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HomeMy WebLinkAboutApproving and Authorizing the Granting of an Indemnity in connection with the TJX ProjectORDINANCE No. s336.~= Passed by tlce Common Council of the City of South Bend, Indiana June 24, Attest: . ___. Attest: d~~w- 02 20 Presented by me to the Mayor of the City of South Bend, Indiana June 25 20 02 City Clerk President of Common Council City Clerk Approved mtd signed by me June 25, 20 02 Mayor ORDINANCE NO. i ~ ~ ~ ~ ~ AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, COMMON COUNCIL APPROVING AND AUTHORIZING THE GRANTING OF AN INDEMNITY IN CONNECTION WITH THE TJX PROJECT STATEMENT OF PURPOSE AND INTENT: The South Bend Redevelopment Commission (the "Commission") and the City of South Bend, Indiana, have entered into a Contract for Sale of Land for Private Redevelopment dated as of Apri125, 2002 (the "Agreement"), which provides for the Commission to sell a parcel of property generally located at Sample and Olive Streets in the City (the "Property") to AJW South Bend Realty Corp. (the "Purchaser") for the purpose of permitting The TJX Companies, Inc., (the "Company"), an affiliate of Purchaser, to construct and equip a warehousing and distribution center (the "Project") on such Property. The Company has represented that the Project will result in the creation of 657 permanent full-time jobs with an annual payroll of $21.0 million on or before February 28, 2005, and the creation of an additional 200 permanent full- time jobs with a combined annual payroll of $30.0 million on or before October 31, 2007. It is expected that the transfer of the Property by the Commission to the Purchaser will occur on or about July 1, 2002. The Agreement provides in Article 16 that the Commission and the City will indemnify the Purchaser and its affiliates and their respective directors, officers, employees, representatives, employees, agents and contractors from any and all environmental liability or condition that existed on the Property on or prior to the date of the transfer of the Property to the Purchaser. Indiana Code 36-1-4-7.5 authorizes the City to grant an indemnity for any environmental contamination that may have occurred during or before the time the City owned the Property. The purpose of this Ordinance is to evidence the obligation of the City to provide such indemnification as set forth in the Agreement. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: 1. The Common Council hereby authorizes and approves of the granting of the indemnity pursuant to I.C. 36-1-4-7.5 to the Purchaser and its affiliates as more specifically set forth in Article 16 of the Agreement (the "Indemnity"). The Common Council hereby ratifies action taken by the Commission and the Board of Public Works of the City to approve of and enter into the Agreement. SBIMAN 1 125647v 1 2. The Common Council covenants and agrees that it will take or authorize such action to be taken as may be permitted by law to fund the Indemnity at such time as may be required in accordance with the terms of the Indemnity. The Common Council covenants and agrees that this ordinance shall not be repealed or amended in any manner which would serve to adversely affect the Indemnity contained in the Agreement. 3. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA ~4.. By: Member of the Common Council 1 st READING 1D"~~' ~'L PUBLIC HEARING (G_ L~{-OL C~ S S c~ IbS~-,~c,~~A 3 rd READING (p_ LY-OL QS Su.~S~~~~I NOT APPROVED REFERRED PASSED (9-L~-oZ. ~.s Su~s~-v.~-~~,,~ -2- Ftted in Cl~r~'~ ®ftic~ D ~ ~~~2 dp~lQTTAJ. WJDS1 COMMITTEE REPORT TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 45-02 A BILL OF THE CITY OF SOUTH BEND, INDIANA, COMMON COUNCIL APPROVING AND AUTHORIZING THE GRANTING OF AN INDEMNITY IN CONNECTION WITH THE TJX PROJECT Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation as substituted, originally filed by the title only. Karl King Chairman 1400 COUNiY-CITY BUILDING SOUrH BEND, INDIANA 46601-1830 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR DEPARTMENT OF LAW CHARLES S. LEONE CITYATTORNEY Mr. Roland Kelly President, South Bend Common Council 4`'' Floor County-City Building South Bend, IN 46601 Dear Mr. Kelly: PHONE 574/235-9241 FAx 574/235-9892 TDD 574/ 235-5567 June 7, 2002 ALanFnN M. DERosE CHIEF ASSISTANT CITYATTORNEY Attached in its entirety is Bill No. 45-02 which was initially filed in an incomplete form on June 5, 2002 due to time constraints. This Ordinance is required by the "Contract for Sale of Land for Private Redevelopment" dated Apri125, 2002 which provides that the South Bend Redevelopment Commission will sell a parcel of realty located at Sample and Olive Streets to AJW South Bend Realty Corp. to permit AJW's affiliate, TJX Companies, to construct a warehouse distribution facility at that site. This contract provides substantial economic benefit to the City of South Bend and its citizens. Among the terms and conditions of the AJW/TJX Contract is the City's duty to indemnify the Purchaser, its affiliates and agents from any environmental liability or condition affecting the subject realty existing as of Apri125, 2002. The purpose of this Ordinance is to provide the purchaser with requisite evidence of indemnification as required by the Contract. As stated in my letter to you of June 5, 2002, Jon Hunt will be making the presentation of this Ordinance to the Council. He maybe accompanied by Don Inks and/or by a member of the Baker & Daniels law firm which drafted this Ordinance. Again, thank you for your consideration. Sincerely, ,I~ - ~= ' ~-- Aladean M. DeRose Chief Assistant ~'~I~rk~s ~~fIC~ AMD/cw W ~~~ s X1.1 ~ ~ j~;11 ~; du cc: Anne Bruneel, Jon Hunt, Don Inks, Cheryl Greene Lc~~r~,1. ~~, '~~` omrcLe~,~.b~~, THOMAS L. BODNAR CHERYLA. GREENS JOHN E. BRODEN JEFFREY M. JANKOWSKI ROBERT C. ROSENFELD ANN-CAROL NASH