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HomeMy WebLinkAbout6B (5)6 A k-) 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 Planneroj/• Subject: Real Estate Donation Agreement Discount Rental property to Ivy Tech Date: August 16, 2012 On May 08, 2012, the Commission approved staff to move forward with the donation of the Discount Rental property, 230 E. Sample Street, to Ivy Tech. With the Discount Rental property, Ivy Tech will be able to expand parking, which is a critical and immediate need, and allow additional classes to be held at their next door ITOSS building. Ivy Tech is in process of master planning its South Bend campus. Their goals are: • Address current space shortages to eliminate portable classroom structures • Proactively plan student population and program growth for the next 10 — 15 years • Anticipate parking needs and plan expansion accordingly • Provide student oriented spaces • Improve efficiency and flow in its buildings • Create a campus feel on site and in its buildings • Enhance connectivity to the community The attached Real Estate Donation Agreement will finalize this transaction, and allow the transfer of this property to Ivy Tech. Staff requests approval of this Real Estate Donation Agreement. What We Do Today Makes A Difference! REAL ESTATE DONATION AGREEMENT By and Between South Bend Redevelopment Commission Ivy Tech Community College of Indiana (230 East Sample Street, South Bend, Indiana) Section 1. Parties. This Real Estate Donation Agreement ( "Agreement ") is entered into this day of ' 2012, by and between the City of South Bend, Department of Redevelopment, acting by and through the South Bend Redevelopment Commission (referred to as "Donor" in this Agreement) and Ivy Tech Community College of Indiana (referred to as "Donee" in this Agreement). Ivy Tech Community College is an instrumentality of the State of Indiana established under IC 21 -22 and is exempt from federal income taxation under Section 115 of the Internal Revenue Code. Donor is a body corporate and politic established and acting pursuant to the authority granted by IC 36 -7 -14. Donor is authorized to enter into this agreement by IC 36 -7 -14 -12.2. Section 2. Recitals. Donor owns the real property (referred to as "Property" in this Agreement) described in "EXHIBIT A" that is attached to and made a part of this Agreement. Donor desires to donate the Property to Donee for the purposes and uses hereinafter specified, and Donee desires to accept the Property, and any and all improvements located on the Property, subject and according to the terms and conditions of this Agreement. Section 3. Scope of Agreement. Donor agrees to convey the Property to Donee as a gift and for no consideration, and Donee agrees to accept the Property from Donor. Section 4. Use of Property and Reversion. At the appropriate time, Donee will use the Property to help carry out its mission to provide access to educational programs and training services for students, employees, and employers from the City of South Bend, St. Joseph County, and surrounding communities. The Donee represents and agrees for itself, its successors and assigns, that except for security for obtaining financing needed to enable the Donee to make the improvements under this Contract; and except for any other purpose authorized by this Agreement, the Donee has not made nor will it make: (a) any total or partial sale, assignment, conveyance, or lease; or (b) any trust or power; or (c) any transfer in any other mode or form, with respect to the Agreement or the Property or any part thereof, any interest therein; or (d) any contract or agreement to do any of the above. Any violation of the provisions contained in this Section shall cause all interests in the Property to revert to the Donor. Section 5. Deed and Other Documents. Donor agrees to deliver a Warranty Deed to Donee at closing under which the Property is transferred to The Board of Trustees of Ivy Tech Community College of Indiana. Donee agrees that such warranty Deed shall contain a reversionary provision pursuant to the preceding Section. Donor and Donee agree to provide to each other or to the title insurance company that closes the transaction any other documents reasonably required to close the transaction provided for under this Agreement. Section 6. Taxes. Donor and Donee both acknowledge that the Property is currently exempt from taxation pursuant to IC 36- 7 -14 -37 and should continue to be so after the Property is transferred from Donor to Donee. Section 7. Conditions Precedent. Donee's duties and obligations under this Agreement are contingent upon the following conditions precedent: (1) Donee must be able to secure, at Donee's expense and from a title insurance company acceptable to Donee, a commitment for an ALTA Owner's Policy of Title Insurance in an amount acceptable to Donee under which the title insurance company agrees to insure marketable title subject only to such exceptions as are permitted by this Agreement. Section 8. Time and Place of Closing. The closing of the transaction shall take place at a time and place mutually acceptable to Donor and Donee. The transaction shall be closed by the title insurance company that issues the commitment referred to in subdivision (1) of Section 7 of this Agreement. Donee shall pay the title insurance company's fee for closing the transaction and all other closing related expenses. Section 9. Possession. Donor shall deliver possession of the Property to Donee at closing free and clear of any rights of other persons to occupy or use the Property. Section 10. Additional Terms. (a) All the terms and conditions of this Agreement are hereby made binding on the successors and permitted assigns of both parties hereto. (b) 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. (c) This Agreement shall not be effective or binding until fully executed by the parties hereto. This Agreement may be executed in counterparts, each of which shall be deemed an original. (d) This Agreement will survive closing. (e) 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. (f) 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 2 Agreement and to provide and secure to the other party the full and complete enjoyment of its rights and privileges hereunder. (g) This Agreement was negotiated by the parties at arm'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 this Agreement shall be construed against any signatory hereto. (h) 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. Section 11. Authority. The undersigned persons executing and delivering this 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 Agreement and that all necessary action has been taken and done. [THE REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY. SIGNATURES FOLLOW ON THE NEXT PAGE.] 3 IN WITNESS WHEREOF, Donor and Donee have executed this Agreement as of the dates set forth below. ATTEST: Printed Name and litle Date: South Bend Redevelopment Commission DONOR CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Signature Printed Name and ritle Date: South Bend Redevelopment Commission DONEE Ivy Tech Community College of Indiana By: Thomas J. Snyder, President Date: 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. 12 EXHIBIT A Legal Description of Property Parcel I: Lot Numbered Four (4) as shown on the recorded Plat of Mary Hutchin's Addition to the City of South Bend, excepting therefrom a tract of land 7 feet in width, North and South, taken off of the entire length of the South side thereof for street purposes. Parcel II: A parcel of land located in Section 13, Township 37 North, Range 2 East, beginning at a point on the South line of Sample Street 680.3 feet East of the East line of Michigan Street; thence South to the Northwest corner of Lot Five (5) as shown on the recorded Plat of Adam S. Baker's First Addition to the City of South Bend and continuing South along the West line of said lot to the North line of Ohio Street; thence East along the South line of said Lot 5 and also Lot 6 in the above addition, which is also the North line of Ohio Street, to a point 14 feet East of the Southeast corner of Lot 6 of Adam S. Baker's First Addition to the City of South Bend; thence North to a point on the South line of Sample Street, which point is 809 feet East of the West line of Michigan Street; thence West along the South line of Sample Street, a distance of 128.7 feet to the place of beginning, together with the East Half of the vacated alley lying West and adjacent to Lot 5. Parcel III: Lot Numbered Seven (7) as shown on the recorded Plat of Adam S. Baker's First Addition to the City of South Bend. Common Address: 230 East Sample St., South Bend, Indiana 46601 Tax Key No. 18- 7008 -0279, 18- 7001 - 000301 Other Property Information The State Identification Number for the Property is 71 -08 -13 -126- 024.000 -026 and 71- 08 -13- 126- 020.000 -026. 5