HomeMy WebLinkAboutResolution No 34-2020 - Settlement Agreement Acquire Portion Norfolk S. Railway Coal Line TrailINTER -OFFICE MEMORANDUM
Department of Law
City of South Bend 227 W Jefferson Blvd
TO: Board of Public Works, Linda Martin, Anne Fuchs
FROM: Sandra Kennedy, Assistant City Attorney
SUBJECT: Resolution Authorizing Settlement of Condemnation Claim Against Norfolk
Southern Railway Company (the "Agreement")
DATE: 12/15/20
Members of the Board, Ms. Martin, and Ms. Fuchs:
As you are aware, the City has been planning a multi -use trail over the abandoned railway line
that formerly brought coal to the University of Notre Dame campus. The project team has been
acquiring properties along the trail line, with the largest portion of approximately 10.48 acres
plus an abandoned railroad bridge over the St. Joseph River (the "Property") owned by Norfolk
Southern Railway Company ("NSRC"). The City's efforts to negotiate a purchase with NSRC failed,
and the City filed a complaint in court to condemn the Property.
The City and NSRC agreed to mediation, which was held on December 9, 2020, and the City, with
Mayoral support, agreed to acquire the Property for $600,000, which is a per acre price higher
than the City's initial offer but lower than the per acre price demanded by NSRC. The parties will
enter into a separate Real Estate Purchase Agreement for the purchase of the Property and
payment will be made upon the closing of the sale. The City's condemnation claim will be
dismissed concurrently with the transfer.
Thank you.
RESOLUTION NO.34-2020
A RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA, BOARD OF PUBLIC
WORKS APPROVING SETTLEMENT OF CONDEMNATION CLAIM
WHEREAS, the City of South Bend, Indiana, Board of Public Works (the "Board") exists
pursuant to Indiana Code Section 36-4-9-5, holds real property owned by the City of South Bend,
Indiana (the "City") pursuant to Indiana Code Section 36-9-6-3, and is authorized to acquire by
condemnation or purchase real or personal property needed by the City for public use pursuant to
Indiana Code Section 36-9-6-4; and
WHEREAS, the City has been working through the Board and the Department of
Community Investment ("DCI") to plan and develop a multi -use trail along an abandoned railway
corridor that once brought coal to the University of Notre Dame campus (the "Coal Line Trail");
and
WHEREAS, the City, through its agents, has been acquiring properties along the Coal Line
Trail for the development, including a 10.48 acre parcel and an abandoned railway bridge over the
St. Joseph River (the "Property") owned by Norfolk Southern Railway Company ("NSRC");
WHEREAS, negotiations with NSRC failed, and the City through the Board filed a
condemnation complaint against NSRC for the Property;
WHEREAS, on December 9, 2020, the City, represented by DCI and members of the
Department of Law, engaged in a mediation with NSRC for the purchase of the Property and
settled upon a purchase price therefor, which purchase price has been approved by the Mayor.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF SOUTH BEND, INDIANA,
BOARD OF PUBLIC WORKS AS FOLLOWS:
1. The Board hereby ratifies and approves the acquisition of the Property at the
mediated purchase price of Six Hundred Thousand Dollars ($600,000.00).
2. The Board authorizes members of the Department of Law to negotiate the
remaining terms of the settlement agreement on its behalf.
3. The President and Clerk of the Board, or their designees, are authorized and
instructed to execute and attest, respectively, the final settlement agreement as negotiated by the
Department of Law and executed by Corporation Counsel.
4. This Resolution will be in full force and effect upon its adoption by the Board.
Signature Page Follows
ADOPTED at a meeting of the City of South Bend, Indiana, Board of Public Works held
on December 17, 2020, held electronically as authorized by the Governor of the State of Indiana
through Executive Order 20-09, as subsequently renewed by Executive Orders 20-17, 20-25, 20-
30, 20-34, 20-38, 20-41, 20-44, 20-47, and 20-49.
BOARD OF PUBLIC WORKS
Gary A. Gilot, President
Elizabeth A. Maradik, Member
Jordan V. Gathers, Member
Joseph R. Molnar, Member
ATTEST:
�iti�a G� fartira
Linda M. Martin, Clerk
BOARD OF PUBLIC WORKS
AGENDA ITEM REVIEW REQUEST FORM
Date December 15, 2020
Department
Name Sandra Kennedy LMg DCI
BPW Date December 17, 2020 Phone Extension 9241
Review and Approval Required Prior to Submittal to Board
Diversity Compliance
❑
Officer Name
and Inclusion Officer
BPW Attorney
®
Attorney Name
McDaniels
Dept. Attorney
®
Attorney Name
Steele/Kennedy
Purchasing
❑
Check the Appropriate
Item Type
— Re uired or All Submissions
❑ Professional Services Agreement
❑ Contract
❑ Proposal
❑ Open Market Contract
❑ Amendment/Addendum ❑ Special Purchase, QPA
❑ Bid Opening
❑ Bid Award
❑ Req. to Advertise ❑ Title Sheet
❑ Quote Opening
❑ Quote Award
❑ Reject Bids/Quotes
❑ Proposal Opening
❑ C/O & PCA No.
❑ PCA
❑ Chg. Order, No.
❑ Traffic Control
® Resolution
❑ Other:
❑ Ease./Encroach
Reauired Information
Company or Vendor Name
Norfolk Southern Railway Company
® Yes❑ If Yes, Approved by Purchasing
New Vendor
❑ No
❑
❑❑
MBE/WBE Contractor
WBE Completed E-Verify Form Attached
❑ Nos
Project Name
PROJ00000018 : Coal Line Trail
Project Number
443001
Funding Source
RWDA TIF
Account No.
324.1050.460.42.02
Amount
$600,000.00 (this will be paid in conjunction with a separately approved
Purchase Agreement)
Terms of Contract
Purpose/Description
Resolution authorizing settlement of condemnation claim, with terms to be
further negotiated by the Dept. of Law. Final agreement to be executed by
President of BPW and attested by Clerk.
Amount of
Previous Amount
❑ Increase
❑ Decrease
Current Percent of Change
New Amount
Total Percent of Change:
Time Extension Amount:
El
Increase
Decrease
Increase
Decrease