Resolution No. 3604 (466 Works Additional Appropriations)

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RESOLUTION NO.3604 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION APPROPRIATING CERTAIN FUNDS IN CONNECTION WITH A DIRECT LOAN TO THE DEVELOPER OF AN ECONOMIC DEVELOPMENT FACILITY (SOUTHEAST NEIGHBORHOOD PROJECT) 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 (the "District"), 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 of South Bend, Indiana (the "City") by administering and funding projects that support economic development, public infrastructure, and neighborhood revitalization; 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 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; and WHEREAS, 466 Works Community Development Corporation, an Indiana nonprofit corporation (the "Developer"), has informed the City that it desires to acquire and construct certain economic development facilities within the meaning of Indiana Code 36-7-11.9 and 36-7-12 within the City which will consist of up to thirty (30) single-family detached homes containing two (2) to four (4) bedrooms of which (i) at least forty percent (40%) of the homes will be sold at a price that is affordable to households earning one hundred twenty percent (120%) or less of the Area Median Income, with an approximate total development cost of Eight Million Eight Hundred Seventy- three Thousand Dollars ($8,873,000), on certain parcels of real property generally located in the Southeast neighborhood in the City (collectively, the "Project"), and has requested that the City make a loan to the Developer on a draw basis for the purposes of financing or reimbursing the Developer for a portion of the costs of acquisition and construction of the Project; and WHEREAS, the Common Council of the City adopted its loan ordinance (the "Loan Ordinance") on July 22, 2024, which Loan Ordinance authorizes the issuance and funding of a forgivable loan from the City to the Developer on an annual draw basis (the "Loan") over a three (3) year period, with each annual draw amount equal to the sum of approximately $116,000 per home the Developer expects to construct each year, in the total aggregate principal amount not to exceed Three Million Five Hundred Thousand Dollars ($3,500,000) to finance a portion of the Project; and