HomeMy WebLinkAbout5B1 MOU (NICTD)MEMORANDUM OF UNDERSTANDING AMONG THE ST. JOSEPH COUNTY
BOARD OF COMMISSIONERS, THE SOUTH BEND REDEVELOPMENT
COMMISSION2 AND THE NORTHERN INDIANA COMMUTER TRANSPORTATION
DISTRICT REGARDING THE SOUTH SHORE LINE
This Memorandum of Understanding ("MOU") is entered into this day of
2019 ("Effective Date"), by and among the St. Joseph County Board
of Commissioners (the "County"), the South Bend Redevelopment Commission (the "City"), and
the Northern Indiana Commuter Transportation District ("NICTD").
WHEREAS, NICTD operates the South Shore Line, which carries commuters between
South Bend and Chicago, and is seeking approval for significant funding for major
improvements over the next several years; and
WHEREAS, various improvements are planned for the South Shore Line, including
extension of the railroad by nine miles from Hammond to Dyer, adding a second track between
Gary and Michigan City as well as moving the street -running tracks in Michigan City, a new
station location within the corporate limits of the City of South Bend, the purchase of new rail
cars, and the completion of a federally -mandated safety project named Positive Train Control;
and
WHEREAS, all of these proposed improvements should result in better and faster service
for commuters going between South Bend and Chicago; and
WHEREAS, the State of Indiana has mandated that the County provide $18.25 million in
matching funds (the "Matching Fund Amount") before the State will provide significant funds to
proceed with any of the proposed improvements to the South Shore Line; and
WHEREAS, the County and the City have agreed pursuant to a Memorandum of
Understanding executed between them dated September 17, 2019 (the "County -City MOU"),
that the City will assist the County with raising fifty percent of the Matching Fund Amount, not
to exceed $9.125 million (the "City's Contribution Amount"), to assist in making improvements
to the South Shore Line; and
WHEREAS, in return for the City's Contribution Amount, the County and the City wish
to ensure that their citizens will derive material benefit from the proposed improvements to the
South Shore Line.
NOW, THEREFORE, the parties hereby agree as follows:
1. Ob�ectiv_es. The County, the City, and NICTD shall cooperate with the purpose
of making improvements that would shorten the South Shore Line travel time from South Bend
to Chicago.
2. Responsibilities. The County agrees to provide the County's Contribution
Amount of fifty percent (50%) of the Matching Fund Amount. The City agrees to provide the
City's Contribution Amount. The County and the City shall be solely responsible for the costs
and expenses of their respective Contribution Amount. The County agrees to provide funding
for the station in an amount at least equal to $9.125 million. All of this is in accordance with the
terms and conditions of the County -City MOU.
In exchange for receiving the County's Contribution Amount, the City's Contribution
Amount, and the County's and the City's joint agreement to participate in the funding of a new
station location within the corporate limits of the City, NICTD agrees as follows:
(a) NICTD shall maintain a full-service station stop for the South Shore Line
within the corporate boundaries of the City or the west side of and immediately adjacent to the
South Bend International Airport for a period of not less than twenty (20) years from the
Effective Date of the County -City MOU. The parties agree that the City and the County shall
determine a mutually agreeable location for a new station, with input from NICTD. The new
station location shall have capacity substantially similar to the current station's capacity or
greater, provided that such capacity reflects the demands for passenger rail operations. This
section of the MOU shall survive termination or expiration of the MOU.
(b) In the event that a location for a new station within the boundaries of the City
or the west side of and immediately adjacent to the South Bend International Airport cannot be
determined, NICTD agrees to maintain the current station stop on the east side of the South Bend
International Airport.
(c) The Matching Fund Amount, and any other funding contributions from the
counties located in the South Shore Line corridor (LaPorte, Porter, and Lake) will be spent pro
rata by NICTD, and any surplus funds remaining from the Contribution and other funding
contributions from the counties located in the South Shore Line corridor shall be refunded to the
contributing entities pro rata (i.e., any surplus contributions should be returned to each entity
according to the percentage of funds contributed).
3. Term and Termination. This MOU is valid for a term of twenty (20) years from
the Effective Date. The Parties may by written mutual agreement terminate this MOU for
convenience.
4. Records. The parties shall retain all of their records relating to this MOU for
a period of three (3) years following expiration or termination of the MOU, or following
resolution of a dispute under this MOU, whichever occurs later.
5. Notices. Any notice required or permitted to be given by the parties
pursuant to the terms of this MOU shall be in writing and shall be deemed given when delivered
personally or deposited in the U.S. mail, first class with postage prepaid, and addressed to the
parties as follows:
If to the County: Andrew Kostielney, President
St. Joseph County Board of Commissioners
7ch Floor
227 W. Jefferson Blvd.
South Bend, IN 46601
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With copy to: Jamie C. Woods, Esq.
County Attorney
Thorne • Grodnik, LLP
P.O. Box 1210
Mishawaka, IN 46546-1210
If to the City: City of South Bend
Department of Community Investment
227 W. Jefferson Blvd., Ste. 1400 S
South Bend, IN 46601
Attn: Executive Director
With a copy to: South Bend Legal Department
227 W. Jefferson Blvd., Ste. 1200 S
South Bend, IN 46601
Attn: Corporation Counsel
If to NICTD: Northern Indiana Commuter Transportation District
33 E. U.S. Highway 12
Chesterton, IN 46304
Attn: President
With a copy to: Harris Welsh & Lukmann
107 Broadway
Chesterton, IN 46304
Attn: L. Charles Lukmann, III
6. Miscellaneous.
(a) All parties agree by signing this MOU that they have the necessary
authority to enter into this MOU, and have each taken all necessary actions to bind itself to the
terms, conditions, and obligations of this MOU.
(b) This MOU is solely for the benefit of the parties hereto and gives no right
to any other party.
(c) Nothing in this MOU is intended or will be deemed to create a partnership
or joint venture between the parties.
(d) The County and the City may assign this MOU to another Indiana political
subdivision located within the corporate boundaries of the City of South Bend. NICTD may
assign this MOU to the Indiana Finance Authority ("IFA") or the Northwest Indiana Regional
Development Authority ("RDA"), if the IFA and/or RDA exercise their Construction Period
Step -In Rights and/or Operations Step -In Rights per Article 11 of the Amended and Restated
Governance Agreement Concerning Development of the Rail Projects, effective June 24, 2019
(the "Governance Agreement").
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(e) Any waiver by a party of a breach of a provision of this MOU will not
operate or be construed to be a waiver of any other breach of that provision or of any breach of
any other provision of this MOU. A failure by a party to insist upon strict adherence to any term
of this MOU on one or more occasions will not be considered a waiver or deprive that party of
the right thereafter to insist upon strict adherence to that term or any other term of this MOU.
Any waiver must be in writing and signed by the party against whom enforcement of the waiver
is sought.
(f) This MOU shall be construed in accordance with the laws of the State of
Indiana. In the event of a dispute, controversy or claim arising out of or relating to this MOU or
to any agreement(s) concluded pursuant to this MOU, the parties will use their best efforts to
promptly settle such dispute through direct negotiation. Any dispute that is not settled within
sixty (60) days from the date a party has notified the other of the nature of the dispute and of the
measures that should be taken to rectify it shall be resolved by litigation in the Circuit or
Superior Courts of St. Joseph County, Indiana.
(g) If any one or more of the provisions of this MOU shall be held invalid,
illegal, or unenforceable, the validity and enforceability of all other provisions of this MOU shall
not be affected.
(h) This MOU is the complete agreement among the St. Joseph County Board
of Commissioners, the South Bend Redevelopment Commission , and the Northern Indiana
Commuter Transportation District, and supersedes all prior agreements, arrangements and
understandings with respect to the transactions provided for herein, including, but no limited to,
the Memorandum of Understanding Between the St. Joseph County Board of Commissioners
and the South Bend Redevelopment Commission dated June 20, 2017; provided, however, this
MOU does not supersede the County -City MOU entered into on September 17, 2019. No
representation, promise, inducement, or statement of intention has been made by or on behalf of
any party hereto that is not set forth in this MOU. This MOU may be amended only by written
agreement signed by each of the parties involved.
(i) The language used in this Agreement is language developed and chosen
by all parties to express their mutual intent and no rule of strict construction shall be applied
against any party.
0) This MOU may be executed in counterparts, each of which shall be
deemed to be an original, but all of which, taken together, shall constitute one and the same
agreement.
(signature page follows)
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IN WITNESS WHEREOF, the County, the City, and NICTD, through their duly
authorized representatives, enter into this MOU.
ST. JOSEPH COUNTY BOARD OF
COMMISSIONERS
Andrew Kostielney, President
Deborah Fleming, D.M.D., Vice -President
Dave Thomas, Member
NORTHERN INDIANA COMMUTER
TRANSPORTATIO S ICT
By:
Michael t4oland, Pre, 'dent
SOUTH BEND REDEVELOPMENT
COMMISSION
Un
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Marcia I. Jones, President
Quentin Phillips, Secretary