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HomeMy WebLinkAbout6.A.(1) Resolution No. 2631~~-C~~ Community & Economic Development 1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601-1830 Phone 574/235-9371 Fax 574/235-9021 To: Redevelopment Commission ~~~ From: Bill Schalliol, Economic Development Planner Subject: Resolutions 2631 -Former Schillings Camera Store (325-329 S Lafayette) Date: December 15, 2009 Attached to this staff report is Resolutions 2631 which relates to property at 501 W. Western Avenue in the Coveleski Neighborhood Planning Area within the South Bend Central Development Area. This parcel was added to the South Bend Central Development Area acquisition list by Resolution 2595 on August 26, 2009. The parcel proposed for acquisition is the following: Tax Key No. Address Owner 18-3009-0308 325-329 S Lafayette Cari Shein Resolution 2631 The purpose of Resolution 2631 is to set the acquisition value for the property commonly known as the former Schillings Camera Store located at 325-329 S Lafayette Blvd. The average appraised value as determined by two qualified appraisers is $333,000.00. This value is fora 23,760 SF (+/- .545 acres) lot with one 17,565 SF commercial structure. The parcel sits on the west side of Lafayette north of the intersection of Lafayette and Western and is located in the Coveleski Park - Large Development Site Block bound by Western, Lafayette, Wayne and William. (See attached map). There are only three property owners in this block and this acquisition would eliminate one acquisition component for the future. The property was renovated in the last several years and could be used for office or other commercial uses based on the zoning. Because the parcel sites mid-block, because it is vacant and because the seller was motivated to sell at this time, the acquisition of this property is a reasonable move by the Commission to tie up one of the three land blocks in this development zone. The property owner will settle at the appraised value but has asked for relocation assistance to remove several large items from the building that are currently being stored in the building. Instead of submitting acounter-offer for the property, staff has worked with the owner to cover the relocation costs of Fourteen Thousand ($14,000.00) Dollars as part of the purchase. Summary Staff requests favorable approval of Resolutions 2631. The total purchase of the property would be $347,000.00, and the value is reasonable and consistent with values paid to others in the neighborhood. This is a key parcel and is adjacent to other property owned by the Commission. What We Do Today Makes A Difference! ., . . ,,,-,. :~..,~ ~~`; W ~ , ~( y ~,y •<<{ /'L LL ~~ U . _, P~19 a;~a~e~~7 ~ ... i' ~ 1' f . ~ : l~'~ { \ ~{ 'C ~ i :C O ~ x ~ ••~xC k ~ • " J ~>~ ~ ~ '~ ^ . ~' ~ ti~y . . ^ `tip:. ,~(~t { y Q <' `: `' U .~,~ . ~• ~ x ~ ,S.u~,~,u~~~ ~{ a~ ~. ~~ cn - - a -- o ~~~~: ~ F „~,;~:.:i~J ~~>° ~ a~ M ~ ~ ~: ~ Cfl ~r N J a--' (a O (ry ~ N ~S ~~!IIrM G r ~ ~, M ~ RESOLUTION NO. 2631 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION RELATED TO ACQUISITION OF PROPERTY IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA WHEREAS, under the authority granted by Indiana Code § 36-7-14, et sey. and in furtherance of the South Bend Central Development Area Plan ("Plait"), the South Bend Redevelopment Commission ('Commission"') has determined that it is necessary to acquire unencumbered fee simple interest in certain property located within the area heretofore designated as the South Bend Central Development Area (the "Area") within the City of South Bend, Indiana (the "City"'), which property is more particularly described at Exhibit A attached hereto and incorporated herein ("Property"); and WHEREAS, on August 26, 2009, the Commission adopted Resolution No. 2595 amending the Plan and adding the Property to the Area's acquisition list; and WHEREAS, two (2) independent appraisals of the Property have been obtained in accordance with Indiana Code~~' 36-7-14-19(b), which provide an offering price of $333,000.00 (the "Offering Price"); and WHEREAS, the Commission now desires to authorize its authorized agents, hired for such purposes, or the staff of the Commission to provide and negotiate an offer for the Purchase of the Property in accordance with Indiana Code ~ 36-7-14-19, which may include relocation costs and the Commission's payment of expenses incidental to the conveyance and determination of the title of the Property; and WHEREAS, the Commission finds that all procedures necessary for authorizing and acquiring the Property have been completed in accordance with Indiana law; NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission that: 1. Authorized agents of the Commission and the staff of the Commission are hereby authorized and directed to cause a purchase offer to be made in writing to the owner(s) of the Property as described at Exhibit A at the Offering Price (the "Average Acquisition Price' in Exhibit A) in accordance with Indiana Code~~' 36-7-14-19, which offer or process may include relocation costs and the payment of expenses incidental to the conveyance and determination of the title of the Property. 2. The Commissions agents and attorneys are hereby authorized and directed to negotiate and prepare documentation necessary to accomplish the acquisition of the Property in accordance with this Resolution and in a form acceptable to legal counsel. 3. The Commission hereby ratifies any actions of its staff or legal counsel previously taken consistent with the authority provided in Section 1 or 2 hereof. Notwithstanding the foregoing, no representations, contract or understanding relative to the purchase of the Property, whether made by a Commissioner, employee or other agent or official, is binding against the Commission until approved and accepted by the Commission in writing. The Commission hereby accepts, in advance, any purchase of the Property pursuant to a unifo~-~n acquisition offer set forth at Indiana Code ~ 32-24-1- 5 (or a purchase offer deemed by legal counsel to be substantially similar to said Uniform Acquisition Offer, which may include the payment of expenses incidental to the conveyance and determination of title). 4. Don Inks or Jeff Gibney is authorized to execute on behalf of the Commission any documents necessary to carry out the intent of this resolution. ADOPTED at a Regular Meeting of the South Bend Redevelopment Commission held on December 18, 2009, at 1308 County-City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Prinrr~ Ainnc° unr Tit r ATTEST: South Bend Redevelopment Commission Prinn'r A'umc un~ l7~ r South Bend Redevelopment Commission EXHIBIT A PROPERTY DESCRIPTION AND OFFERING PRICE Average Tax Key No. Address Owner Acquisition Price 18-3009-0308 325-329 S Lafayette Cari Shein $333,000.00 Blvd. PURCHASE AGREEMENT By and Between South Bend Redevelopment Commission Cari Shein (325-329 South Lafayette Boulevard) December 4, 2009 THIS PURCHASE AGREEMENT, dated as of the 18th day of December, 2009, is made and entered into between the South Bend Redevelopment Commission, for and on behalf of the City of South Bend, Deparhnent of Redevelopment (the "City") and Cari Shein, as owner of the Property (the "Owner"'). RECITALS WHEREAS, the City desires to acquire a parcel of real property, including all improvements thereon, currently owned by the Owner for the redevelopment purposes of the City, which parcel is more particularly described at Exhibit A (the "Property"'): and WHEREAS, the Property is within the boundaries of the City, the South Bend Redevelopment District, and the South Bend Central Development Area; and WHEREAS, the City has completed its acquisition procedures for the Property and has appropriated funds for the purchase of the Property; and WHEREAS, the City has presented the Owner an offer in the amount of $333,000.00, which is the average of two (2) appraisals obtained by the City, for the Property; and WHEREAS, the Owner have provided the City a relocation value of $14,000.00 which would make the total offer for the acquisition be $347,000.00; and WHEREAS. the City desires to accept the Owner's offer and the parties desire to complete the transaction pursuant to the terms and conditions set forth in this Agreement; NOW, THEREFORE, the Parties hereby agree and represent as follows: The Owner hereby agrees to sell the Property, more particularly described in Exhibit A, to the City for Three Hundred and Forty-Seven Thousand Dollars ($347,000.00) (the "Purchase Price~~). subject to the following terms: (a) The City and the Owner shall close the transaction in two separate actions described as follows: (i) on a date (the "Closing Date #1") that is within the calendar year of 2009, the City and the Owner will close this transaction at Meridian Title Company, South Bend, Indiana 46601 (the "Title Company"). The City will pay the Owner a closing fee of One Hundred Fifty Thousand Dollars ($150,000.00) and the relocation fee of Seven Thousand Dollars ($7,000.00). After closing, the City will become title holder to the property and the Owner will become an at-will tenant on the property until the closing (ii) on March 31, 2010 (the "Closing Date #2•'). Meridian Title Company. South Bend. Indiana 46601 (the "Title Company`) will release the remaining One Hundred Ninety Thousand Dollars ($190,000.00) to the Owner. At the time of payment, the transfer of the property will between parties will be completed. (b) The Owner shall continue to own and use the Property until the Closing Date and hereby covenants that she will not alter the condition of the Property. Additionally, the Owner may not release any substances, hazardous or otherwise on or near the Property, or accumulate any other materials, goods, refuse or debris on or near the Property. The Owner further may not salvage or remove any fixtures or systems from the Property, unless specifically authorized by the City in writing. If the Owner takes any action in violation of this subsection (b), at closing the City may withhold a portion of the Purchase Price to pay for any repairs or clean up necessary to restore the Property to its condition as of the date of this Agreement. The Owner shall be entitled to remain in possession and to remove all of his personal property and appliances in an orderly manner consistent with all applicable law and regulations up to and until March 31, 2010. (c) At closing, the Owner shall deliver to the City a warranty deed in the form attached hereto as Exhibit B providing for the conveyance of the Property fi•ee and clear of all liens, mortgages and encumbrances. If necessary, the sale proceeds shall be applied to satisfy any mortgages, encumbrances, or due and owing taxes remaining on the Property as of the Closing Date. All taxes accrued on the Property prior to closing shall be the sole responsibility of the Owner and an estimated amount of the due and owing and accrued taxes shall be withheld from the sale proceeds. 2. The City shall be responsible for the recording costs and any other similar closing costs. 3. The parties each represent that no real estate commissions are due and owing to any party with respect to this transaction. 4. A. The Owner represents and warrants the following to be true and accurate as of the effective date of this Agreement: (a) The Owner warrants and represents that it has no knowledge of: a) any hazardous substance at, under (including the groundwater) or upon the Property; or b) any hazardous substances released from the Property onto any other property or into the waters of the State, the groundwater or any publicly or privately owned well. (b) To the best of Owner's knowledge, neither the Property nor the Owner, due to any of the Owner's past operations on the Property, are subject to any judicial or administrative proceedings or to any order from, or agreement with, any Governmental Authority respecting: (i) any violation or alleged violation of any environmental laws or (ii) any remedial action or (iii) any claims arising from the release or threatened release of a hazardous substance to, at or from the Property. (c) The Owner has not received any written or, to the best of Owner"s knowledge, any oral communications from any Governmental Authority informing the Owner of any investigation being or to be conducted by a Governmental Authority with regard to the release or threatened release of a hazardous substance to, at or from the Property. (d) No environmental lien has attached to or been asserted against all or any portion of the Property. (e) To the best of Owner's knowledge there are no underground storage tanks on the Property. B. Notwithstanding anything to the contrary herein, the City agrees it shall not hold the Owner liable for any remediation costs or expenses incurred by the City in connection with any voluntary remediation undertaken by the City at the Property. The Owner acknowledges that he has conducted his ovum due diligence and acknowledges that the Purchase Price is fair and reasonable and waives any right that he may have to an appraisal or to contest or challenge the validity of compensation received under this Purchase Agreement. 6. This Purchase Agreement embodies the entire agreement between the parties and cannot be varied except by the written agreement of the parties. No representation, promise or inducement not included in this Agreement shall be binding upon the parties hereto. All the terms and conditions of this Purchase Agreement are hereby made binding on the successors and pernlitted assigns of both parties hereto. This Purchase Agreement shall be governed by and construed in accordance with the laws of the State of Indiana and venue for any action shall be St. Joseph County, Indiana. 9. This Purchase Agreement shall not be effective or binding until fully executed by the parties hereto. This Purchase Agreement maybe executed in counterparts. 10. This Purchase Agreement will survive closing. 1 1. If any provision of this Purchase Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions of this Purchase Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 12. Each party shall execute and deliver to the other all such other further instruments and documents as may be reasonably necessary to accomplish the actions contemplated by this Purchase Agreement and to provide and secure to the other party the full and complete enjoyment of its rights and privileges hereunder. 13. This Purchase Agreement was negotiated by the parties at arm"s length and each of the parties hereto has reviewed the agreement and has had the opportunity to consult with independent counsel. Neither party shall maintain that the language in the Purchase Agreement shall be construed against any signatory hereto. 14. Words of any gender used in this Purchase Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise. 15. The undersigned persons executing and delivering this Purchase Agreement on behalf of each of the parties respectively represent and certify that they are duly authorized and are fully empowered to execute and deliver this Purchase Agreement and that all necessary action has been taken and done. (Remnirtder of ~~uge intentionulh• left Munk) Dated this 18th day of December, 2009. ATTEST: Nrin(er A~umr nnc ~idc' South Bend Redevelopment Commission CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Prinlcr Name unr ~rl e South Bend Redevelopment Commission CARI SHEIN Owner F,XNiRIT A Leal Description of the Property PARCEL I: A parcel of land 1 1 Yz feet, North and South, taken off of and from the entire length of the North side of Lot Numbered Four Hundred Eight (408) as shown on the Original Plat of the Town, now City, of South Bend, in St. Joseph County, Indiana. PARCEL IL• Lots Numbered Four Hundred Six (406) and Fow- Hundred Seven (407) as shown on the Original Plat of the Town, now City, of South Bend, in St. Joseph County, Indiana. Common Address: 325-329 South Lafayette Boulevard, South Bend, Indiana 46619 Tax Key No. 18-3009-0308 EXHIBIT B Form of Wan-ant~eed Return to: Tax Parcel Nos.: South Bend Redevelopment Commission 1200 County-City Bldg. 018-3009-0308 227 W. Jefferson Blvd. South Bend, IN 46601 WARRANTY DEED THIS INDENTURE WITNESSETH, THAT Cari Shein, of St. Joseph County, in the State of Indiana, (Grantor) CONVEYS AND WARRANTS TO THE CITY OF SOUTH BEND, STATE OF INDIANA for the use and benefit of its Department of Redevelopment, 227 W. Jefferson Boulevard, Suite 1200, South Bend, Indiana, for and in consideration of one dollar ($1.00) and other good and valuable consideration, the receipt whereof is hereby acknowledged, the following described real estate in St. Joseph County, Indiana, to-wit: Exhibit "A" attached hereto and made a part hereof Grantor herein agrees to pay all real estate taxes and assessments levied or assessed against the above-designated real estate prior to the date of this deed. Grantor hereby conveys the above-described real estate free and clear of all leases, licenses, or other interests, both legal and eduitable, and all encumbrances of any kind or character. This document shall constitute a conveyance of the above-described real estate in fee simple, and no reversionary rights whatsoever are intended to remain in the Grantor. The undersigned person executing this Warranty Deed represents and certifies that she is competent and fully empowered to execute and deliver this deed and in doing so is not violating any other agreement to which she is a party; that the Grantor has full legal capacity to convey the real estate described; and that all necessary action necessary to complete this conveyance has been duly taken. (Remai~rder of~page intentionally left blank) Page 1 of 2 Dated this day of , 2009. Cari Shein Grantor/Owner STATE OF INDIANA ) SS: ST. JOSEPIJ CO[JNTY ) Before me, the undersigned, a Notary Public for and in said County and State this day of , 2009, personally appeared Cari Shein, and acknowledged execution of the foregoing Warranty Deed. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal. (SEAL) Commission expires: Notary Public Resident of St. Joseph County, Indiana I affirm, under the penalties for perjury, that I have taken reasonable care to react each Socia] Security number in this document, unless required by law. Lawrence J. Meteiver Prepared by Lawrence J. Meteiver, Assistant City Attorney, 1400 County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana 46601, (574) 235-9294. Page 2 of 2 EXHIBIT A to Warranty Deed Legal Description of the Property PARCEL I: A parcel of land 11 '/z feet, North and South, taken off of and from the entire length of the North side of Lot Numbered Four Hundred Eight (408) as shown on the Original Plat of the Town, now City, of South Bend, in St. Joseph County, Indiana. PARCEL II: Lots Numbered Four Hundred Six (406) and Four Hundred Seven (407) as shown on the Original Plat of the Town, now City, of South Bend, in St. Joseph County, Indiana. Common Address: 325-329 South Lafayette Boulevard, South Bend, Indiana 46619 Tax Key No. 18-3009-0308