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HomeMy WebLinkAbout5A1 Option Agreement (4124 Old Cleveland Rd.) - SignedSouth Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item D ATE : 1/17/2025 FROM: Joseph Molnar – Assistant Director of Growth & Opportunity SUBJECT: Option to Purchase Agreement – 4124 Old Cleveland Road Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res. * 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: Staff requests consideration of Option to Purchase Agreement for property located at 4124 Old Cleveland Road SPECIFICS: The proposed Option to Purchase Agreement for the property located at 4124 Old Cleveland Road is located near the property the Redevelopment Commission recently purchased located at 4022 Old Cleveland Road which has the intended use as the location of a Low-Barrier Intake Center that was originally proposed on N. Bendix Drive. The current owners of the property expressed their interest in selling the property located at 4124 Old Cleveland Road if the Low-Barrier Intake Center proceeds with construction. The proposed option would give the Redevelopment Commission an exclusive option to purchase the property within five (5) years of the effective date. The Commission can exercise this option when building permits are approved by the St. Joseph County Building Department for the proposed Low-Barrier Intake Center and purchase the property for $374,000 subject to two (2) independent appraisals and in consideration of this option the Commission would pay the current owners $25,000. The proposed option dictates the Closing Date to be six (6) months after the option is exercised and permits the current owners a period of six (6) months after the Closing Date to vacate the property located at 4124 Old Cleveland Road in order to have appropriate time to remove all personal property from premises. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION January 23, 2025  ' OPTION TO PURCHASE AGREEMENT THIS EXCLUSIVE OPTION TO PURCHASE AGREEMENT (the "Option Agreement") is made on the 23rd. day of January, 2025 (the Effective Date) and entered into by and between the South Bend Redevelopment Commission, governing body of the South Bend Department of Redevelopment ("Commission"), and Adrian and Briana Long, each an individual (together, Adrian and Briana are referred to as the "Owners") (the Commission and the Owners are each sometimes referred to herein as a "Party" or collectively as the "Parties"). PRELIMINARY STATEMENT Owners are the owner of certain real estate, as more particularly described in Exhibit A to this Option Agreement (the "Real Estate"). The Commission is the owner of certain other real estate, as more particularly described in Exhibit B (the "Commission Property"). The Commission Property and the Real Estate are located in close proximity to one another. The Commission intends to eventually use the Commission Property for the construction of a new low barrier intake center facility serving the City of South Bend (the "Intended Use"). In the event the Commission proceeds with its Intended Use for the Commission Property, Owners agrees to sell the Real Estate to the Commission, upon the tenns and conditions hereinafter set forth. In consideration of the mutual promises contained in this Option Agreement, the Parties agree to the following: AGREEMENT 1.Exclusive Option to Purchase. The Owners hereby grant the Commission the exclusive option to purchase the Real Estate, subject to the terms and conditions set forth herein (the "Option"). The Option must be exercised by Commission, if at all, no later than the expiration of the Option Period, which is herein defined as five (5) years from the Effective Date (the "Option Period"). The Owners understand and agree that by entering into this Option, the Owners may not sell or assign the Real Estate to another buyer during the Option Period. As consideration for this Option, the Commission will pay the Owners the sum of Twenty Five Thousand Dollars ($25,000.00) (the "Option Payment") within thirty (30) days of the Effective Date. 2.Exercise or'bption: Trigger. The Commission may not exercise the Option until St. Joseph County Building Department Building Permits are obtained for the purpose of constructing the Intended Use (the Option Trigger"). Once the Option Trigger occurs, the Commission may exercise the Option by giving notice to the Owners in writing during the Option Period in the manner provided for the giving of notices in Section 10 of this Option Agreement. 3.Purchase Price. In the event the Option is exercised, subject to the Commission first obtaining two independent appraisals in accordance with Ind. Code § 3 6-7-14, the Commission shall purchase from Owners and Owners shall sell to the Commission, the Real Estate for the purchase price of Three Hundred Seventy Four Thousand Dollars ($374,000.00) (the "Purchase Price"). IN WITNESS WHEREOF, the parties hereto have executed this Option to Purchase Agreement on the 23rd. day of January, 2024. COMMISSION: SOUTH BEND REDEVELOPMENT COMMISSION Troy Warner President ATTEST: Vivian G. Sallie, Secretary OWNERS: ..