HomeMy WebLinkAbout5A2 Real Estate Option Agreement (Salvation Army Parking Lots)
Redevelopment Commission Agenda Item
DATE: 5/23/23
FROM: Joseph Molnar
SUBJECT: Option to Purchase former Salvation Army
Parking Lots
Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington
PURPOSE OF REQUEST: Approval of an Option to Purchase former Salvation Army Parking Lots
Specifics: On May 11th 2023 the RDC approved a Purchase Agreement with Momentum
Development Group for the former Salvation Army Building on at 510 S Main Street in
Downtown South Bend. Momentum desired to move as quick as possible to begin work on
redeveloping the building. There were questions remaining about the use and design of any
improvements to the parking lot areas of the site. To help the project proceed quickly,
Momentum and City Staff felt it was appropriate to have separate agreements for the building
and the remaining lots.
The proposed Real Estate Option Purchase Agreement and Memorandum of Real Estate Option
Purchase Agreement grants Momentum an exclusive option on the parking lots until December
31st 2024. Momentum will pay $1,000 for the right to the Option and if they exercise the Option
will pay a further $1,000. This allows Momentum to begin redevelopment of the building while
working with City Staff to develop a complete plan for the parking lots.
City Staff recommends approval.
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 $_____________
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION