125-17 - PROPOSED LEASE AGREEMENT for NJSP
NOTICE OF PUBLIC HEARING
PROPOSED LEASE AGREEMENT
FOR NORTH JUDSON-SAN PIERRE SCHOOL CORPORATION
You are hereby notified that on September 19, 2017 at 7:00 p.m. a public hearing will be conducted at the meeting of the Board of School Trustees of North Judson-San Pierre School Corporation at the Administration Building, located at 801 Campbell Drive, North Judson, Indiana, concerning a proposed lease agreement to be entered into between the North Judson-San Pierre Multi-School Building Corporation, as lessor, and the North Judson-San Pierre School Corporation, as lessee.
The term of the proposed lease agreement upon which the hearing will be conducted is twelve (12) years, commencing on the date the Lessor issues its bonds. The lease shall be for a maximum term of 12 years with a maximum lease rental of $937,000. The lease agreement provides for the initial rent under the lease agreement to commence during renovations on June 30, 2018 and full lease rentals upon the later of the completion of the leased premises or June 30, 2019, payable in equal installments on June 30 and December 31. As additional rental, the lessee shall pay all taxes and any rebate amounts owed to the United State Treasury. The lease agreement requires the lessee to maintain insurance on the buildings and to bear all costs of any other alterations or repairs. After the issuance by the building corporation of its First Mortgage Bonds to pay for the cost of the proposed construction of the buildings, including the acquisition of the sites thereof and other expenses incidental thereto, the annual rentals will be reduced to amounts equal to the multiple of $1,000 next higher than the sum of the principal and interest due on such bonds in each twelve-month period ending on January 15, plus $3,000. The annual rentals shall be payable in equal semiannual installments on June 30 and December 31
The lease agreement gives an option to the school corporation to purchase the leased premises on any lease rental payment date. The leased premises shall consist of a portion of the Jr,/Sr. High School building. The project shall consist of proposed renovations and improvements at the Elementary School, the Middle School and the Jr./Sr. High School buildings.
Estimates of the costs of the proposed construction and renovations, as well as a copy of the proposed lease agreement, are available for inspection at the Administration Building, 801 Campbell Drive, North Judson, Indiana.
At the hearing, all persons interested shall have a right to be heard upon the necessity for the execution of the lease agreement and upon whether the lease rental set forth therein is fair and reasonable for the proposed building. The hearing may be adjourned to a later date or dates. Following the hearing Board of School Trustees may either authorize the execution of the Lease Agreement as originally approved or may make modifications therein as may be agreed upon with the North Judson-San Pierre Multi-School Building Corporation.
Dated: July 5, 2017 /s/ Secretary
July 7, 2017 Board of School Trustees
North Judson-San Pierre School Corporation
125-17 G 07/05