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HomeMy WebLinkAboutApproving Proposed Master Lease Between GLC Portage Prairie, LLC. & South Bend Redevelopment CommissionAttest. RESOLUTION 4470 -15 Passed by the Common Council of the City of South Bend, Indiana July 13, 15 20 Presented by me to the Mayor of the City of South Bend, Indiana July 14 15 City Clerk President of Common Council Approved and signed by me `� y l , y 20 I Ss . City Clerk RESOLUTION NO. � O'( S' A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING AND RECOMMENDING A PROPOSED MASTER LEASE BETWEEN GLC PORTAGE PRAIRIE, LLC, AS LESSOR, AND THE SOUTH BEND REDEVELOPMENT COMMISSION, AS LESSEE WHEREAS, the South Bend Redevelopment Commission (the "Commission"), the governing body of the South Bend Department of Redevelopment, exists and operates under the provisions of Indiana Code 36 -7 -14, as amended from time to time (the "Act "); and WHEREAS, pursuant to the Act, the Commission has previously designated and declared an area in the City of South Bend, Indiana (the "City "), known as the River West Development Area, to be an economic development area and an allocation area (the "Area ") for the purpose of collecting tax increment finance revenues, adopted an economic development plan for the Area, and established an allocation fund for the Area; and WHEREAS, the Commission has received a proposal to enter into a master lease agreement (the "Master Lease" attached hereto as Exhibit A ) with GLC Portage Prairie, LLC (the "Developer ") by which the Commission would contribute to the construction and marketing of a speculative commercial/bulk distribution facility of approximately two hundred thousand (200,000) leasable square feet of space in the development known as Ameriplex at Interstate 80/90 (the "Project "), which Project is to be located in the Area and is intended to enhance the City's ability to attract and retain businesses by providing move -in ready options for prospective business tenants for commercial and/or distribution uses; and WHEREAS, the Commission seeks the Common Council's approval and recommendation of the Master Lease pursuant to Section 2.5 of the Act; and WHEREAS, the Common Council desires to approve the Master Lease, pursuant to Section 2.5 of the Act. THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby approves the Master Lease, pursuant to Section 2.5 of the Act, in substantially the form provided at this meeting and attached hereto as Exhibit A subject to the following express limitations: (a) the term of the Master Lease may not exceed sixty (60) months; and (b) the total consideration paid by the Commission under the Master Lease may not exceed One Million Six Hundred Seventy -Four Thousand Dollars ($1,674,000). SECTION II. This Resolution shall be in full force and effect from and after the time it has been adopted by the Common Council, approved by the Mayor, and otherwise 1 executed and delivered in accordance with any and all laws pertaining thereto. 4000.0000016 63839364.001 PRESENTED , �( 3 -1 J/ )40T APPCOVW kPovTIO � - V 3 -k i COMMON COUNCIL OF THE TY OF S BEND, INDIANA Member of the Common Council 2 Filed In Cast, - office JCWtt t�ia3s$33 CITY CL ERCt, 8d9UTH REND, IN TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 15 -59 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING AND RECOMMENDING A PROPOSED MASTER LEASE BETWEEN GLC PORTAGE PRAIRIE, LLC, AS LESSOR, AND THE SOUTH BEND REDEVELOPMENT COMMISSION, AS LESSEE Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. This bill was heard by the Community Investment Committee. Karen L. White Chairperson, Committee of the Whole 227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT SCOTT FORD, EXECUTIVE July 8, 2015 Mr. Tim Scott President, South Bend Common Council 41h Floor, County -City Building South Bend, IN 46601 PHONE: 574235 -9371 FAx: 574/235 -9021 Filed i." lerks-s �I$i�e� FJUL 08 2015 CIN CLERK, BOi1Th FJEBdD, Ip4 Re: Resolution to Approve Master Lease — River West Development Area Portage Prairie Dear President Scott: Attached is a Resolution to approve a master lease between Developer GLC Portage Prairie, LLC and the South Bend Redevelopment Commission (RDC). The Resolution grew from an effort to address the lack of industrial space available in our market. DCI staff proposed the terms of a potential Spec industrial building to the Redevelopment Commission in October, 2014. Since that time we have actively negotiated with multiple developers as to potential terms and the scope of the project. We have been able to negotiate favorable terms with Great Lakes Capital which has agreed to build a 200,000 square foot shell under an arrangement in which the RDC will enter into a 5 year Master Lease backed by TIF funding. The terms of the lease are outlined in the document attached to the Resolution as Exhibit A. Following are the goals of this project: • Enhance the City's ability to remain competitive in response to Economic Development leads • Capitalize on the momentum in the market Create an opportunity for rapid job creation • Utilize Class A industrial as a competitive advantage in marketing Department of Community Investment staff request that the Common Council approve the Master Lease, pursuant to Section 2.5 of Indiana Code 36 -7 -14 , in substantially the form attached to the Resolution as Exhibit A subject to the following express limitations: (a) the term of the Master Lease may not exceed sixty (60) months; and (b) the total consideration paid by the Commission under the Master Lease may not exceed One Million Six Hundred Seventy -Four Thousand Dollars ($1,674,000). PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITIN KAIN PAMELA C. MEYER CHRIS FIELDING DONALD E. INKS Upon approval from the Common Council it is the intent of staff to present the terms of the Master Lease to the Redevelopment Commission on July 16, 2015. Either I or another member of the Department of Community Investment will present this Resolution to the Council at its Committee meeting and at the regular Council meeting on July 13, 2015. Thank you for your consideration of this Resolution. Sincerely, lsten Fielding Department of Communi Investment Assistant Executive Director