HomeMy WebLinkAboutagenda item 2015 0730 rdc 05a1Department of
Community Investment
Memorandum
Friday, July 24, 2015
TO: Redevelopment Commission
FROM: Chris Fielding
SUBJECT: Blackthorn Lot 4P -NGC&E Option
Included in the Commission packet is an executed Release of Option along with a purchase
·agreement between Cohn
& Cohn Investments, LLC and the RDC. This Purchase Agreement
outlines the negotiated terms for the Release of the Option and concurrent sale of Lot 4P in
Blackthorn Corporate Park.
Cohn & Cohn will be the developer of a 20,000 square foot Distribution Center that will be
leased and operated by Unifirst. Unifirst is a publically traded company with approximately
$1.5 billion in annual revenue generated largely by their Garment and uniform rental division.
Newmark Grubb, Cressy & Everett have an Option to Purchase on the 104 acres in Blackthorn that are
under HOC ownership. DCI staff were able to directly sell the parcel to Unifirst at a reduced rate under
the agreementthatthe company will not receive any TIF funding for the project. In order for the closing
to occur it would require that the DCI work with NGC&E to negotiate the terms for the release of their
Option on this parcel. The final terms are outlined in the attached Release.
Staff is requesting the acceptance and execution of the release under the outlined terms.
227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 I P: 574-235-9371 I FAX: 574-235-9021 I SOUTHBENDIN.GOV
ITEM: 5.A.(1)
PARTIAL RELEASE OF OPTION CONTRACT
This Partial Release of Option Contract (this "Release") is made and entered into effective
July_, 2015, (the "Effective Date") by and between the City of SouthBend, Indiana~ Department
of Redevelopment, by and through its governing body, the South Bend Redevelopment
Commission (the "Commission''), and, CE Capital Group, LLC (the "Purchaser';) (each a "Party''
and together the "Parties"). ·· ·
Background
A. the :Parties entered into that certain Option Contract dated August 27, 2007, as
amended and supplemented by the Addendum to Option Contract dated September 5, 2007, the
Second Addendum to Option Contract dated July 18, 2008, and the Qption Extension Agreegiept
dated September 27, 2011 (collectively, the ''Option Contract"), under which the Commission
granted the Purchaser an option to purchase certain real estate (the "Property") situated within the
Blackthorn Corporate Park located in South Bend, Indiana (the "City"), which Property the
Commission owns pursuant to LC. 36-7-14 (the "Act''); and
B. In furtherance of its public purposes under the Act; the Commiss.ion desires to sell
to a third-party purchaser (that is not a party to the Option Contract) a certainparcel ofthe Property
("Lot 6," which is mote particularly described in attached:Exhibit A) that is subject to the Option
Contract, and the Purchaser desires to rele.ase its option t(J purchase Lot 6 under the Option
Contract for the consideration stated herein.
NOW, THEREFORE, in accordance with Section 27 of the Option Contract; the Parties
agree as follows:
1. I11 exchange forthe Commission's promise to pay the Purchas~r the sum of Twenty-
Five Thousand Dollars ($25,000.00) on the date the Commission conveys Lot 6 to a third-party
purchaser, the Purchaser hereby releases its option under the Option Contract to purchase Lot 6
from the Corrirhissiort.
2. All tef111E> and conditfons of the· Option Contract remain irt full force and effect
unless expressly modified bythis Release.
3. This Release may be executed in separate counterparts, each of which when so
executed shall be an original, hut all of which together shall constitute one and the same instrument.
[SIGNATURE PAGE FOLLOWS]
1
IN WITNESS WHEREOF, the Commission and the Purcha,serhave executed this Release
as of the Effective Date.
CITY OF SOtJTII BEND., INDIANA~ .
DEPARTMENT OF REDEVELOPMENT,
BY AND THROUGH THE SOUTH BEND
REDEVELOPMENT COMMISSION
Marcia I. Jones, President
ATTEST:
Donald E. Inks, Secretary
4000.0000047 43155614.002
CE CAPITAL GROUP, LLC
George S. Cressy, Manager
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EXHIBITA
Description. of Lot 6
Lot Numbered Six (6) as shown on the recorded plat of Blackthorn Corporate Office Park Minor
Sµbdivision #7, recorded July 13, 1998, as Document No. 9836274 in the Office of the Recorder
of St Joseph County, Indiana. [Parcel Key No. 025-1018-062208]