Resolution No. 3602 (466 Works Loan Agreement)

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RESOLUTION NO.3602 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE USE OF SOUTH SIDE TIF REVENUES FOR A HOUSING DEVELOPMENT PROJECT AND APPROVING A FORM OF A DEVELOPMENT AGREEMENT FOR SUCH HOUSING DEVELOPMENT PROJECT AND OTHER RELATED MATTERS WHEREAS, the South Bend Redevelopment Commission (the "Commission"), the governing body of the South Bend Department of Redevelopment and the Redevelopment District of the City of South Bend, Indiana, exists and operates under the provisions of Indiana Code 36- 7-14, as amended from time to time (the "Act"); and WHEREAS, the Commission is committed to improving the City by administering and funding projects that support economic development, public infrastructure, and neighborhood revitalization; and WHEREAS, the Commission desires to enter into a development agreement (the "Development Agreement") with 466 Works Community Development Corporation, an Indiana nonprofit corporation (the "Developer"), pursuant to which the Developer proposes to undertake the construction of up to thirty (30) single-family detached homes containing two (2) to four (4) bedrooms of which at least forty percent (40%) of the homes will be sold to households earning one hundred twenty percent (120%) or less of the Area Median Income, with an approximate total development cost of $8,873,000, on certain parcels of real property generally located in the Southeast neighborhood in the City (collectively, the "Project"); and WHEREAS, the Commission has previously adopted a declaratory resolution, as subsequently confirmed and amended, which (i) declared the South Side Development Area (the "South Side Development Area") as redevelopment area pursuant to Section 15 of the Act, (ii) designated the South Side Development Area as an allocation area pursuant to Section 39 of the Act (the "South Side Allocation Area"), for the purpose of capturing property tax proceeds derived from incremental assessed valuation of real property in such allocation area which is in excess of the "base assessed value" (such property tax proceeds, hereinafter referred to as "South Side TIF Revenues"), (iii) created the South Side Allocation Area Fund (the "South Side Allocation Fund") into which all South Side TIF Revenues are deposited, all pursuant to and as described Section 39 of the Act, and (iv) approved a development plan for the South Side Development Area (the "Plan"); and WHEREAS, under the terms of the proposed Development Agreement, the Commission would agree to contribute South Side TIF Revenues in an annual amount equal to the sum of approximately $116,000 per home the Borrower expects to construct each year as part of the Project (the "Annual Amount"), subject to annual appropriation, over a three (3) year period (the "Term") for a total amount of not to exceed Three Million Five Hundred Thousand Dollars ($3,500,000) toward the cost of the Project, subject to the completion of all procedures required by law; and