HomeMy WebLinkAbout5B7 Purchase Agreement - Claeys Building_signed2CITY OF SOUTH BEND REDEVELOPMENT COMMISSION
�-P�es/V-Pres Redevelopment Commission Agenda Item
DATE: July 23, 2024 FROM: Caleb Bauer, DCI Executive Director
SUBJECT:
chase Studenbaker AgreementAdmin ; Development Former Claeys agrePurchase ement; UnionStation AgreementPur
ATTEST: f�flh/�cretary
Date: 7 -z�,,, 2D 2-Y
ig:] APPROVED D Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
Funding Source* (circle one) !River WesB; River East; South Side; Douglas Road; West Washington; RDC General
*Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller,then the authorization of the expenditure of such funds shall be void and of no effect.
Purpose of Request: Approval of real estate purchase agreement for the $2.43M purchase of the
Grand Hall and Parking Lot of Union Station, sale of former Claeys Candy building, and
Development Agreement for the stabilization of the Studebaker Administration Building
Specifics: The Department of Community Investment requests approval of the purchase of the
purchase of the 0.95 acres that includes the Grand Hall and Parking Lot of Union Station for a
purchase price of $2.43M (which reflects the average of two independent appraisals). The
administration believes that ownership of this historic building is a good long-term investment
for the Commission and could facilitate passenger rail connections in partnership with Amtrak in
the near future.
Related to the purchase, staff also request approval for a sale of the former Claeys Candy
building for $1,000 to allow for its activation as part of a new data center owner at the remaining
Union Station property.
Separately but related, staff propose approval of a Development Agreement with Studebaker
Ad min QOZB LLC for the stabilization of the Studebaker Administration building. The Commission
would commit no more than $825,000 for lead and asbestos identification and abatement to be
paired with a private investment commitment of $3.3M. Though this agreement does not fully
activate the building, it will stabilize and preserve it and ensure that it can be redeveloped in the
future.
EXCELLENCE I ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
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