6.B.(5) Real Estate Purcahse and Site Work Agreement

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~~ C s~~ 1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601-1830 • Phone 574/235-9371 • Fax 574/235-9021 To: Redevelopment Commission From: Ann Kolata~~~ ~~ ~ ~ Subject: A~•eement to Purchase Real Estate -The 1100 Corporation Date: March 31, 2009 Property to be Purchased by Commission: 1 100 Prairie Avenue, former Studebaker Foundry. The building contains approximately 450,000 square feet and is located on 19.19 acres. Property Owner: The 1100 Corporation -Don Nuner is the principal of this corporation Tenant: Underground Pipe c~. Valve, Inc. Terms of Purchase: • Commission will purchase the property for S 1,625,000 with a credit of $129,560 for a site in the Oliver Industrial Park. The net purchase price will be $1,495,440. • The 1100 Corporation will purchase 6.32 acres in the Oliver Industrial Park at a price of X20,500 per acre. • Connnission agrees to pay costs associated with ground compaction of the Oliver Industrial Park site. • The real estate closing on both properties will take place within two days of all conditions being met. The closing is to take place by July 1, 2009. • Underground Pipe & Valve will receive $205,000 in relocation payments once the move to the new location is complete. • The existing building will be leased back to The 1100 Corporation for $1 per month until the move to the new building is completed. • A Groundwater Monitoring Access Agreement (Exhibit G) will allow the Commission to monitor existing groundwater wells in the future. • The l 100 Corporation will not seek real property tax abatement for the initial 36,000 square foot building at the Oliver Industrial Park site. • The Connnission agrees to provide crushed stone to be used as base for the storage yard area that will be asphalted. There is a large amount of crushed concrete at the former stamping plant site that will be provided. This should be sufticient but the Agreement provides that the Connnission will pay for any additional crushed stone that is necessary for the base.