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FUNDING AND REIMBURSEMENT AGREEMENT
<br />This FUNDING AND REIMBURSEMENT AGREEMENT, is made and entered into as
<br />of 1, 2024 (the "Agreement") by and between the CITY OF SOUTH BEND,
<br />INDIANA (the "City"), a municipal corporation duly organized and validly existing under the
<br />laws of the State of Indiana (the "State"), and the SOUTH BEND REDEVELOPMENT
<br />COMMISSION (the "Redevelopment Commission"), as governing body of the CITY OF
<br />SOUTH BEND REDEVELOPMENT DISTRICT, a special taxing district duly organized and
<br />validly existing under the laws of the State of Indiana (the "District").
<br />WHEREAS, the Indiana Code, Title 36, Article 7, Chapters 11.9 and 12, as supplemented
<br />and amended (collectively, the "Act"), authorizes and empowers the City to make direct loans to
<br />users or developers (each as defined under the Act) for the cost of acquisition, construction, or
<br />installation of economic development facilities, with such loans to be secured by the pledge of
<br />one or more taxable or tax-exempt debt obligations of the users or developers, for diversification
<br />of economic development and promotion of job opportunities in or near such City and vests the
<br />City with powers that may be necessary to enable it to accomplish such purposes; and
<br />WHEREAS, the City, upon finding that the Project (as hereinafter defined) and the
<br />proposed financing of the construction thereof will create additional employment opportunities
<br />in the City; will benefit the health, safety, morals, and general welfare of the citizens of the City
<br />and the State; and will comply with the purposes and provisions of the Act, adopted an ordinance
<br />approving a loan to 466 Works Community Development Corporation, an Indiana nonprofit
<br />corporation (the "Borrower"); and
<br />WHEREAS, the City intends to make a direct draw loan to the Borrower, pursuant to the
<br />provisions of the Act, this Agreement, and the Financing and Loan Agreement, dated as of
<br />1, 2024, between the City and the Borrower (the "Loan Agreement"), all for the
<br />purpose of financing a portion of the Project; and
<br />WHEREAS, pursuant to Indiana Code 36-7-14-39(b)(3), the Redevelopment
<br />Commission may use certain incremental property taxes to reimburse the City for expenditures
<br />(including loans) made for local public improvements (which include buildings and all expenses
<br />reasonably incurred in connection with the acquisition and redevelopment of property) that are
<br />physically located in or physically connected to the Allocation Area (as defined herein); and
<br />WHEREAS, pursuant to Resolution No. 3602, adopted by the Redevelopment
<br />Commission on June 27, 2024, a copy of which is attached hereto as Exhibit A (the "Authorizing
<br />Resolution"), the Commission has authorized the use of Tax Increment Revenues (as defined
<br />herein), in the total amount of not to exceed Three Million Five Hundred Thousand Dollars
<br />($3,500,000) in annual amounts of not to exceed the sum of One Hundred Sixteen Thousand
<br />Dollars ($116,000) multiplied by the number of homes to be constructed by the Borrower as part
<br />of the Project each year over a term of three (3) years from moneys then currently on deposit in
<br />the Allocation Fund (as defined herein), in order to reimburse the City for expenditures made, or
<br />to be made, to finance a portion of the Project costs.
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