HomeMy WebLinkAboutNo. 1081 approving a sublease of real property to the COSBRESOLUTION NO. 1081
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
COMMISSION APPROVING A SUBLEASE OF REAL PROPERTY
TO THE CITY OF SOUTH BEND
WHEREAS, the South Bend Redevelopment Commission (the
"Commission ") is lessee of the following described real property
owned by the South Bend Redevelopment Authority (the "Authority ")
under the Lease - Purchase Agreement dated as of November 1, 1989, and
approved and modified on the 16th day of February, 1990, (the
"Lease "):
A parcel of land in the West Half of the Southeast
Quarter of Section 12, Township 37 North, Range 2
East, City of South Bend, Portage Township, St.
Joseph County, Indiana, being part of Lot 14 and 21
of John Rush's 1st Addition, as recorded in Book 2,
Page 53, at the St. Joseph County Recorder's Office
in South Bend, Indiana, and described as follows:
Commencing at the Northwest corner of Lot 11, also
being the East right -of -way line of Rush Street and
the South right -of -way line of a 12.50 foot alley;
thence North 89 041140" East (bearing assumed),
165.00 feet along said South right -of -way line;
thence South 00 001154" East, 94.53 feet; thence
North 89 041140" East, 35.00 feet to the Point of
Beginning; thence continuing North 89 °41'40" East,
38.79 feet; thence South 00 °01154" East, 71.74 feet
to the North right -of -way line of South Street;
thence South 89 °41140" West, 38.79 feet along said
North right -of -way line; thence North 00 001'54"
West, 71.47 feet to the Point of Beginning and
containing 0.0636 acres, more or less, and is
subject to all easements, restrictions and or
covenants of record. Commonly known as 701 East
South Street (the "Real Property "); and
WHEREAS, the Commission is desirous of subleasing the Real
Property to the City of South Bend, Indiana; and
WHEREAS, the City of South Bend is desirous of leasing the Real
Property from the Commission; and
WHEREAS, pursuant to I.C. 36- 9 -6 -3, the Board
the City of South Bend (the "Board ") has custody
all real property of the City of South Bend; and
of Public Works of
of and may maintain
WHEREAS, pursuant to I.C. 36- 1 -11 -8, the City of South Bend,
acting by and through the Board, may exchange or transfer property
with another governmental entity upon terms and conditions agreed
upon by the two (2) entities as evidenced by the adoption of
substantially identical resolutions of each entity; and
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'.WHEREAS, the Commission has agreed to sublease the Real Property
to the City of South Bend, and the City of South Bend, acting by and
through the Board, has agreed to sublease the Real Property from the
Commission under the terms and conditions of a sublease containing
terms and conditions which are substantially similar to those
embodied in the Lease, with the exception that the rent paid by the
City to the Commision pursuant to said sublease shall be nominal in
amount.
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT
COMMISSION AS FOLLOWS:
1. That the sublease of the following described real property by
the South Bend Redevelopment Commission to the City of South Bend,
acting by and through its Board of Public Works:
A parcel of land in the West Half of the Southeast
Quarter of Section 12, Township 37 North, Range 2
East, City of South Bend, Portage Township, St.
Joseph County, Indiana, being part of Lot 14 and 21
of John Rush's 1st Addition, as recorded in Book 2,
Page 53, at the St. Joseph County Recorder's Office
in South Bend, Indiana, and described as follows:
Commencing at the Northwest corner of Lot 11, also
being the East right -of -way line of Rush Street and
the South right -of -way line of a 12.50 foot alley;
thence North 89 041140" East (bearing assumed),
165.00 feet along said South right -of -way line;
thence South 00 °01154" East, 94.53 feet; thence
North 89 °41140" East, 35.00 feet to the Point of
Beginning; thence continuing North 89 °41140" East,
38.79 feet; thence South 00 001154" East, 71.74 feet
to the North right -of -way line of South Street;
thence South 89 °41140" West, 38.79 feet along said
North right -of -way line; thence North 00 001'54"
West, 71.47 feet to the Point of Beginning and
containing 0.0636 acres, more or less, and is
subject to all easements, restrictions and or
covenants of record. Commonly known as 701 East
South Street (the "Real Property ")
under terms and conditions that are substantially similar to those
embodied in the Lease, shall be, and hereby is, approved, subject to
the adoption of a resolution by the Board of Public Works of the City
of South Bend, substantially identical in its terms and conditions as
this resolution, and, further, subject to the approval of the South
Bend Redevelopment Authority.
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2. That the President and Secretary of the Commission shall be,
and hereby are, authorized, respectively, to execute and attest to
the execution of a sublease containing terms and conditions which are
substantially similar to those embodied in the Lease, with the
exception that the rent paid by the City to the Commisison shall be
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nominal in amount.
3. That this Resolution shall be in full force and effect upon
its adoption by the South Bend Redevelopment Commission.
ADOPTED at a meeting of the South Bend Redevelopment Commission
held on July 10, 1992, at County -City Building, 227 West
Jefferson Boulevard, South Bend, Indiana 46601.
Attest:
e 4
Michael Donoho, Secretary
RESO /RES701ESOUTH
CITY OF SOUTH BEND
REDEVELOPMENT COMMISSION
By: V
Paula N. Auburn, President
SUB -LEASE BETWEEN SOUTH BEND REDEVELOPMENT
COMMISSION AND THE BOARD OF PUBLIC WORKS
OF THE CITY OF SOUTH BEND
This Sub -Lease entered into as of the --day
of 1992, between SOUTH BEND REDEVELOPMENT
COMMISSION, the governing body of the South Bend Department of
Redevelopment and the Redevelopment District of South Bend, Indiana,
(the "Commission "), and the CITY OF SOUTH BEND, INDIANA, acting by
and through its Board of Public Works, (the "Sub- lessee ").
WITNESSETH:
Section 1. Definitions. The terms defined in this Section 1
shall for all purposes of this sub -lease have the meanings herein
specified unless the context otherwise requires.
"Commission" means the South Bend Redevelopment Commission, the
governing body of the South Bend Department of Redevelopment and the
Redevelopment District of South Bend, Indiana, or if said Commission
shall be abolished, the Commission, Board, body or agency succeeding
the principal functions thereof.
"Sub- Lease" means this sub -lease as the same may be amended,
modified, or supplemented by any amendments or modifications hereof
or supplements hereto enter into in accordance with the provisions
hereof.
"Lessee" means the City of South Bend, Indiana, acting by and
through its Board of Public Works, or if said Board shall be
abolished, the commission, board, body or agency succeeding to the
principal functions thereof.
"Permitted encumbrances" means those items listed in Exhibit A
hereto and any future (a) liens for taxes that have not been
delinquent, (b) this Sub -Lease and any sub - leases and other
agreements permitted pursuant to Section 6 hereof, (c) utility,
access or other easements and rights -of -way, restrictions, and
exceptions that the Lessee approves, (d) and mechanics', laborers',
materialmen I s, suppliers', or vendors' lien or right in respect
thereof if payment is not yet due and payable, and (e) such minor
defects, irregularities, encumbrances, easements, rights -or -way, and
clouds on title as do not materially impair the title of the South
Bend Redevelopment Authority to the premises.
Section 2. Sub -Lease of the land. In consideration of the
rentals and other terms and conditions herein specified, the
Commission does hereby sub- lease, demise, and sub -let to the
Sub - Lessee the real property described in Exhibit B hereto: TO HAVE
AND TO HOLD the same with all rights, privileges, easements and
appurtenances thereunto belonging, unto the Sub - lessee for a term of
22 years, beginning on the 1st day of August, 1992, and ending on the
31st day of July, 2014. The Commission hereby represents that it is
possessed of, or will acquire, a leasehold interest in the premises
by way of a certain lease between the South Bend Redevelopment
Authority and the Commission dated as of November 1, 1989, and that
it will be possessed of, or will acquire, a good and indefeasible
estate in fee simple subject only to permitted encumbrances, to the
above described real estate prior to the termination of this
Sub - Lease, and the Commission warrants and will defend the same
against all claims whatsoever not suffered or caused by the acts or
admissions of the Sub - lessee.
The sub - lessee will not take any action or fail to take any
action that would result in the loss of the exclusion from gross
income for federal tax purposes of interest on the South Bend
Redevelopment Authority Bonds issued in connection with the South
Bend Central Development Area Public Improvement Project, pursuant to
Section 103(a) of the Internal Revenue Code of 1986, as amended (the
"Code "), as in effect on the date of delivery of the Bonds, nor will
the Lessee act in any manner which would adversely affect such
exclusion. The Sub - lessee further covenants that it will not make
any investment or do any other act or thing during the period that
any Bond is outstanding hereunder which would cause any Bond to be an
"arbitrage bond" within the meaning of Section 148 of the Code and
the regulations thereunder as in effect on the date of delivery of
the Bonds.
Section 3. Rental payments. During the term of this Sub - Lease,
the Lessee agrees to pay rental for said premises in the amount of
Ten Dollars ($10.00) per year, payable in advance, the first such
rental payment being due on the 1st day of August, 1992, with
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successive annual rental payments being due and payable each May 1st
thereafter.
Section 4. Net Lease. It is expressly understood and agreed
that this Sub -Lease shall be what is known as a net lease (i.e., the
rent being absolutely net to the Commission and that all other
expenses in connection with the Sub - Lease's activities of any nature
whatsoever shall be those of the Sub - Lessee) and that during the
sub -lease term the Sub- Lessee shall be obligated to pay as its
expenses without reimbursement from the Commission all costs of taxes
and assessments, if any, and maintenance, operation and use in
connection with or relating to its activities .
Section 5. Damage or Destruction. In the event that all or a
portion of the premises shall be damaged or destroyed so as to render
the damaged or destroyed portion of the premises unfit for its
intended use, it shall then be the obligation of the Commission to
restore and reconstruct the damaged or destroyed portion of the
project as promptly as may be done, unavoidable strikes and other
causes beyond the control of the Commission excepted, if, in the
opinion of the Commission the cost of such restoration or
reconstruction does not exceed the amount of the proceeds received by
the Commission from the insurance provided for in Section 7 hereof
plus other monies available therefor. If this condition shall not
exist, the proceeds received from the insurance provided in Section 7
hereof shall be held by Norwest Bank, Inriana, N.A., or as otherwise
determined by the Commission, and all right, title and interest of
the Lessee hereunder shall terminate.
Section 6. Non Liability of Commission. The Commission shall
not be liable for damage caused by hidden defects or failure to keep
the project in repair and shall not be liable for any damage done or
occasioned by or from plumbing, gas, water, or other pipes or
bursting or leaking of plumbing or heating fixtures in connection
with said premises, nor for damage occasioned by water, snow, or
ice. The Commission shall not be liable for any injury to the
Sub - lessee or any sub - lessee of the Sub - lessee or any other person
which injury occurs on, in, or about the premises howsoever arising.
The Commission shall not be liable for any damage to the Lessee's
property or to the property of any sub - lessee of the Lessee or of any
person which may be located in, upon, or about the premises.
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Section 7.
Alterations.
Sub - lessee shall have the right, with
the consent of the Commission, to make or cause to be made all
alterations, modifications, and additions and to do all improvements
it deems necessary or desirable to the premises, which do not reduce
the value of the premises.
Section 8. Insurance. The Sub - lessee, at its own expense, will
during the full term of the Sub - Lease, keep the premises insured
against physical loss or damage, however caused, with such exceptions
as are ordinarily required by insurers of properties of a similar
type, in good and responsible insurance companies acceptable to the
Commission. Such insurance shall be in an amount at least equal to
One Hundred percent (100 %) of the full replacement cost of such
premises as certified by a registered architect, a registered
engineer, or professional appraisal engineer selected by the
Commission on the effective date of this Sub -Lease and on or before
the 1st day of January of each year thereafter: Provided, however,
that such certification shall not be required so long as the amount
of insurance shall be in an amount at least equal to that amount
specified by the Commission at the time of the execution of this
Sub -Lease and every January lst thereafter during the term of this
Sub - Lease. Such appraisal may be based upon a recognized index of
conversion factors. In no event shall the insurance be in an amount
which causes the Sub - lessee to be a co- insurer for the project. Such
insurance may contain a provision for a deductible in an amount not
exceeding $25,000.00. Sub - lessee agrees to pay the deductible amount
of any loss to the Commission. A blanket public institutional
property insurance form may be used if:
(a) The insurance on the project is not less than the amount
required by this Section,
(b) The Sub - lessee subordinates its claim for damage or
destruction to other buildings or improvements to claims for damage
or destruction of the premises, and
(c) The insurance proceeds related to the damage or destruction
of the project are payable to Norwest Bank, Indiana, N.A., as
Section 9. Use of Insurance and Condemnation Proceeds. Proceeds
of insurance against damage to or destruction of the premises or
proceeds of any condemnation of the premises shall be paid to and
held by the Norwest Bank Indiana, N.A., or as otherwise determined by
the Commission, and used to pay for reconstruction or replacement of
the project in accordance with plans approved by the Commission and
Sub - lessee.
Section 10. Liability Insurance. The Sub - lessee shall, at all
times during the term of this sub- lease, keep in effect public
liability and property damage insurance, insuring the Sub - lessee, the
Commission, the South Bend Redevelopment Authority, and Norwest Bank,
Indiana, N.A., or other designee as determined by the Commission, in
amounts customarily carried for similar properties. Such insurance
may be provided under the Public Liability Self Insurance Program of
the City of South Bend.
Section 11.
General Covenants. The Sub - lessee shall not assign
this Sub -Lease or sublet any part of the premises herein described
without the prior written consent of the Commission and South Bend
Redevelopment Authority. The Sub - lessee covenants that, except for
Permitted Encumbrances, it will not encumber the premises, or permit
any encumbrance to exist thereon, and that it shall use and maintain
the premises in accordance with the laws and ordinances of the United
States of America, the State of Indiana, and all other proper
governmental authorities. The Commission agrees that it will, at the
request of the Sub - lessee, execute and deliver to or upon the order
of the Lessee such instrument or instruments as may be reasonably
required by the Sub - lessee in order to subject the premises, or the
Commission's interest therein, to such encumbrances as shall be
specified in such request and as shall be permitted by the provisions
of this Section 13 or otherwise by the definition of Permitted
Encumbrances.
Section 12. Option to Purchase. The Commission hereby grants
successor
Trustee
under
a certain
Trust Agreement dated as of
November
1, 1989,
or as
otherwise
determined by the Commission.
Section 9. Use of Insurance and Condemnation Proceeds. Proceeds
of insurance against damage to or destruction of the premises or
proceeds of any condemnation of the premises shall be paid to and
held by the Norwest Bank Indiana, N.A., or as otherwise determined by
the Commission, and used to pay for reconstruction or replacement of
the project in accordance with plans approved by the Commission and
Sub - lessee.
Section 10. Liability Insurance. The Sub - lessee shall, at all
times during the term of this sub- lease, keep in effect public
liability and property damage insurance, insuring the Sub - lessee, the
Commission, the South Bend Redevelopment Authority, and Norwest Bank,
Indiana, N.A., or other designee as determined by the Commission, in
amounts customarily carried for similar properties. Such insurance
may be provided under the Public Liability Self Insurance Program of
the City of South Bend.
Section 11.
General Covenants. The Sub - lessee shall not assign
this Sub -Lease or sublet any part of the premises herein described
without the prior written consent of the Commission and South Bend
Redevelopment Authority. The Sub - lessee covenants that, except for
Permitted Encumbrances, it will not encumber the premises, or permit
any encumbrance to exist thereon, and that it shall use and maintain
the premises in accordance with the laws and ordinances of the United
States of America, the State of Indiana, and all other proper
governmental authorities. The Commission agrees that it will, at the
request of the Sub - lessee, execute and deliver to or upon the order
of the Lessee such instrument or instruments as may be reasonably
required by the Sub - lessee in order to subject the premises, or the
Commission's interest therein, to such encumbrances as shall be
specified in such request and as shall be permitted by the provisions
of this Section 13 or otherwise by the definition of Permitted
Encumbrances.
Section 12. Option to Purchase. The Commission hereby grants
Sub - lessee the right and option to purchase the premises at the
termination of this Agreement for an amount equal to Ten Dollars
($10.00). Should the Commission obtain full, indefeasible title to
the premises prior to the date of the termination of this agreement,
the Sub - lessee shall have the right and option to purchase the
premises, upon thirty (30) days written notice to the Commission to
purchase the premises for an amount equal to Ten Dollars ($10.00).
If the Sub - lessee has not exercised its option to purchase the
premises at the expiration of the term of the Sub -Lease and upon the
full discharge and performance by the Sub - lessee of its obligations
under this Sub - Lease, the Commission shall execute a deed of the
premises to the Sub - lessee conveying good and merchantable title
thereto, subject only to Permitted Encumbrances.
} Section 13. Defaults. If the Sub - lessee shall (a) default in
the payment of any rentals or other sums payable to the Commission
hereunder, or in the payment of any other sum herein required to be
paid for the Commission, (b) default in the observance of any other
covenant, agreement or condition hereof, and such default under (b)
shall continue for ninety (90) days after written notice to correct
the same, then, in any of such events, the Commission may proceed to
protect and enforce its rights, either at law or in equity, by suit,
action, mandamus or other procedings, whether for specific
performance of any covenant or agreement contained herein or for the
enforcement of any other appropriate legal or equitable remedy.
Section 14. Notices. Whenever either party shall be required to
give notice to the other under this Sub - Lease, it shall be sufficient
service of such notice to deposit the same in the United States mail,
in an envelope duly stamped, registered and addressed to the other
party at its last known place of business.
Section 15.
Successors or Assigns. All covenants of this Lease,
whether by the Commission or the Sub - lessee, shall be binding upon
the successors and assigns of the respective parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this Sub -Lease
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to be executed for and on their behalf as of the day and year first
hereinabove written.
SOUTH B3 ND REDEVELOPMENT COMMISSION
s
Paula N. Auburn, President
ATTEST:
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Michael Donoho, Secretary
STATE OF INDIANA )
SS:
COUNTY OF ST. JOSEPH )
Before me, the undersigned, a Notary Public in and for said
State, personally appeared Paula N. Auburn and Michael Donoho,
personally known by me to be the President and Secretary,
respectively, of the South Bend Redevelopment Commission, and
acknowledged the execution of the foregoing Sub -Lease for and on
behalf of said Commission.
WITNESS my hand and Notarial Seal this 10 IV—day of ,
1992.
(Written S'g ature)
i,/- 1l I o'5
(Printed Signature)
(SEAL)
My commission expires:
�" ✓iti. i� ta-� �� S
I am a resid nt of
S1 County, Indiana
AT ST:
San ra M. Parmerlee
Clerk
CITY OF SOUTH BEND
BOARD OF PUBLIC WORKS
t
qhn E. Leszczynski
James R. Caldwell
!nary Hall ler
Before me, the undersigned, a Notary Public in and for said
State, personally appeared John Leszczynski, T.,., es n G..l d _el .,
Mary Hall Mueller, personally known by me to be members of the
of Public Works of the City of South Bend, and acknowledged the
execution of the foregoing Sub -Lease for and on behalf of said
WITNESS my hand and Notarial
1992.
My Commission Expires:
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REDE8 /L- 626LWE
and
Board
Board.
Seal is /3—)kday of 12ZLLX ,
A. _PMff&A6��
(Written Signature)
(Printed Signature)
PXHTRTT A
Permitted Encumbrances
All encumbrances identified in the Title Commitment originally
issued by Lawyers Title Insurance Corporation on March 6, 1990,
Commitment No. 58972, in favor of the South Bend Redevelopment
Commission, as amended and in effect from time to time during the
term of the Lease between the South Bend Redevelopment Authority and
South Bend Redevelopment Commission dated as of November 1, 1989, and
approved and modified on February 16, 1990, which touch and concern
the real estate described in Exhibit "B" hereto.
EXHIBIT "B"
.4 parcel of land in the West Half of the Southeast Quarter of
Section 12, Township 37 North, Range 2 East, City of South Bend,
Portage Township, St. Joseph County, Indiana, being part of Lot 14
and 21 of John Rush's lst Addition, as recorded in Book 2, Page 53,
at the St. Joseph County Recorder's Office in South Bend, Indiana,
and described as follows:
Commencing at the Northwest corner of Lot 11, also being the East
right -of -way line of Rush Street and the South right -of -way line of a
12.50 foot alley; thence North 89 041140" East (bearing assumed),
165.00 feet along said South right -of -way line; thence South
00 001154" East, 94.53 feet; thence North 89 041140" East, 35.00 feet
-to the Point of Beginning; thence continuing North 89 041140" East,
38.79 feet; thence South 00 001154" East, 71.74 feet to the North
right -of -way line of South Street; thence South 89 041140" West, 38.79
feet along said North right -of -way line; thence North 00 001154" West,
71.47 feet to the Point of Beginning and containing 0.0636 acres,
more or less, and is subject to all easements, restrictions and or
covenants of record.
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