HomeMy WebLinkAboutApproving lease for public improvements between Redevelopment Authority and Redevelopment CommissionORDINANCE No.
Passed by the Common Council of the City of South Bend, Indiana,
8993-99
March 22, 19 99
Attest:
Attest:
City Clerk
President of Common Council
Presented by me to the Mayor ojthe City ojSouth Bend, Indiana
March 23,
LORETTA
Approved and signed by me March 2 3 ,
19 99
i'
19 99
City Clerk
Mayor
C ~-
ORDINANCE NO. ~~93"~ 1
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, APPROVING A LEASE FOR CERTAIN PUBLIC
IMPROVEMENTS BETWEEN THE SOUTH BEND REDEVELOPMENT
AUTHORITY AND THE SOUTH BEND REDEVELOPMENT
COMMISSION AND AUTHORIZING THE USE OF EDIT REVENUES BY
THE COMMISSION FOR PAYMENT OF THE RENTALS THEREOF
STATEMENT OF PURPOSE AND INTENT:
On November 24, 1998, this Council adopted Resolution Number 2528-97
authorizing the Mayor to submit the City of South Bend's application to borrow funds through the
United States Department of Housing and Urban Development's ("HUD") Section 108 Loan
Guarantee Program ("Section 108 Loan"). Said application identified Economic Development
Income Tax revenues ("EDIT") and property taxes allocable to the South Bend Central Development
Area ("TIF") as partial repayment sources for the Section 108 Loan. In accordance with current
HUD policy, the City must provide security for the repayment of the notes issued to evidence the
Section 108 Loan. The City has determined to make revenues available for repayment of the Section
108 Loan through a lease between the South Bend Redevelopment Commission ("Commission") and
the South Bend Redevelopment Authority ("Authority") which will enable the City to use EDIT and
TIF revenues for the payment of the Section 108 Loan.
The Commission at a meeting on February 19, 1999, adopted Resolution No. 1671,
which, among other things, approved a proposed lease between the Commission and the Authority
to be dated as of March 1, 1999, for land acquired or to be acquired, and the removal of
improvements thereon (the "Project"), and directed the Secretary of the Commission to file a copy
of said lease, as approved, with the Authority, scheduled a public hearing on said lease, pursuant to
IC 36-7-14-25.2, and authorized the publication of a notice of public hearing on said lease pursuant
to IC 5-3-1. The Authority, at a meeting on March 1, 1999, adopted Resolution No. 132 approving
the proposed lease. On March 19, 1999, the public hearing was held and all interested parties were
provided the opportunity to be heard at the hearing.
The Commission, at its meeting on March 19, 1999, adopted Resolution No. 1673
finding, pursuant to IC 36-7-14.5-14, that the rental payments to be paid by the Commission to the
Authority pursuant to the lease, at a rate not to exceed One Hundred Forty-Four Thousand Dollars
($144,000) per year in semiannual installments beginning on the day the Studebaker Lot Portion of
the Project, as defined in the lease, is completed and ready for use or July 25, 1999 whichever is
later, and Three Hundred Forty-Four Thousand Dollars ($344,000) in semi-annual installments
beginning on the date the Downtown Portion of the Proj ect, as defined in the lease, is completed and
ready for use, or July 25, 2003, whichever is later, through expiration of the lease, are fair and
:ODMA\PCDOCS\SBDOCS 1132117\3
reasonable, and finding, pursuant to IC 36-7-14-25.2, that the use of the Project throughout the term
of the lease will serve the public purpose of the City of South Bend and is in the best interests of its
residents. Said Resolution No. 1673 further directed the Secretary of the Commission to file with
the Common Council of the City of South Bend (the "Common Council") an approving ordinance
for the purposes of said Council's finding, prior to the Commission's execution of the lease, that the
rental payments are fair and reasonable and that the use of the Project throughout the term of the
lease will serve the public purpose of the City of South Bend and is in the best interests of its
residents, and for purposes of approving the lease. The lease provides that, upon the completion of
the issuance of the Notes guaranteed by HUD, the lease rentals will be correspondingly reduced.
The Common Council desires to approve said lease, pursuant to IC 36-7-14-25.2,
which provides that any lease approved by a resolution of the Commission must be approved by an
ordinance of the fiscal body of the unit.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND:
1. The Common Council finds that the rental payments, as approved by the
Commission, are fair and reasonable, and further finds that the use of the Proj ect throughout the term
of the lease will serve the public purpose of the City of South Bend and is in the best interests of its
residents.
2. The Common Council hereby approves said lease, as approved by the
Commission, pursuant to IC 36-7-14-25.2, in substantially the form provided at this meeting and
attached hereto as Exhibit "A".
3. In accordance with the Section 108 Loan application previously approved by
this Council, the Common Council hereby pledges to make available to the Commission available
EDIT revenues (being such revenues as are available for expenditure after the debt service
requirements on any bonds payable from EDIT revenues are satisfied) for use by the Commission
for payment of Lease rentals pursuant to its proposed payment schedule.
4. This Ordinance shall be in full force and effect from and after passage by the
Common Council and approval by the Mayor.
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NOT APPROVED
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COMMON COUNCIL OF THE CITY
OF SOUTH BEND, INDIANA
By:
Member of the Common Council
::ODMA~PCDOCS~SBDOCS1~32117~3 -2-
CONIlVIITTEE REPORT
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
21-99 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH
BEND, INDIANA, APPROVING A LEASE FOR CERTAIN
PUBLIC IMPROVEMENTS BETWEEN THE SOUTH BEND
REDEVELOPMENT AUTHORITY AND THE SOUTH BEND
REDEVELOPMENT COMMISSION AND AUTHORIZING THE USE
OF EDIT REVENUES BY THE COMMISSION FOR PAYMENT OF
THE RENTALS THEREOF
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.
Charlotte Pfeifer
Chairman
LEASE
Between
SOUTH BEND
REDEVELOPMENT AUTHORITY
and
SOUTH BEND
REDEVELOPMENT COMMISSION
DATED AS OF MARCH 1, 1999
(Downtown Property Acquisition Project)
TABLE OF CONTENTS
SECTION 1: DEFINITIONS ............................................. -1-
SECTION 2: LEASE OF PROJECT ........................................ -2-
SECTION 3: RENTAL PAYMENTS ....................................... -3-
SECTION 4: CONDEMNATION .......................................... -3-
4.01 Total Condemnation ...................................... -3-
4.02 Proceeds of Total Condemnation ............................ -3-
4.03 Partial Condemnation ..................................... -4-
SECTION 5: NET LEASE ............................................... -4-
SECTION 6: NONLIABILITY OF AUTHORITY .............................. -4-
SECTION 7: ALTERATIONS ............................................ -4-
SECTION $: SUBLEASES ............................................... -4-
SECTION 9: LIABILITY INSURANCE ..................................... -$-
SECTION 10: GENERAL INSURANCE PROVISIONS ........................... -$-
SECTION 11: GENERAL COVENANTS ..................................... -$-
SECTION 12: OPTION TO PURCHASE ..................................... -$-
SECTION 13: DEFAULTS ............................................... -6-
SECTION 14: NOTICES ................................................. -6-
SECTION 15: CONSTRUCTION OF COVENANTS ............................. -6-
LIST OF EXHIBITS
Exhibit A: Permitted Encumbrances
Exhibit B: Project Description
Exhibit C: Rental Payment Schedule
LEASE
This Lease entered into as of the 1St day of March, 1999, between the
SOUTH BEND REDEVELOPMENT AUTHORITY, a body corporate and politic organized and
existing under Indiana Code 36-7-14.5 (the "Authority) and the
SOUTH BEND REDEVELOPMENT COMMISSION, the governing body of the
South Bend Department of Redevelopment and the Redevelopment District of the City of
South Bend, Indiana (the "Lessee"), acting for and on behalf of the City of South Bend, Indiana.
WITNESSETH:
SECTION 1: DEFINITIONS. The terms defined in this Section 1 shall for all purposes of
this Lease have the meanings herein specified unless the context otherwise requires.
"Act" means I.C. 36-7-14.5, as the same from time to time maybe amended or supplemented.
"Authority" means the South Bend Redevelopment Authority, a body corporate and politic
organized and existing under the Act, or if said Authority shall be abolished, the authority, board,
body, instrumentality or agency succeeding to the principal functions thereof.
"Constructive Total Taking" means a taking of such scope that the Project cannot be used by
the lessee in the manner contemplated.
"Lease" means this Lease as the same may be amended, modified or supplemented by any
amendments or modifications hereof or supplements hereto entered into in accordance with the
provisions hereof.
"Lessee" means the South Bend Redevelopment Commission, the governing body of the
South Bend Department of Redevelopment and the Redevelopment District of the City of
South Bend, Indiana, or if said Commission shall be abolished, the commission, board, body or
agency succeeding to the principal functions thereof.
"Lease Resolution" means the resolution of the Commission passed on , 1999,
establishing funds for the payment of lease rentals.
"Main and Jefferson Portion" means real estate to be acquired (including all right-of--way
easements contained therein) in St. Joseph County, Indiana, and improvements thereon to be
demolished, generally located at the southwest corner of Main and Jefferson streets in South Bend,
more particularly described at Exhibit A.
"Notes" means the South Bend Redevelopment Authority Section 108 Loan Notes
(Downtown Property Acquisition Project) issued to secure payment of the Department of Housing
and Urban Development ("HUD") Section 108 Loan.
"Permitted Encumbrances" means (a) liens for taxes not then delinquent, (b) this Lease,
leases, subleases and other agreements permitted pursuant to Sections 8 and 11 hereof, (c) utility,
access and other easements and rights-of--way, restrictions and exceptions that Lessee certifies will
not interfere with or impair the Project, (d) any mechanics', laborers', materialmen's, suppliers' or
vendors' lien or right in respect thereof if payment is not yet due and payable, (e) administrative or
judicial proceedings relating to the acquisition of any property which will comprise the Project and
(f) such minor defects, irregularities, encumbrances, easements, rights-of--way and clouds on title as
do not, in the opinion of the Trustee, materially impair the Authority's title or Lessee's use of the
Project.
"Project" means the Main and Jefferson Portion and the Studebaker Lot Portion.
Notwithstanding anything contained herein, improvements which may be constructed on either the
Main and Jefferson Portion and the Studebaker Lot Portion by the lessee or its sublessee shall not
be part of the property covered by this Lease.
"Studebaker Lot Portion" means the real estate generally located at the southeast corner of
Monroe and Lafayette Streets in South Bend, Indiana, and more particularly described at Exhibit B,
to be acquired and made available for the eventual expansion of the Studebaker Museum.
Any term not defined herein, which is defined in the Lease Resolution, shall have the
meaning as defined in such resolution.
SECTION 2: LEASE OF PROJECT. In consideration of the rentals and other mutual
covenants, terms and conditions herein specified the Authority does hereby lease, demise and let to
the Lessee the Project: TO HAVE AND TO HOLD the same with all rights, privileges, easements
and appurtenances thereunto belonging, unto the Lessee. The term of this Lease with respect to the
Studebaker Lot Portion shall begin on the later of (i) the date the Studebaker Lot Portion is acquired
by the Authority and is complete and ready for use, and (ii) July 25, 1999, and shall end on the day
prior to such date at most thirteen (13) years thereafter. The term of this Lease with respect to the
Main and Jefferson Portion shall begin on the later of (i) the date the Main and Jefferson Portion
is acquired by the Authority and is complete and ready for use, and (ii) July 25, 2003, and shall end
on the date prior to such date nine (9) years thereafter. However, the term of this Lease shall
terminate at the earlier of (a) the exercise of the option to purchase by Lessee and payment of the
option price, or (b) the payment or defeasance of all obligations of Lessor incurred (i) to finance the
cost of the leased property, (ii} to refund such obligations, (iii) to refund such refunding obligations.
The date each Portion of the Project is complete and ready for use shall be endorsed on this Lease
at the end hereof by the parties hereto as soon as the same can be done after such completion date
and such endorsement shall be recorded as an addendum to this Lease. The Authority hereby
represents that it is possessed of, or will acquire, a good and indefeasible estate in fee simple or an
insurable right-of--way easement subject only to Permitted Encumbrances, to the above-described
real estate, and the Authority warrants and will defend the same against all claims whatsoever not
suffered or caused by the acts or omissions of the Lessee.
::ODMA\PCDOCS\SBDOCS 1\32001\1 -2-
SECTION 3: RENTAL PAYMENTS. During the term of this Lease, the Lessee agrees to pay
rental for the Studebaker Lot Portion of the Project at the annual rate not to exceed One Hundred
Forty-four Thousand Dollars ($144,000.00) per year in equal semi-annual installments with increases
in such annual rate as provided hereinbelow. The first semi-annual rental installment for the
Studebaker Lot Portion shall be due on the day that the Studebaker Lot Portion is acquired by the
Authority and is complete and ready for use, or July 25, 1999, whichever is later. Thereafter such
rental for the Studebaker Lot Portion shall be payable in advance in equal on January 25 and July
25 of each year until such rental is increased as provided hereinbelow.
On the date the Main and Jefferson Portion is complete and ready for use or July 25, 2003,
whichever is later, the rental for the Project shall increase to an annual rate not to exceed Three
Hundred Forty-four Thousand Dollars ($344,000) payable in equal semi-annual installments. The
first increased semi-annual rental installment shall be due on the date the Main and Jefferson Portion
is complete and ready for use or July 25, 2003, whichever is later. If completion of the Main and
Jefferson Portion is later than July 25, 2003, the first increased rental installment following such
completion of the Main and Jefferson Portion shall be in an amount which provides for rental at the
actual annual rate prorated from the date of completion of the Main and Jefferson Portion until the
first January 25 or July 25 following such date of completion. Thereafter, such rental for the Project
shall be payable in advance in equal semi-annual installments on January 25 and July 25 of each
year. The last semiannual rental installment due before the expiration of this Lease shall be adjusted
to provide for rental at the rate for the Project set forth above for the applicable semiannual period,
prorated from the date such installment is due to the date of the expiration of this Lease. Such rental
shall be paid by the Commission pursuant to the Pledge Resolution. All rentals payable under the
terms of this Lease shall be paid to Chase Manhattan Bank as fiscal agent for the Secretary of
Housing and Urban Development, or any successor fiscal agent, or, at the election of the Authority,
to an escrow agent (the "Escrow Agent") which may be designated by the Authority pursuant to the
terms of an escrow agreement entered into by the Authority and the Escrow Agent (the "Escrow
Agreement"). All payments so made shall be considered as payments to the Authority of the rentals
payable hereunder.
To the extent the Authority appoints an Escrow Agent, the Lessee shall receive a credit for
interest earnings on rental payments made on each January 25 during the term of this Lease thereby
permitting a reduction of the rental payments due on each July 25 during the term of this Lease, all
pursuant to the terms set forth in the Escrow Agreement.
For purposes of this Lease, the maximum lease rental is the largest annual rental payment
expected to be paid over the entire term of the Lease. The actual annual lease rental is expected to
vary over the term of the Lease (but will in no event exceed the amounts set forth above), and is
expected to be substantially similar to the schedule shown at Exhibit C. The actual annual rental
payment schedule shall be endorsed hereon as an amendment to this Lease.
SECTION 4: CONDEMNATION.
4.01 Total Condemnation. If there shall be a total taking or a Constructive Total Taking
of the Project in condemnation proceedings or by any right of eminent domain or by a conveyance
::ODMA\PCDOCS\SBDOCS 1\32001\1 -3-
in lieu thereof, this Lease shall terminate on the date of such taking and any rent payable by the
Lessee hereunder shall be prorated and paid to the date of such taking.
4.02 Proceeds of Total Condemnation. In the event of any such total taking or
Constructive Total Taking and the termination of this Lease, the Condemnation Proceeds applicable
to the Project shall be set aside for the benefit of the Authority for purposes of redemption of any
outstanding Notes. Any proceeds in excess of the amount necessary to redeem the Notes shall be
the properly of the Lessee. Nothing herein contained shall impair the right of any sublessee to the
full award, compensation or damages payable as an award for the loss of improvements or for
moving expenses.
4.03 Partial Condemnation. In the event of a taking of the Project that is less than a
Constructive Total Taking, this Lease shall not terminate or be affected in any way. The
Condemnation Proceeds shall be the property of the Lessee.
SECTION 5: NET LEASE. It is expressly understood and agreed that this Lease shall be
what is known as a net lease (i_e., the rent being absolutely net to the Authority and that all other
expenses in connection with the Project of any nature whatsoever shall be those of the Lessee) and
that during the lease term the Lessee shall be obligated to pay as its expenses without reimbursement
from the Authority all costs of taxes and assessments, if any, and maintenance, operation and use
in connection with or relating to the Project, including but not limited to all costs and expenses of
all services, repair or replacement of all parts of the Project.
SECTION 6: NONLIABILITY of AUTHORITY. The Authority shall not be liable for damage
caused by hidden defects or failure to keep the Project in repair. The Authority shall not be liable
for any injury to the Lessee or any sublessee of the Lessee or any other person which injury occurs
on, in or about the Project howsoever arising. The Authority shall not be liable for damage to the
Lessee's property or to the property of any sublessee of the Lessee or of any other person which may
be located in, upon or about the Project.
SECTION 7: ALTERATIONS. Lessee or its sublessee shall have the right, without the
consent of the Authority, to make all alterations, modifications and additions and to do all
improvements it deems necessary or desirable to the real property which constitutes the Project,
which do not reduce the rental value of the Project.
SECTION 8: SUBLEASES. In the event of the termination of this Lease from any cause
whatsoever (including its expiration or the voluntary surrender thereof by Lessee), and while any
sublease allowed under this Lease is in full force and effect, such termination shall not act as a
merger, and Lessee's interest as sublessor in each of said subleases shall be deemed automatically
assigned, transferred, and conveyed to the Authority. From and after such termination, the Authority
(as well as any such sublessee) shall be bound by the provision of each of the subleases, then in full
force and effect, on the part of Lessee (as sublessor) to be performed thereunder, and each of the
sublessees shall be deemed thereupon (and without further act) to have been turned over or assigned
by operation of law to the Authority. It is the intention hereof to provide that the termination of this
Lease while any such sublease is in full force and effect shall not in any way, by reason thereof,
::ODMA\PCDOCS\SBDOCS 1\32001\1 -4-
terminate such sublease or militate against the rights of any such sublessee. The foregoing is further
subject to the right of the Authority following any termination of this Lease to terminate any
sublease which is in default (notice thereof, if any be required, having been given and the time for
curing such default having expired), and to any other rights and remedies reserved to Lessee in any
such sublease, and any other rights and remedies afforded to a lessor of real property against a
defaulting lessee by law or in equity. The Authority will, at the request of Lessee, execute and
deliver to any sublessee, or proposed sublessee, a document (a) reciting, in substance, that any
default by Lessee under this Lease or any termination of this Lease thereby, or otherwise, before the
natural expiration of the Term or of any extension of the Term shall not, by reason thereof, affect
the rights of such sublessee or proposed sublessee while such sublease or proposed sublease is in full
force and effect; and (b) agreeing that the subtenant shall not be disturbed in its possession and rights
under the sublease so long as it is not in default of its obligations under the sublease and that the
Authority shall assume the obligations to the subtenant under the sublease.
SECTION 9: LIABILITY INSURANCE. The Lessee shall, at all times during the full term
of this Lease, keep in effect, public liability and property damage insurance, insuring the Lessee,
sublessees, and the Authority in amounts customarily carried for similar properties. Such insurance
may be provided under the public liability self insurance program of the City of South Bend.
SECTION 10: GENERAL INSURANCE PROVISIONS. All insurance policies required by
Section 9, other than insurance provided under the public liability self insurance program of the City
of South Bend, shall be with insurance companies rated B+ or better by A.M. Best Company (or a
comparable rating service if A.M. Best company ceases to exist or rate insurance companies), and
shall be countersigned by an agent of the insurer who is a resident of the State of Indiana, and such
policies, or copies thereof, shall be deposited with the Authority. If, at any time, the Lessee fails to
maintain insurance in accordance with Section 9, such insurance may be obtained by the Authority,
and the amount paid for such insurance shall be added to the amount of rental payable by the Lessee
under this Lease; provided, however, that the Authority shall not be under any obligation to obtain
such insurance, and any action or non-action of the Authority in this regard shall not relieve the
Lessee of any consequences of a default in failing to obtain such insurance.
SECTION 11: GENERAL COVENANTS. The Lessee shall not assign this Lease. The Lessee
covenants that, except for Permitted Encumbrances, it will not encumber the Project, or permit any
encumbrance to exist thereon, and that it shall use and maintain the Project in accordance with the
laws and ordinances of the United States of America, the State of Indiana, and all other proper
governmental authorities. The Authority agrees that it will, at the request of the Lessee, execute and
deliver to or upon the order of the Lessee such instrument or instruments as may be reasonably
required by the Lessee in order to subject the Project, or the Authority's interest therein, to such
encumbrances as shall be specified in such request and as shall be permitted by the provisions of this
Section 11 or otherwise by the definition of "Permitted Encumbrances".
SECTION 12: OPTION TO PURCHASE. The Authority hereby grants Lessee the right and
option to purchase the Project (i) on any date if the Notes are not then currently redeemable or (ii)
if the Notes aze currently redeemable, on such date as may be required pursuant to the terms of the
Notes to currently redeem the Notes and upon written notice to the Authority sufficient to provide
::ODMA\PCDOCS\SBDOCS 1132001\t -5-
for redemption of the Notes. The price at which the Lessee may exercise said option shall equal the
amount required to enable the Authority to provide for the redemption of all outstanding Notes on
the earliest possible date, all premiums payable on the redemption thereof, and accrued and unpaid
interest, and to pay the cost of redeeming the Notes and liquidating the Authority if it is to be
liquidated.
Upon request of the Lessee, the Authority agrees to furnish an itemized statement setting
forth the amounts required to be paid by the Lessee on the next rental payment date in order to
purchase the Project in accordance with the preceding paragraph.
If the Lessee exercises its option to purchase, the Lessee shall pay to the Trustee that portion
of the purchase price which is required to provide for the payment of all the Notes, including all
premiums payable on the redemption thereof, accrued and unpaid interest thereon and the costs of
redemption thereof. Such payment shall not be made until the Trustee gives to the Lessee a written
statement that such amount will be sufficient to retire all Notes including all premiums payable on
the redemption thereof and accrued and unpaid interest.
The remainder of such purchase price, if any, shall be paid by the Lessee to the Authority.
Nothing herein contained shall be construed to provide that the Lessee shall be under any obligation
to purchase the Project, or under any obligation in respect to any creditors or bondholders of the
Authority.
If the Lessee has not exercised its option to purchase the Project at the expiration of the term
of the Lease and upon the full discharge and performance by the Lessee of its obligations under this
Lease, the Authority shall execute a deed of the Project to the Lessee or its designee conveying good
and merchantable title thereto, subject only to Permitted Encumbrances.
SECTION 13: DEFAULTS. If the Lessee shall (a) default in the payment of any rentals or
other sums payable to the Authority hereunder, or in the payment of any other sum herein required
to be paid for the Authority, (b) fail to comply with the terms set forth in the Lease Resolution, or
(c) default in the observance of any other covenant, agreement or condition hereof, and such default
under (c) shall continue for ninety (90) days after written notice to correct the same, then, in any of
such events, the Authority may proceed to protect and enforce its rights, either at law or in equity,
by suit, action, mandamus or other proceedings, whether for specific performance of any covenant
or agreement contained herein or for the enforcement of any other appropriate legal or equitable
remedy.
SECTION 14: NOTICES. Whenever either party shall be required to give notice to the other
under this Lease, it shall be sufficient service of such notice to deposit the same in the United States
mail, in an envelope duly stamped, registered and addressed to the other party at its last known place
of business. A copy of any notice shall be mailed by first-class mail to the Trustee at its last known
place of business.
SECTION 15: CONSTRUCTION OF COVENANTS. All provisions contained herein shall be
construed in accordance with the provisions of the Act and to the extent of inconsistencies, if any,
::ODMA\PCDOCS\SBDOCS 1\32001\1 -6-
between the covenants and agreements in this Lease and the provisions of the Act, the provisions
of said Act shall be deemed to be controlling and binding upon the parties.
::ODMA\PCDOCS\SBDOCS 1\32001\1 -7-
IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed for and
on their behalf as of the day and year first hereinabove written.
SOUTH BEND REDEVELOPMENT AUTHORITY
By:
Carolyn Pfotenhauer, President
ATTEST:
Jose Alvarez, Secretary
SOUTH BEND REDEVELOPMENT COMMISSION
By:
Robert W. Hunt, President
ATTEST:
Eugenia S. Schwartz, Secretary
::ODMA\PCDOCS\SBDOCS 1\32001\1 -8-
STATE OF INDIANA
COUNTY OF ST. JOSEPH
SS:
Before me, the undersigned, a Notary Public in and for said State, personally
appeared Carolyn Pfotenhauer and Jose Alvarez, personally known by me to be the President and
Secretary, respectively, of the South Bend Redevelopment Authority, and acknowledged the
execution of the foregoing Lease for and on behalf of said Authority.
WITNESS my hand and Notarial Seal this _ day of .1999.
My Commission Expires:
STATE OF INDIANA
COUNTY OF ST. JOSEPH
SS:
Residing in
_, Notary Public
County, Indiana
Before me, the undersigned, a Notary Public in and for said State, personally
appeared Robert W. Hunt and Eugenia S. Schwartz, personally known by me to be the President
and Secretary, respectively, of the South Bend Redevelopment Commission, and acknowledged
the execution of the foregoing Lease for and on behalf of said Commission.
WITNESS my hand and Notarial Seal this _ day of , 1999.
My Commission Expires:
Residing in
_, Notary Public
County, Indiana
This instrument was prepared by Anne E. Bruneel, (# )BAKER & DANIELS, 250 First Bank Building,
205 West Jefferson Boulevard, Suite 250, South Bend, IN 46601.
::ODMA\PCDOCS\SBDOCS 1\32001\I -9-
Exhibit A
Legal Description -Main & Jefferson Portion
PARCEL I:
The West 22 feet off of and from the entire West end of Lot Numbered Two Hundred Fifty-nine
(259) as shown on the Original Plat of the Town, now City of South Bend, in St. Joseph County,
Indiana.
PARCEL II:
Lot Numbered Two Hundred Fifty-nine (259) as shown on the Original Plat of the Town, now
City of South Bend, St. Joseph County, Indiana, EXCEPT 22 feet off of the entire West end of
said lot.
PARCEL III:
A non-exclusive right of way and easement 4 feet in width, North and South, described as
follows: Beginning at the Northwest corner of Lot 260 in the Original Plat of South Bend;
thence running East along the North line of said lot, 85 feet; thence South 4 feet; thence West,
parallel with the North line of said lot, 85 feet to the West line of said lot; thence North 4 feet to
the place of beginning, said strip to be for the benefit of adjoining owners.
PARCEL IV:
Lot Numbered Two Hundred Sixty (260) as shown on the Original Plat of the Town, now City of
South Bend, St. Joseph County, Indiana.
PARCEL V:
Lot Numbered Two Hundred Sixty-one (261) as shown on the recorded Original Plat of the
Town, now City of South Bend, St. Joseph County, Indiana.
Exhibit B
Legal Description -Studebaker Lot Portion
PARCEL I:
Lots Numbered Fifty-five (55), Fifty-six (56) and Fifty-seven (57) as shown on the recorded Plat
of Samuel Martin's Addition to the Town, now City of South Bend, recorded in the Office of the
Recorder of St. Joseph County, Indiana, in Plat Book 3, page 28, together with the West Half
(1/2) of the vacated alley lying East and adjacent to Lots Fifty-five (55), Fifty-six (56) and Fifty-
seven (57) and together with the North Half (1/2) of the vacated alley lying South and adjacent to
said Lot Fifty-seven (57).
PARCEL II:
The South Half (1/2) of Lot Numbered Forty-four (44) and all of Lot Forty-five (45) as shown on
the recorded Plat of Samuel Martin's Addition to the Town, now City of South Bend, recorded in
the Office of the Recorder of St. Joseph County, Indiana, in Plat Book 3, page 28, together with
the East Half (1/2) of the vacated alley lying West of and adjacent to said parcel and together
with the North Half (1/2) of the vacated alley lying South of and adjacent to said Lot Forty-five
(45).
Exhibit C
Semi-Annual Total Annual
Payment Rental Rental
Date Payment Payment
7/25/99 72,000.00 72,000.00
1/25/00 72,000.00
7/25/00 72,000.00 144,000.00
1/25/01 72,000.00
7/25/01 72,000.00 144,000.00
1/25/02 72,000.00
7/25/02 72,000.00 144,000.00
1/25/03 172,000.00
7/25/03 172,000.00 344,000.00
1/25/04 164,000.00
7/25/04 164,000.00 328,000.00
1/25/05 156,000.00
7/25/05 156,000.00 312,000.00
1/25/06 148,000.00
7/25/06 148,000.00 296,000.00
1/25/07 140,000.00
7/25/07 140,000.00 280,000.00
1/25/08 132,000.00
7/25/08 132,000.00 264,000.00
1/25/09 124,000.00
7/25/09 124,000.00 248,000.00
1/25/10 116,000.00
7/25/10 116,000.00 232,000.00
1/25/11 108,000.00
7/25/11 108,000.00 216,000.00
:ODMA\PCDOCS\SBDOCS ICi2860\ I
1400 COUNTY-CITY BUILDING
SOUTH BEND, INDIANA 46601-1830
PHONE 219/235-9241
Fax 219/235-9892
TDD 219/235-5567
CITY OF SOUTH BEND STEPHEN,J. LUECKE, MAYOR
DEPARTMENT OF LAW
,JOHN E. BRODEN
CITY ATTORNEY
Mr. Sean Coleman, President
South Bend Common Council
4th Floor, County-City Building
South Bend, IN 46601
March 3, 1999
Re: Approval of Lease for Public Improvements
Dear President Coleman:
ALADEAN M. DEROSE
CHIEF ASSISTANT CITY ATTORNEY
Attached for filing with the South Bend Common Council is an ordinance approving a lease
for public improvements between the South Bend Redevelopment Authority and the South Bend
Redevelopment Commission, which also authorizes the use of EDIT revenues by the Redevelopment
Commission for the payment of rentals. The South Bend Common Council authorized this
application for Section 108 Loan Funds in November, 1997. However, because these Section 108
Loan Funds are now being repaid with EDIT and TIF revenues, and not Community Development
Block Grant Funds, Common Council action is again required for the repayment of the Section 108
Loan. $600,000 of the Section 108 Loan will be repaid through CDBG funds, but the remaining $1.8
Million Dollars will be repaid through the use of EDIT and TIF funds. These monies will go to such
worthwhile projects as land assembly, development of a new downtown office complex, and the
Studebaker Museum.
Thank you in advance for your consideration of this matter.
Sincerely,
JEB/jl
Attachment
THOMAS L. BODNAR
,JEFFREY M. JANKOWSKI
ohn E. roden
City Attorney
BRIAN W. STEINKE
ROBERT C. ROSENFELD
1VIICHELLE L. ENGEL
ANN-CAROL NASH