School. All of the aforementioned facilities are located in the School Corporation’s district in Warsaw, Indiana. The plans and estimates for the cost of said construction and renovation, 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 Administration Building of the School Corporation, 1 Administration Drive, Warsaw, Indiana 46580. At such hearing all persons interested shall have a right to be heard upon the necessity for the execution of such Lease, and upon whether the lease rental provided for therein to be paid to the Building Corporation is a fair and reasonable rental for the proposed buildings. Such hearing may be adjourned to a later date or dates, and following such hearing the Board may either authorize the execution of such Lease as originally agreed upon or may make modifications therein as may be agreed upon with the Building Corporation. Dated this 18th day of August, 2015. Randy W. Polston Secretary, Board of School Trustees Warsaw Community Schools 8-21 hspaxlp
