You are hereby notified that a public hearing will be held before the Board of School Trustees (the “Board”) of Wawasee Community School Corporation (the “School Corporation”) on November 14, 2023 at the hour of 5:30 p.m. (Local Time) at 1 Warrior Path Building 1, Syracuse, Indiana, upon a proposed Amendment to Lease (the “Amendment”) to be entered into between Wawasee High School Building Corporation (the “Building Corporation”), as lessor, and the School Corporation, as lessee.
The proposed Amendment upon which the hearing will be held amends the existing Lease Agreement originally dated June 9, 2015 (the “Original Lease”, and together with the Original Lease, the “Lease”). The Amendment extends the term of the Original Lease, increases the rent payable under the Original Lease, and modifies the definition of “Leased Premises” by adding the real estate upon which the new Milford Elementary School shall be constructed (“Tract III”) to the current Leased Premises of real estate upon which a new Syracuse Elementary was constructed (“Tract I”) and a portion of the existing Milford School (“Tract II”) (Tract I, Tract II and Tract III are collectively referred to as the “Leased Premises”). The Amendment extends the term of the Original Lease to December 31, 2046. The Amendment provides for interim lease rental payments in the amount of up to $6,250,000 per payment beginning June 30, 2025, until completion of the construction of the new school facility upon Tract III. Thereafter, the Amendment increases the annual Lease rental by a maximum of $12,500,000, payable on June 30 and December 31 beginning with the completion of the construction and improvements upon Tract III or December 31, 2026.
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, improvement and construction, 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.
The Leased Premises include (i) the real estate upon which a new Syracuse Elementary was constructed, located at 12799 North Kern Road, Syracuse, Indiana, (ii) a portion of the existing Milford Elementary School, located at 611 West Emeline Street, Milford, Indiana, and (iii) the real estate upon which a new Milford School will be constructed, also located at 611 West Emeline Street, Milford, Indiana, all such real estate being located in the School Corporation.
The plans and the estimates for the cost of the construction, renovation and improvement, as well as a copy of the proposed Amendment, are available for inspection by the public on all business days, during business hours, at the Administration Building of the School Corporation, 1 Warrior Path, Building 2, Syracuse, Indiana.
At such hearing all persons interested shall have a right to be heard upon the necessity for the execution of the 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 construction and renovations to 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 Amendment as originally agreed upon or may make modifications therein as may be agreed upon with the Building Corporation.
Dated this 11th day of October, 2023.
/s/ Secretary, Board of Trustees
Secretary, Board of School Trustees
Wawasee Community School Corporation