HomeMy WebLinkAboutNo. 1921 approving execution of an addendum to contract for purchase/sale of real estate and other related documents concerning acquisition of property located in the SBCDARESOLUTION NO. 1921
A RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA
REDEVELOPMENT COMMISSION APPROVING THE EXECUTION OF AN
ADDENDUM TO CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE
AND OTHER RELATED DOCUMENTS CONCERNING ACQUISITION OF PROPERTY
LOCATED IN THE SOUTH BEND CENTRAL DEVELOPMENT AREA
WHEREAS, pursuant to the powers granted under Ind. Code § 36- 7 -14 -1, et seq., the South Bend
Redevelopment Commission ( "Commission ") has been engaged in the process of acquiring several
separate parcels of real property in the general vicinity of Main Street and Jefferson Boulevard in the South
Bend Central Development Area in order to facilitate a development project on the combined site; and
WHEREAS, V Source Corporation ( "Seller ") is the owner of one of the parcels sought to be
acquired that is located at 207 -211 S. Main Street ( "Property"), said parcel currently used by Seller as a
parking lot for use by tenants and customers at Seller's office building located on Jefferson Boulevard
( "First Bank Building "); and
WHEREAS, Commission and Seller have previously entered into a Contract for Purchase and Sale
of Property dated February 24, 1998, as amended on February 4, 2000 ( "Contract "), wherein the
Commission agreed to purchase and Seller agreed to sell the Property for the sum of One Hundred Five
Thousand and 00 /100 Dollars ($105,000.00); and
WHEREAS, in accordance with the Contract, the Commission also agreed to meet certain
conditions including, but not limited to, replacement of an equal number the parking spaces now located
on the Property by relocating said parking to an area on or around the general vicinity of Main and
Jefferson Boulevard in order not to impair Seller's use and enjoyment of First Bank Building; and
WHEREAS, it has subsequently been determined that the Commission can not meet the conditions
expressed in the Contract and thereafter, Seller and Commission have continued to negotiate to reach an
amended agreement related to Commission's acquisition of the Property; and
WHEREAS, in order to resolve all outstanding issues, Seller has proposed that the Contract be
amended to (i) increase the sales price from $105,000.00 to $170,000.00 and (ii) convey portions of
vacated alleys in the Project area and a portion of the newly- assembled site at the southwest corner of Main
Street and Jefferson Boulevard and (iii) has proposed that Seller would construct at its own expense the
improvements and landscaping depicted in the best site plan for the area; and
WHEREAS, after careful consideration, the Commission has determined that the $170,000.00
APN purchase price is reasonable, that the conditions proposed by Seller are reasonable and that acquisition of
the Property is necessary to and consistent with the South Bend Central Development Area Development
Plan; and
WHEREAS, the Commission desires to enter into an Addendum to Contract for Purchase and Sale
of Real Estate and other related documents concerning the transfer of this Property to the Commission and
consistent with Seller's proposal; and
WHEREAS, the Commission meets in regular sessions on a semi - monthly basis and completion
of the paperwork related to this real estate transaction may require immediate action from the Commission,
including the execution of certain documents; and
WHEREAS, the Commission believes that it is in the best interest of the public that the real estate
transaction be closed and that all necessary approvals and actions taken in a timely manner.
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT
COMMISSION, AS FOLLOWS:
1. The Commission hereby finds that the price of One Hundred Seventy Thousand and 00 /100
Dollars ($170,000.00) is reasonable, that the conditions proposed by Seller are reasonable and that
acquisition of the Property is necessary to and consistent with the South Bend Central Development
Area Development Plan.
2. The Commission hereby approves the form of Addendum to Contract for Purchase and Sale
of Real Estate presented to the Commission at this meeting and authorizes the President of the
Commission to execute and the Vice President or Secretary to attest said agreement in the form
�r presented at this meeting with such changes as may be suggested by legal counsel and approved
by the President and Vice President or Secretary with such approval evidenced by the execution
and attestation respectively, thereof.
3. The Commission hereby authorizes the President of the Commission to execute and the
Vice President or Secretary to attest any and all other documents relating to the Project and
necessary to effectuate the closing of said Project upon the advice of legal counsel.
4. This Resolution shall be in full force and effect from and after its passage by the
Commission.
ADOPTED at a meeting of the South Bend Redevelopment Commission, held on November 1,
2002 at 1308 County -City Building, South Bend, Indiana 46601.
SOUTH BEND REDEVELOPMENT COMMISSION
Robert W. Hun ,President
ATTEST:
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Community & Economic Development��� a�
1865
1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 ♦ Phone 574/235 -9371 ♦ Fax 574/235 -9021
To: Redevelopment ommission
From: Bob Math�a/Cheryl Greene
Subject: Resolution 1921 - A Resolution Approving The Execution Of An Addendum To
Contract for Purchase and Sale of Real Estate (Is' Source Parking Lot, 207 - 211 S.
Main St. - Tax Key No. 18- 3007 -0227)
Date: October 31, 2002
Background: On February 24, 1998, the Redevelopment Commission signed a Contract for Purchase
and Sale of Real Estate to acquire real property located at 207 -211 S. Main Street ( "Property"). The
Property is owned by 1 st Source Bank and is used as a parking lot by tenants in the 1 st Source office
building located across Jefferson Street. The Property is one of five parcels of property being assembled
by the Commission in order to facilitate a development project on the combined site. In 1998, the
Commission and 1 St Source agreed to a purchase price for the Property of $105,000 based upon the
average of two independent appraisals previously prepared for the Commission.
As a condition precedent to execution of the sales contract, the Commission agreed "to enhance [Seller's]
existing Jefferson Parking Lot, including, but not limited to, the acquisition and conveyance to Seller of
additional adjacent property" in order to relocate and replace an equal number of the parking spaces now
located on the Property and not impair the 1 st Source office building which relies on this lot for its
tenants and customers. It was subsequently determined that the Commission could not meet this
condition and, at the same time, manage to accommodate a development project on the combined site
of the size and character intended. At best, any design that incorporates a large scale project on the
combined site and provides for parking in the remaining available areas would still result in a deficiency
of at least five to seven parking spaces less than 1 st Source currently controls.
HAWpdata\Main dJeff6.v,pd What We Do Today Makes A Difference!
Upon determination that the Commission could not meet the condition expressed in the Contract,
1 st Source and Staff entered into discussions on how best to accommodate 1 st Source's parking
needs and, at the same time, not impair the Commission's potential for a high quality, large scale
development. Based upon discussions with Staff, 1 st Source has proposed that the sales contract be
amended to: (a) increase the sales price from $105,000 to $170,000; (b) establish the closing date
as no later than December 24, 2002; and (c) convey portions of vacated alleys adjacent to the Seller's
Jefferson parking lot and a portion of the "assembled site at the southwest corner of Main and
Jefferson." In addition, Seller has proposed that it would construct at its own expense the
improvements and landscaping depicted in the best site plan for the area. A copy of the draft
amendment proposed by 1" Source is attached for review.
The Property is essential to the successful conclusion of assembling the Main & Jefferson Project
for ultimate disposition as part of a development project. This Property is the last remaining parcel
required to complete the assembly of the site. The Main & Jefferson Project, in turn, is vital to
achieving the goals of the South Bend Central Development Area Development Plan. Resolution
of the parking space issue has been the subject of lengthy negotiations with the Seller starting in
February 1998. During the site design/redesign process it was determined that meeting the original
required number of parking spaces cannot physically be done. The alternative is to remove the
Property from the acquisition list and start the acquisition process anew with the potential for a
condemnation action in order to acquire the Property.
Action Requested: The Commission is requested to approve Resolution 1921. By approving the
Resolution the Commission is:
(a) declaring that it has found the new price of $170,000 is reasonable, the Seller's other conditions
are reasonable, and the acquisition of the parking lot is necessary to and consistent with the South
Bend Central Development Area Development Plan;
(b) approving the form of the Addendum to Contract for Purchase and Sale of Real Estate attached
to this staff report: and
(c) authorizing the President of the Commission to execute and the Vice President or Secretary to
attest, with advice of legal counsel, both the addendum in the form presented in this meeting and
any and all other documents relating to the purchase of the Property.
HAWpdata\Main dJeff.6.wpd What We Do Today Makes A Difference!
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BARNES & YftoRNB RG
Attorneys at L
TO:
N
Cheryl A- Greene
FROM: Michael D. Hardy
DIRECT DIAL: (574) 237 -1233
FAX COVER SHEET
COMPANY NAME
E -DAL:
".. ( I I
100 North Michigan
6001 Source Bank Center
South Bend, Indiana 46601 -1632
(574) 233 -1171
Fax Number: (574) 237 -1125
TELECOPY NO.
(574) 235 -9892
DATE: October 10, 2002 TIME SENDING:
NUMBER OF PAGES (INCLUDING THIS COVER SHEET): 4
if 3vu have diffieulry ratiNing this Fax, plmse all ]Mmes & Thornburg at (IKON 574- 237 -1279 and ask for
Cheryl:
Please review the attached and call me when convenient with your comments.
Thanks,
Mike
164.
Response once received: Please deliver immerliately.
CLIENT# 90005 ❑ Original to follow by mail
MATTER# 5000 El Original will not follow by mail
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ADDENDUM TO
CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE
This Addendum modifies and is made a pan of the Contract for Purchase and Sale of
Real Estate (the "Contract ") by and between I"*' SOURCE CORPORATION ( "Seller ") and The
CITY OF SOUTH BEND, for the use and benefit of its Department of Redevelopment. or its
designee or assign ("Purchaser"):
Recitals: Seller shall be amended to read: "I ST SOURCE CORPORATION, or its
subsidiaries or assigns."
2. ' Purchase Price. Is modified to read: "As consideration for the sale of the Property,
Purchaser hereby agrees to: (a) pay the sum of One Hundred Seventy Thousand Dollars
($170,000.00); and (b) comply with such other conditions as more particularly described herein "
3. Date of Closing. Is modified to read: "The Closing of this purchase shall take
place at 6th Floor, Ist Source Bank Center, South Bend: Indiana or at such other place mutually
agreeable to the parties no later than December 24, 2002."
5. Conditions Precedent to Purchaser's and Seller's Obligations. Is modified to
read: "All conditions precedent to Purchaser's and Seller's Obligations have been satisfied or
waived by the parties. However, in addition to any other conditions set forth in this Agreement.
the Seller and Purchaser, as applicable, shall satisfy and perform the following; which
obligations shall survive the Closing:
(a) Purchaser shall convey to Seller such property as is required to achieve, in
substantial form, the development depicted as "Main/Jefferson Parkins Concept D"
attached to this Agreement as Exhibit A (the "Site Plan "). The actual legal description of
the property to be conveyed to Seller shall be based on the legal survey attached hereto as
Exhibit B (the "Additional Property''). The Additional Property shall consist of Seller's
portions of both the east -west alley, vacated or to be vacated, located between the north -
south alley and Lafayette and the portion of the north -south alley, vacated or to be
vacated. between Jefferson and the east -west alley. Additionally, the Additional Property
shall include the Purchaser's half of the north -south alley, vacated or to be vacated,
located between Jefferson and the east -west alley. Finally, the Additional Property shall
include a portion of the assembled site at the southwest corner of Main and Jefferson.
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(b) Purchaser will have prepared, at its expense, all documents necessary to
vacate the alleys included in the Additional Property, including petitions, legal sur.,eys.
title and replatting documents. Further, Purchaser will take the lead in presenting the
necessary documents, appearing at public meetings and entering into discussions with
adjacent property owners as required for the alley vacations and related actions.
(c) Purchaser will provide Seller with a quit -claim deed, an Alta Survey, and
title insurance on the Additional Property.
(d) Seller will construct, at its expense, the improvement, and landscaping
generally depicted in the Site Plan.
(e) Purchaser will. provide Seller, at no cost to Seller, the necessary easement
within the public right of way of the sidewalk to construct the landscaping and planter
buffer generally depicted in the Site Plan.
(f) Purchaser shall request of Tom Herrman that he disclaim any interest in
the southern half of the east -west alley to be vacated. If Mr. Herrman agrees to such a
disclaimer, that portion of the east -rest alley directly south of Seller's existing parking
lot and the Additional Property shall be conveyed or othenvise transferred to Seller upon
vacation.
(g) Purchaser vi-rill assure that any purchaser of the development parcel to the
east of Seller's property depicted on the Site Plan will adequately irrigate and otherwise
maintain any landscaping, adjacent to Seller's property.
IN WITNESS WHEREOF, the undersigned executed and delivered this Addendum to
Contract for Purchase and Sale of Real Estate on the date set forth opposite the name of each.
Dated:
"PURCHASER"
SOUTH BEND REDEVELOPIMENT
COMMISSION
i.
Robert W. Hunt, President
ATTEST:
, Secretary
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b
Dated:
SBOS02 MDk 25042OVI
.t V. L J I I. Z
"SELLER"
IST SOURCE CORPORATION
By:
Its:
[Printed Name)
9