Notice of Hearing on Proposed Lease
Posted Wednesday, March 13, 2019 7:33:34 AM EDT
You are hereby notified that a public hearing will be held before the Board of School Trustees (the "Board") on April 16, 2019 at the hour of 4:00 p.m. (Local Time) at 56853 Northridge Drive, Middlebury, Indiana, upon, a proposed Lease Agreement (the "Lease") to be entered into between Middlebury School Building Corporation (the "Building Corporation"), as lessor, and Middlebury Community Schools (the School Corporation"), as lessee.
The proposed Lease upon which the hearing will be held is for a term of twelve (12) years, commencing with or acquisition of title to the facilities and real estate to be renovated and constructed by the Building Corporation. The Lease provides for rental during renovation in the amount of up to $2,637,500 per payment payable on June 30 and December 31 beginning on June 30, 2020 until completion of construction. Thereafter, the Lease provides for a maximum annual rental of $5,275,000, 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, 2021, whichever is later. As additional rental, the School Corporation shall maintain insurance on the building 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, as necessary.
After the sale by the Building Corporation of its ad valorem property tax first mortgage bonds to pay for the cost of construction and renovations, 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 $1,500, payable in equal semiannual installments.
The Lease gives an option to the School Corporation to purchase the leased premises on any rental payment date.
The leased premises pursuant to the Lease will be a portion of Northridge Middle School, 56691 Northridge Drive, Middlebury, Indiana 46540 and the real estate upon which the outdoor athletics facilities will be located at Northridge High School, 56779 Northridge Drive, Middlebury, Indiana 46540.
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, 56853 Northridge Drive, Middlebury, Indiana 46540.
At such hearing all persons interested shall have a right to be heard upon the necessity for the execution of the 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 facilities. Such hearing may be adjourned to a later date or dates, and following such hearing the Board of the School Corporation may either authorize the execution of the Lease as originally agreed upon or may make modifications therein as may be agreed upon with the Building Corporation.
Dated this 13th day of March, 2019.
/s/ Robert Souder
Secretary, Board of School Trustees
Middlebury Community Schools