HomeMy WebLinkAboutNo. 3180 approving and authorizing the transfer of real property to Jenna Hotel Investments, LLCRESOLUTION NO. 3180
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
APPROVING AND AUTHORIZING THE TRANSFER OF
REAL PROPERTY TO JENNA HOTEL INVESTMENTS, LLC, A DELAWARE LIMITED
LIABILITY COMPANY
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 10`h 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 11 ( "Rahn ") entered into a Joint Development Agreement ( "JDA ") to implement
the Project and 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, Jenna Hotel Investments, LLC ( "Jenna ") is the successor in interest to Rahn; 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 1 S` Source Bank, and to upgrade the rooms and other
areas in the Hotel; and
WHEREAS, the Commission agreed in the MOU in Section 3(k) to convey its interest in the
Hotel Ground Lease to Jenna as successor in interest to the original Hotel Ground Lease Lessee upon
completion of the Atrium and Hotel Improvements as defined in the MOU; and
WHEREAS, Jenna has provided sufficient evidence to the Commission of the completion of
the Atrium and Hotel Improvements required in the MOU; and
WHEREAS, the Commission now finds (i) the original purpose of the Project as described in
the Hotel Ground Lease and JDA have been accomplished; (ii) the purposes the MOU have been
accomplished; and (iii) all redevelopment purposes for which the Real Estate was acquired have been
satisfied; and
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 finds the conditions required under both I.C. 36 -7 -14 -22.2 and
I.C. 36 -7 -14 -22.5 have been satisfied and the Commission has authority to transfer the Real Estate to
Jenna.
NOW THEREFORE, be it resolved by the South Bend Redevelopment Commission as
follows:
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I . 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
Jenna Hotel Investments, LLC.
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.
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:
LLJValerie Schey , Secretary
Secretary
CITY OF SOUTH BEND
DEPARTMENT OF REDEVELOPMENT
Acting by and through the
SOUTH BEND REDEVELOPMENT COMMISSION
Marcia Jones, Presi e t
President
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EXHIBIT A
Commonly known as: 123 North St. Joseph Street
South Bend, Indiana 46601
Tax ID No. 018 - 3091- 347401
State ID No. 71 -08 -12 -112- 002.000 -026
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