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HomeMy WebLinkAbout6B(4) & (5)~~ ~ ~-~y~ SpU TN B • • o' ~I/I/`tio ~ \ `~~ , ', .+ \ ~ e Community & Economic Development ~ `'~'`a~ X865_ 1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601-1830 Phone 574/235-9371 Fax 574/235-9021 To: Redevelopment Commission From: David Relos, Economic Development Planner Subject: Enyart Electric Motor Repair Contract for Purchase and Sale - 1313 Prairie Ave. Additional Relocation Costs - 122 E. Sample St. Date: January 14, 2011 On November 2, 2010, the Commission approved Resolution No. 2793 and 2800, the Acquisition Offer and Counter Offer & Relocation for Enyart Electric Motor Repair (Enyart), located at 122 E. Sample St. The acquisition and relocation of Enyart allows their current building along East Sample to be used by Ivy Tech for the expansion of much needed classroom, storage, and / or parking. On November 19, 2010, the Commission completed the disposition process for 1313 Prairie Ave, by publicly opening bids. There were no conforming bids for this property, which had a purchase offer price of $189,000. Enyart was the only non-conforming bidder. Enyart bid, and continues to offer to purchase 1313 Prairie for $165,000. Enyart has been in business since 1965, and recently acquired another electric motor repair business in Elkhart. They have outgrown their current location, and would like to purchase and relocate to 1313 Prairie to facilitate the consolidation and growth of the two businesses. When considering their move to 1313 Prairie, the owners of Enyart discussed their needs with contractors, who based on those conversations, gave them an estimate of costs for the renovations necessary to accommodate their move. Enyart felt those estimates were close enough to move forward with their and our plans to relocate them. Upon closer inspection by the contractors of the property, they discovered several items not originally included in their estimates, such as ADA compliance, sprinklers needing moved and reconfigured, and transformers not being able to be moved and reused. These items have increased the project from $132,318 to $250,788, or an additional $118,470. Though this increase came as a surprise to all involved, upgrading this building on the western edge of Ignition Park, which has been vacant for many years, will benefit this important corridor of Ignition Park. Both the building's interior and exterior will be upgraded, What We Do Today Makes A Difference! and eventually, at a cost of approximately $60,000 to Enyart, the northern half of this parcel will be cleaned and cleared of its unsightly chain link fence and scrub trees. This move and investment will allow a long time business in South Bend to expand, relocate, and stay in South Bend. Enyart will not seek tax abatement for these improvements. This move also helps to address Ivy Tech's tremendous enrollment growth by allowing them to expand next to their current campus. And finally, this move takes a vacant property near Ignition Park, upgrade it, and increase its overall value. For these three reasons, staff requests approval of the Contract for Purchase and Sale of 1313 Prairie Ave. in the amount of $165,000, and an additional $118,470 ($250,788 total) in relocation assistance needed for the acquisition and relocation of Enyart from 122 E. Sample St. to 1313 Prairie Ave. What We Do Today Makes A Difference! ~n~art ~l ctric 21~lotor R~~air Rewinding and Repairing of Electric Motors -Commercial -Industrial -Domestic 122 East Sample Street South Bend, IN 46601 Phone: 574.288.4731 Fax: 574.282.4860 City of South Bend Redevolpment Commission: December 22, 2010 Regarding: Relocation Of Enyart Electric Motor Repair to 1313 Prairie Avenue 1) For AEP to bring in a 3 phase power drop & termiate inside the building to per-determined wall location at N.W corner No Charge! 2) A) Contractor charges to renovate the existing offices to include service conter area, 2 offices, environmental controlled motor rewinding room (as we currently have), break room including the modernization of the building front for curb appeal and function. B) 35' X 40' deep bay Building addition to house our existing crane :including necessary demolition, disposal, steel & cement as described. ***see attached*** (Ancon Construction $128.850.00) ***see attached*( Ziolkowski Constructiion $144,718.00) Lower of 2 quotes $128,850.00 3) Contractor to furnish labor & material to hook up and distribute 480 volt 3 phase to equipment (see Tri-City Data & Electric) $ 53,149.00 4) To remove, crate, transport, install & hook up to new service our existing step-down transformers & power supplies for 220 Volt 3 phase as required. (Enyarts to do this) $ 2,240 .00 5) Material Costs needed to install and distribute electricity to machines (conduit, Load Center, single phase Transformer 5 disconnects & conduit connectors (Tri City Data. & Electric) $ 15679.00 6) Labor & material to plumb the building for compressed Air (See attached from D.A. Dodd) $ 9,738.00 7) Replace the Carpet in the office area after the partitions are altered. 16.82/sq yd (The Carpet Shop) $ 2,792.00 8) Labor & material to retrofit the new building for our computer network, including cabling for the server, 7 satelites and the switching. (This will reuse our existing computers) One Communication will need to bring in a dedicated pair of lines to serve as our "Static I.P." Internet. (see Rons Electronics) $ 5485.00 2nd Quote from (Converged Communications: $ 5757.57) 9) Contract Labor to crate up & move existing equipment. (See attached by Industrial Installatiions) $ 6,200.00 10) Contract Labor to dismantle 2 Ton Crane move to new location, reassemble and make ready for service (See Attached by Industrial Installations) $ 7,400.00 11) Reimbursement for employee wages paid for the moving of standard inventory, files, office equipment and personal tools. (estimated at entire staff at 40 hours) $ 7,825.00 12) Labor & materials to replace our company sign on the new sight reletter each of our 4 trucks to reflect the new address and phone (Next Day Signs) $ 6,640.00 13) Labor and materials to install alarm system (See attached PER MAR Securities) $ 4790.00 Total See attached Details as proposed by Contractors Not included in the above estimtes are quotations for landscape considerations as itemized by each contractor: removal of scrub trees removal of chain link fences, brush and debris Estimates for this work ranges from $ 59,188 to $ 61,752 Respectfully Submitted: $ 250, 788.00 Richard A. Siri CONTRACT FOR PURCHASE AND SALE This CONTRACT OF PURCHASE AND SALE (hereinafter "Agreement"), dated this day of January, 201 1, between Enyart Electric Motor Repair, Inc. (the `'Company") and the SOUTH BEND REDEVELOPMENT COMMISSION (the "Commission"), the governing body of the Department of Redevelopment of the City of South Bend, Indiana, existing and operating under the provisions of Indiana Code § 36-7-14, as amended; WITNESSETH: 1. The Commission is the owner of record of land in the Airport Economic Development Area commonly known as 1313 Prairie Avenue, South Bend, Indiana and more particularly described at Exhibit A (the "Property"). The Commission has completed the disposition process under Indiana Code ~ 36-7-14-22 and desires to sell the Property to the Company under the terms and conditions set forth herein pursuant to Indiana Code § 36-7-14- 22(h). 2. The Commission shall convey the Property to the Company in exchange for a purchase price of $165,000.00 (the ``Purchase Price"). 3. The Commission hereby represents that it is not aware of any easements or encumbrances other than those of record. At Closing, the Commission shall convey the Property to the Company by quitclaim deed in the form set forth at Exhibit B subject to the following: (a) Applicable zoning laws and regulations; and (b) All easements, conditions, reservations, leases, licenses, access agreements and restrictions as may appear of record, be apparent by an inspection of the Property, or of which the Company has actual or constructive knowledge. As a government entity, the Commission is exempt from taxation under Indiana law, and therefore, no taxes should have accrued against the Property while the Commission is the owner of the Property. The Company agrees to accept the Property under the above-described circumstances and subject to the above-described restrictions and encumbrance provided that the Commission provides the Company a title policy from Meridian Title Company (the "Title Company') showing that no taxes are due and owing on the Property. 4. At Closing, the Commission shall provide a title policy (the "Title Policy") from the Title Company acceptable to the Company insuring the transfer of the Property to the Company in the amount of One Hundred Sixty Five Thousand and 00/100 Dollars ($165,000.00). Other than the costs associated with the Title Policy or each party's respective attorney's fees, the parties shall split all closing expenses and fees, which shall be evidenced by a Closing Statement prepared by the Title Company and signed by the parties hereto or their respective representatives at closing. The parties each represent that no real estate commissions are due and owing to any party with respect to this transaction. 5. The Closing shall be held at a mutually agreed upon location and time (herein referred to as the "Closing"') on a date which is not more than thirty (30) days from the date of this Agreement or as otherwise agreed (the '`Closing Date"). At Closing: (a) Commission shall deliver to the Company the duly executed and acknowledged quitclaim deed conveying the Property to Company as provided in Paragraph 3. (b) Company shall deliver to the Commission the Purchase Price and a Certificate of Existence of the Company issued by the Indiana Secretary of State's Office on the Closing Date or sixty (60) days prior thereto, evidencing that the Company is an Indiana corporation in good standing under Indiana law. (d) Possession shall be delivered at Closing. (e) The parties shall pay all closing costs at Closing in accordance with Section 4 and shall execute a Closing Statement evidencing such fees. 6. The Company agrees to purchase the Property '`AS IS WHERE IS" and without any representations or warranties as to the condition of the Property by the Commission and acknowledges that the Commission, including any of its representatives, has not made any warranties or representations of any kind relating to the Property or the condition or use thereof. The Company has been advised by the Commission to, and has completed to its satisfaction, its 2 own investigations of the Property. The Company has conducted and chosen to rely exclusively on its own inspections of the Property in proceeding with this transaction to purchase the Property. The Company hereby assumes any liability the Commission may have for the condition of the Property, environmental or otherwise, as a result of the Commission's ownership of the Property. The Company agrees to defend, indemnify, and hold harmless the Commission from and against any and all damages, claims, fines or liability for injuries to (including death of) persons or damage to or loss of property, real or personal, or expense in any manner connected with the activities of the Company, its agents, contractors, employees involving the Property. The Commission hereby represents that it has not taken any action that would reasonably result in a lien or encumbrance being placed against the Property. The Company further accepts that the accuracy of legal description contained at Exhibit A is not warranted by the Commission or any other person. 7. This Agreement may not be assigned by the Commission to any other party without the written consent of the Company, which consent may be withheld for any reason, except in the case of an assignment to any entity of the City of South Bend or the Commission or any entity in which the City of South Bend or the Commission have a controlling interest or is the general partner, such consent shall not be unreasonably withheld. This Agreement may not be assigned by the Company without the written consent of the Commission, which consent may be withheld for any reason. 8. This 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. 9. Time is of the essence of this Agreement. 10. Any notice required or permitted to be delivered hereunder shall be deemed to be delivered, whether or not actually received, when deposited in the United States Postal Service, postage prepaid, registered or certified mail, return receipt requested, addressed to the Company or the Commission, as the case may be, at the address set forth below. 3 Company: Richard A. Siri, President Enyart Electric Motor Repair, Inc. 122 E. Sample Street South Bend, Indiana 46601 Commission: Donald E. Inks, Director Department of Redevelopment City of South Bend, Indiana 1200 City-County Building 227 W. Jefferson Boulevard South Bend, IN 46601-1830 With copy to: With copy to: Charles Leone, Esq. City Attorney City of South Bend, Indiana 1400 City-County Building 227 W. Jefferson Boulevard South Bend, IN 4660]-1830 11. All the terms and conditions of this Agreement are hereby made binding on the successors and permitted assigns of both parties hereto. 12. This 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. 13. This Agreement shall not be effective or binding until fully executed by the parties hereto. 14. This Agreement will survive closing. 15. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 16. 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 Agreement and to provide and secure to the other party the full and complete enjoyment of its rights and privileges hereunder. 4 17. This Agreement was negotiated by the parties at arnl's length and each of the parties hereto has reviewed the agreement after the opportunity to consult with independent counsel. Neither party shall maintain that the language in the Agreement shall be construed against any signatory hereto. 18. Words of any gender used in this 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. 19. The undersigned persons executing and delivering this Agreement on behalf of each of the parties respectively represent and certify that they are the duly authorized officers of each and have been fully empowered to execute and deliver this Agreement and that all necessary corporate action has been taken and done. The undersigned persons executing and delivering this Agreement on behalf of the Company represent and certify that (i) they are the officers of the Company duly authorized by a resolution of the shareholders to purchase the Property and enter into this Agreement and (ii) that such action is consistent with the Company's Articles of Incorporation, Bylaws and prior resolutions, and to the extent that this Agreement or any obligation herein conflicts with said documents, the Company by approving this Agreement shall deem such documents to be amended to allow for this Agreement and any action or obligation contemplated or required hereunder. This Agreement may be executed in duplicate or through counterparts. (remainder of page intentionully left blank) 5 EXECUTED in duplicate, each part being an original, as of the day and year set forth above. ATTEST: ENYART ELECTRIC MOTOR REPAIR, INC. Richard A. Siri, President Printer .1'unu~ an Tit e STATE OF INDIANA ) SS: ST JOSEPH COUNTY ) Before me, the undersigned, a Notary Public for and in said County and State this ~7~- day of , 2011, personally appeared Richard A. Siri, known to be the President of Enyart ectric Mot r Repair, Inc. and acknowledged execution of the foregoing Contract for Purchase and Sale on behalf of said Company. IN WITNESS WHEREOF, I have hereunto subscribed any name and affixed my official seal. Resident of State of Indian Resident of-St. 1v Commission Notary Public Notary Public 1 /7/2015 My commission expires: CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT, by and through the South Bend Redevelopment Commission, its governing body ;g„a«„~e Printer .R'ame ant Tit c ATTEST: rgna~i„•~ Printer .A'ame an lit c' STATE OF INDIANA ) SS: ST. JOSEPH COUNTY ) Before me, the undersigned, a Notary Public for and in said County and State this day of 2011, personally appeared and ,known to be the and ,respectively, of the South Bend Redevelopment Commission, the governing body of the City of South Bend, Department of Redevelopment and acknowledged execution of the foregoing Contract for Purchase and Sale on behalf of said Commission and Department. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal. Notary Public Resident of the County, Indiana My commission expires: I affirm, under the penalties for perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law. Lawrence J. Meteiver. This instrument was prepared by Lawrence J. Meteiver, Assistant City Attorney, 1400 County-City Building, 227 W. Jefferson Blvd., South Bend. Indiana 46601, (574) 235-9294. 7 EXHIBIT A Common Description 1313 Prairie Avenue, South Bend Indiana Tax Key Numbers 18-8021-084701 18-8021-084708 Leal Description PARCEL I: Part of the Northeast Quarter and also part of the Northwest Quarter of Section 14, Township 37 North, Range 2 East of the 2nd P.M., in the City of South Bend, in St. Joseph County, more particularly described as follows: Commencing at a point in the West line of Prairie Avenue 45.00 feet South by rectangular measurement from the South line of Garst Street in said City; thence South 28°14'42" West along the Westerly line of said Prairie Avenue a distance of 1035.84 feet to the point of beginning; thence continuing South 28°14'42" West along the Westerly line of Prairie Avenue 120.00 feet; thence Northwesterly at right angles to the last described course 370.00 feet; thence North 28°14'42" East, parallel with the Westerly line of Prairie Avenue 120.00 feet; thence Southeasterly at right angles to the last described course 370.00 feet to the point of beginning. PARCEL II: Part of the Northeast Quarter and also part of the Northwest Quarter of Section 14, Township 37 North, Range 2 East of the 2nd P.M., in the City of South Bend, in St. Joseph County, more particularly described as follows: Commencing at a point in the West line of Prairie Avenue 45.00 feet South by rectangular measurement from the South line of Garst Street in said City; thence South 28°14'42" West along the Westerly line of said Prairie Avenue a distance of 1155.84 feet to the point of beginning; thence continuing South 23°14'42" West along the Westerly line of Prairie Avenue 120.00 feet; thence Northwesterly at right angles to the last described course 370.00 feet; thence North 28°14'42" East, parallel with the Westerly line of Prairie Avenue 120.00 feet; thence Southeasterly at right angles to the last described course 370.00 feet to the point of beginning. (~~ -U 0~ ~ ~ ~ ~'l e E cX EXHIBIT B Deed for the Property RETURN TO: Property Address: Enyart Electric Motor Repair, Inc. 122 E. Sample Street South Bend, IN 46601 Attn: Richard A. Siri Mail Tax Statements To (same as above) AUDITOR'S RECORD Transfer No. Taxing Unit Date Tax ID No. 18-8021-804701, 18-8021-804708 QUIT CLAIM DEED THIS INDENTURE WITNESSETH That the City of South Bend, Department of Redevelopment, in St. Joseph County, Indiana (the "Grantor") RELEASES AND QUIT CLAIMS to Enyart Electric Motor Repair, Inc. (the '`Grantee") for One and 00/100 Dollar ($1.00) and other valuable consideration the receipt whereof is hereby acknowledged, the following described REAL ESTATE (the "Property") in St. Joseph County, in the State of Indiana, to wit: EXHIBIT A, attached hereto an d made a part hereof subject to all easements, conditions, reservations, leases, licenses, access agreements and restrictions as may appear of record, be apparent by an inspection of the Property, or of which the Grantee has actual or constructive knowledge. The undersigned persons executing this deed on behalf of Grantor represent and certify that they are duly authorized to act for the Grantor and have been fully empowered by the South Bend Redevelopment Commission to execute and deliver this deed; that Grantor has full capacity to convey the real estate described herein; and that all necessary action for the making of such conveyance has been taken and done. Dated this day of City of South Bend, Department of Redevelopment By: Its: South Bend Redevelopment Commission State of Indiana, County of St. Joseph ss: 2011. ATTEST By: Its: South Bend Redevelopment Commission Before me, the undersigned, a Notary Public in and for said County and State, personally appeared the within named and ,the and ,respectively, of the South Bend Redevelopment Commission, the governing body of the City of South Bend, Indiana, Department of Redevelopment, who acknowledged the execution of the foregoing Deed and who, having been duly sworn, stated that the representations therein contained are true. WITNESS, my hand and Seal this (SEAL) Commission expires: Notary Public Resident of County, I aftinn, under the penalties for perjury, that I have taken reasonable care to redact each social Security number in this document, unless required by law. Lawrence J. Meteiver. day of , 2011. This instrument was pmpared by Lawrence J. Meteiver, Assistant City Attorney, 1400 County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana 46601, (5 74 1 23 5-9294. EXHIBIT A Common Description 1313 Prairie Avenue, South Bend Indiana Tax Key Number 18-8021-084701, 18-8021-084708 Leal Description PARCEL 1: Part of the Northeast Quarter and also part of the Northwest Quarter of Section 14, Township 37 North, Range 2 East of the 2nd P.M., in the City of South Bend, in St. Joseph County, more particularly described as follows: Commencing at a point in the West line of Prairie Avenue 45.00 feet South by rectangular measurement from the South line of Garst Street in said City; thence South 28°14'42" West along the Westerly line of said Prairie Avenue a distance of 1035.84 feet to the point of beginning; thence continuing South 28°14'42" West along the Westerly line of Prairie Avenue 120.00 feet; thence Northwesterly at right angles to the last described course 370.00 feet; thence North 28°14'42" East, parallel with the Westerly line of Prairie Avenue 120.00 feet; thence Southeasterly at right angles to the last described course 370.00 feet to the point of beginning. PARCEL 11: Part of the Northeast Quarter and also part of the Northwest Quarter of Section 14, Township 37 North, Range 2 East of the 2nd P.M., in the City of South Bend, in St. Joseph County, more particularly described as follows: Commencing at a point in the West line of Prairie Avenue 45.00 feet South by rectangular measurement from the South line of Garst Street in said City; thence South 28°14'42" West along the Westerly line of said Prairie Avenue a distance of 1155.84 feet to the point of beginning; thence continuing South 23°14'42" West along the Westerly line of Prairie Avenue 120.00 feet; thence Northwesterly at right angles to the last described course 370.00 feet; thence North 28°14'42" East, parallel with the Westerly line of Prairie Avenue 120.00 feet; thence Southeasterly at right angles to the last described course 370.00 feet to the point of beginning.