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Home My WebLink About6B1 Waiver of Right of Redemption 1509 S. KendallDepartment of Community Mvestment Memorandum July 10, 2014 TO: South Bend Redevelopment Commission FROM: David Relos, Economic Resources SUBJECT: 1509 S. Kendall Waiver of Right of Redemption On November 22, 2011, the Commission approved a $59,100 Administrative Settlement ( "Settlement') for the acquisition of 1509 S. Kendall St. Since that time, Staff has been trying to acquire and close on the property, which is one of two remaining properties to be acquired west of Scott St. in the Ignition Park South expansion area. This past March, through the County Commissioner's tax sale process, staff was authorized to bid on the property. A tax sale certificate was acquired. Part of the tax sale process includes a 120 day redemption period. Because the eight heirs could likely redeem the property, discussions were held with their attorney to come to an agreement whereby they would not redeem the property, and we would honor our commitment to pay the previously agreed upon Settlement amount. From the Settlement amount the heirs agreed to deduct an amount owed their attorney, past due and pro -rated property taxes, and any liens not cleared by the tax sale process. The net amount would then be split evenly between them. No payment will be made until it can be verified the property was not redeemed, and a title commitment indicates there is clean title to the property. Staff requests approval of this Waiver of Right of Redemption, which may finally allow the acquisition of this property. 21t W. JttttnsuN etvU. bUUIH UtNU, IN 4bbOl I N' 514-235 -9371 1 FAX: 574 - 235 -9021 1 SOUTHBENDIN.GOV WAIVER OF THE RIGHT OF REDEMPTION By and Between South Bend Redevelopment Commission The statutory heirs of Louise Franklin (1509 S. Kendall St.) June 30, 2014 THIS WAIVER OF THE RIGHT OF REDEMPTION, dated as of the 30th day of June, 2014, is made and entered into between the South Bend Redevelopment Commission, for and on behalf of the City of South Bend, Department of Redevelopment (the "City ") and the statutory heirs of Louise Franklin (collectively, the "Owner "). RECITALS WHEREAS, the City desired to acquire a parcel of real property, including all improvements thereon, at the time owned by the Owner for the redevelopment purposes of the City, which parcel is more particularly described at Exhibit A (the "Property"); and WHEREAS, the City entered into a Purchase Agreement with the Owner on May 23, 2013 to acquire the Property; and WHEREAS, the Purchase Agreement became invalid when it was discovered that liens were attached to the property; and WHEREAS, the Owner became delinquent on property taxes for the Property; and WHEREAS, the Property was put on the delinquent property tax list pursuant to IC 6- 1.1 -24; and WHEREAS, the City purchased the Property in a tax sale pursuant to the regulations in IC 6- 1.1 -24; and WHEREAS, the tax sale adhered to the procedures for conducting a tax sale under IC 6- 1.1 -24; and WHEREAS, the Owner has the right to redeem the Property if the Owner pays the amount specified in IC 6- 1.1 -25 -2; and WHEREAS, the City will receive a tax deed for the Property free of all liens, mortgages, and encumbrances, excluding tax warrants, if the Owner does not redeem the Property pursuant to IC 6- 1.1 -25 -4; and WHEREAS, the City maintains a desire to acquire the Property; and WHEREAS, the City has presented the Owner with an offer for the Owner to waive all rights of redemption in exchange for a monetary amount; and WHEREAS, the Owner has agreed to the City's offer and the parties desire to memorialize their agreement pursuant to the terms and conditions set forth herein. NOW, THEREFORE, the Parties hereby agree and represent as follows: 1. The Owner hereby agrees to waive all rights of redemption in the Property in exchange for the sum of Fifty Nine Thousand, One Hundred and 00 /100 Dollars ($59,100.00) less the amount the City has to pay to acquire a clean title for the Property, subject to the following terms: a. The Owner agrees to not redeem the Property pursuant to IC 6- 1.1 -25. b. The City agrees to pay the Owner the sum of Fifty Nine Thousand, One Hundred and 00 /100 Dollars ($59,100.00) less all costs and other amounts incurred by the City to acquire a clean title for the Property and less the payment of legal fees in the amount of Four Thousand and 00/100 Dollars ($4,000.00) to Jones Obenchain, LLP. C. The City will pay the Owner after the expiration of the right of redemption period and only after the City receives the Tax Deed for the Property pursuant to IC 6- 1.1- 25 -4.6, and receives evidence of a clean title report from Meridian Title. 2. This Waiver Agreement embodies the entire agreement between the parties and cannot be varied except by the written agreement of the parties. No representation, promise, or inducement not included in the Agreement shall be binding upon the parties hereto. 3. All terms and conditions of this Waiver Agreement are hereby made binding on the successors and permitted assigns of both parties hereto. 4. This Waiver Agreement shall be governed by and construed in accordance with the laws of the State of Indiana and venue for any action shall be St. Joseph County, Indiana. 5. If any provision of this Waiver Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provision of this Waiver Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 6. Words of any gender used in this purchase agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise. 7. The undersigned persons executing and delivering this Waiver Agreement on behalf of each of the parties respectively represent and certify that they are duly authorized and are fully empowered to execute and deliver this Waiver of the Right of Redemption and that all necessary action has been taken and done. (Signature Page Follows) CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Signature Printed Name and Title ATTEST: South Bend Redevelopment Commission Signature Printed Name and South Bend Redevelopment Commission OWNER -Liiida Michelle Green, heir of Lotilse Franklin STATE OF INDIANA COUNTY OF ST. JOSEPH Before me, a Notary Public in and for said County and State, personally appeared Linda Michelle Green and executed the foregoing document in my presence on June ._ 310 _, 2014. My Commission Expires: March 9, 2020 a et G. Horvath ,Notary Public A Resident of LaPorte County, IN STATE OF WISCONSIN COUNTY OF OWNER l! I`11104n7 J Betty Franklin,. heir of L ise Franklin n /k /a Betty Odom Before me, a Notary Public in and,f aid County and State, personally appeared Betty Franklin and executed the fo Al . put in my prese>f Ice on June 1 2014. My Commission Expii �f?•% 11-0 I7- rf OF W\5'- STATE OF INDIANA COUNTY OF ST. JOSEPH L Notary Public of �J _ County;k J ter" If ilk OWNER ' // c Larry Fra klin, heir of Louise Franklin Before me, a Notary Public in and for said County and State, personally appeared Larry Franklin and executed the foregoing document in my presence on June_..3on, 2014. My Commission Expires: July 21, 2016 Cheri T. Siebert , Notary Public A Resident of sr. JoseatCounty, IN OWNER �tYl �Sti�Ct � I I 11CU�1� _ Jomisha Williams, heir of Louise Franklin STATE OF INDIANA COUNTY OF ST. JOSEPH Before me, a Notary Public in and for said County and State, personally appeared Jomisha Williams and executed the foregoing document in my presence on June 2014. My Commission Expires: March 9, 2020 STATE OF INDIANA COUNTY OF ST. JOSEPH anet G. Horvath , Notary Public A Resident of LaPorte County, IN OWNER 1�- Jose r M. Williams, heir of Louise Franklin Before me, a Notary Public in and for said County and State, personally appeared Joseph M. Williams and executed the foregoing document in my presence on June 'j J 2014. �7 F My Commission Expires: July 21, 2016 Cheri T. Siebert Notary Public AResidentofst. JoseohCounty,IN OWNER gkeyia, illiams STATE OF INDIANA COUNTY OF ST. JOSEPH Before me, a Notary Public in and for said County and State, personally appeared Jokeyia Williams and executed the foregoing document in my presence on June 3.0 , 2014. My Commission Expires: March 9, 2020 J net G. Horvath Notary Public Resident of LaPorte County, IN %1 OWNER r / vette Franklin -Ford, heir of Louise Franklin STATE OF INDIANA COUNTY OF ST. JOSEPH Before me, a Notary Public in and for said County and State, personally appeared Evette Franklin -Ford and executed the foregoing document in my presence on June 30 2014. My Commission Expires: July 21 2016 STATE OF INDIANA COUNTY OF ST. JOSEPH Cheri T. Siebert Notary Public A Resident of St. Joseph County, IN OWNER p 1 Denise Franklin, heir of Louise Franklin Before me, a Notary Public in and for said County and State, personally appeared Denise Franklin and executed the foregoing document in my presence on June 3p , 2014. My Commission Expires: March 9 2020 Notary Public A Resident of LaPorte County, IN i. Denise Franklin, heir of Louise Franklin Before me, a Notary Public in and for said County and State, personally appeared Denise Franklin and executed the foregoing document in my presence on June 3p , 2014. My Commission Expires: March 9 2020 Notary Public A Resident of LaPorte County, IN Exhibit A Legal Description of the Property Lot Numbered Twenty -three (23) as shown on the recorded Plat of Raffs Third Addition to the City of South Bend, recorded March 29, 1906, in Plat Book 9, page 29, in the Office of the Recorder of St. Joseph County, Indiana. Common Address: 1509 S. Kendall Street, South Bend, Indiana 46613 Tax Key No. 18- 8025 -1017