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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 Page 1 of 4 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. Page 2 of 4 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 Page 3 of 4 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 Page 4 of 4