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HomeMy WebLinkAbout5166-26 Resolution Approving the Interlocal Agreement Between the City of South Bend, the County of St. Joseph, and the Michiana Area Council of Governments Establishing a Land Bank Pursuant to Indiana Code Section 36-7-38 et seq. RESOLUTION No . 5166-26 Passed by the Common Council of the City of South Bend, Indiana March 23, 26 20 LAttest: City Clerk Bianca L. Tirado Attest: President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana March 24, 20 26 1 r. ` City Clerk Bi s nca L. Tirado I Approved and signed by me !NON / 20 26 )17 Mayor BILL NO. 26-09 RESOLUTION NO. 5166-26 A RESOLUTION OF THE SOUTH BEND COMMON COUNCIL APPROVING THE INTERLOCAL AGREEMENT BETWEEN THE CITY OF SOUTH BEND, THE COUNTY OF ST. JOSEPH AND THE MICHIANA AREA COUNCIL OF GOVERNMENTS ESTABLISHING A LAND BANK PURSUANT TO IND. CODE §36-7- 38 ET SEQ. WHEREAS,pursuant to Ind. Code § 36-7-38 et seq., the legislative bodies of two (2) or more eligible units within a single county may enter into an interlocal agreement to establish a land bank for the purpose of managing and improving the marketability of distressed real property located in the territory of the land bank; and WHEREAS,the City of South Bend (the"City") and St. Joseph County, Indiana(the "County") are two eligible units within the same county who desire to create a land bank pursuant to Ind. Code § 36-7-38 et seq.; and WHEREAS, the City and the County have agreed and determined pursuant to the attached, proposed Interlocal Agreement (Exhibit"A") to create said land bank and provide for the creation, with the assistance of the Michiana Area Council of Governments ("MACOG") and ongoing support of MACOG, of the same; and WHEREAS, it is desirable, advantageous, and in the public interest of the City to enter into this Interlocal Agreement(Exhibit"A" attached hereto). NOW, THEREFORE,BE IT RESOLVED BY THE SOUTH BEND COMMON COUNCIL THAT: Section 1. The South Bend Common Council, as the legislative body of the City, hereby approves the Interlocal Agreement(attached hereto as Exhibit"A") between the City of South Bend, St. Joseph County, and the Michiana Area Council of Governments, to create a land bank pursuant to Ind. Code § 36-7-38 et seq. Section 2. The Council President is authorized to execute the Interlocal Agreement attached hereto as Exhibit A. Section 3. This Resolution shall be in full force and effect from the date of its passage. Passed and adopted this day of , 2026. 0)- Canneth J. Lee, Council President South Bend Common Council Attest: Bianca L. Tirado, City ^ erk Office of the City C1er Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City of South Bend, Indiana on the 24th day of March ,2026, at 12 o'clock p.m. Bianca L. Tirado, it erk Office of the Cityh Clerk Approved and signed by me on the 3' day of Mk 'IA , 2026, at If o'clock ]7 .m. iiiir - J es Mueller, Mayor y of South Bend, Indiana r / OFFICE OF THE ATTORNEY GENERAL Ty • if, ' \\. \\ \',III\(.10N ST.IGCS 5TH FLOOR STATE.OF INDIANA r ►► (I/,\- I',',i\\\Poi.i . I V 46204-2770 TODD ROKITA ATTORNEY GENERAL May 29, 2026 Brandie Ecker beckerAtglaw.us RE: Interlocal Agreement between St. Joseph County, City of South Bend Common Council, and MACOG Dear Ms. Ecker: The Office of the Attorney General has reviewed the above reference Interlocal Cooperation Agreement you submitted and are of the opinion that is complies with the requirements on Ind. Code ch. 36-1-7 This letter may serve as evidence of our approval in accordance with Ind. Code § 36-1-7- 4(b) (Interlocal Cooperation Agreements—Approval by Attorney General). Pursuant to Ind. Code § 36-1-7-6, this Agreement must be recorded with the St. Joseph County Recorder and must also be transmitted to the State Board of Accounts within 60 days after taking effect. Sincerely, Joby D. Jerrells Chief Counsel, Advisory Division TELEPHONE: 866.462.5246 www.in.goviattorneygeneral/ INTERLOCAL AGREEMENT THIS INTERLOCAL AGREEMENT ("Agreement") is made and entered into this 0 day of M rat , 2026, by and between St. Joseph County, Indiana, by and through its Board of Commissioners (the "County"), the City of South Bend Common Council (the "City"), and the Michiana Area Council of Governments ("MACOG"). WITNESSETH: WHEREAS, there exists within the City of South Bend ("City") and the County a substantial number of properties in a neglected or unmarketable condition, including tax delinquent properties which are nonrevenue generating, vacant, or dilapidated ("Distressed Property"); and WHEREAS, this Distressed Property contributes to the blight and deterioration of the community and constitutes an economic burden on citizens of the City and the County; and WHEREAS, the City has acquired and removed Distressed Property within the City in an attempt to redevelop and stabilize neighborhoods and ultimately increase property values within the City and the County; and WHEREAS, the County, pursuant to I.C. 6-1.1-24 and 6-1.1-25, acquires title to certain real property that has been identified by the County Treasurer to be delinquent with respect to the payment of real estate taxes ("Tax Delinquent Property"); and WHEREAS, the County, with the support of MACOG, intends to form a countywide land bank ("Land Bank") pursuant to I.C. 36-7-38-2 which will serve as the initial portion of the MACOG Regional Land Bank; and WHEREAS, the new Land Bank exists for the purpose of acquiring certain neglected or unmarketable Tax Delinquent Property from the County, that remain unsold following the County's traditional tax sale process, for purposes of the elimination of blight and its related impacts, and the County desires to facilitate the Land Bank's acquisition of Distressed Property in order to transition nonrevenue generating Tax Delinquent Property into revenue-generating property and increase overall property values within the County; and WHEREAS,the parties are governmental entities, political subdivisions, and/or other entities comprised of governmental entities and political subdivisions organized and existing pursuant to the laws of the State of Indiana; and WHEREAS, Indiana Code 36-1-7, the Interlocal Cooperation Act, authorizes one or more governmental entities to exercise,jointly or by one entity on behalf of others, powers that may be exercised by such units severally; and 1 WHEREAS, the parties agree that it is desirable, advantageous, and in the public interest to enter into an Agreement for joint and cooperative action as embodied herein. NOW, THEREFORE, in consideration of the mutual covenants, terms, and conditions set forth herein, and pursuant to the authority granted the parties under Ind. Code 36-1-7, the parties hereby agree as follows: 1. The parties make this Agreement under the authority and subject to the terms and provisions of the Interlocal Cooperation Act, Ind. Code 36-1-7 (the"Act"). The parties acknowledge that pursuant to the provisions of the Act, the Agreement is subject to the approval of the Indiana Attorney General. 2. Pursuant to I.C. 36-7-38, et seq., the County,with the assistance of MACOG, will establish a legal nonprofit entity for purposes of managing and improving the marketability of distressed real property located in the territory of the land bank. 3 The governance of the nonprofit entity shall be a Board comprised of seven (7) members, appointed as set forth below: a. County Commissioners: two (2) appointments; b. County Redevelopment Commission: one (1) appointment; c. Mayor of the City of South Bend: two (2) appointments; d. City of South Bend Redevelopment Commission: one (1) appointment; e. MACOG: one (1) appointment. f. This agreement forms the initial version of the MACOG Regional Land Bank. This initial version will serve St. Joseph County and the Parties in this agreement. Over subsequent years, additional counties and municipalities will be incorporated into this agreement and served by the MACOG Regional Land Bank. When those additional parties are incorporated, the composition of this board will be revisited and revised. 4. The County agrees that within six (6) months after the Land Bank is established, the County will provide the Land Bank with a list of real property for which it holds a tax sale certificate or tax deed, that is not committed to a redevelopment project or for another purpose, and which the County desires to transfer to the Land Bank. At all times, the County shall control and decide what properties it will transfer to the Land Bank 2 and the County reserves the right to retain any properties it so chooses. When this list is provided to the Land Bank, the County shall offer to assign the tax sale certificates and convey the real property described on the list to the land bank at no cost to the land bank. The offer will expire after six (6) months, unless extended by a written agreement between the parties. If the Land Bank rejects the offer, the County may dispose of the property as otherwise provided by law. 5. For subsequent tax sales, the Land Bank shall identify Tax Delinquent Property following the annual tax sale conducted by the St. Joseph County Treasurer's office (individually a "Selected Property" and collectively "Selected Properties") and shall notify the County of its list of Selected Properties within ten (10) days of such annual tax sale. The County will review the list of Selected Properties and provide the Land Bank with a list of what Selected Properties it will agree to transfer to the Land Bank (the "Transferred Properties"). 6. MACOG agrees to provide staffing and operations for the Land Bank. 7 The County agrees to initiate proceedings to acquire tax title deeds to the Transferred Properties and provide legal and title services to secure the tax title deeds. These services will be provided at no cost to the Land Bank up to an allocated amount set by the County's Board of Commissioners and appropriated by the County Council each year. No late redemptions of the Selected Properties shall be permitted by the County following the expiration of the statutory redemption period, unless otherwise required by Court Order or as agreed to by the Parties. 8. Upon acquisition of tax title deeds to the Transferred Properties, the County shall institute and prosecute quiet title actions on each Transferred Property. Upon completion of the quiet title action, the County shall transfer title to the Transferred Properties via Quit Claim Deed to the Land Bank. These services will be provided at no cost to the Land Bank up to an allocated amount set by the County's Board of Commissioners and appropriated by the County Council each year. All parties agree to sign any and all documents which may reasonably be required to transfer a property. 9. The County and City commit to providing a deduction under I.C. 6-1.1- 46-5 to any person receiving a transfer of property from the Land Bank as follows: a. A person to whom a land bank transfers real property during the eligible transfer period is entitled to a deduction from the assessed value of the real property for each of the five (5) consecutive years 3 immediately following the year in which the land bank transfers the real property to the person in an amount equal to: (1) The percentage specified in an ordinance adopted under I.C. 6-1.1-2 or I.C. 6-1.1-3, as applicable; multiplied by (2) The assessed value of the property transferred by the land bank to the person. 10. The Parties acknowledge that, pursuant to I.C. 36-7-38-21, the Land Bank is subject to Indiana's Open Door Law and Access to Public Records Act. 11. The Parties acknowledge that, pursuant to I.C. 36-7-38-21, the Land Back is subject to audit. 12. The City shall commit to provide $500,000 in up-front startup costs to the Land Bank and $300,000 annually for the first four (4) years following the establishment of the Land Bank. The County shall not be required to provide funds for the operations of the Land Bank. The Land Bank nonprofit entity shall have the duty to receive, disburse, and account for funds received by and paid from the Land Bank. 13. This Agreement shall terminate on December 31, 2029, with an option for a five (5) year renewal and shall be subject to annual appropriations by the City. In the event that the agreement is terminated by the affirmative non-renewal of the County or the Common Council, property held by the Land Bank at the time of termination shall be transferred to the county in which it resides unless the property resides within municipal jurisdiction, in which case the property will be transferred to the respective municipality. 14. This Agreement shall be effective upon recording with the St. Joseph County Recorder, filing with the Indiana State Board of Accounts within sixty (60) days of approval by each party, filing with the City Executive and County Auditor, and filing with the State Comptroller. 15 Notwithstanding any provision to the contrary, the City's payments required under this Agreement are subject to the appropriation of sufficient funds in accordance with I.C. 6-1.1-18. 16. The Parties expressly disclaim the existence of any third-party beneficiaries of this Agreement. Nothing in this Agreement, express or implied, is intended or will be construed to confer upon any person or entity, other than the Parties hereto and their respective successors or assigns, any remedy or claim under or by reason of this Agreement or 4 any term, covenant, or condition hereof, as third-party beneficiaries or otherwise, and all of the terms, covenants, and conditions hereof will be for the sole and exclusive benefit of the Parties. 17. The County and MACOG agree to defend, indemnify, and hold harmless the City (and the City's officers and employees) from and against any and all claims of any nature which arise from the performance by the County or MACOG under this Agreement and from all costs and attorney fees in connection therewith, except for claims arising out of the negligence of the City (or the City's officers or employees). The obligations of the Parties under this Section will survive the expiration or termination of this Agreement. The City and County agree to defend, indemnify, and hold harmless MACOG (and MACOG's officers and employees) from and against any and all claims of any nature which arise from the performance by the City or County under this Agreement and from all costs and attorney fees in connection therewith, except for claims arising out of the negligence of MACOG (or MACOG's officers or employees). The obligations of the City and County under this Section will survive the expiration or termination of this Agreement. The City and MACOG agree to defend, indemnify, and hold harmless the County (and the County's officers and employees) from and against any and all claims of any nature, which arise from the performance by the City or MACOG under this Agreement and from all costs and attorney fees in connection therewith, except for claims arising out of the negligence of the County (or the County's officers or employees). The obligations of the City and MACOG under this Section will survive the expiration or termination of this Agreement. 18. This Agreement may be amended, modified, or supplemented at any time by a written instrument signed by an authorized representative of each party. The failure of any party to enforce at any time any provision of this Agreement shall not be construed as a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of such party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. 19 No Party may assign this Agreement or any of its rights, interests, obligations, or duties hereunder, whether by operation of law or otherwise, without the express written consent of the other Party. 20. Should any part of this Agreement be determined by a court of competent jurisdiction to be invalid, illegal, or against public policy, said 5 offending section shall be void and of no effect, and shall not render any other section herein, nor this Agreement as a whole, invalid. Those rights, interests, obligations, and duties hereunder, which by their nature should survive, shall remain in effect after termination, suspension, or expiration hereof. 21 Pursuant to Ind. Code § 22-9-1-10, neither the City, the County, MACOG, nor any of their contractors or subcontractors shall discriminate against any employee or applicant for employment, to be employed in the performance of any work under this Agreement with respect to hire, tenure, terms, conditions, or privileges of employment, or any matter directly or indirectly related to employment, because of race, color, religion, sex, disability, national origin, or ancestry. Breach of this covenant may be regarded as a material breach of this Agreement. 22. This Agreement may be executed in counterparts, each of which when executed shall be deemed to be an original, and such counterparts, together, shall constitute but one and the same Agreement. 23. This Agreement shall be governed by the laws of the State of Indiana, and any dispute relating to the subject of or arising out of this Agreement shall be subject to the sole and exclusive jurisdiction of the Circuit and Superior Courts of St. Joseph County, Indiana. 24. The Parties agree that they will each undertake in good faith, as permitted by law, any action and execute and deliver any document reasonably required to carry out the intents and purposes of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates shown below. Date. O3 J IOIaoafo BOARD OF COMMISSIONERS OF ST. JOSEPH COUNTY,INDIANA Carl Baxmeyer, r t Tony H n, V& r; gent 6 /lp 10� 9/"-it Rafael Mp Member ATTEST. John Murphy St. Joseph County Auditor Date: 03 723 l Z°Z6 CITY OF SOUTH BEND COMMON COUNCIL Canneth Lee, President ATTEST. Bianca Tirado Clerk Date: ogl/q 11j5 (a� MICHIANA AREA COUNCIL OF GOVERNMENTS (MACOG) Ja iTurnwald, Executive Director Date: 05/29/2026 Approved as to Form by: INDIANA ATTORNEY GENERAL 7 ?I_ Z7'. 9,4AA.Sid, for Todd Rokita, Attorney General 8