You are hereby notified that a public hearing will be held before the Board of School Trustees (the “Board”) of Southern Wells Community Schools (the “School Corporation”) on September 24, 2019 at the hour of 5 p.m. (Local Time) at the HS Media Center, 9120 South 300 West, Poneto, Indiana, to hold a hearing pursuant to Indiana Code §20-47-3 to consider a proposed Lease Agreement (the “Lease”).
The proposed Lease upon which the hearing will be held is for a term of twenty-two (22) years between the Southern Wells School Building Corporation (the “Building Corporation”), as lessor, and the School Corporation, as lessee, commencing with the acquisition of title to a portion of the Southern Wells Elementary School building (the “Leased Premises”) to be renovated by the Building Corporation. The Lease provides for rental during renovation in the maximum amount of $160,000 per payment payable June 30 and December 31 of each year, beginning on June 30, 2020 through completion of construction. Thereafter, the Lease provides for an annual lease rental of $320,000, payable on June 30 and December 31 beginning with the completion of the renovation of and improvements to the Leased Premises or June 30, 2021.
As additional rental, the lessee shall maintain insurance on the Leased Premises as required in the Lease, shall pay all taxes and assessments against the Leased Premises, 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 Ad Valorem Property Tax First Mortgage Bonds to pay for the cost of said renovation and improvements, including any other expenses incidental thereto, the additional annual rental stated above 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 $3,000, payable in equal semiannual installments.
The Lease gives an option to the lessee to purchase the property on any rental payment date.
The property subject to the Lease is a portion of the Southern Wells Elementary School building located at 9120 South 300 West, Poneto, Indiana (the “Leased Premises”) in said School Corporation.
The plans and specifications, including the estimates for the cost of the renovations and improvements, 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, 9120 South 300 West, Poneto, 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 to be paid to the Building Corporation is a fair and reasonable rental for the Leased Premises. Such hearing may be adjourned to a later date or dates, and following such hearing the Board 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 23rd day of August, 2019.
Board of School Trustees