City of Nappanee

Announcement of a public hearing on the proposed lease by
THE NAPPANEE REDEVELOPMENT COMMISSION
You are hereby notified that a public hearing before the Nappanee Redevelopment Commission will be held on August 27, 2024 at 7:00 a.m. (local time) at Nappanee City Hall, 300 West Lincoln Street, Nappanee, Indiana. The subject of the hearing is a proposed lease agreement (“Lease”) between the Nappanee Redevelopment Authority (“Authority”), as landlord, and the Nappanee Redevelopment Commission (“Commission”), as tenant. The Lease is for the benefit of the citizens of the City of Nappanee, Indiana (“City”).
The proposed lease upon which the hearing will be held has a term of up to twenty (20) years, beginning upon completion of the Project (as defined below). The Project includes the construction of a new fire station in the City, together with all necessary appurtenances, related improvements and equipment, as further described in Exhibit A to the Lease, and related utilities. With respect to Tract I (as defined in the Lease), the Lease provides for interim rental payments of up to $520,000 per year, payable semi-annually on January 15 and July 15, beginning on January 15, 2025, and ending upon completion of the Project to lease the Lease Space (as defined in the Lease) (“Interim Period”). At the end of the Interim Period, the Lease provides for a maximum annual rental payment of $520,000, payable semi-annually on January 15 and July 15 of each year during the term of the Lease. At the end of the Transition Period, the first rental instalment will be due on the date on which the project constructed on Lot II (as defined in the Lease Agreement) is completed and ready for use and occupancy, or on January 15, 2026, whichever is later.
Upon the sale by the Authority of the Lease Rental Revenue Bonds, Series 2024 (“Bonds”) issued to cover Project costs and other related expenses, including financing costs of the issuance, the annual rent shall be reduced to an amount equal to a multiple of $1,000 equal to the sum of the principal and interest on the Bonds in each twelve-month period ending February 1 (Bond Year), plus five thousand dollars ($5,000), payable in semiannual installments. The rent shall be paid from general revenues and, if general revenues (as defined in the Lease Agreement) are insufficient, from a special services tax levy of the Redevelopment District.
The lease gives the tenant the option to purchase the leased premises on any rental payment date. The cost estimates for the project and a copy of the proposed lease will be available for public inspection every weekday during business hours at the Clerk and Treasurer’s Office, 300 West Lincoln Street, Nappanee, Indiana.
As of: 16 August 2024
NAPPANEE REDEVELOPER COMMISSION
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