NOTICE OF HEARING ON PROPOSED LEASE CONCORD COMMUNITY SCHOOLS You are hereby notified that a public hearing will be held before the Board of School Trustees (the "Board") of Concord Community Schools (the "School Corporation") on August 20, 2018 at the hour of 7:00 p.m. (Local Time) at the Education Center, 59040 Minuteman Way, Elkhart, Indiana, upon a proposed Lease Agreement (the "Lease") to be entered into between Concord Community Schools Building Corporation (the "Building Corporation), as lessor, and the School Corporation, as lessee. The proposed Lease upon which hearing will be held is for a term of thirteen (13) years which commences: (i) in regard to a portion of the Concord High School building ("Tract I") with the acquisition of title to Tract I; and (ii) in regard to a portion of the Concord Intermediate School building ("Tract II") on the closing date of the Building Corporation's Ad Valorem Property Tax First Mortgage Bonds, Series 2018B (Tract I and Tract II are referred to herein as the "Leased Premises"). The Lease provides for rental during renovation on Tract II in the maximum amount of $900,000 per payment payable on June 30 and December 31 beginning on June 30, 2019 through the completion of construction. Thereafter, the Lease provides for a full maximum annual rental on the Leased Premises of $1,800,000, payable on June 30 and December 31 of each year during the term of the Lease, commencing with the completion of the buildings or June 30, 2020, 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. After the sale by the Building Corporation of its Ad Valorem Property Tax First Mortgage Bonds to pay for the cost of the buildings, including the acquisition of the sites thereof 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 $5,000, 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 (i) Tract I located at 59117 Minuteman Way, Elkhart, Indiana 46517 and (ii) Tract II located at 59197 County Road 13, Elkhart, Indiana 46517. The drawings and plans, including the estimates for the cost of the construction, renovation 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 Concord Community Schools, 59040 Minuteman Way, Elkhart, Indiana 46517-3408. 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 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 such Lease as originally agreed upon or may make modifications therein as may be agreed upon with the Building Corporation. Dated this 19th day of July, 2018. Jennifer Davis Secretary, Board of School Trustees Concord Community Schools July 19 hspaxlp
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