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HomeMy WebLinkAbout5A2 Agreement to Suspend and Release Easement (Riverwalk Partners LLC) - SignedSouth Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item DAT E : 3/10/25 FROM: Joseph Molnar, Assistant Director of Growth & Opportunity SUBJECT: Agreement to Suspend and Release Easement 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: Approval of the Agreement to Suspend and Release Easement SPECIFICS: On January 9, 2025, the Redevelopment Commission (“RDC”) and JC Hart Company (the “Developer”) approved an Economic Development Agreement (“Agreement”). The Agreement committed both the RDC and the Developer to certain commitments in relation to a transformational project on the western bank of the St. Joseph River in downtown South Bend. The project site is just north of the former River Glen Office Park. The RDC acquired the office park on May 6, 2024, and as the owner is the beneficiary of a non-exclusive ingress and egress easement for pedestrian and vehicular access to and from Wayne Street/Jefferson Boulevard (the “Easement”). In partnership with the Developer’s intention to develop the Riverwalk Project, the RDC has agreed to construct and dedicate certain public roadways, sidewalks, and related improvements paid for substantially through a READI 2.0 grant from the State of Indiana. These roadway improvements once completed will provide access to and from the River Glen Office Park. To accommodate the development, the attached Agreement to Suspend and Release Easement confirms that the RDC, as property owner of former River Glen Office Park, is willing to: (i) suspend all use of the Easement during the development of the Riverwalk Project; and (ii) release and relinquish the Easement upon the Roadway Completion and Opening. The result of the full development will provide substantially improved access to the River Glen Office Park than exists currently in the form of newly built public roadway and sidewalks. Staff recommends approval. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION March 13, 2025  1 Cross Reference: Instrument No. 2024-10901 (Commission Deed) Instrument No. 8216846 (1982 Declaration) Instrument No. 0130069 (2001 Relocation) AGREEMENT TO SUSPEND AND RELEASE EASEMENT THIS AGREEMENT TO SUSPEND AND RELEASE EASEMENT (hereinafter the “Agreement”) is entered into to be effective this ____ day of ______________, 2025 (the “Effective Date”) by the City of South Bend, Indiana, Department of Redevelopment by and through its governing body, the South Bend Redevelopment Commission (hereinafter the “Commission”), in favor of SOUTH BEND RIVERWALK PARTNERS, LLC, an Indiana limited liability company (“Riverwalk”), and their respective successors and assigns. WITNESSETH: WHEREAS, the Commission acquired certain real estate more particularly described in Exhibit A attached hereto and incorporated herein (the “Commission Real Estate”) pursuant to a certain Special Warranty Deed dated May 6, 2024 and recorded May 20, 2024 as Instrument No. 2024-10901 in the Office of the Recorder of St. Joseph County, Indiana; WHEREAS, Riverwalk intends to acquire certain real estate more particularly described in Exhibit B attached hereto and incorporated herein (the “Riverwalk Real Estate”); WHEREAS, the Commission Real Estate is the beneficiary of a certain non-exclusive easement over the Riverwalk Real Estate for pedestrian and vehicular ingress and egress to and from Wayne Street/Jefferson Boulevard (the “Easement”) granted by Crowe LLP, an Indiana limited liability partnership, formerly known as Crowe, Chizek & Company, an Indiana partnership (“Crowe”), pursuant to a certain Declaration and Grant of Easement for Pedestrian and Vehicular Egress dated November 3, 1982, and recorded November 3, 1982 as Instrument No. 8216846 in the Office of the Recorder of St. Joseph County, Indiana (the “Declaration”); WHEREAS, Crowe relocated the Easement pursuant to a certain Relocation of Easements dated June 25, 2001 and recorded June 27, 2001, as Instrument No. 0130069 to the location described therein, which remains the location of the Easement as of the Effective Date. WHEREAS, Riverwalk intends to redevelop the Riverwalk Real Estate as a market rate, apartment community (the “Riverwalk Project”), and in connection with the development of the Riverwalk Project, the Commission has agreed to construct or cause to be constructed and dedicate certain public roadways, sidewalks and related improvements generally as depicted in Exhibit C attached hereto and incorporated herein (the “Roadway Improvements”), which will provide access to and from the Commission Real Estate from and to Wayne Street/Jefferson Boulevard; 2 WHEREAS, to accommodate the development of the Riverwalk Project, Riverwalk desires that the Commission: (i) suspend all use of the Easement during the development of the Riverwalk Project; and (ii) upon completion and opening of the Roadway Improvements for use by the public (the “Roadway Completion and Opening”), release and relinquish the Easement; and WHEREAS, the Commission is willing to: (i) suspend all use of the Easement during the development of the Riverwalk Project; and (ii) release and relinquish the Easement upon the Roadway Completion and Opening. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the Commission promises, agrees and covenants as follows: 1. Incorporation of Recitals. The foregoing preambles, recitations and definitions are made a part hereof as though such were fully set forth herein. 2. Suspension of Easement Rights. The Commission agrees that, notwithstanding anything to the contrary in the Declaration, commencing five (5) business days after Riverwalk provides the Commission written notice of its intent to begin construction of the Riverwalk Project (the “Commencement Notice”): (i) the rights of the Commission and all employees, owners, agents, contractors, and invitees of the Commission to use the Easement in any manner shall be suspended; and (ii) Riverwalk and the Commission shall be entitled to engage in development and construction activities relating to the Riverwalk Project and the Roadway Improvements in the area of the Easement. Subject to Force Majeure, Riverwalk shall cause the Riverwalk Project to be completed and the Roadway Completion and Opening to occur no later than four (4) years from the date the Commencement Notice is provided to the Commission. In the event Riverwalk does not provide the Commission the Commencement Notice within twelve (12) months of the Effective Date, this Agreement shall automatically terminate and be of no further force or effect. 3. Release of Easement. Effective upon the Roadway Completion and Opening in compliance with this Agreement, the Commission disclaims, waives, terminates, releases and relinquishes any and all interest or retained easement rights it has or may have in and to the Easement, and any and all rights of the Commission pursuant to the Declaration shall be deemed terminated and of no further force or effect. Riverwalk shall be entitled to record a notice confirming the Roadway Completion and Opening. 4. Force Majeure. In the event that Riverwalk shall be materially delayed, hindered or prevented from performing its obligations hereunder by reason of any Unavoidable Delay, then the date for performance of such obligation shall be extended day for day during the occurrence of such Unavoidable Delay. The term “Unavoidable Delay” means the following circumstances: unusually inclement weather, strikes, lockouts, labor troubles, inability to procure materials, acts of God, fire, earthquake, flood, explosion, terrorism, action of the elements, war (declared or undeclared), police action, invasion, insurrection, riot, mob violence, sabotage, pandemics, epidemics, mandated closures or other causes beyond such Riverwalk’s reasonable control. 3 5. Notices. Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been delivered three (3) business days after deposit in the United States Mail as Certified Mail, Return Receipt Requested, postage prepaid, or one (1) business day after deposit with signed receipt to any national overnight courier for next business day delivery, in each case addressed to the owner at the current address on file with the real property taxing authority for the owner of Riverwalk Real Estate or the Commission Real Estate, as applicable. 6. Modification. No amendment to this Agreement will be valid or enforceable until it has been executed and delivered by both Riverwalk and the Commission. 7. Counterparts. This Agreement may be executed and acknowledged in multiple originals or counterparts, each of which shall be an original and, when all of the parties to this Agreement have signed and acknowledged at least one (1) original, such copies together shall constitute a fully executed and binding agreement. 8. Choice of Law and Venue. This Agreement shall be governed in all respects by the laws of the State of Indiana without reference to its or any other state’s choice of law principles or rules. Venue for any legal proceeding arising out of this Agreement shall be exclusive to courts located in St. Joseph County, Indiana 9. Agreement Runs with Land. Riverwalk and the Commission agree that the terms of this Agreement shall be appurtenant to and run with the Riverwalk Real Estate and the Commission Real Estate and shall be binding upon and inure to the benefit of Riverwalk’s and the Commission’s successors and assigns. [SIGNATURE ON THE FOLLOWING PAGE] SIGNATURE PAGE TO AGREEMENT TO SUSPEND AND RELEASE EASEMENT SOUTH BEND RIVERWALK PARTNERS, LLC, an Indiana limited liability company By: J.C. Hart Manager, LLC, an Indiana limited liability company, its Manager By: John C. Hart, Jr., Sole Member NOTARY PAGE TO AGREEMENT TO SUSPEND AND RELEASE EASEMENT STATE OF INDIANA ) SS: COUNTY OF MAR \ON ) Before me, a Notary Public in and for said County and State, personally appeared John C. Hart, Jr., the Sole Member of J.C. Hart Manager, LLC, an Indiana limited liability company, the Manager of South Bend Riverwalk Partners, LLC, who, after having been duly sworn, acknowledged the execution of the foregoing for and on behalf of such limited liability company. WITNESS, my hand and Notarial Seal this / , 2025. C L. PAYNE Notary Pubfic Marion County. State of Indiana Commission Expi res, May 26, 2031 Commission Numbe►: NP0688304 My Co ty of Residence: ary Public This instrument was prepared by: Timothy D. Schuster, Esq., Dinsmore & Shohl LLP, One Indiana Square, 211 N. Pennsylvania Street, Suite 1800, Indianapolis, Indiana 46204. 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. [Timothy D. Schuster, Esq.] S - 4 A - 1 EXHIBIT A Commission Real Estate PARCEL I: A part of the West Half of Section 12, Township 37 North, Range 2 East, also being a part of Block 8 of the recorded Plat of River Bend Addition, City of South Bend, St Joseph County, Indiana, described as follows: Commencing at the intersection of the Northeastern boundary of Columbia Street and the Eastern boundary of Western Avenue; thence along said Northeastern boundary South 69°32'51" East 95.25 feet; thence Southeasterly 192.83 feet along an arc to the right having a radius of 421.97 feet and subtended by a long chord having a bearing South 56"27'21" East and a length of 191.16 feet; thence North 46°38'09' East 155.47 feet; thence North 20°00'00" West 120.00 feet; thence North 70°00'00" East 217.00 feet; thence South 25°39'11" East 215.00 feet to the point of beginning; thence South 52°00'00" West 245.00 feet; thence South 38°00'00" East 155.00 feet; thence North 52°00'00" East 211.07 feet; thence North 25°39'11" West 158.67 feet to the point of beginning. PARCEL II: A part of Block 8 of the recorded Plat of River Bend Addition in Section 12, Township 37 North, Range 2 East, in the City of South Bend, St Joseph County, Indiana, described as follows: Commencing at the intersection of the East right of way line of Columbia Street and the North right of way line of Monroe Street as shown in said Plat of River Bend Addition; thence North 0°30'18" West along said East right of way line of Columbia Street 270.00 feet; thence North 89°29'42" East 75.00 feet; thence South 39°35'12" East 43.10 feet; thence North 52°00'00" East 113.02 feet to the point of beginning; thence North 38°00'00" West 255.00 feet; thence North 52°00'00" East 33.00 feet; thence South 38°00'00" East 155.00 feet; thence North 52°00'00" East 211.07 feet; thence South 25°39'11" East 29.45 feet; thence South 65°42'29" West 10.00 feet; thence South 4°39'38" East 40.00 feet; thence South 70°06'30' East 47.50 feet; thence South 52°00'00" West 231.27 feet to the point of beginning. PARCEL III: Non-Exclusive Easements for Pedestrian and Vehicular Egress by and between St Joseph River Road Development Corporation, Crowe, Chizek & Company, American Land Trust, First Bank and Trust Company of South Bend, West Bank Properties, Columbia Plaza Associates, River Glen Office Plaza Associates, and the St. Joseph Bank and Trust Company all of which were dated November 3, 1982 and recorded November 3, 1982 as Document Number 8216846, 8216847, 8216849, and 8216850 all in the Office of the Recorder of St. Joseph County, Indiana. PARCEL IV: A part of Block 8 of the recorded Plat of River Bend Addition, City of South Bend, St. Joseph County, Indiana, described as follows: Commencing at the intersection of the East right of way line of Columbia Street and the North right of way line of Monroe Street; thence North 89°38'42" East along said North right of way of Monroe Street 250.00 feet; thence North 0°21'18" West 55.00 feet; thence North 39°35'12" West 67.66 feet to the point of beginning; thence continuing North 39°35'12" West 167.06 feet; thence North 52°00'00" East 344.29 feet; thence South 70°06'30" East 2.50 feet; thence South 38°42'21" East 164.89 feet; thence South 52°00'00" West 343.08 feet to the point of beginning. PARCEL V: A non-exclusive easement for above real estates to and from Monroe Street in the City of South Bend, Indiana, as set out in Declaration and Grant of Easement, dated October 22, 1980, between River Glen Office Plaza Associates (as granter of the easement) and St. Joseph 2 River Bend Development Corporation, St. Joseph Bank and Trust Company and Crowe, Chizek and Company (owners of the various "dominant parcels" described therein) recorded October 22, 1980 as Document Number 8018357 in the Office of the Recorder of St Joseph County, Indiana, and being, in particular, the easement described as "Access Easement'' in Exhibit E thereto. PARCEL VI: A parcel in the Southeast Quarter and the Southwest Quarter of Section 12, Township 37 North, Range 2 East, also being a part of Block 8 of the recorded Plat of River Bend Addition to the City of South Bend, St Joseph County, Indiana, described as follows: Commencing at the intersection of the East right of way line of Columbia Street and the North right of way line of Monroe Street; thence North 89°38'42" East along said North right of way of Monroe Street 250.00 feet to the point of beginning; thence North 0°21'18" West 55.00 feet; thence North 39°35'12" West 67.66 feet; thence North 52°00'00" East 343.09 feet; thence South 38°42'21" East 72.09 feet; thence South 0°30'18" East 263.46 feet to the North right of way line of Monroe Street; thence 61.24 feet Westerly on said right of way line on a curve to the left having a radius of 614.21 feet and subtended by a long chord 61.18 feet in length and having a bearing of North 87°30'03" West; thence South 89°38'42" West along said North right of way line of Monroe Street 213.10 feet to the point of beginning. PARCEL VII: An easement for ingress and egress on, over and across a parcel in the Southeast Quarter of Section 12, Township 37 North, Range 2 East, also being a part of Block 8 of the recorded Plat of River Bend Addition to the City of South Bend, St Joseph County, Indiana, described as follows: Commencing at the intersection of the East right of way line of Columbia Street and the North right of way line of Monroe Street; thence North 0°30'18" West along the East right of way line of Columbia Street a distance of 293.20 feet to the point of beginning; thence continuing on said right of way Northward along a curve to the left, with a radius of 421.97 feet and subtended by a long chord with a bearing of North 1°52'27'' West 27.60 feet; thence North 75°20'48" East 77.98 feet; thence South 39°35'12" East 265.63 feet; thence South 52°00'00" West 24.01 feet; thence North 39°35'12" West 246.44 feet; thence South 75°20'48" West 70.13 feet to the point of beginning. PARCEL VIII: A part of the West Half of Section 12, Township 37 North, Range 2 East, also being a part of Block 8 of the unrecorded Plat of River Bend Addition, City of South Bend, St Joseph County, Indiana, described as follows: Commencing at the intersection of the East boundary of Fellow Street projected North and the northern boundary of Monroe Street; thence South 89°38'42n West along said northern boundary a distance of 78.14 feet to the true point of beginning; thence South 89°38'42" West along the northern boundary of Monroe Street a distance of 250 feet to the East boundary of Columbia Street; thence North 0°30'18. West along said East boundary a distance of 270 feet; thence North 89° 38'42" East a distance of 75 feet; thence South 39°35'21" East a distance of 277.57 feet; thence South 0°30'18. East a distance of 55 feet to the point of beginning. B - 1 EXHIBIT B Riverwalk Real Estate Lot 2 in the Crowe Chizek Second Minor Subdivision Lot Line Adjustment, as per plat thereof, recorded as Instrument Number _________________ in the Office of the Recorder of St. Joseph County, Indiana. C - 1 EXHIBIT C Roadway Improvements