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HomeMy WebLinkAbout6B2 ,:SOUTH .. 704 ,k41;ilL'or:ra %, Department of it ' ; ?. Community Investment Memorandum Thursday,January 17, 2013 TO: South Bend Redevelopment Commission FROM: Bill Schalliol SUBJECT: Memorandum of derstanding - Lot 14 US 31 Industrial Park In December 2012, the Redevelopment Commission was presented with a request by Draga Investments, owner of 6139 Parkland Drive, to acquire from Draga a common area retention pond that services the northern end of the US 31 Industrial Park. The Redevelopment Commission was the original developer of this industrial park and the retention area was platted into Lot #14 as that was common development law at the time. The retention area serves the adjacent developed lots but also serves as a drainage location for the adjacent roadways. The pond has maintained and served by the City since it was constructed. The Commission hired Danch Harner and Associates to prepare a Minor Subdivision to split off from the buildable portion of the lot the existing retention basin. The proposed Outlot that will contain the retention basin will be owned by the City of South Bend. City Ordinances require the Minor Subdivision process for splitting the property as described above. In order to facilitate the pending land sale between Draga Investments and PBS Properties, the two parties have asked that we memorialize this project in a Memorandum of Understanding. The purpose of the agreement is to allow both parties to have a comfort level to allow them to close a transaction before the completion of the subdivision process. The MOU contains the timeline for the project and lays out the commitments by each party. There are no terms or conditions contained within this agreement that are beyond the action the Commission has previously approved. Staff requests Commission approval of this Memorandum of Understanding between Draga Investments, LLC, PBS Properties, LLC, and the Commission. 227 W.JEFFERSON BLVD. SOUTH BEND, IN 46601 I P: 574-235-9371 I FAX: 574-235-9021 I SOUTHBENDIN.GOV MEMORANDUM OF UNDERSTANDING by and between Draga Investments, LLC and P.B.S. Properties, LLC and City of South Bend, Indiana, Redevelopment Commission WHEREAS, Draga Investments, LLC, an Indiana limited liability company ("Draga Investments") is contemplating selling property commonly described as 6139 Parkland Drive ("the Property"), and more specifically described in "Exhibit A", to P.B.S. Properties, LLC, an Indiana limited liability company ("P.B.S. Properties"). The parties have contemplated that closing will occur on or before January 31, 2013; and WHEREAS, when the South Bend, Indiana Redevelopment Commission (the "Commission") platted the U.S. 31 Industrial Park in 1999, Lot 14 of the U.S. 31 Industrial Park Subdivision, Section Four, included, on the eastern portion of the property, a 280.75' x 494.22' retention and drainage easement that was to be used for common property and area drainage as well as for drainage of Parkland Drive and adjacent rights-of-way. This retention area was developed by the Commission as part of the development of the infrastructure and has been maintained since construction commenced by employees or agents of the City of South Bend; and WHEREAS, in October 2000, Draga Investments purchased Lot 14 from the Commission to develop the Property as a commercial location for the Indiana Supply, Inc., business operation; and WHEREAS, Draga Investments is now seeking to sell the Property to P.B.S. Properties. P.B.S. Properties is requesting to acquire the property without the drainage area included into the property and has requested that the Commission take possession of the retention area as it is City of South Bend practice to own and maintain retention areas, especially those that relate to infrastructure drainage networks; and WHEREAS, the Commission supports the resale of the property to P.B.S. Properties, a prominent South Bend business, and at its Regular Meeting on December 13, 2013, contracted with Danch, Harner and Associates ("DHA"), with offices located at 1643 Commerce Drive in South Bend, to perform a One Lot/One Outlot Minor Subdivision of Lot 14, U.S. 31 Industrial Park Subdivision, Section Four. The subdivision will allow P.B.S. Properties to acquire the Property and allow the City to take ownership of the retention area. The subdivision will be filed by the deadline on January 14, 2013, with the Area Plan Commission of St. Joseph County, Indiana, for review and approval by the Plat Committee at their meeting on February 21, 2013; and WHEREAS, the Commission or the City of South Bend, on behalf of its Board of Public Works, will take title to the Outlot upon completion of the subdivision process. Ownership of the retention area will be in the best interest of the industrial park owners and tenants and of the citizens of the City. PURPOSE The purpose of this MOU is to set forth the discussions that agents representing Draga Investments, P.B.S. Properties, and the Commission have had with one another to date with respect to the retention area and the subdivision of the Property. The executed MOU shall be a binding document that expresses the intent of each of the parties at the time this MOU is executed. This MOU is a statement of the parties' mutual good faith intentions to proceed with the Subdivision as described herein. This MOU shall be subject to the appropriate resolutions or approval of the parties' respective governing bodies. COMMITMENTS - DRAGA INVESTMENTS AND P.B.S. PROPERTIES 1. Draga Investments and P.B.S. Properties will grant all necessary access to the property to allow agents of DHA to complete all necessary field work associated with this subdivision process. Draga Investments and P.B.S. Properties will sign all necessary paperwork that is required to be filed with the Subdivision application. COMMITMENTS - COMMISSION 1. The Commission will fund and pay for all costs related to the preparation and approval of the subdivision process. The Commission will coordinate with DHA to keep the project on track for approval by the Plat Committee at its meeting on February 21, 2013. (Signature page follows) EXHIBIT A Legal Description for 6139 Parkland Drive Lot 14, U.S. 31 Industrial Park Subdivision, Section Four Lot Numbered Fourteen (14) as shown on the recorded Plat of U.S. 31 Industrial Park, Section Four, recorded November 4, 1999 as Document Number 9955445 in the Office of the Recorder of St. Joseph County, Indiana. DATED this day of January, 2013. DRAGA INVESTMENTS,LLC By: Name: Title: PBS PROPERTIES LLC By: Name: Title: CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Signature Printed Name and Title South Bend Redevelopment Commission ATTEST: Signature Printed Name and Title South Bend Redevelopment Commission (Signature Page to Memorandum of Understanding between Draga Investments, LLC, and P.B.S. Properties, LLC, and the South Bend Redevelopment Commission)