Goshen Redevelopment Commission Sept. 9, 2014

8/11/2019 Goshen Redevelopment Commission Sept. 9, 2014

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GOSHEN REDEVELOPMENT COMMISSION

AGENDA FOR THE REGULAR MEETING OF SEPTEMBER 9, 2014

The Goshen Redevelopment Commission will meet on September 9, 2014 at 4:00 p.m. in the City CourtRoom/Council Chambers at the Goshen Police & Court Building, 111 East Jefferson Street, Goshen, Indiana.

1.

CALL TO ORDER/ROLL CALL

2.

APPROVAL OF MINUTES

Regular Meeting Minutes of August 12, 2014

3.

APPROVAL OF REGISTER OF CLAIMS

Register of Claims for September 9, 2014

4.

UNFINISHED BUSINESS

a. Resolution 93-2014 Approving a Major Moves Construction Fund Loan from City of Goshen

5.

NEW BUSINESS

a.

Resolution 94-2014 Dedication of Public Right-of-Wayb. Resolution 95-2014 - Ratification of Lease Agreement with Downtown Goshen, Inc. for use of the

Powerhouse for the Maple City Walk

c. Resolution 96-2014 - Approve and Authorize the Execution of a Purchase Agreement with J.C. andKatharine Schrock for 313 S. Third Street

d. Resolution 97-2014 - Approve and Authorize Execution of Agreement with Rita Ann Gabriel &Associates, Inc. for Appraisal Review Services for the Right of Way Acquisition of 117 & 119 S. 9thStreet for the Marion Line Curve Realignment Project

e. Resolution 98-2014 Approve and Authorize Execution of Agreement with Linda F. Russell d/b/a

Russell Appraisal Services for Appraisal Services for the Right of Way Acquisition of 117 & 119 S. 9th

Street for the Marion Line Curve Realignment Project

f. Resolution 99-2014 Approve and Authorize Execution of Agreement with Right of Way Jones, Inc. forBuying Agent Services for the Right of Way Acquisition of 117 & 119 S. 9thStreet for the Marion LineCurve Realignment Project

g. Resolution 100-2014 Approve and Authorize Execution of Agreement with Stankoven and Company,Inc. for Relocation Services for the Right of Way Acquisition of 117 & 119 S. 9thStreet for the MarionLine Curve Realignment Project

h. Resolution 101-2014 Authorize Negotiation of an Agreement for the 9thStreet Trail

i. Resolution 102-2014 Approve and Authorize Execution of Agreement with INDOT LPA for the

Railroad Crossing Safety Improvements at College Avenue and Jefferson Street

j. Discussion River Race Drive - Long Term Parking Project Planning Committee

6.

MONTHLY REDEVELOPMENT STAFF REPORT

7.

OPEN FORUM

The open forum is for the general discussion of items that are not otherwise on the agenda. The public willalso be given the opportunity at this time to present or comment on items that are not on the agenda.

8.

ANNOUNCEMENTS

a. Next Regular Meeting October 14, 2014 at 4:00 p.m.


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MINUTES OF THE REGULAR MEETING HELD AUGUST 12, 2014

CALL TO ORDER/ROLL CALL

The Goshen Redevelopment Commission met in a regular meeting on August 12, 2014 at 4:00 p.m. in the City Court

Room/Council Chambers at the Goshen Police & Court Building, 111 East Jefferson Street, Goshen, Indiana.

The meeting was called to order by President Thomas Stump.

On call of the roll, the following members of the Goshen Redevelopment Commission were shown to be present or absent asfollows:

Present: Laura Coyne, Cathie Cripe, Thomas Stump, Jeremy Stutsman, Brett Weddell

Absent: Vince Turner

President Stump welcomed Brett Weddell to the Commission.

APPROVAL OF MINUTES

A motion was made by Commissioner Coyne and seconded by Commissioner Stutsman to approve the minutes of the July 8,2014 regular meeting. The motion was adopted unanimously.

CHANGES TO THE AGENDA

A motion was made by Commissioner Coyne and seconded by Commissioner Stutsman to add the following to the Agenda:

Resolution 90-2014 Approving Payment under Contract with L & M Electric, Inc. as item L under New Business;Resolution 91-2014 Award Bid and Authorize Negotiation of a Contract with Jerry Reed Excavating for 411 E. Kercher asitem M under New Business; andResolution 92-2014 Award Bid and Authorize Negotiation of a Contract with Jerry Reed for 718 E. Lincoln Avenue and 800E. Lincoln Avenue as item N under New Business.

The motion was adopted unanimously.

A motion was made by Commissioner Stutsman and seconded by Commissioner Weddell to reverse the order of Resolution72-2014 and 73-2014. Commission President Stump indicated the order would be reversed, but the Resolutions would bediscussed together. The motion was adopted unanimously.

APPROVAL OF REGISTER OF CLAIMS

A motion was made byCommissioner Stutsman and seconded by Commissioner Coyne to approve payment of the Registerof Claims totaling $464,570.20. The motion was adopted unanimously.


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UNFINISHED BUSINESS

a. Resolution 73-2014 Approve and Authorize Execution of Assignment of Loan Agreement with LaCasa ofGoshen, Inc. and Hawks 1886, LLC

Mark Brinson informed the Commission that nothing had changed since the last time this was discussed and the issue

remaining was the current 1% interest rate on the loan.

Commission President Stump expressed that everyone wants this building developed and wants the developer to besuccessful in this endeavor. He is not worried about setting a precedence by extending the loan at 1% interest becauseevery situation needs to be considered individually, that we were fortunate enough to get someone to even bid on thisbuilding and in this particular case, he feels we are doing the right thing.

Commissioner Stutsman expressed he feels this is a great project and he supports the project, however he feels theCommission is setting a precedent by giving a loan to private business. He feels strongly enough about setting theprecedent and does not feel he can give this his vote. He stated his disappointment in the Commission for setting thisprecedent.

City Attorney Larry Barkes reiterated three points previously discussed 1) when the money was loaned to Lacasa, theCommission was aware they would be selling this portion of the building to a for profit entity; 2) tax income is capturedfrom a for profit entity; but not from a not-for-profit entity; and 3) the incentive package extended to the other brewery issomewhat similar to this incentive package. Also, the contract with LaCasa provides the option to call the loan if they sella portion of the building.

Jim McKee, Goshen stated he is opposed to transferring the loan and feels this is setting a very dangerous precedent.He stated if Lacasa feels Hawks 1886 is credit worthy, they should carry the loan and he is opposed to the transfer ofresponsibility since our original deal was with LaCasa. Mr. McKee agrees with Commissioner Stutsman on this issue.

Commissioner Coyne stated she agrees with Commission President Stumps position. She cares more about the abilityof everyone to succeed on these very challenging properties than about the possibility of setting a precedent.

Larry Gautshe, LaCasa reminded the Commission that at the time LaCasa bid on this building, no other development wasin place for this area. Now, there is good moment in this area and he encourages the support of this loan transfer.

A motion was made by Commissioner Coyne and seconded by Commissioner Weddell to approve Resolution 73-2014.On call of the roll, the motion was carried by the following vote:

Ayes: Coyne / Stump / WeddellNays: Stutsman

The motion passed 3 1.

b. Resolution 72-2014 Approve and Authorize Execution of an Agreement with Hawks, 1886, LLC for theDevelopment of Lot A of the Hawks Building Minor Subdivision

Mark Brinson informed the Commission that no changes had been made to this Agreement since the last time it wasdiscussed.

A motion was made by Commissioner Coyne and seconded by Commissioner Weddell to approve Resolution 72-2014.On call of the roll, the motion was carried by the following vote:

Ayes: Coyne / Stump / WeddellNays: Stutsman (based solely on the loan)

The motion passed 3 1.


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NEW BUSINESS

a. Resolution 79-2014 Ratify Execution of an Agreement Amendment with H.J. Umbaugh & Associates forMonitoring Services for Tax Increment Financing

Mark Brinson informed the Commission last years contract allowed an extension of the contract for one more year withthe same terms and conditions.

A motion was made by Commissioner Weddell and seconded by Commissioner Stutsman to approve Resolution 79-2014. The motion passed unanimously.

b. Resolution 80-2014 Approve and Authorize Execution of Change Order #3 with C & E Excavating for US 33 andKercher Road

Mary Cripe, Civil City Engineer, informed the Commission there were several unexpected underground issuesencountered while trying to get this intersection opened back up expeditiously.

A motion was made by Commissioner Weddell and seconded by Commissioner Coyne to approve Resolution 80-2014.The motion passed unanimously.

c. Resolution 81-2014 Approve and Authorize Execution of Change Order #1 with C & E Excavating for River RaceDrive

Mary Cripe informed the Commission that staking the right way for utility companies was not included in the contract.This change order also included oxycoating the interior of structures and additional cost for the rental of dewateringequipment. Becky Hershberger, Brownfields Coordinator, informed the Commission a pocket of dark water was hit thathad to be tested before construction could proceed.

Commission President Stump expressed the need to be vigilant in this project because these overruns can be dangerous.

A motion was made by Commissioner Weddell and seconded by Commissioner Coyne to approve Resolution 81-2014.

The motion passed unanimously.

d. Resolution 82-2014 Authorize Negotiation of an Ag reement fo r Construction Engineering Services for theWaterford Mills Parkway from State Road 15 to Regent Street Project

Mary Cripe informed the Commission that 8 proposals were received and INDOT just gave Engineering permission tostart negotiations with DLZ for an Agreement between the City and DLZ.

Commissioner Stutsman inquired if Redevelopment has enough money to move forward with this project. Mark Brinsonexplained this project is in the budget, however the cash flow issue will be discussed later in this meeting.

A motion was made by Commissioner Coyne and seconded by Commissioner Stutsman to approve Resolution 82-2014.

The motion passed unanimously.

e. Resolution 83-2014 Approving and Authorizing the Execution of the Project Coordination Contract with theState of Indiana for t he Ninth Street Bicy cle/Pedestrian Path Project

Mary Cripe informed the Commission the City applied for federal funds for this project through MACOG. Federal fundshave been approved for the design of the project which will cover 80% of the cost of the design. This project isanticipated to go to construction in 2019, so the funds for construction will be reapplied for at that time. CommissionerWeddell asked for a rough estimate of the construction costs; Mary Cripe replied between $800,000 and $900,000.Commission President Stump asked if the parking issues in the area will be addressed; Mary Cripe replied the parking


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issues will be addressed since people are currently parking within 9thStreet right-of-way and Norfolk Southern right-of-way without permission. Norfolk Southern has informed Mary Cripe if they see anyone walking across the tracks illegally,it is considered trespassing and they have the ability to fine up to $5,000.

Redevelopment agrees to fund up to $38,000 of the Citys share of the cost for this Project, with the remaining cost to befunded from other City funds.

A motion was made by Commissioner Coyne and seconded by Commissioner Stutsman to approve Resolution 83-2014.The motion passed unanimously.

f. Resolution 84-2014 Approving the 2015 Redevelopment Budgets

Mark Brinson explained there are four budgets Non Reverting Operating Fund; Southeast TIF area; Consolidated RiverRace / US 33 TIF area; and Plymouth Avenue TIF area. These are budgets only; just a spending plan.

Commissioner Cripe indicated she would like to see a year to year comparison.

Commission President Stump pointed out there is a typo in the Resolution it should read 2015.

A motion was made by Commissioner Coyne and seconded by Commissioner Weddell to approve Resolution 84-2014.The motion passed unanimously.

g. Resolution 85-2014 Category Transfers for Sou theast and Consolidated River Race / US 33 TIF Funds

Mark Brinson informed the Commission these transfers were necessary to clean up an error that we found between theClerk Treasurers Office, the Mayor and what we submitted, as well as cover an increase in the paying agent fees.

A motion was made by Commissioner Stutsman and seconded by Commissioner Coyne to approve Resolution 85-2014.The motion passed unanimously.

h. Resolution 86-2014 Approve and Authorize Execution of an Agreement for the Sale and Purchase of RealEstate at 617 S. Third Street

Mark Brinson informed the Commission this is a property that the Commission previously determined was a surplusproperty. An RFP was issued and one proposal was received from Brad & Leah Hunsberger.

Larry Barkes explained to the Commission that the Hunsbergers would like to change one item in the Agreement. Thecurrent purchase price $30,000, and includes a list of items to be repaired, which were estimated to be near $60,000. Inthis Agreement, Redevelopment has taken a $50,000 mortgage. The Hunsbergers would like the $50,000 mortgagereduced to $40,000 or have it released once all of the repairs are made.

Brad Hunsberger, 621 Emerson, informed the commission he feels it will cost at least $40,000 in repairs and supplies andfeels more comfortable with a $40,000 mortgage. He would really like to have it released once the scope of work is done.

A motion was made by Commissioner Stutsman and seconded by Commissioner Coyne to reduce the mortgage in theAgreement from $50,000 to $40,000. The motion to reduce the mortgage passed unanimously.

A motion was made by Commissioner Stutsman and seconded by Commissioner Weddell to approve Resolution 86-2014, as amended. The motion passed unanimously.


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i. Resolution 87-2014 Authorize Negotiation of an Agreement for the Sale and Purchase of Real Estate at 313 S.Third Street

Mark Brinson informed the Commission this property was also determined to be surplus. An RFP was issued and twoproposals were received. A review committee was established to meet with both proposers.

Commissioner Coyne read the following prepared statement on behalf of the review committee.

The committee was comprised of Dr. Weddell, Mark, Becky and me. We visited with two sets of communityvisionaries with strong desires to fill unmet needs in the community. They both proposed the Third Streetlocation as the site for providing services, in holistic health care for one and art education for young adultsfor the other. In the end, both concepts were found to have equally high merit. The resources offered byJ.C. and Katharine Schrock allow them to get started as soon as the Redevelopment Commission, and theproperty, are ready for them. They have extensive experience with building projects more complicated thanthis one, and with the health care community that this facility will serve. And they already have tenants whowill be a part of the full service package they will offer. Because the Schrocks presented a turn-keyproposition for the immediate future of this site, the committee selected it to recommend to you today.

A motion was made by Commissioner Weddell and seconded by Commissioner Coyne to approve Resolution 87-2014.The motion to approve Resolution 87-2014 was adopted unanimously.

j. Resolution 88-2014 Approve and Au thorize Execution of an Agreement with Abonmarche for Surveying andLegal Description for Kercher Road

Mary Cripe explained the need for additional surveying for a new legal description for one of the property owners andrequested Abonmarche conduct the additional surveying since they completed the original survey,

A motion was made by Commissioner Weddell and seconded by Commissioner Coyne to approve Resolution 88-2014.The motion passed unanimously.

k. Resolution 89-2014 Requesting a Loan from Major Moves Loan Fund

Mark Brinson informed the Commission of the cash flow need for the Southeast TIF and mentioned this had beenmentioned about a year ago and that it was not a new issue. He explained the SE TIF Cash balance calculationsspreadsheet provided to the Commission.

Larry Barkes explained the procedure for the Redevelopment Commission to request a loan from the Major MovesConstruction Fund. The request, if authorized, will then go to the Common Council for consideration, then back to theCommission for approval next month. The requested loan would be at 1% interest per annum on the portion of the loanused. Beginning January 1, 2015, interest only payments would begin and continue to be paid every quarter thereafteruntil the loan and accrued interest is paid in full. Principal payments in the amount of $125,000 would be made in additionto the interest payments beginning on July 1, 2016. The loan will be repaid in full by July 1, 2020. Interest will be accruedonly on the amount of loan drawn down, similar to a line of credit.

Mary Cripe informed the Commission the federal funding for the Waterford Mills Parkway has to be allocated by eitherMay or June of next year or funding in the approximate amount of $5,400,000 will be lost. The project will be bid byNovember with bids to be due back early next spring.

Commissioner Weddell noted that this spreadsheet is greatly different from the last one he reviewed in that there are noTIF funds allocated toward the SR 15 & Kercher Road Project, the US 33 & College Avenue project, and the KercherRoad Construction from the Railroad to Dierdorff Project. Mary Cripe and Mark Brinson confirmed the 5 year plan hadbeen updated and that his observation was correct.


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Commissioner Stutsman asked if this approach was the only option or the easiest one. Mark Brinson replied thatUmbaugh checked into the possibility of bonds, but that option was not feasible. Commissioner Stutsman agreed that wecant stop this project and agrees the money needs to be loaned.

Commissioner Stutsman indicated he would like to see the River Race TIF cut back on projects so the Major Moves Loancould be paid back quicker from there and stated we, as a City, need to be smart about our cash balances. Mark Brinsonpointed out that we really need to prioritize the payoff of the bond we currently have an 8.5% interest rate on in 2016 in

that TIF area.

Commissioner Coyne stated the Major Moves Fund was created exactly for projects such as this.

A motion was made by Commissioner Weddell and seconded by Commissioner Stutsman to approve Resolution 89-2014. The motion passed unanimously.

l. Resolution 90-2014 Approve Payment under a Contract with L & M Electric, Inc.

Mary Cripe informed the Commission that the City currently has a maintenance contract with L & M Electric, Inc. to domaintenance for the City. Engineering failed to include the relocation of two ornamental street lights and an electricalpanel in the bid packet for River Race Drive. Mary feels it is best to go directly through L & M Electric for these electrical

needs since the City already has a contract with them. The total cost should be around $10,000.00 in addition to theinvoice submitted for approval today.

A motion was made by Commissioner Stutsman and seconded by Commissioner Coyne to approve Resolution 90-2014.The motion passed unanimously.

m. Resolution 91-2014 Award Bid and Authori ze Negotiation of a Contract with Jerry Reed Excavating for theDemolition of 411 E. Kercher Road

Mark Brinson informed the Commission this is one of the properties that was purchased for the stormwater project. Thehouse is not rentable and needs to be demolished.

A motion was made by Commissioner Stutsman and seconded by Commissioner Weddell to approve Resolution 91-2014. The motion passed unanimously.

n. Resolution 92-2014 Award Bid and Authori ze Negotiation of a Contract with Jerry Reed Excavating for theDemolition of 718 E. Lincoln Avenue and 800 E. Lincoln Avenue

Becky Hershberger informed the Commission that over the past year, 4 residential properties have been purchased forthe stormwater project. Stormwater acquired two and Redevelopment acquired two. Two of the properties are currentlyvacant and we would like to demolish these now. The others will be demolished after they become vacant, which may notbe until early next year. Bids were solicited and Jerry Reed Excavating was low bidder at $13,000 for both properties.

A motion was made by Commissioner Stutsman and seconded by Commissioner Weddell to approve Resolution 92-2014. The motion passed unanimously.

o. Discussion 2013 Annual Report Submission to Common Council

Mark informed the Commission this report covers all of the TIF areas, shows what the TIF revenues are and what thebond obligations are and shows all of the information by parcel.


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REPORTS

a. Redevelopment Staff Report Mark Brinson, Community Development Director

Mary Cripe announced that INDOT has made a final decision on US 33 Route and Madison Street will now become alocal street.

Mark Brinson indicated Staff would like to move ahead with issuing an RFP for the sale of the properties on MadisonStreet, especially 324 S. Fifth Street, as we have someone interested in submitting a proposal (the same people whosubmitted the art proposal for 313 S. Third are interested). Commissioner Stutsman and Commission President agreethat all of the properties should be sold.

OPEN FORUM

Mary Cripe informed the Commission that the buyer doing the property acquisition for the Waterford Mills Parkway (South LinkRoad) has secured 4 properties and will need another closing through Barkes, Kolbus, Rife and Schulers office. The ownersare pushing to get this scheduled as soon as possible. Mary is asking for the Commissions permission to issue claims for thefollowing prior to next months meeting:

Parcel 14 - $125,000Parcel 15 - $135,000Parcel 12 - $ 400Parcel 23 - $ 755

There were no objections.

ANNOUNCEMENTS

It was announced that the next regular meeting is scheduled for September 9, 2014 at 4:00 p.m.

ADJOURNMENT

The regular meeting was adjourned at 6:00 p.m.

APPROVED on September 9, 2014.

Goshen Redevelopment Commission

_______________________________________Thomas W. Stump, President

_______________________________________Jeremy P. Stutsman, Secretary


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September 9, 2014 Register of Claims

The Goshen Redevelopment Commission has examined the entries listed on the following

Expenditure Report for claims entered from August 8, 2014 through September 4, 2014

and finds that such entries are allowed in the total amount of $568,441.87.

APPROVED on September 9, 2014.


Laura Coyne

Thomas W. Stump

Jeremy Stutsman

Vince Turner

Brett Weddell


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Invoice Date Payee Description Claim #

9/3/2014 Jones Petrie Rafinski Corp. Waterford Mills Parkway - Land Acquisition Services 1522

9/3/2014 Jones Petrie Rafinski Corp. Waterford Mills Parkway - Re-Acquire Existing ROW 1522

9/4/2014 Richard T. Edmonds, Jr. and Michelle R. Edmonds Property Acquisition - South Link Road 1533

9/4/2014 C. Lavonee Ernst Property Acquisition - South Link Road 1536

9/4/2014 Vernon E. Graber and Connie G. Graber Property Acquisition - South Link Road 1532

9/4/2014 Vernon E. Graber Property Acquisition - South Link Road 1535

9/4/2014 Goshen, City of (for Redevelopment Payroll) FICA 1527

9/4/2014 Goshen, City of (for Redevelopment Payroll) Health Insurance 1527

9/4/2014 Goshen, City of (for Redevelopment Payroll) Medicare 1527

9/4/2014 Goshen, City of (for Redevelopment Payroll) PERF 1527

9/4/2014 Goshen, City of (for Redevelopment Payroll) Wages 1527

9/4/2014 Robert L. Rossi and Pamela J. Rossi Property Acquisition - South Link Road 1534

Thursday, September 4, 2014


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RESOLUTION 93-2014

Approving a Major Moves Construction Fund Loan

from City of Goshen

WHEREAS the City of Goshen has established a fund known as the Local Major Moves Construction Fund;

WHEREAS the Goshen Redevelopment Commission (Redevelopment) requested a loan from the Local

Major Moves Construction Fund to pay for street infrastructure projects within the Southeast Economic

Development Area. These projects will promote significant opportunities for the gainful employment of

citizens of Goshen and may attract new business enterprises to the City of Goshen;

WHEREAS the projects scheduled for construction in the Southeast Economic Development Area for 2014

and 2015 will exceed the funds available for such projects by approximately Two Million Dollars

($2,000,000);

WHEREAS Redevelopment will repay the loan and all accrued interest by July 31, 2020.

WHEREAS a copy of the loan agreement is attached to this resolution as Exhibit A.

WHEREAS Indiana Code 36-7-14-12.2 (22) authorizes Redevelopment to accept loans...from...a municipal

corporation...or any other source.

NOW, THEREFORE, BE IT RESOLVED that:

1. The Goshen Redevelopment Commission approves a loan from the City of Goshen through the

Goshen Common Council from the Local Major Moves Construction Fund and authorizes theexecution of the agreement attached to this resolution as Exhibit A.

2. The loan and all accrued interest will be paid in full on or before July 31, 2020.

3. The Goshen Redevelopment Commission finds that the proposed street infrastructure projects in the

Southeast Economic Development Area are the necessary steps for economic development of the

area and the projects will promote significant opportunities for the gainful employment of the

citizens of Goshen and will likely attract new commercial enterprises to the Southeast Economic

Development Area.

PASSED and ADOPTED by the Goshen Redevelopment Commission on September 9, 2014.

__________________________________________

Thomas W. Stump, President

__________________________________________

Jeremy P. Stutsman, Secretary


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Major Moves Construction Fund Loan Agreement

This agreement is made and entered into this _____ day of September, 2014 by and between the City of

Goshen through the Goshen Common Council (City), and the Goshen Redevelopment Commission

(Redevelopment).

WHEREAS Redevelopment has requested and City has approved a loan from the Local Major Moves

Construction Fund to fund certain infrastructure projects within the Southeast Economic Development Area

(Southeast TIF).

WHEREAS Indiana Code 36-7-14-12.2 (22) authorizes Redevelopment to accept loans...from...a municipal

corporation...or any other source.

Now, therefore, City and Redevelopment agree as follows:

Loan

1. Redevelopment is authorized to borrow up to Two Million Dollars ($2,000,000) from the Local

Major Moves Construction Fund (Fund) as needed to fund certain infrastructure projects within the

Southeast TIF.

2. Redevelopment will pay all interest on the unpaid balance at the rate of one percent (1%) per annum.

Interest will begin to accrue beginning on the date of the first withdrawal of funds by Redevelopment

from the Fund. Interest will accrue only on the portion of the funds withdrawn from the Fund.

3. The first payment of interest of interest by Redevelopment will be due on January 31, 2015.Redevelopment will pay interest each quarter thereafter until the principal balance and all accrued

interest is paid in full.

4. Beginning July 31, 2016 and each quarter thereafter until the principal balance and all accrued

interest is paid in full, Redevelopment shall pay the sum of One Hundred Twenty-five Thousand

Dollars ($125,000) to Fund in addition to the interest accruing since the last payment.

5. Before Redevelopment will be obligated to pay any interest or principal installment due under the

terms of this agreement Redevelopment must pay all Southeast TIF bond and loan payments due on

obligations existing or originating prior to September 8, 2014.

6. Redevelopment shall pay all principal and interest due under the loan agreement on or before July31, 2020.

7. Any payment made shall first apply to accrued interest and then to the unpaid principal balance.

8. Redevelopment may prepay principal at any time without penalty.

1


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Projects Financed Loan

h loan proceeds may be used to finance any of the following projects:

I. h construction of intersection improvements at Kercher Road and US 33.

2 Right of way acquisition for the future extension

of

Waterford Mills Parkway from Regent Street

to State Road 15.

3 Right of way acquisition for intersection improvements at Kercher Road and State Road IS.

4 Preliminary design work for the improvement

of

Kercher Road from the railroad to DierdOlff Road.

5. Part of the local portion of Waterford Mills Parkway construction costs from Regent Street to State

Road IS.

dministration

City will be responsible for the accounting for all loan payments. Redevelopment shall calculate the

accrual of interest subject to verification by City. City will be responsible for maintaining all documents

contracts notices or other records required to be maintained in connection with this loan.

Supplemental Documents

h City and Redevelopment agree to execute any and all supplementary documents and to take any and all

supplementary steps as are reasonable and appropriate to accomplish the purposes and provisions of this

agreement.

Non Discrimination

Pursuant to Indiana Code 22 9 1 10 neither the City or Redevelopment nor any

of

their contractors or

subcontractors shall discriminate against any employee or applicant for employment to be employed

in

the

performance

of

any work under this agreement with respect to hire tenure terms or conditions or

privileges of employment or any matter directly

or

indirectly related to employment because

of

race color

religion sex disability national origin or ancestry. Breach

of

this covenant may be regarded as a material

breach of this agreement.

Miscellaneous

Amendment. This agreement may be amended only

by

the mutual written consent of the parties

by the adoption

of

a resolution approving the amendment and by the execution

of

the amendment

by the parties.

2. No Other Agreement. Except as otherwise expressly provided this agreement supersedes all

prior agreements negotiations and discussions relative to the subject matter and

is

a full

integration of the agreement

of

the patties.


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Severability.

any provision, covenant, agreement or portion of this agreement or its application to

any person, entity or property

is

held invalid, such invalidity shall not affect the application or

validity

of

any other provisions, covenants, agreements, or portions of this agreement, and to

that end, any provisions, covenants, agreements or portions

of

this agreement are declared

to

be

severable.

4. Indiana Law. This agreement shall be governed by and construed

in

accordance with the laws

of

the State

of

Indiana.

5. Notice. Any notices required or permitted under this agreement shall be given to the pmties at

their respective mailing addresses provided below by deposit in the US mail, with proper postage,

and which notices shall be effective three 3 days after date of mailing.

City:

Redevelopment:

Tina Bontrager, Goshen Clerk-Treasurer

202 South Fifth Street

Goshen, IN 46528-3714


C/o Legal Department

204 East Jefferson Street, Suite 2

Goshen, IN 46528

h parties may change their respective mailing addresses by providing written notice

of

the new

address

in

accordance with the terms and provisions

of

this paragraph.

6

Binding Effect. This agreement shall be binding upon and shall inure to the benefit

of

the parties

and their respective successors and assigns; provided, however, that this agreement may not be

assigned without the express written consent of the non-assigning party.

7. Counterparts. This agreement may be executed in multiple counterparts and with multiple but

separate signature pages with the multiple counterparts and multiple and separate signature pages

constituting one single and unified agreement when combined.

IN WITNESS WHEREOF, the parties have duly executed this agreement pursuant to all requisite

authorizations on the dates set forth below.

oshen Redevelopment ommission



Date: _

ity oshen

Allan Kauffman, Mayor

Date: _


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RESOLUTION 94-2014

Dedication of Public Right-of-Way

BE IT RESOLVED that the Goshen Redevelopment Commission, on behalf of the City of

Goshen for the Use and Benefit of its Department of Redevelopment, dedicates to the City

of Goshen, Indiana public right-of-way located at 705 New York Street as described and

shown in further detail on the legal description and map attached to this resolution.

BE IT FURTHER RESOLVED that Goshen Redevelopment Commission President Thomas

W. Stump and Secretary Jeremy P. Stutsman are authorized to execute any and all

documents relating to the dedication of the public right-of-way to the City of Goshen,

Indiana.

PASSED and ADOPTED by the Goshen Redevelopment Commission on September 9,

2014.

___________________________________


___________________________________



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The South nine (9) feet of the following described real estate:

A part of the Southwest Quarter of Section 15, Township 36 North, Range 6 East, (Elkhart

Civil Township) Elkhart County, Indiana, and more particularly described as follows:

Commencing on the South line of Adams Street in the City of Goshen, Elkhart County, State

of Indiana projected West to a point forty (40) feet West of the Northwest corner of Lot

Number One (1) in Block Nine (9) of the First Industrial Addition to said city; thence

continuing due West (assumed) a distance of seventy-five (75) feet to the place of beginning

of this description; thence due South (assumed) a distance of two hundred ninety-nine and

one-half (299.5) feet to the North line of New York Street in said city; thence due West

(assumed) one hundred twenty-five (125) feet to the West line of Tenth Street projected

Northwardly; thence due North (assumed) two hundred ninety-nine and one-half (299.5) feet

along the West line of Tenth Street projected Northwardly to a point due West of the place

of beginning; thence due East (assumed) one hundred twenty-five (125) feet to the place of

beginning.

(Depiction of right-of-way dedicated is approximate South 9 feet of each parcel.)


19/103

RESOLUTION 95-2014

Ratify Execution of a Lease Agreement with Downtown Goshen, Inc.for the Use of the Powerhouse

WHEREAS the Redevelopment Commission wishes to lease the Powerhouse located at 324 WestWashington Street to Downtown Goshen, Inc. for the Maple City Walk on Saturday, September 20, 2014;and

WHEREAS City Administration has negotiated the terms and conditions of a Lease Agreement withDowntown Goshen, Inc. to lease the Powerhouse and Community Development Director Mark Brinson hasexecuted the Agreement on or about May 28, 2014. A copy of the Lease Agreement is attached to andmade a part of this Resolution.

NOW, THEREFORE, BE IT RESOLVED that the Goshen Redevelopment Commission approves the termsand conditions and ratifies the execution of the Lease Agreement between Downtown Goshen, Inc. and theCity of Goshen that is attached to and made a part of this Resolution.

PASSED and ADOPTED on September 9, 2014.





20/103

LE SE GREEMENT

LEASE

AGREEMENT is n t ~ r ~ into

this

I

day of

May, 2014, by and between the City

of

Gdshen, Indiana, a

municipal corporation

of

the State

of

Indiana,

by and

through its

Redevelopment

C9mmission,

hereinafter

referred

to

as Redevelopment, and Downtown Goshen, Inc.,

hereinafter

referred

to

as Lessee ,

I

W ~ R S

Lessee intends to hold

a

social gathering utilizing the Redevelopment=s

Powerhouse

and the

terrace adjacent to the

Powerhouse.

NqW

THEREFORE and

in consideration of mutual

promises

of

the parties, the

parties

agree as follows:

I escription

of Real

Estate to be

Leased

I

R1development

agrees

to

lease

to Lessee and Lessee

agrees

to

lease from

Redevelopment

a building

cOj11monly

referred

to as

the Powerhouse. The Powerhouse

is

located at 324 West Washington

Street,

GQshen

on

a

parcel

of

real estate

more

particularly described as follows:

That portion of Lot

Number Two

Hundred Fifty-eight

(258)

in

the Original

Plat of

the Town,

now

City

of

Goshen

that is lying

West

of

the

Maple City

Greenway

pedestrian/bicycle path

and

the

millrace canal.

Also all of

the vacated alley Sixteen

and

One-half

(162)

feet wide

lying West of Lot

Number

Two Hundred

Fifty-eight (258) in

the Original

Plat of

the Town, now

City of

Goshen.

e ~ s e e s use of the

Powerhouse

and terrace will be

limited to 6:00

a.m.

to

5:00 p.m. on

Saturday,

S ~ p t e m b e r 20 2014.

Lease Payment

i

2

Lessee agrees

to pay

Redevelopment

the sum

of

Seventy

Five

Dollars ( 75.00)

upon the

execution of

the

lease

agreement.

The lease payment shall cover the rental of the Powerhouse

and the

leased

real

estate.

1


21/103

Condition of Premises

1 :

Lessee has examined

and knows

the condition

of

the

premises

and is

satisfied

with the

condition

of

the

premises. Lessee

taking possession of the premises shall be

conclusive

evidence

that

the

premises was in good

and

satisfactory condition for Lessee purposes when Lessee took

possession.

2. Lessee

shall

keep and

return possession

of

the

Powerhouse and leased real estate in a

clean

and

orderly condition.

3. : There are no

public

bathroom facilities

at

or near the Powerhouse. If this event is longer than two

2) hours in duration,

Lessee must provide at least

one 1)

portable toilet

for

use during the

event at

Lessee s

expense. The portable

toilet

must

be

removed

within twenty four 24)

hours from the

end

of

the

event.

Use of Premises

2

3.:

The use of the

terrace or

patio

that is

located south

of

the Powerhouse will be limited

to persons

attending

the

Maple

City Walk event

from

6:00 a.m. to

5:00

p.m. on

Saturday,

September 20,2014.

Lessee agrees to conform to all applicable laws and

regulations

of

any public

authority affecting the

Powerhouse and leased real

estate.

Lessee agrees to refrain

from

any

use

that would be reasonably offensive to

the

owners or

users

of

adjoining real

estate or

which

would tend to

create a

nuisance.

lcoholic everages

1

If alcoholic beverages

are

served,

the

alcoholic beverages shall only be dispensed inside

the

Powerhouse building. Lessee shall insure that alcohol is only

made

available

to persons twenty-

one 21)

years

of age or older. Lessee shall make

a

good

faith

effort to limit consumption of any

alcoholic

beverages to the Powerhouse

and

the

terrace

adjacent to the Powerhouse.

2.

Sales of alcoholic beverages are prohibited unless

a

proper license permitting such sales is issued

by the

State

of

Indiana.

Indemnification

~ s s

shall indemnify, defend,

and hold

Redevelopment harmless from

any

liability, penalty, loss,

damage, costs or

other

expenses, including reasonable attorney

fees,

arising

from any

injury to

any person


22/103

or \any damage

to property

as

a

result

of

any accident or occurrence caused

by

Lessee

use of the

leased

premises or operation of the Powerhouse.

iscell neous

1. Lessee shall

assume

the risk of loss to

any

of Lessee s personal property or any personal property

under Lessee

control that

is located on the premises.

2. Lessee shall

not assign this agreement

or

sublet the

leased premises in

whole

or in

part

without

the

prior written consent of Redevelopment.

3 Any modification

or

amendment to

the

terms

and

conditions

of

this agreement shall not

be binding

unless made

in

writing and signed by both parties

and

approved

by

Redevelopment.

Any

verbal

representations or modifications

concerning this agreement shall be

of

no force and effect.

4. i

The

waiver by

either

party

of

a

breach

of

any

provision

of

this agreement shall not operate

or

be

construed

as

a waiver of any subsequent breach.

5.: This agreement is governed

by

the

laws of

the State

of

Indiana and any action to enforce the

terms

and

conditions of

this agreement

shall be

heard

in Elkhart

County Indiana. In the event legal

proceedings

are

instituted the defaulting party shall

pay

to

the

non-defaulting party

all

reasonable

and

necessary

costs and

expenses of the legal proceedings including reasonable attorney

fees.

6. All provisions covenants

terms

and conditions of the agreement apply and bind the parties and

their legal heirs

representatives successors

and assigns.

7.

This agreement

constitutes the entire

agreement between

the parties and

supersedes

all

other

agreements

or

understandings

between

Redevelopment

and

Lessee.

i

I

IN

WITNESS WHEREOF the parties have executed this agreement

as of

the date first written

above.

City of Goshen Indiana

ark Bnnson

Community

Development

Director

Goshen

Redevelopment

Commission

City of Goshen Indiana

Downtown

Goshen

Inc.


23/103

RESOLUTION 96-2014

Approve and Authorize Execution of an Agreementfor t he Sale and Purchase of Real Estate with J .C. and Katharine Schrock

313 S. Third Street, Goshen, Indiana

WHEREAS the Redevelopment Commission owns the real estate located at 313 S. Third Street, Goshen,Indiana; and

WHEREAS the Redevelopment Commission issued a Request for Proposals to Purchase the real estate,however, although two proposals were submitted, no qualifying proposals were received by the June 10,2014 deadline and an additional 30 day extension was given; and

WHEREAS a selection committee was formed to review both proposals and subsequent revisions, then thecommittee met with both proposers. The committee recommended the Redevelopment Commission enter

into an Agreement with J.C. and Katharine Schrock consistent with their revised proposal. A copy of theSchrocks Revised Proposal is attached to and made a part of this Resolution.

WHEREAS the Legal Department has negotiated the terms and conditions of and drafted the attachedAgreement for the Sale and Purchase of Real Estate with J.C. and Katharine Schrock based on theproposal submitted for the real estate located at 313 S. Third Street, Goshen, Indiana.

NOW, THEREFORE, BE IT RESOLVED by the Goshen Redevelopment Commission that:

1. The terms and conditions of the Agreement for the Sale and Purchase of Real Estate as attached toand made a part of this Resolution are approved.

2. Community Development Director Mark Brinson is authorized to execute the Agreement with J.C. andKatharine Schrock on behalf of the City of Goshen and the Goshen Redevelopment Commission.






24/103

JC arid Katharine Schrock

63828 CR

21

Goshen, IN 46526

July

10 2014

Mark Brinson

Community Development Director

City ofGoshen Redevelopment Commission

204 East Jefferson Street, Suite 2

Goshen, Indiana 46528

Revised Proposal to Purchase 3 3 S Third Street Real Estate

Overview:

JC and Katharine Schrock (H

offer to purchase the real estate commonly known as 313

S

Third Street, Goshen, IN. Our intention is to completely restore the home to its original grandeur

while modernizing the interior to create a classic yet functional professional office building.

We

are aware of the coming improvements along Third Street and are excited about the rebirth of the

Hawks Building.

We

feel the improved appearance

of

this property as outlined below will

complement and further enhance the redevelopment of this area and thereby create a positive

impression

on

individuals driving, bicycling or walking along Third Street.

~ ~ U s e

The proposed use for the parcel will be a commercial office building that will provide counseling

services for individuals, couples and families as well as ancillary holistic services.

Improvements:

Our proposed concept does not require any structural improvements (additions) to the building,

although

i f

sufficient funds are available) we are considering removing a the far northwest room

(the area with the wood shake siding) and replacing it with a slightly larger space (maybe

4

fmiher to the west) with new brick exterior. This area of the house appears to have been an open

porch that was enclosed at some time in the past.

does not have any HVAC system and

is

on a

concrete slab which will make upgrading it more difficult than other areas

of

the house that have

a basement

or

crawl space. The other significant structures to be added would be a paved

parking area

on

the west end of the property and sidewalks and a handicapped access ramp to the

main entrance

of

the home on the covered porch facing Third Street.

Investments:

The investment we intend to make in the real estate is quite significant.

We

will

do

a complete

restoration

of

the exterior and both levels of interior

of

the house. Our intention is

to

restore the

character

of

the home to its original historic stature. On the exterior, the large windows and


25/103

white

fac ade

will be restored as well as the brick cleaned and tuck-pointed. addition, all new

landscaping will be provided around the property which will dramatically improve the grounds.

Furthermore, a paved parking area will be installed on the west portion of the proper.

While modifying and modernizing the interior

of

the home, we plan to replicate the large

woodwork and match the Oliginal style and size

of

the tall interior doors. Our goal

of

this effort

is that visitors to the home will not be able to determine the changes that we have made and

believe they are looking at the original construction. Also, the project will include plaster repair

as needed and painting throughout.

e

will strip and refinish the existing hard wood floors on

the main level.

ew

floor coverings will be provided wherever hardwood floors do not exist.

During our inspections

of

the house, it was found that nearly all copper wiring and piping had

been stripped from the home. Therefore, because the house has essentially been gutted

mechanically), three new restrooms, a kitchenette, and complete heating/air conditioning and

electrical systems will be installed throughout.

In reference to the second floor, we will reconstruct the interior stairway that was previously

removed, thereby allowing access to the upper level from the main entrance foyer. Depending

on

the results

of

subsequent discussions with building officials, we will determine if the exterior

stairway can be eliminated. fit can be eliminated based

on

the code requirements, we will

remove it and replace the door with a window. Otherwise, we will replace the exterior stairway

with a more aesthetically pleasing system that better matches the beauty and appearance of the

home. Furthemlore the second floor would be restored in an arrangement close to its original

configuration.

Based on the estimates from knowledgeable and experienced subcontractors for this preliminary

scope ofwork, the projected cost

of

these improvements will be approximately 256,000. This

includes an estimate of 51,400 for a 3,760 sq.

ft

parking lot eleven spaces) to be constructed

with penneable brick pavers over a subsurface drainage bed similar to what is being incorporated

at the LaCasa Hawks Arts

Enterprise Center. See attached sketch for preliminary layout.

Financial bility

As indicated

in

our attached financial statement, we are capable to execute the purchase and

restoration

of

this property. eplan to pay cash to purchase the home from the City and will

work with a local financial institution to obtain p31iial financing for the improvements. edo

not anticipate any issues obtaining financing or completing this renovation in a timely manner.

Serving Community

This proposed facility will serve the interest

of

the community by reaching out to individuals,

children and f31nilies that need assistance with mental health issues. Those persons struggling

with emotional issues such as depression and anxiety should have the resources needed to

improve the quality

of

their life.

e

will strive to fill some

of

the gaps in counseling services that

exist locally in our community. More specifically, we plan to bring in at least one bi-lingual

therapist as well as other complementary holistic services to

join

our efforts toads health and

wholeness.


26/103

Conditions

of

Offer:

We do not believe that rezoning will be necessary, but make our offer contingent on being able to

obtaill all zoning and variances as would be deemed necessary. These might include parking

setbacks, and a stairway geometry variance from the State as suggested by Gary Haney, City

of

Goshen Building Official. We will proceed quickly with applications for any needed zoning and

variance actions so as to not delay closing. We would also request that the City assist us with

getting NIPSCO to provide underground electrical service to the property in conjunction with the

City s utility relocation work associated with the modification

ofthe

west alley into River Race

Drive, a new two way street. We may also need assistance from the City to ensure than all other

utilities remain in service to the property (gas, water, sewer, phone, fiber and

C TV

etc.).

Proposed Purchase Price:

We intitially thought that we would be able to offer at least the fair market price, but upon

careful consideration of the projected costs to restore the home

USillg

the standards we desire, the

total cost would be prohibitive. We considered various approaches including asking the City to

incorporate the parking lot (on the subject property) as part of the City s River Race Drive

project, but we believe we need to maintain private reserved parking spaces for our clientele.

Based on the above documentation, we offer to purchase the property for 35,500.00 (Thirty five

thousand, five hundred dollars) to be tendered at closing in certified funds.

The remainder of our proposal is the same as before, except our site plan would no longer

include the nice large tree in the back yard that was unexpectedly cut down as pmi

of

the River

Race Drive construction project.

We

would ask that the City pay for the planting of two trees ill

the back yard and two trees in the front yard as compensation for the mature tree that was lost.

We hope the Redevelopment Commission finds our proposal satisfactory and chooses to sell the

real estate to us. Please feel free

to

contact us via phone (574) 536-3810 or email

jcschrock(cV,maplenet.net with any clarifications or questions that may arise.

Sincerely your,

JC and Katharine Schrock

~ ~ ~

July 1 2 14


27/103

(

1

ltJ

~ ~ U y \ l . , i

t

O v ~ d

1j

L/.t IN tI\\L t

/ r

jV Mrb0 Yl ;;V rlo,

I N \ ~ \ 1 oe,

\ \ 01 ~

e..v-I aa:.esS foi 1 -1 nAn

J

1 112

f

HiqlA

P---Il(,('

~

0

lllillilllL W

I llb LI)(.IB t curb al- ?e < IMe.*fJf 5 Jew fAvrJ.5u)l

JI i

1 'flt5

, - . - { .

p

y . 2 ~

l

e;t,c.e--

l ~ _ Qil-oo-'


28/103

PERSON L FIN N I L ST TEMENT

JC and Katharine Schrock

06/09/14

ssets

mount inDollars

Cash - checking accounts

9 073

Cash - savings accounts

113 117

Certificates

of

deposit

Secur it ies - stocks / bonds / mutual funds

-

Notes

contracts receivable

Life insurance cash surrender value

200

Personal

prop rty

autos, jewelry, etc.

43 000

Retirement Funds eg. lRAs,

401k 524 265

Real estate market value

395 000

oth r

assets specify

oth r assets specify

-

r

Total

ssets

1 084 655

Liabilities

mount

in

Dollars

urr nt Debt Creditcards, Accounts

I

3 375

Notes payable describe below

I

Taxes payable

i

Real estate mortgages describe

I

228 426

oth r liabilities specify

I

oth r liabilities specify

l

Total

Liabilities

231 801

INet

Worth

852 854

I

--rtd

ignature ~ c f 1 r

l

Date


29/103

1

AGREEMENT FOR THE SALE AND PURCHASE OF REAL ESTATE

THIS AGREEMENT is made and entered into this _____ day of September, 2014, by and between J.C. Schrock and

Katharine Schrock, Husband and Wife, hereinafter referred to as APurchaser,@and the City of Goshen, Indiana for the

Use and Benefit of the Department of Redevelopment, a municipal corporation and political subdivision of the State of

Indiana acting through the Goshen Redevelopment Commission, hereinafter referred to as ACity@.

REAL ESTATE

In consideration of the purchase price and on the terms, covenants and conditions to be kept and performed by the

respective parties, City agrees to sell and Purchaser agrees to purchase the following tract of real estate located in

Elkhart Township, Elkhart County, Indiana, more commonly known as 313 S. Third Street, Goshen, Indiana, and more

particularly described as follows:

Lot Number 100 in Barnes Second Addition, sometimes known as Barnes Second South Addition, tothe City of Goshen, Elkhart County, Indiana, as recorded in Deed Record 15, page 489 in the Officeof the Recorder of Elkhart County, Indiana;

and

A part of Third Street lying east of and immediately adjacent to Lot Numbered 100, as the said lot isknown and designated on the recorded plat of Barnes Second South Addition of the Town ofGoshen, Indiana, situated in the Southeast Quarter (SE) of Section 9, Township 36 North, Range 6East, Elkhart Township, Elkhart County, Indiana, and being more particularly described as follows:Beginning at the southeast corner of said Lot 100; thence North 1 4 10 West along the westboundary of said Third Street, said bearing being the basis of bearing for this description, with allother bearings contained herein relative thereto, 66.58 feet to the northeast corner of said Lot 100;thence North 89 53 05 East 4.94 feet; thence southeasterly 71.78 feet along a non-tangent arc tothe left having a radius of 288.00 feet and subtended by a long chord bearing South 21 54 08 East71.60 feet to a point bearing North 89 42 54 East 30.40 feet from the place of beginning; thencesouth 89 42 54 West 30.40 feet to the place of beginning, and containing 1,070 square feet.

The real estate shall include all land, all pertinent rights, privileges and easements and all buildings and fixtures in their

present condition. The described real estate will be hereinafter referred to as the subject real estate.

RIGHT OF WAY

The City shall retain a fifteen foot (15) right of way off the west end of the subject real estate for road maintenance and

utility infrastructure and maintenance of the utility infrastructure.


30/103

2

PURCHASE PRICE

Purchaser agrees to pay and City agrees to accept the total sum of Thirty Five Thousand Five Hundred Dollars

($35,500.00) for the subject real estate to be paid at the closing.

ADDITIONAL CONSIDERATION

As additional consideration for the sale of the real estate, Purchaser agrees to restore the exterior of the structure, as

needed, on the real estate while modernizing the interior of the structure to create a classic but functional office

building. Purchaser agrees to complete the restoration/renovations by December 31, 2015, which will include most of

the following:

1.

Exterior

a. Restore and/or paint the large windows and whole facade;

b. Clean and tuck point the brick as needed;

c. Install new landscaping.

2. Interior

a. Replace or restore all woodwork and interior doors, unless unnecessary;

b. Repair, re-plaster or re-paint all interior walls and ceilings;

c.

Strip and refinish the existing hardwood floors on the main level, unless unnecessary, or carpet ifmore appropriate;

d. Install new floor coverings where hardwood floors do not exist;

e. Replace all stripped copper wiring and piping;

f. Install two new restrooms;

g. Replace/add heating, air conditioning and electrical systems;

h. Add a kitchenette;

i. Reconstruct the interior stairway;

j.

Either improve or remove exterior stairway; andk. Remodel the second floor as business needs dictate.

3. Parking

Construct a nine (9) space parking lot between River Race Drive and the structure.


31/103

3

MORTGAGE

City will retain a One Hundred Thousand Dollar ($100,000.00) mortgage against the real estate. This mortgage will be

released once Purchaser has invested a minimum of One Hundred Thousand Dollars ($100,000.00) into the

repairs/improvements required by this Agreement, not including the parking lot investment. City agrees to subrogate

this mortgage to accommodate a mortgage incurred by Purchaser to finance the purchase price and/or the repairs,

renovations and improvements.

LANDSCAPING

City shall supply Purchaser with four (4) trees to plant on the subject real estate.

TAXES

City shall pay the real estate taxes and assessments, including stormwater assessment, for 2013 due and payable in

2014 and 2014 payable in 2015. Purchaser shall pay all real estate taxes and assessments for 2015 payable in 2016

and thereafter.

WARRANTY DEED

City shall deliver to Purchaser a warranty deed conveying to Purchaser a merchantable title to the real estate free and

clear of all liens and encumbrances, except conditions of record including zoning restrictions, taxes and assessments.

POSSESSION OF REAL ESTATE

Possession and occupancy of the real estate will be delivered to the Purchaser on the date of closing. City will have

removed all tenants from the real estate prior to the closing.

RISK OF LOSS

City shall assume the risk of loss until the closing at which time Purchaser shall assume the risk of loss.

USE OF PREMISES

1. Purchaser intends to use the structure on the subject real estate as a commercial office building.

2. Purchasers obligation to acquire the subject real estate is contingent upon receiving any zoning variances

deemed necessary by Purchaser to have the subject real estate serve as a commercial office building.

3. Purchaser agrees to use real estate and any structure or facility on the real estate in accordance with all

applicable laws and regulations of any government entity or public authority.


32/103

4

WARRANTIES

City warrants that City will convey a good and merchantable title to Purchaser. City makes no warranty, express or

implied, that the real estate is suitable for any particular purpose. Purchaser has made their own inspection of the real

estate and relies solely upon Purchaser=s observation in deciding to purchase the real estate. The real estate is sold

in its present condition AS IS and without any warranty of habitability. Purchaser does not rely upon any

representation of City or any agent of the City.

TITLE INSURANCE

At the time of closing, City agrees to provide Purchaser with a deed conveying a merchantable title to the real estate

and a policy of title insurance in standard ALTA owners form insuring the title to the real estate to be conveyed by

Seller to City in an amount equal to the purchase price to be free of defects except such defects that are included in the

standard exceptions forming a part of such policies.

CLOSING

A closing will be held on or before October 31, 2014. If the closing has not occurred by October 31, 2014, City shall

have the right to terminate the Agreement or to take action to enforce the terms of this Agreement.

Parties will equally share the costs of the closing agent.

DEFAULT

1. If either party to this agreement fails to do any act required or fails to conform to any term or condition, such

party shall be considered in default as follows:

a. If the default is because of non-payment of any of the obligations in this agreement, and the non

payment continues for a period of thirty (30) days.

b. If the default is because of any obligations other than payment, the default must continue to occur for

thirty (30) days after the party in default is given written notice of default by the other party.

2. Upon breach, the non-breaching party may seek any and all remedies available in law or in equity including

the right to seek specific performance.

MISCELLANEOUS

1. This agreement shall be construed in accordance with and governed by the laws of the State of Indiana.

2. In the event that legal action is brought to enforce or interpret the terms of and conditions of this agreement, the

proper venue for such action will be in a court of competent jurisdiction in Elkhart County, Indiana.


33/103

5

3. In the event that either party brings an action to enforce any right conferred by this agreement or to force the

other party to fulfill any obligation imposed by this agreement, the prevailing party of such action shall be entitled

to recover all costs of that action, including reasonable attorneys fees.

4. In the event that any provision of this agreement is found to be invalid or unenforceable, then such provision shall

be reformed in accordance with applicable law. The invalidity or unenforceability of any provision of this

agreement shall not affect the validity or enforceability of any other provision of this agreement.

5. All provisions, covenants, terms and conditions of this agreement apply to and bind the parties and their legal

heirs, representatives, successors and assigns.

6. This agreement constitutes the entire agreement between the parties and supersedes all other agreements or

understanding between Purchaser and City.

IN WITNESS WHEREOF, the parties have set their hands to this Agreement the day and year first written above.

Purchaser

By: __________________________________J.C. Schrock

By: __________________________________Katharine Schrock

City

_____________________________________Mark BrinsonCommunity Development DirectorGoshen Redevelopment CommissionCity of Goshen, Indiana


34/103

Phone

574

534-220

I

Fax 574

533-8626. TDD 574) 534-3185

[email protected] www.goshenindiana.org

ngin ring

epartment

ITY

OF

GOSHEN

204

East Jefferson Street, Suite

I

Goshen,

IN 46528-3405

TY

Gosnen

MEMORANDUM

TO: Redevelopment Commission

FROM: Mary Cripe, P.E.

RE: NORFOLK

SOUTHERN

MARION BRANCH CURVE REALIGNMENT

PROJECT

NO. 2009-0046

DATE: September

2 2 14

We have been discussing the proposed US

33

North Connector project with the Indiana

Department of Transportation (INDOT) and Norfolk Southern Corporation N/S . One

of

INDOT s questions with regards to the

US

33 North Connector project is the location

of

where

to place the bridge over the Marion Branch, because N/S has future plans to realign the Marion

Branch Curve and eventually to have two tracks along the Marion Branch. So bridge location

and the bridge length are very important to INDOT s

US

33 North Connector Project. Attached

please find a draft of what has been discussed along with a preliminary resolution and the

proposed funding source for each item.

As a result of the negotiations with INDOT and N/S, the City would be responsible for

purchasing

7

and

9

SouthNinth Street. Attached please find the following Agreements:

Agreement with Rita Gabriel Associates for the APA s and Review Appraisals in the

amount of I,200.00.

Agreement with Russell Appraisal Services for the Appraisals in the amount

of

3,600.00.

Agreement with Right-of-Way Jones for the Buying Services in the amount of 3,600.00

Agreement with Margie Stankoven for the Relocation Services in the amount

of

9,000.00.

Services for these Agreements will not take place until a written Notice to Proceed is issued by

the City. However, we need to try to make every effort to start with these processes prior to

INDOT starting with their right-of-way acquisition process, because we are utilizing most of the

same compames.


35/103

US

33

Bypass over orfolk Southern Railroad

Bridge & MSE Wall Location Agreement

(Option GA)

This agreement between the State

of

Indiana's Department

of

Transportation (INDOT), Norfolk Southern

Railroad

(NSRR),

and

the City

of

Goshen, Indiana

is

based

on

the previous teleconference meeting

on

May 26, 20014, all parties agreed to look into Option 6 again with some variations. Norfolk Southern

agreed to review these sub-options and determine the most cost effective approach based on speed

( from a commerce point

of

view),

ROW

acquisition, maintenance, and reduction

of

the length

of

the

structure. The quantit ies are based on the pay items that will be affected due to the

lengthening/shortening

of

the bridge between US

33 Bypass

project stations 36+50 and 40+00. All

differential costs are established from Option 4, which

was

the base option used by

INDOT

for the

funding

of

the project initially.

The first option, which was proposed by Norfolk Southern Railroad, would change the degree

of

curve

from 9 to 10 degrees with new and future track alignments straddling the base curve. The second option

would build the 9 degree curve

and

call

it

((the

relocated track until a future track

is

needed along the

Marion i n e ~ A concentric or non-concentric track would

be

built to the west; this would replace the

((relocated track and the ((existing relocated track would be reconfigured

as

the future track, which in

turn, would connect with a future track which parallels the Chicago Line. This option may save

ROW

acquisition costs and reduce the bridge length compared to the previous option, but NSRR s cost of

reconfiguring the tracks would increase due to a second track reconfiguration.

Norfolk Southern

has

reviewed both options

and

provided Option

6A,

which like the second option,

would build the relocated track as

a 9 degree curve until a future track

is

needed along the Marion Line.

Once a future track is required, a non-concentric track would be built to the east; this would replace the

relocated Marion

Line

track and the existing relocated track would be reconfigured as the future track,

which in turn, would connect with a future track which parallels the Chicago Line. This option allows the

same bridge footprint to be

used

for the relocated track and the reconfiguration when the demand for a

two track system along the Marion Line is required.

These

options also maintain a 25 foot offset for the

relocated track (init ial configuration)

as

well

as

the reconfigured future track alignments (final

configuration). However, the placement

of

the eastern end bent

with

respect to the existing Marion

Line track would require

an

agreement that would allow for

an

offset

of less

than

25

feet, if the

US 33

bypass project

is

constructed prior to the relocation of the Marion Line track.

Although Option 6A reduces the length of the bridge by 8 feet, for a cost reduction

of

38,705, the

increase over the initial base option would still be 548,494.

Under ((Code of Federal Regulations (CFR) , Title 23, Chapter

1,

Subchapter G, Part 646, Subpart

B,

Section 646.212

((Federal

Share , paragraph 3 states that the cost

of

a grade separation project shall

be

based

on

the cost to provide horizontal and/or vertical clearances used by the railroad

in

its normal

practice subject to limitations.

For

Option 6A to be executed, Norfolk Southern Railroad will be required

to

provide a reasonable time table for the relocation

of

the Marion Line Branch to show that the length

of

the bridge and location

of

the western abutment

is

mandated.

Based on the City

of

Goshen's and Norfolk Southern's ((Opinion

of

Probable Capital Construction Costs

and CFR Title 23, Chapter 1, Subchapter G, Part 646, Subpart B, Section 646.212 ((Federal Share ,


36/103

paragraph 2

and 3,

the table should

also

include the differential costs between Option 4 (base option)

and Option

6A.

There should also

be

additional items showing the long-term track maintenance cost

savings

for

the newly aligned track as well as the costs savings

fo r

the closure

of two

crossings (one on

the mainline

and

one on the Marion Branch Line), which may have a life cycle cost savings

in

excess

of

the 410,235 initial cost. Furthermore, in no

case

shall NSRR s costs for reconfiguration

of

a

two

track

system along the Marion Line Branch

be

imposed on either the State of Indiana or the City of Goshen.

In

summary, this would make the State's costs

for

the additional track realignment approximately

548,494 and allow

for

the additional costs

of

the guideway and track elements, under

CFR

Title 23,

Chapter 1, Subchapter G, Part 646, Subpart B, Section 646.212 Federal Share , paragraph 1, to

be

divided between the City of Goshen and Norfolk Southern.

Though

th

amounts may

not be

equally divided, this agreement shows a true partnership between all

three entities.

By signing this agreement, all parties are in agreement with Option 6A

fo r

both the footprint

of

the

bridge and location of

MSE

walls and their clearances associated with existing, relocated, and future

track configurations.

In

addition, the City

of

Goshen

and

NSRR

agree

th t

all additional costs associated

wi th the Opinion of Probable Capital Construction Costs , guideway and track elements, wil l be

parti tioned among themselves and

in

no way will the State

of

Indiana

INDOT)

nor the Federal

Government FHWA) participate in

such

costs per

CFR

Title

23,

Chapter

1,

Subchapter G, Part 646,

Subpart B, Section 646.212. Furthermore, NSRR agrees to proceed and complete the relocation of the

Marion Line Branch either prior

to

the commencement

of

construction activities for the

US 33

project,

Des.

No . 9222424, anticipated to begin on December

1,

2015, or within 2 years after the completion of

construction activities for the US

33

project, anticipated to

be

December

1,

2017, per

CFR

Title

23,

Chapter 1, Subchapter G, Part 646, Subpart B, Section 646.212 Federal Share , paragraph

3, so th t

all

parties can execute Option 6A and justify the location

of

the western abutment,

MSE

walls, and length

of

the structure.


37/103

EXHIBIT A

US

Railroad Overpass and

Spur

ate 7 8 14

INDOT Des No

9222424

Project Description

US 33

Realignment from Madison

St

to

SR

c:

c:

j

J

s

5

0

0

:J

0

0

2

Vl

Z

0

:: ;:

-

g

0::

>

u

0

z

WORK ITEM

us 33 Roadway Approaches

X

us 33 Bridge over 9th and Railroad Spur

X

us

33

Utility

Relocations

X

Rail

Marion Line Spur Realignment Stage 1 and Stage 2

X

Acquire 2 propert ies fo r

US 33

Project

X

Acquire 2 propert ies fo r railroad Spur Project

X

Pavement Removal - 9th Street

X

US

33 Overpass Retaining Walls

X


38/103

VERTICALSCALE

INDI N

DEP RTMENT

OF TR NSPORT TION

m

DL I / O ~ O ~

RECOMMENDED

6.....

FOR

APPROVAL

; = ; ====_ ; ; = I

~ ~ D ~ E S I ~ G N E ~ N G ~ I N E ~ E R ~ ~ F H ~ ~ f

--- c.:>

I ~ D E S I G N E D ~ = = = = = = ~ D R A = W N : : : : : : OPTION ELECTRONIC

o

RELOC TION ND

FUTURE

ST GE CONTRACT PROJ

G DLZINDANA

LLC CHECKED: CHECKED: IR 3 B7

9222

.


39/103

RESOLUTION 97-2014

Approve and Authorize Execution of an Agreementwith Rita Ann Gabriel & Associates, Inc. for Appraisal Review Services

for the Right of Way Acquisi tion of 117 & 119 S. 9thStreetfor the Marion Line Curve Realignment Project

WHEREAS the City of Goshen and Norfolk Southern Railroad are working together on the Marion LineCurve Realignment and right of way needs to be acquired at 117 and 119 South Ninth Street; and

WHEREAS the City desires to contract with Rita Ann Gabriel & Associates, Inc. to provide the first step ofthe land acquisition process, the Appraisal Problem Analysis, and the third step of the land acquisitionprocess, the Appraisal Review, following the appraisals to be performed by Russell Appraisal Services; and

WHEREAS the Legal Department has negotiated the terms and conditions of and drafted the attachedAgreement with Rita Ann Gabriel & Associates, Inc. for the Appraisal Review Services for the Marion LineCurve Realignment Project.

NOW, THEREFORE, BE IT RESOLVED by the Goshen Redevelopment Commission that:

1. The terms and conditions of the Agreement with Rita Ann Gabriel & Associates, Inc. as attached tothis Resolution are approved.

2. Community Development Director Mark Brinson is authorized to execute the Agreement with RitaAnn Gabriel & Associates, Inc. on behalf of the City of Goshen and the Goshen RedevelopmentCommission.






40/103

Page 1

AGREEMENT

Preparation of an Appraisal Problem Analysis & Appraisal Review

for the Right of Way Acquisition at 117 and 119 South Ninth Street

for the Norfolk Southern Railroads Marion Line Curve Realignment

THIS AGREEMENT is entered into on this ____ day of ______________, 2014,between Rita Ann Gabriel & Associates, Inc., hereinafter referred to as Consultant, and theCity of Goshen by its Redevelopment Commission, hereinafter referred to as City.

WHEREAS, the City of Goshen, is working with Norfolk Southern Railroad on theMarion Line curve realignment and needs to acquire right of ways at 117 and 119 South NinthStreet. The first step of the land acquisition process, the Appraisal Problem Analysis is to beprovided by the Consultant. After the Appraisal Problem Analysis, the Appraisal is the secondstep of the land acquisition process and that is being performed by Linda F Russell d/b/a RussellAppraisal Services, then the Consultant will provide an Appraisal Review, the third step.

WHEREAS, the City desires to contract with Consultant, and Consultant agrees toprepare an Appraisal Problem Analysis and an Appraisal Review for the Right of WayAcquisition for the Right of Way acquisition at 117 and 119 South Ninth Street for the NorfolkSouthern Railroads Marion Line Curve Realignment, Goshen, Indiana.

NOW THEREFORE, in consideration of the terms, conditions and mutual covenantscontained, the parties agree as follows:

CITYS RESPONSIBILITIES

The City and Elkhart County shall submit to Consultant the following items by September 19,2014:

1.

Title Commitments for each Parcel.2. Set of plans for the proposed project.

SCOPE OF SERVICES

Appraisal Problem Analysis

Consultants services under this Agreement consist of preparing an Appraisal Problem Analysisfor the total acquisition of right of ways at 117 and 119 South Ninth Street for the NorfolkSouthern Railroads Marion Line Curve Realignment, Goshen, Indiana.

Consultants services shall be in compliance with the regulations of the Indiana Department ofTransportation Appraisal Manual, Uniform Standards of Professional Appraisal Standards(USPAP), and/or address the provisions of 49 CFR Part 24.103(a) from the Federal Register(Vol. 70, No. 2/Tuesday, January 4, 2005/Rules and Regulations) for the acquisition of privateproperty for a public purpose.

Consultant shall provide the City with an Appraisal Problem Analysis on 117 and 119 SouthNinth Street that shall be prepared by a review appraiser as approved by the Indiana Departmentof Transportation (INDOT) and that shall include:

1. Examine the right-of-way plans and determine the extent of the taking.2. Perform an on-site inspection of each parcel requiring right-of-way acquisition.3. Determine the type of appraisal needed for each parcel according to Federal Highway

Administration (FHWA).4. Complete an Appraisal Problem Analysis form for each parcel to be acquired.


41/103

Page 2

Appraisal Review

Consultants services under this Agreement consist of providing appraisal review services andproviding the appraisal report for total acquisition written in compliance with INDOT AppraisalManual and performed by Russell Appraisal Services for the total acquisition of right of ways at117 and 119 South Ninth Street related to acquiring lands for the Norfolk Southern RailroadsMarion Line Curve Realignment, Goshen, Indiana. The Consultant shall be a certified appraiser

in the State of Indiana and on INDOT's Approved Appraisers/Review Appraisers List.1. Consultant shall examine the plans for this project, field inspect parcels herein designated

and field inspect the comparable properties considered by the Appraiser.

2. The appraisal reviews shall be sufficiently documented to meet the minimum standards setout in the Indiana Department of Transportation's Appraisal Handbook as approved by theFederal Highway Administration and shall be submitted on forms approved by the City andthe Indiana Department of Transportation. Consultant shall follow accepted principles andtechniques in evaluation of real property in accordance with state laws. Any appraisal reviewthat does not meet such requirements shall be further documented without additionalcompensation to the Consultant.

3.

Consultant shall consider all pertinent value information that is available.4. Consultant shall document all estimates of just compensation.

5. Consultant may at any time prior to settlement adjust his estimate of just compensation onthe basis of additional value information.

6. Consultant shall examine the appraisal reports to determine that they:

a) Are complete in accordance with the Indiana Department of Transportation's appraisalrequirements.

b) Follow accepted appraisal principles and techniques in the valuation of