NOTICE OF HEARING ON PROPOSED LEASE
LAPORTE COUNTY, INDIANA
You are hereby notified that a public hearing will be held before the Board of Commissioners of LaPorte County, Indiana on April 15, 2020 at the hour of 6:00 p.m. (local time) in the County Complex Room #3, 809 State Street, LaPorte, Indiana, upon a proposed lease to be entered into between the LaPorte County Building Corporation (“Corporation”), as lessor, and LaPorte County, Indiana (“County”), as lessee.
The proposed lease upon which the hearing will be held is for a term not to exceed eighteen (18) years, commencing with the completion of the Project (as defined in the lease) to be renovated and expanded by the Corporation, as set forth in the lease. The lease provides for a maximum annual rate of $725,000 payable semiannually beginning on January 15, 2021 and ending upon completion of the Project (“Interim Period”). At the end of the Interim Period, the lease provides for rental for the Leased Premises (as defined in the lease) at a maximum annual rate of $1,450,000 payable semiannually on January 15 and July 15 during the term of the lease, commencing with the completion of the Project or on January 15, 2023, whichever is later. Lease rentals will be payable from Certified Shares (as defined in the lease), and, to the extent Certified Shares are not sufficient, from an ad valorem property tax levied and collected on all taxable property in the County. As additional rental, the lessee shall pay or cause to be paid 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. The lease requires the lessee to maintain insurance on the Project and to bear all cost of alterations and repairs. After the sale by the Corporation of its bonds to pay for the cost of the Project, including the acquisition of the site or sites therefor 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 February 1 (bond year), plus an amount not to exceed $5,000, payable in equal semiannual installments.
The lease gives an option to the lessee to purchase the Project on any rental payment date. The Project includes the construction of the renovation and expansion of the county courthouse in Michigan City, Indiana, together with all necessary appurtenances, related improvements and equipment, as more fully set forth in Exhibit A-2 of the lease. The estimates for the cost of the Project 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 office of the Auditor, in LaPorte, Indiana.
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 Corporation is a fair and reasonable rental for the proposed Project. Such hearing may be adjourned to a later date or dates, and following such hearing the Board of Commissioners may either authorize the execution of such lease as originally agreed upon or may make modifications therein as may be agreed upon with the Corporation.
Dated this 27th day of March, 2020.
LAPORTE COUNTY, INDIANA
By: /s/ Joie Winski, LaPorte County