HomeMy WebLinkAbout5A2 Purchase Agreement (Salvation Army Building Only)
Redevelopment Commission Agenda Item
DATE: 5/9/23
FROM: Joseph Molnar
SUBJECT: Former Salvation Army Building
Purchase Agreement
Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington
PURPOSE OF REQUEST: Sale of former Salvation Army Building for the purpose of restoration and
redevelopment.
Specifics: In 2019, the City purchased the former Salvation Army Building at 510 S. Main Street.
Beginning in the winter of 2019, the northern portion of the building has been used for the
Weather Amnesty Program each winter. The City has recently partnered with the Center for the
Homeless and provided funding for the expansion of their services. The Center for the
Homeless will now provide Weather Amnesty services in the upcoming winters.
The City now desires to sell the Salvation Army Building for redevelopment. Staff was
approached by the Momentum Development Group with interest in rehabbing the entire
building and returning it to an active use in the community. Momentum intends to redevelop
the building into a mixed-use building consisting of retail space, office space, and a commissary
kitchen.
The submitted Real Estate Purchase Agreement commits Momentum to the following:
- Sale price of $1,000.
- Begin construction within 12 months of closing date.
- Complete construction within 36 months of closing date.
- Momentum will invest a minimum of $6,000,000 worth of property improvements
into the property.
- In the event the property improvements and investments are not completed, the
Commission shall have the right to reenter and take possession of the property.
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
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This project is an exiting addition to the currently ongoing private and public investments in the
southern portion of the greater Downtown South Bend area. Redevelopment of the site will
bring a currently large vacant and underused building back to life.
Staff recommends approval of the Purchase Agreement.
INTERNAL USE ONLY: Project Code: _______________________________________________;
Total Amount new/change (inc/dec) in budget: _______________; Break down:
Costs: Engineering Amt: ______________________; Other Prof Serv Amt_________________;
Acquisition of Land/Bldg (circle one) Amt: ___________; Street Const Amt ________________;
Building Imp Amt_________; Sewers Amt_________; Other (specify) Amt: ________________
___________________________________________. Going to BPW for Contracting? Y/N
Is this item ready to encumber now? ____ Existing PO#__________ Inc/Dec $_____________