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� C_ (,) Community & Economic Development r • ItS 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fax 574/235 -9021 To: Redevelopment Commission From: David Relos, Economic Development Planner Subject: Disbursement Agreement & Revised Development Agreement Rushton Building, 501 W. Washington Date: July 12, 2012 On October 25, 2011, the Commission entered into an MOU with South Bend Heritage Foundation, for the rehabilitation of the historic Rushton Building, at the northwest corner of W. Washington and William St. Because the Rushton was built with common kitchen and dining areas, and has stood vacant since 2002, extensive remodeling of the building is required. The building will be converted into a 23 unit, low to moderate income senior housing complex. Total development costs are estimated to be $3.4 million. Funding for the project will come from $2.8 million Low Income Housing Tax Credits and $277,700 Historic Tax Credits. To fully fund the project, $322,300 in West Washington Chapin Development Area TIF was approved. On March 27, 2012, the Commission approved a Development Agreement, which delineated each party's responsibilities. Commission improvements will allow off street parking for residents and visitors, necessary site utility upgrades, sidewalks and curbs, landscaping and lighting, exterior tuck pointing and cleaning, and new thermo windows. On May 31, 2012, the Commission approved Resolution No. 3035 and an Addendum to the Master Agency Agreement, for the Board of Public Works to oversee the Commission's participation. To take full advantage of the tax credits needed to make this project successful, the total cost of $3.4 million must be used. The attached Disbursement Agreement allows SBHF to incur all costs of the project, and thereby earn full tax credit eligibility. Commission funds will be governed by the Disbursement Agreement, which allows funds to be deposited in an escrow account, and disbursed only with Commission approval, ensuring the use is as previously agreed to in the Development Agreement. What We Do Today Makes A Difference!