Notice of Public Hearing
NOTICE OF HEARING ON PROPOSED FIFTH AMENDMENT TO LEASE
DANVILLE COMMUNITY SCHOOL CORPORATION
You are hereby notified that a public hearing will be held before the Board of School Trustees (the "Board") of Danville Community School Corporation (the "School Corporation") on April 13, 2020 at the hour of 6:30 p.m. (Local Time) at Danville Community Middle School, 1425 W. Lincoln St., Danville, IN 46122, upon a proposed Fifth Amendment to Lease (the "Fifth Amendment") to be entered into between Danville Multi‑School Building Corporation (the "Building Corporation"), as lessor, and the School Corporation, as lessee.
The proposed Fifth Amendment upon which the hearing will be held amends the existing Lease Agreement originally dated April 8, 1997, as previously amended (the "Original Lease"), (the Original Lease and the Fifth Amendment are collectively referred to herein as, the "Lease"). The Fifth Amendment increases the rent payable under the Original Lease and modifies the definition of "Leased Premises" by adding a portion of the South Elementary School building ("Tract II") to the portion of the North Elementary School building previously encumbered by the Original Lease ("Tract I" and together with Tract II, the "Leased Premises"). The Second Amendment provides for rent during renovation payments on Tract II of $1,940,000 beginning June 30, 2021 through completion of the renovations and improvements to be constructed on Tract I. The Fifth Amendment also increases the annual Lease rental by a maximum of $3,881,000, payable on June 30 and December 31 beginning with the completion of the renovations and improvements to be constructed on Tract I or June 30, 2022.
As additional rental, the School Corporation shall maintain insurance on the Leased Premises as required in the Lease, shall pay all taxes and assessments against such Leased Premises, as well as the cost of alterations and repairs, and shall pay rebate amounts to the United States Treasury, if necessary. After the sale by the Building Corporation of its bonds (the "Bonds") to pay for the cost of the renovation and improvements, including any other expenses incidental thereto, the increased annual Lease 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 the Bonds in each twelve-month period ending on January 15 plus $5,000, payable in equal semiannual installments.
The Lease gives an option to the School Corporation to purchase the Leased Premises on any Lease rental payment date.
Tract I of the Leased Premises is North Elementary School located at 398 Urban Street, Danville, Indiana. Tract II of the Leased Premises is South Elementary School located at 1375 West Lincoln Street, Danville, Indiana, all of which are located within the School Corporation.
The plans, including the estimates for the cost of the renovation and improvements, as well as a copy of the proposed Fifth Amendment, are available for inspection by the public on all business days, during business hours, at the Administration Building of the School Corporation, 200 Warrior Way, Danville, Indiana.
At such hearing all persons interested shall have a right to be heard upon the necessity for the execution of the Fifth Amendment, and upon whether the increased Lease rental provided for therein 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 Fifth Amendment as originally agreed upon or may make modifications therein as may be agreed upon with the Building Corporation.
Dated this 12th day of March, 2020.