05/08/06 Board of Public Works Minutes

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~~ 4 3 REGULAR MEETING MAY 8, 2006 ADOPT RESOLUTION N0.25-2006 Upon a motion made by Mr. Inks, seconded by Mr. Gilot and carried, the following Resolution was adopted by the Board of Public Works: RESOLUTION N0.25-2006 A RESOLUTION OF THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA, APPROVING A FORM OF MEMORANDUM OF UNDERSTANDING TO PROVIDE FOR THE ACQUISITION OF RIGHT OF WAY FOR THE IRELAND ROAD ' PROJECT AND OTHER RELATED MATTERS WHEREAS, the Board of Public Works (the "Board") of the City of South Bend, Indiana ("City") has custody of and may maintain all real property of the City; and WHEREAS, the Common Council of the City has previously approved the purchase of right-of-way, including the Right of Way Parcel (as defined below) and the construction of improvements to Michigan Street, Ireland Road and Lafayette Street, including the expansion and improvement of Lafayette Street and Ireland Road at and near the intersection of Lafayette Slrcct and Ireland Road in the City of South Bend and the relocation of certain utilities in the same area (collectively, the "City Improvements"), all in conjunction with the Erskine Commons development project in the South Side Development Area (the "Area"); and WHEREAS, the Board is duly authorized to, and has been empowered and commissioned to, construct or cause to be constructed the City Improvements on behalf of the City; and WHEREAS, the Board has determined that a certain parcel of property currently owned h}' Wennigsen, LLC and more fully set forth by a drawing and legal description as Exhibit A (hereinafter "Right of Way Parcel") is necessary to complete the City Improvements; and WHEREAS, in order to meet development goals for the Area, immediate access to Right of Way Parcel to construct the City Improvements is necessary; and ' WHEREAS, Wennigsen has agreed to convey its interest in the Right of Way Parcel to the Board or South Bend Redevelopment Commission (the "Commission" and with the Board, the "City") conditioned upon Wennigsen's ability to enter into a 1031 Like-Kind exchange with the City whereby Wennigsen acquires a piece of property, which is due west and adjacent to the Wennigsen Full Parcel in exchange for the Right of Way Parcel, and is owned by Lock Joint Tube, LLC ("Lock Joint Parcel"); and WHEREAS, Lock Joint is willing to convey the .Lock Joint Parcel to the City, which would enable the City to make the exchange with Wennigsen and WHEREAS, in turn, the conveyance of the Lock Joint Parcel is conditioned upon the ability of Lock Joint (or its designee which may be Steel Warehouse, Inc.) to enter into a 1031 Like-Kind exchange whereby it acquires from the City a certain parcel of property located on Walnut Street, South Bend, Indiana ("Walnut Street Parcel") in exchange for the Lock Joint Parcel and WHEREAS, on April 21, 2006, the Commission, by resolution, expressed its interested in acquiring the Walnut Street Parcel for the purpose of exchanging the Walnut Street Parcel with Lock Joint for the Lock Joint Parcel in order to obtain the Right of Way Parcel by exchanging the Lock Joint Parcel with Wennigsen for the Right of Way Parcel; and ' WHEREAS, the Walnut Street Parcel is currently the subject of a foreclosure action filed by the IRF and it was sold to the IRP at sheriffs sale in March 2006; and WHEREAS, IRF is interested in selling the Walnut Street Parcel to the City; and WHEREAS, the Commission has approved the entering into certain formal agreements with the various parties that are consistent with the concepts expressed in this Resolution and in the form of Memorandum of Understanding (the "MOU") that has been presented to the Board at its meeting of May 8, 2006; and