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HomeMy WebLinkAbout5A7 2 Parking Lease Agremnts. (Leighton Garage) Property Transfer Agremnt. (Madison Lifestyle) AS AMENDED - SignedSouth Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item D ATE : 9/23/25 FROM: Erik Glavich, Director, Growth & Opportunity SUBJECT: Parking Lease Agreements (Jefferson Centre Associates LLC) & Property Transfer Agreement (300 North Michigan Associates LLC & Great Lakes Capital) 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: Two Parking Lease Agreements to provide parking at the Leighton Garage for tenants of the Jefferson Centre Building (105 W. Jefferson Blvd.) and a Property Transfer Agreement to transfer ownership of a parcel located at 333 N. Dr. Martin Luther King Jr. Blvd. SPECIFICS: In March 2024, the Commission entered into Development Agreements with Great Lakes Capital (GLC) and Beacon Health System/Memorial Hospital (Beacon) to advance the Madison Lifestyle District—a transformative and historic $102 million redevelopment initiative in downtown South Bend. Concurrently, the Commission, GLC, and Beacon executed a three-party real estate purchase agreement to facilitate the transfer of key parcels from Beacon to GLC. Under the terms of these agreements, the Commission retains an option to acquire the parcels from GLC should the company fail to meet its contractual obligations. At the time of execution, one critical parcel (333 N. Dr. Martin Luther King Jr. Blvd.) was not owned by Beacon and therefore excluded from the purchase agreement. This parcel, which is currently a 27-space surface parking lot, is owned by 300 North Michigan Associates LLC, which shares common ownership with the entity that owns the Jefferson Centre Building, located at the corner of E. Jefferson Blvd. and S. Michigan St. The Jefferson Centre Building lost access to reserved parking following the demolition of the garage across from the Century Center in the early 2000s and the subsequent construction of the Courtyard by Marriott hotel on the surface parking lot that replaced the garage. Despite this challenge, the building’s owner has consistently maintained the property and contributed to the vitality of downtown through street-level commercial tenancy. The building remains a key asset along the S. Michigan corridor, and future rehabilitation efforts on surrounding blocks will enhance commerce and social engagement in the area. Unfortunately, though, the loss of reserved parking for Jefferson Centre has hampered the owner’s efforts to lease the property over the years. To address this issue and unlock the full potential of the Madison Lifestyle District, the Commission is asked to consider three interrelated agreements. Upon execution, these agreements will result in the transfer of 333 N. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION September, 25, 2025  South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Dr. Martin Luther King Jr. Blvd. to GLC in exchange for long-term parking accommodations at the roughly 640- space Leighton Garage, located west of Jefferson Centre across S. Michigan Street. 1. 75-Year Parking Lease Agreement: The Commission would lease 27 standard reserved parking spaces in the Leighton Garage at no charge to the owner of the Jefferson Centre Building for a term of 75 years to essentially replace the parking spaces at 333 N. Dr. Martin Luther King Jr. Blvd. Should the Leighton Garage become unusable during the lease term, the Commission would provide equivalent parking in a nearby City-owned facility (if available) or pay liquidated damages. The lease requires the owner to remain in good standing with the City, and the spaces may only be used by Jefferson Centre tenants and guests. 2. 30-Year Parking Lease Agreement: A second lease agreement would provide 53 standard reserved parking spaces in the Leighton Garage at no charge to the owner of the Jefferson Centre Building for a term of 30 years. Other terms of this 30-year lease are equivalent to those in the 75-year lease. 3.Property Transfer Agreement, 333 N. Dr. Martin Luther King Jr. Blvd.: Upon execution of the parking lease agreements, the parcel will be transferred to GLC, thereby completing the land assembly required for the Madison Lifestyle District. This agreement also secures an exclusive option for the Commission to purchase the parcel for $1 should GLC fail to fulfill its obligations under the March 2024 Development Agreement. Securing 333 N. Dr. Martin Luther King Jr. Blvd. is essential to realizing the full vision of the Madison Lifestyle District. Moreover, these agreements offer a meaningful opportunity to support the continued economic viability of the Jefferson Centre Building and the S. Michigan corridor. September 25, 2025 September 25, 2025 September 25, 2025 September 25, 2025 1 2 3 4 5 6 7 September 25, 2025 September 25, 2025 A-1 B-1 B-2 ________ __________ _________________ B-3 ________________ _________________ ______________ _____________ C-4 C-5 C-6 C-7 C-8 C-9 25th. September, C-10 D-1 D-2 D-4 D-5