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HomeMy WebLinkAbout5A2 Agreement to Release Easement (JC Hart) - SignedSouth Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item D ATE: May 5, 2025 FROM: Danielle Weiss, Senior Assistant City Attorney SUBJECT: Agreement to 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 Release of Easement Agreement benefitting the River Glen Office Park site. SPECIFICS: On January 9, 2025 the Redevelopment Commission (“RDC”) and JC Hart Company (the “Developer”) entered into an Economic Development Agreement (the “Development Agreement”). The Development 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 a 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 through the Development Agreement (which was amended on March 13, 2025 to provide further detail of the RDC’s commitments) 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. On March 13, 2025, the RDC, as property owner of the River Glen Office Park, approved a certain Agreement to Suspend and Release Easement which provided RDC would (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. Since that time, this document has been held in escrow, pending the closing of the real estate transaction by which the Developer would acquire the Developer Property. This prior agreement has not yet been recorded. The Developer has recently requested the prior approved document be superseded by a new document titled “Release of Easement,” which will result in the release of the easement occurring sooner. Instead of temporarily suspending the easement rights during construction and fully releasing the easement once construction is completed, the easement would be fully released now. If approved, this new Release of Easement would replace the prior agreement, and the prior agreement would become null and void. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION May 8, 2025  South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana The need to release the easement was always at the center of the Developer’s needs for the Development Project. In this new version, in addition to causing the release of easement to occur sooner, this revised version will also (i) help to explain to the Developer’s construction lender what is happening with the easement, (ii) provide clarity to title records; and (iii) provide clarity/administrative ease to the parties. In exchange for RDC’s agreement to execute this new Release of Easement, the Developer is expressly committing to include in its Plans and Specifications for the Project a commitment to dedicate all necessary rights-of-way on the Project Site to enable the development of a public street and public utilities to serve the site and connect the neighboring properties, including the Commission’s Property. This was already the intended plan, but this agreement memorializes and confirms that commitment. During construction, the River Glen Office site will still have access to and from Monroe and Columbia Streets. As a result of the full development, the River Glen Office Park will obtain substantially improved access to Jefferson Boulevard/Wayne Street in the form of a newly built public roadway and sidewalks. 1 AGREEMENT TO RELEASE EASEMENT THIS AGREEMENT TO RELEASE EASEMENT (this “Agreement”) is made and entered into effective as of (the “Effective Date”), by and between J.C. Hart Company, Inc., an Indiana corporation (“Developer”) and the City of South Bend, Department of Redevelopment, acting by and through its governing body, the South Bend Redevelopment Commission (“Commission”) (each, a “Party,” and collectively, the “Parties”). BACKGROUND A. Developer and Commission are parties to a certain Economic Development Agreement dated January 9, 2025, as amended (the “Development Agreement”), which sets forth various rights and obligations related to development of the Project Site for the Project (as defined in the Development Agreement, as may be amended from time to time). Terms used but not otherwise defined herein are as defined in the Development Agreement. B. The Commission owns certain property located to the south of the Project Site, commonly known as 501 E Monroe, 501 E. Monroe, 404 Columbia, 350 Columbia, and 348 Columbia in South Bend (the “Commission Property”) and through such ownership is the beneficiary of a certain non-exclusive easement over the Project Site for pedestrian and vehicular ingress and egress to and from Wayne Street/Jefferson Boulevard (the “Easement”). C. The Development Agreement contemplates the creation of certain Plans and Specifications for the Project, which will include details regarding the construction of a new road and sidewalks through the Project Site. D. It is the intent of the Parties that the Plans and Specifications for the Project will include the Developer’s commitment to dedicate any necessary rights-of-way on the Project Site in order to allow for the development of public street and public utilities to serve the site and connect to neighboring properties. E. In order for the Developer to proceed with its Project, it must first obtain a release of the Easement from the Commission, in the form attached hereto as Exhibit 1. F. The Parties now desire to enter into this Agreement to memorialize that the Commission’s execution of the Release of Easement is being done in exchange for the Developer’s commitment to dedicate necessary rights-of-way on the Project Site that will enable the development of a public street and public utilities to serve the site and connect to the neighboring properties, including the Commission’s Property. NOW, THEREFORE, in consideration of the background above, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Commission and Developer agree as follows: 1. Background Provisions. The background provisions above are incorporated into the body of this Agreement as if fully set forth herein and made a part hereof. A - 2 2.Developer’s Commitments. As a material inducement for the Commission’s execution of the Release of Easement, Developer hereby agrees to include in its Plans and Specifications for the Project a commitment to dedicate of all necessary rights-of-way on the Project Site to enable the development of a public street and public utilities to serve the site and connect to the neighboring properties, including the Commission’s Property. The Developer understands that failure to include such details in its Plans and Specifications for the Project will result in the Commission’s rejection of the Plans and Specifications through the process specified in the Development Agreement. 3.Release of Easement. As a material inducement for the Developer’s Commitments herein, the Commission hereby approves of the Release of Easement substantially in the form attached hereto and authorizes the President of the Commission and Secretary of the Commission to execute and attest, respectively, said Release of Easement in the form attached hereto, with such changes as the President and Secretary shall approve, such approval to be evidenced by the execution and attestation thereof. 4.Prior Agreement to Suspend and Release Easement. Upon execution of the Release of Easement, the Parties agree that the certain Agreement to Suspend and Release Easement executed by the Commission on March 13, 2025 shall become null and void. 5. Signatures. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The Parties hereto may execute and deliver this Assignment by forwarding facsimile, e-mail, or other means of copies of this Agreement showing execution by the Party sending the same, and the Parties agree and intend that such signature shall have the same effect as an original signature and that the Parties shall be bound by such means of execution and delivery. [Signature Page Follows] A - 4 Exhibit 1 Release of Easement A - 5 Cross Reference: Instrument No. 2024-10901 (Commission Deed) Instrument No. 8216846 (1982 Declaration) Instrument No. 0130069 (2001 Relocation) RELEASE OF EASEMENT THIS RELEASE OF EASEMENT (hereinafter the “Release”) is made effective this 8th day of May, 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”). 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, the Commission Real Estate is the beneficiary of a certain non-exclusive easement over the real estate more particularly described in Exhibit B attached hereto and incorporated herein 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 purporting to relocate the Easement to the area described therein (the “Current Easement Area”); WHEREAS, the Commission acknowledges and agrees that notwithstanding anything to the contrary in the Declaration, the Current Easement Area is the location of the Easement; and WHEREAS, the Commission wishes to disclaim, waive, terminate, release and relinquish any and all interests or rights it may have to use the Easement and to document the same. 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 A - 6 definitions are made a part hereof as though such were fully set forth herein. 2.Release of Easement. The Commission hereby disclaims, waives, terminates, releases and relinquishes any and all interests 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 released and terminated and of no further force or effect. 3.Authority. The undersigned executing this Release certifies that he or she is/are duly authorized and empowered to execute and deliver this Release on behalf of the Commission. [SIGNATURE ON THE FOLLOWING PAGE] S - 1 SIGNATURE PAGE TO RELEASE OF EASEMENT City of South Bend, Department of Redevelopment, by and through its governing body, the South Bend Redevelopment Commission By:_______________________________ Troy Warner, President ATTEST: By: _______________________ Eli Wax, Secretary 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 A - 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. CONFIRMATION AGREEMENT PAGE 3 EXHIBIT B Real Estate Lot 1 and Lot 2 in the Crowe Chizek Second Minor Subdivision, as per plat thereof, recorded May 24, 2024 as Document Number 2024-11404 in the Office of the Recorder of St. Joseph County, Indiana.