NOTICE OF HEARING ON PROPOSED LEASE WAWASEE COMMUNITY SCHOOL CORPORATION You are hereby notified that a public hearing will be held before the Board of School Trustees (the “Board”) of Wawasee Community School Corporation (the “School Corporation”) on June 9, 2015 at the hour of 5:30 p.m. (Local Time) at the Administration Building of Wawasee Community School Corporation located at One Warrior Path, Building 2, Syracuse, Indiana, 46467, upon a proposed Lease Agreement (the “Lease”) to be entered into between Wawasee High School Building Corporation (the “Building Corporation”), as lessor, and 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 buildings to be constructed, renovated, and equipped by the Building Corporation. The Lease provides for a maximum annual rental of $2,750,000, payable on June 30 and December 31 of each year during the term of the Lease, commencing with the completion of the building or June 30, 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 the sites thereof or existing buildings 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 a maximum of $10,000, payable in equal semiannual installments. The Lease gives an option to the lessee to purchase the property on any rental payment date. The buildings to be constructed, renovated, and equipped pursuant to the Lease will be (i) a new Syracuse Elementary School to be located in Syracuse, Indiana, and (ii) a portion of the existing Milford School, located at 611 West Emeline Street, Milford, Indiana. The School Corporation will use money received from the sale of real estate to the Building Corporation to complete the renovation of and improvements to Wawasee High School. The plans and estimates for the cost of said construction, renovation, and equipping, 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, One Warrior Path, Building 2, Syracuse, Indiana, 46467. 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 22th day of April, 2015. /s/ Mike Wilson Secretary, Board of School Trustees Wawasee Community School Corporation 4-22 hspaxlp
