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• The South Bend Redevelopment Authority <br />May 3, 2006 Meeting Minutes <br />Mr. Peterson said in 1993, before the golf course was built, Marathon had a <br />blanket easement over the entire property, which was then farmland and is now <br />primarily the golfcourse. The City negotiated an agreement with Marathon to <br />release all but 30' on each side of the pipeline, which is a 60' total easement. The <br />land was then subdivided for development purposes. Lot 1 A, B and C were sold <br />to Mr. Robert Gonderman, who built the Blue Heron facility. The Blue Heron <br />improvements encroach upon about 5' of the easement. An asphalt driveway was <br />also constructed over the pipeline, which led to a dispute with Marathon. Instead <br />of suing Mr. Gonderman, Marathon has attempted to get the City to correct the <br />problem. Marathon's attorney has taken the position that there can be no <br />encroachment on Marathon's easement on Lot 3A (as is requested for <br />development of the hotel) until the Blue Heron encroachment issue is resolved. <br />Mr. Gonderman will not sign a document admitting to the encroachment and there <br />has been a stalemate for several years. This problem has continued on despite the <br />work of six attorneys over the course of several years. The Commission has <br />offered Marathon an additiona120' on either side of the pipeline through out the <br />golf course in exchange for Marathon allowing the improvements to be <br />constructed on Lot 3A. Marathon's response was extremely unreasonable, in <br />counsel's opinion. The developer of the hotel has also had difficulty in trying to <br />deal with Marathon and is concerned with commencing the development because <br />of his dealings with Marathon. The developer does not want. to have to use a <br />gravel driveway, which is Marathon's preference. The developer is willing to put <br />in special improvements that can easily be removed so that Marathon can get to its <br />pipeline, which will cost the developer approximately $250,000. <br />Marathon, through its attorney, has advised that it has no issue with the <br />improvements the developer desires but still wants to resolve the issue with Mr. <br />Gonderman. The City has offered an additional easement so that Marathon can <br />relocate the pipeline around the Blue Heron improvements, and in return the City <br />wants Marathon to allow the driveway to remain in place and to permit the <br />improvements on Lot 3A to proceed. The City now owns Lots 1B and 1C, which <br />have the pipeline running through them. Marathon blames the City for the <br />construction of the Blue Heron improvements that encroach on the existing <br />pipeline, and has taken the position that the City should pay for the costs to <br />relocate the pipeline and grant Marathon an absolute right to destroy anything <br />existing within the easement currently and in the future. However, it should be <br />noted for the record that, in spite of its rather harsh position, Marathon is not <br />presently using the pipeline, but is only keeping the pipeline in place in the event <br />that it desires to use it in the future. <br />Ms. Pfotenhauer asked if the corner of the Blue Heron building is actually <br />constructed on the easement. Mr. Peterson said the deck is located 25' from the <br />pipeline. Under Federal regulations that is OK but if the Blue Heron had to <br />H:\WPDATAWUTHORTY\050306.M[N.DOC <br />