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HomeMy WebLinkAbout6A (1)& A- (() • r a n d u ni �vl;rr o Community & Economic Development r' 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 Plannax, Subject: Resolution No. 2934 — Termination of Contract for Sale of Land, First Amendment to the Contract, and Development Agreement - Jeffcourt Inc. Date: August 23, 2011 On April 12, 2011, the Commission authorized Richard Nussbaum II, Attorney -at -Law, to prepare notices of default for the Contract for Sale, First Amendment to the Contract, and Development Agreement with Jeffcourt, Inc, for the Commission owned lot at the northwest corner of Jefferson and St. Joe streets. As part of these agreements, Jeffcourt had certain obligations, which have not been met. Because these obligations have not been met, Jeffcourt is in default of the agreements. The two most noteworthy defaults are: • Property was to be closed on by December 15, 2008. • Project excavation to begin by March 15, 2009, with construction completed within 24 months and certificate of occupancy issued. Mr. Nussbaum has followed the notification process required by these agreements, and Jeffcourt has failed to cure the defaults within the 30 day cure period. This resolution terminates the agreements between the Commission and Jeffcourt, and will allow this property to be available for possible future development. Staff requests your approval of Resolution No. 2934, and the recording thereof. What We Do Today Makes A Difference! RESOLUTION NO.3q RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION TERMINATING A CONTRACT FOR SALE OF LAND FOR PRIVATE DEVELOPMENT BETWEEN JEFFCOURT, INC. AND THE SOUTH BEND REDEVELOPMENT COMMISSION DATED JUNE 6, 2008, AND A DEVELOPMENT AGREEMENT BY AND BETWEEN SOUTH BEND REDEVELOPMENT COMMISSION AND JEFFCOURT, INC. DATED JUNE 6, 2008 WHEREAS, on June 6, 2008, Jeffcourt, Inc., a Corporation organized under the laws of the State of Indiana, and having its principal place of business at 1000 East 801h Place, Suite 600 North, Merrillvile, Indiana 46410 ( "Jeffcourt") and the South Bend Redevelopment Commission, the governing body of the City of South Bend, Indiana, Department of Redevelopment established and operating under Indiana Code § 36- 7 -14 -1, et. seq. as amended (the "Act ") having its office at 1200 County City Building, South Bend, Indiana (the "Commission ") entered into a Contract for Sale of Land and Private Development (the "Contract "). WHEREAS, September 3, 2008, a First Amendment to the Contract was entered into between Jeffcourt and the Commission; and WHEREAS, on June 6, 2008, a Development Agreement was entered into by and between Jeffcourt and the Commission ( "Development Agreement "); and WHEREAS, the Contract, First Amendment to the Contract, and Development Agreement were recorded in the Office of the Recorder of St. Joseph County, on April 6, 2009, as Document Numbers 0911110, 09111111, and 0911112; and WHEREAS, on April 12, 2011, the Commission authorized attorney Richard A. Nussbaum, II to send notices of default in the Contract and the Development Agreement to Jeffcourt; and WHEREAS, on April 14, 2011, Richard A. Nussbaum, II sent certified mail - return receipt requested and also priority mail delivery confirmation, notices of default for the Contract and a separate letter of the same date and by the same method of delivery for the Development Agreement; and WHEREAS, proof of the mailing of the sending of these notices of default and proof of receipt of the notices of default have been filed with the Commission; and WHEREAS, the notices of default were sent to the addresses as required pursuant to the terms and conditions of the Contract and Development Agreement; and WHEREAS, Jeffcourt has failed to cure the defaults described in the notices; and WHEREAS, the Contract and the Development Agreement provide the Commission may terminate the Contract and the Development Agreement based upon these defaults. NOW THEREFORE, BE IT RESOVLED by the South Bend Redevelopment Commission as follows: Section 1. The Commission hereby finds it has fully complied with all terms and provisions of the Contract and the Development Agreement, and further finds Jeffcourt has (i) breached the terms and conditions of both the Contract and the Development Agreement; (ii) has been provided with notice of the defaults; (iii) failed to cure the defaults; and (iv) there is a reasonable basis for the Commission to terminate both the Contract and the Development Agreement. Section 2. Based upon the findings described in this Resolution, the Commission hereby terminates the Development Agreement between the Commission and Jeffcourt recorded April 6, 2009, in the Office of the St. Joseph County, Indiana Recorder as Instrument Number 0911110, and the Contract for the Sale of Land for Private Development and the First Amendment to Contract for Sale of Private Development recorded April 6, 2009 in the Office of the St. Joseph County, Indiana Recorder as Instrument Numbers 0911111 and 0911112. Section 3. The Resolution shall be in full force and effect after its adoption by the Commission. Section 4. Commission staff members are authorized to execute on behalf of the Commission any documents necessary and take all further actions to carry out the intent of this Resolution, including but not limited to, recording this Resolution in the Office of the Recorder of St. Joseph County, Indiana providing constructive notice of this termination. ADOPTED at a meeting of the South Bend Redevelopment Commission held on August 23, 2011, at 4:00 p.m. in room 1308, County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. {SIGNATURES CONTAINED ON FOLLOWING PAGE) 2 CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT, by and through the South Bend Redevelopment Commission, its governing body Printed: Title: ATTEST: Signature Printed Name and Title STATE OF INDIANA ) ) SS: ST. JOSEPH COUNTY ) Before me, the undersigned, a Notary Public for and in said County and State this 23rd day of August, 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: THIS INSTRUMENT PREPARED BY: Richard A. Nussbaum, II, Attorney at Law, 5th Floor - Plaza Building, 210 S. Michigan St., P.O. Box 300, South Bend, Indiana 46624. Gibney\jeffcourt RES.doc 3