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HomeMy WebLinkAbout6A467 (y) SpU TH 8F %.2 Department of Community Investment 1865 Memorandum December 12, 2013 TO: South Bend Redevelopment Commission FROM: David Relos, Economic Resources. SUBJECT: Resolution No. 3185 Hotel La Salle Release of Commercial Purchase Agreement This staff report is for approval to release the Purchase Agreement (Agreement) with Mavcon Properties, which was approved on June 14, 2011, and recorded on June 27, 2011. This Agreement was for the possible purchase and rehabilitation of the Hotel La Salle, and allowed Mavcon two 180 day inspection periods to hire architectural, engineering, and environmental consultants, as well as to put together a funding package utilizing Historic and New Market Tax Credits. On July 12, 2012, an additional 60 day extension was granted. According to the Agreement, Mavcon deposited $4,000 for their two 180 day inspection periods, which per the Agreement were to be non - refundable if Mavcon did not move forward after the first inspection period. Because both parties worked diligently during and after the inspection periods, the return of the $4,000 deposit was approved on December 4, 2012. Because the Agreement was recorded, it must now be released. Resolution No. 3185 allows staff to move forward with a Release of Commercial Purchase Agreement, which when signed by both parties, will be recorded and release the original Agreement. Staff requests approval of Resolution No. 3185. 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574- 235 -9371 1 FAX: 574 - 235 -9021 1 SOUTHBENDIN.GOV RESOLUTION NO. 3185 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION APPOINTING AUTHORIZED REPRESENTATIVES TO APPROVE AND EXECUTE DOCUMENTS RELATED TO THE LASALLE HOTEL ON BEHALF OF THE CITY OF SOUTH BEND, INDIANA, DEPARTMENT OF REDEVELOPMENT WHEREAS, the South Bend Redevelopment Commission (the "Commission ") is the governing body of the City of South Bend Department of Redevelopment (the "Department ") established under the Redevelopment of Cities and Towns Act of 1953, as amended, being Indiana Code § 36- 7 -14 -1 et seq. (the "Act "); and WHEREAS, the Department owns, leases and manages the LaSalle Hotel located in the City of South Bend and more particularly described as Lots numbered one (1), two (2) and three (3) as lots are known and designated in the recorded plat of the original town, now City of South Bend, in the Recorder's Office of St. Joseph County, Indiana; and WHEREAS, the Commission entered into that certain Commercial Purchase Agreement (the "Agreement ") by and between MAVCON Properties, LLC ( "MAVCON ") and the Commission, recorded on June 27, 2011, as Instrument No. 1116415 in the Office of the Recorder of Saint Joseph County, Indiana; and WHEREAS, the Commission and MAVCON agreed to terminate the Agreement and on January 24, 2013, the Commission authorized the return to MAVCON of the sum of $4,000.00 representing the amount on deposit with the Commission tendered by MAVCON; and WHEREAS, the recorded Agreement should now be released; and WHEREAS, the Department is a part of the South Bend Department of Community Investment and employs staff members who are familiar with the property owned by the Department; and WHEREAS, the Commission desires to expressly authorize the staff members of the Department to execute such documents as necessary, on advice of counsel, to release the Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT COMMISSION AS FOLLOWS: 1. The following staff members: Christian Fielding Brock Zeeb David Relos or their successors (the "Authorized Representative ") are hereby authorized to execute such documents as necessary, on advice of counsel, to release the Agreement on behalf of the Commission. 2. The authority granted under this Resolution expires on December 31, 2014. 3. This Resolution shall be in full force and effect after its adoption. ADOPTED at a meeting of the South Bend Redevelopment Commission held on December 12, 2013, at 1308 County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. ATTEST: Signature Printed Name and j it e South Bend Redevelopment Commission CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Signature Printed Name and Title South Bend Redevelopment Commission 2