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HomeMy WebLinkAboutResolution No 08-2023 - Transfer of Real Property to the South Bend Redevelopment Authority RWDA & REDAINTER -OFFICE MEMORANDUM Department of Law City of South Bend 227 W Jefferson Blvd TO: Board of Public Works, Theresa Heffner, Michael Schmidt FROM: Jenna Throw, Assistant City Attorney SUBJECT: Resolution No. 08-2023 — Transfer of Property to DATE: Redevelopment Authority February 16, 2023 Members of the Board, Ms. Heffner, and Mr. Schmidt: As you may know, the City is approaching closing on bonds to fund certain public improvement projects in the River West and River East Development Areas within the City of South Bend. The structure of these bonds calls for the Redevelopment Authority and the Redevelopment Commission to enter into a Lease for a defined set of "Leased Premises," and the rental payments under the Lease will be used to meet the Redevelopment Authority's obligations to bondholders. The South Bend Redevelopment Authority is to be the Lessor for this transaction, so in order to lease the property to the Redevelopment Commission, it will need to acquire the property. Because the Board of Public Works is the holder of real property owned by the City, we request that the Board adopt this Resolution to transfer the Leased Premises, defined as the segment of Portage Avenue from its intersection with Cleveland Road to its intersection with Angela Boulevard, to the South Bend Redevelopment Authority. In order to accomplish that transfer, we specifically request that the Board authorize its President to execute a Quitclaim Deed to convey the property to the South Bend Redevelopment Authority. We also request that the Board authorize Joseph Molnar, of the City's Department of Community Investment, to deliver the Deed to be recorded in the Office of the Recorder of St. Joseph County, Indiana and to execute any other document necessary to affect the Redevelopment Authority's acceptance of the Leased Premises from the Board of Public Works. RESOLUTION NO. 08-2023 A RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA, BOARD OF PUBLIC WORKS AUTHORIZING THE TRANSFER OF REAL PROPERTY TO THE SOUTH BEND REDEVELOPMENT AUTHORITY WHEREAS, the City of South Bend, Indiana, Board of Public Works (the 'Board of Public Works") exists pursuant to I.C. § 36-4-9-5, holds real property owned by the City of South Bend, Indiana (the "City") pursuant to I.C. § 36-9-6-3, and is authorized to transfer such property to another governmental entity pursuant to I.C. § 36-1-11-8; and WHEREAS, the South Bend Redevelopment Authority (the "Authority") has been created pursuant to Indiana Code 36-7-14.5 as a separate body, corporate and politic, and as an instrumentality of the City of South Bend, Indiana (the "City"), is authorized to hold and dispose of real property pursuant to Indiana Code Section 36-7-14.5-12(a)(4) and (5), and is authorized to receive such property from another governmental entity pursuant to Indiana Code Section 36- 1- 11-8; and WHEREAS, the City has determined to undertake certain (a) local public improvement projects in the River West Development Area consisting of all or any portion of the following: (i) River Bridge Connector (plus Madison) to South Bend -Notre Dame Trail which consists of Phase 3 of the trail project (the "Trail Project") to construct a pedestrian bridge to connect the trail from the University of Notre Dame campus to the City's downtown, and any related improvements; (ii) Linden improvements which consists of streetscape improvements in coordination with the Martin Luther King Jr. Dream Center, from College to Birdsell, including improvements for bikes and pedestrians, and any related improvements; (iii) Kennedy Park improvements which consist of natural and aquatic improvements to the existing park and any related improvements to increase accessible recreation resources on the west side of the City; (iv) South East Park improvements which consist of improvements to the park, including splashpad improvements and playground resurfacing, and any related improvements; (v) Martin Luther King Jr. Dream Center improvements which consist of exterior park redevelopment, including without limitation splashpad, playground, basketball court, other related park amenity improvements, and any related improvements; (vi) Rum Village Park Plan improvements which consist of enhancements to the historic pavilion and the Park including exterior restoration and stabilization of the fieldstones, broad arches, and courtyard, and any related improvements; and (vii) all projects related to any of the projects described in clauses (i) through and including (vi) (clauses (i) through and including (vii), collectively, the "River West Improvements"), (b) other local public improvements in the River West Development Area to support and provide incentives to foster the development of the Beacon Integrated Health and Lifestyle District project, said project having been awarded up to a $11,780,000 Regional Economic Acceleration and Development Initiative grant by the South Bend -Elkhart Regional Development Authority, which local public improvements include, without limitation, site work, construction of up to two (2) public parking garages and a skyway improvement, and any projects related to the foregoing (collectively, the "Beacon District Improvements"), and (c) local public improvement projects in the River East Development Area consisting of all or any portion of the following: (i) LaSalle Streetscape which consists of a road diet with a focus on bike and pedestrian improvements from Martin Luther King Boulevard to Eddy Street and any related improvements; (ii) Hill Street Trail (South Bend Avenue to LaSalle Street) which consists of Phase 2 of the Trail Project to construct a shared use path and any related improvements to improve bicycle and pedestrian facilities between the University of Notre Dame campus and the City's downtown; (iii) South Bend Avenue (Hill Street to Notre Dame Avenue) and Hill Street Intersection which consists of Phase 1 of the Trail Project to construct a shared use path and any related improvements to improve bicycle and pedestrian facilities between the University of Notre Dame campus and the City's downtown; (iv) Mishawaka Avenue Streetscape Improvements which consist of a road diet and improved parking from Longfellow Street to Emerson Street, storm sewer separation, and any related improvements; (v) Coquillard Splashpad which consists of upgrading the splashpad at Coquillard Park to modern health, safety, and experiential standards, and any related improvements; and (vi) all projects related to any of the projects described in clauses (i) through and including (v) (clauses (i) through and including (vi), collectively, the "River East Projects" and collectively with the River West Projects and the Beacon District Improvements, the "Projects"); and WHEREAS, the Common Council of the City has adopted Resolution No. 23-02, approving of the issuance of the Bonds by the Authority, pursuant to Indiana Code 36-7-14.5-19 and the execution and delivery of the Lease, as approved by the Authority and the Redevelopment Commission (the "Commission"), pursuant to Section 25.2 of the Act, in order to provide for the financing of the Projects, all upon the following conditions: (a) the maximum aggregate principal amount of the Bonds shall not exceed $69,000,000; (b) the Bonds shall have a final maturity date which is not later than twenty (20) years from the date of their issuance; (c) the maximum annual lease rental payment during the term of the Lease shall not exceed $10,500,000; (d) the maximum interest rate on any tax-exempt series of the Bonds shall not exceed seven and one-half percent (7.50%) per annum and on any taxable series of the Bonds the maximum interest rate shall not exceed nine percent (9.00%) per annum; (e) the Bonds will be subject to optional redemption prior to maturity not earlier than five (5) years after the date of issuance of the Bonds; (f) the maximum term of the Lease shall not exceed twenty (20) years; and (g) interest on the Bonds may be capitalized or paid from the proceeds of the Bonds for a period up to three (3) years from the date of issuance of the Bonds based upon the recommendation of the Municipal Advisor; and WHEREAS, in order to provide a source of funding to pay the principal of and interest on the Bonds when due, the Authority and Commission have authorized a form of Lease dated as of December 19, 2022 (the "Lease") providing for the lease of certain property in the City as more fully described in the Lease (the "Leased Premises"); and WHEREAS, the Authority desires to acquire an interest in the Leased Premises for the purpose of leasing the Property pursuant to the terms of the Lease; and WHEREAS, the Board of Public Works holds certain real property located in the City described in Exhibit A (the "Property"); and WHEREAS, in order to effectuate the bond transaction, the Board of Public Works desires to convey the Property to the Authority pursuant to I.C. § 36-1-11-8 and subject to the terms of this Resolution. 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF SOUTH BEND BOARD OF PUBLIC WORKS AS FOLLOWS: 1. The Board of Public Works hereby approves the transfer of the Leased Premises from the Board of Public Works in accordance with I.C. § 36-1-11-8, the Act. The President of the Board (the "President") is authorized and directed, in the name of the City, to execute and deliver a quit claim deed in a form substantially similar to the document attached hereto as Exhibit A, conveying all of the Board of Public Works' right, title, and interest in the Property to the Authority. 2. The Board of Public Works authorizes Joseph Molnar of the City's Department of Community Investment to deliver the Deed for recordation to the Office of the Recorder of St. Joseph County, Indiana and execute any other document necessary to affect the Authority's acceptance of the Leased Premises from the Board of Public Works. This Resolution will be in full force and effect upon its adoption by the Board of Public Works. Signature Page Follows ADOPTED at a meeting of the City of South Bend, Indiana, Board of Public Works held on February 28, 2023, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. CITY OF SOUTH BEND, INDIANA BOARD OF PUBLIC WORKS Elizabeth A. Maradik, President Gary A. Gilot, Member Murray L. Miller, Member ��— 77t Joseph R. Molnar, Vice President Jordan V. Gathers, Member Attest: Theresa M. Heffner, Clerk Date: February 28, 2023 jrl EXHIBIT A Form of Quitclaim Deed [See attached.] Description of Property. All of the City's interest in all or a portion of the Property which consists of Portage Avenue from its intersection with Cleveland Road to its intersection with Angela Boulevard, as more particularly described below: [The legal description will be included here for the Property prior to recording.] RETURN TO: 10 •t ► 9 City of South Bend TRANSFER NO. 227 W Jefferson Blvd., Ste 1400S TAXING UNIT: South Bend, IN 46601 PARCEL NO. N/A QUITCLAIM DEED THIS INDENTURE WITNESSETH THAT Civil City of South Bend, Indiana, by and through its Board of Public Works (the "Grantor") CONVEYS AND QUITCLAIMS TO the South Bend Redevelopment Authority (the "Grantee"), for and in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, the real estate located in St. Joseph County, Indiana, and more particularly described in attached Exhibit 1 (the "Property"). Grantor hereby conveys the Property subject to all covenants, restrictions, easements, and other matters of record. The undersigned persons executing this Quitclaim Deed on behalf of the Grantor represent and certify that each has been fully empowered and authorized to execute this Quitclaim Deed and that all action necessary to complete this conveyance on Grantor's behalf has been duly taken. [Signature page follows.] rt)of VCkf Dated this day of 2023. GRANTOR: Civil City of South Bend, Indiana, by and through its Board of Public Works By: Elizabeth A. Maradik, President ATTEST: By: eresa Heft er, C r STATE OF INDIANA ) ) SS: ST. JOSEPH COUNTY ) Before me, the undersigned, a Notary Public for and in said County and State this 02?Oday of �e bf LAI " V, 2023 appeared Elizabeth A. Maradik and Theresa Heffner, known to me to be, respectively, President and Acting Clerk of the City of South Bend, Indiana, Board of Public Works, the Grantor, and acknowledged the execution of the foregoing Quit Claim Deed, being authorized pursuant to Resolution No. O'S -aG �3 IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal. LAURA D. HENSLEY Notary Public - Seal St Joseph County - State of Indiana Commission Number NP0732150 My Commission Expires Mar 3, 2029 INt Public keACnt of �} . ] t7� Cou�N Commission expires: Mal-aA 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. Jenna K. Throw Prepared by Jenna K. Throw, Assistant City Attorney, 1200 S. County -City Building, 227 W. Jefferson Blvd., South Bend, Indiana 46601 BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date 2/ 16/2023 Name Jenna Throw Department Lie al BPW Date February 28, 2023 Phone Extension Ext. 9354 Review and Approval Required Prior to Submittal to Board Diversity Compliance ❑ and Inclusion Officer Officer Name BPW Attorney ❑ Attorney Name Dept. Attorney ❑ Attorney Name Purchasing ❑ Check the Appropriate Item Type — Re uired or All Submissions ❑ Professional Services Agreement ❑ Open Market Contract ❑ Bid Opening ❑ Quote Opening ❑ Proposal Opening ❑ Chg. Order, No. ❑ Other: ❑Contract ❑ Proposal ❑ Amendment/Addendum ❑ Special Purchase, QPA ❑ Bid Award ❑ Req. to Advertise ❑ Title Sheet ❑ Quote Award ❑ Reject Bids/Quotes ❑ C/O & PCA No. ❑ PCA ❑ Traffic Control ❑x Resolution ❑ Ease./Encroach Reauired Information Company or Vendor Name ❑ Yes[:] If Yes, Approved by Purchasing New Vendor ❑ No Yes MBE MBE/WBE Contractor Completed E-Verify Form Attached ❑ ❑ No Project Name NA Project Number NA Funding Source NA Account No. NA Amount NA Terms of Contract Purpose/Description Resolution requesting transfer of certain City property to the South Bend Redevelopment Authority For Chance Orders Onl Amount of ❑ Increase $ ❑ Decrease ($ ) Previous Amount $ Increase Current Percent of Change: Decrease New Amount $ Increase Total Percent of Change: Decrease Time Extension Amount: New Completion Date: