HomeMy WebLinkAboutNo. 3181 approving and authorizing the transfer of real property to PWA South Bend LPRESOLUTION NO. 3181
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
APPROVING AND AUTHORIZING THE TRANSFER OF
REAL PROPERTY TO PWA SOUTH BEND, LP, A PENNSYLVANIA LIMITED
PARTNERSHIP
WHEREAS, the City of South Bend, Indiana, for the use and benefit of its Department of
Redevelopment, owns a certain parcel of real estate situated in St. Joseph County, Indiana, in an
area of the City of South Bend commonly referred to as the 1 st Source Building and DoubleTree
Hotel described as follows:
SEE ATTACHED EXHIBIT "A"
("Real Estate ") which Real Estate was acquired for redevelopment purposes; and
WHEREAS, pursuant to I.C. 36- 7 -14 -3, the South Bend Redevelopment Commission
( "Commission ") is the governing body of the City of South Bend Department of Redevelopment;
and
WHEREAS, the Commission adopted by Resolution No. 233 on the 10th day of October,
1968, an Urban Renewal Plan for Urban Renewal Area R -66 which includes the Real Estate; and
WHEREAS, the Commission adopted Resolution No. 591 designating the R -66 Project
(`'Project") Area as an Urban Renewal Area, which Resolution was joined by the South Bend
Common Council pursuant to Common Council Resolution No. 719 -79 dated September 24,
1979; and
WHEREAS, the Project was designed to redevelop a blighted area of the City of South
Bend by constructing an office building and hotel on the Real Estate; and
WHEREAS, the actions taken by the Commission and the Council assisted the City in
obtaining a United States Department of Housing and Urban Development ( "HUD ") grant in the
amount of Seven Million Six Hundred Thousand Dollars ($7,600,000) ( "UDAG ") in support of
the Project; and
WHEREAS, the UDAG funds when added to private funds provided Twenty -one Million
Nine Hundred Sixty Thousand Dollars ($21,960,000) for the Project for the construction of an
office building and hotel on the Real Estate; and
WHEREAS, on October 1, 1979, the Commission along with FBT Bancorp., Inc.,
( "FBT ") and Rahn Properties II ( "Rahn ") entered into a Joint Development Agreement ( "JDA ")
to utilize the UDAG funds and additional private resources to construct a bank/office building
containing approximately one hundred sixty thousand (160,000) square feet (the "Office
Building ") and a hotel containing approximately three hundred (300) rooms and related retail
uses (collectively the "Hotel "); and
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WHEREAS, the UDAG grant required the Commission to hold title to the land upon
which the Office Building and Hotel would be constructed; and
WHEREAS, on October 16, 1979, a Ground Lease Agreement for private development
was entered into between the Commission and Rahn ( "Hotel Ground Lease "), and on October
22, 1979, a Ground Lease was entered into between the Commission and FBT ( "Bank Ground
Lease "). In the Hotel Ground Lease and the Bank Ground Lease, it is acknowledged by all
Parties the Commission undertook the disposition process required by Indiana law with respect
to the Real Property subject to the Ground Leases, and no offers were received for the purchase
or lease of such Property and following such disposition process, the Commission entered into
the Hotel Ground Lease and Bank Ground Lease; and
WHEREAS, PWA South Bend, LP (`PWA ") is the successor in interest to FBT; and
WHEREAS, the Office Building and Hotel were constructed and have been in operation
in excess of thirty (30) years on the Real Estate; AND
WHEREAS, the Commission approved a Memorandum of Understanding ( "MOU ") on
December 3, 2010 providing for, among other things, sufficient improvements to permit the
Office Building to continue as the headquarters for Is' Source Bank, and to upgrade the rooms
and other areas in the Hotel; and
WHEREAS, the Commission agreed in the MOU Section 2(h) to convey its interest in
the Bank Ground Lease to PWA as successor in interest to the original Bank Ground Lease
Lessee upon completion of the Atrium and Is' Source Improvements required in the MOU.
WHEREAS, pursuant to I.C. 36 -7 -14 -22.5, the Commission may transfer real property,
consistent with I.C. 36 -7 -14 -22.2, required for redevelopment purposes when the redevelopment
purposes for which the Real Estate was acquired have been satisfied; and
WHEREAS, the Commission agreed in the MOU to convey its interest in the Ground
Lease to PWA South Bend, LP, as successor in interest to the original Ground Lease Lessee; and
WHEREAS, the Commission now finds (i) the original purpose of the Project as
described in the Bank Ground Lease and JDA have been accomplished; (ii) the purposes of the
MOU have been accomplished; and (iii) all redevelopments purposes for which the Real estate
was acquired have been satisfied.
NOW THEREFORE, be it resolved by the South Bend Redevelopment Commission as
follows:
1. That the following described real property owned by the City of South Bend,
Department of Redevelopment described in Exhibit "A" shall be and hereby is ordered
transferred to PWA South Bend, LP pursuant to the Memorandum of Understanding.
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2. That the transfer of the Real Estate shall be by way of Quit Claim Deed executed
by the President and attested to the Secretary of the Commission.
3. That this Resolution shall be in full force and effect from and after its adopted by
the Commission.
Adopted at a Regular Meeting of the South Bend Redevelopment Commission held the
22 °d day of October, 2013, in Room 455, County -City Building, South Bend, Indiana 46601.
ATTEST:
Valerie Schey , Schey
Secretary
CITY OF SOUTH BEND
DEPARTMENT OF REDEVELOPMENT
Acting by and through the
SOUTH BEND REDEVELOPMENT COMMISSION
Marcia Jones � Pr 'dent
President
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EXHIBIT A
Commonly known as: 100 North Michigan Street
South Bend, Indiana 46601
Tax ID No. 018 - 3091 - 347402
State ID No. 71- 08 -12- 112 - 001.000 -026
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