11.25.24 RDC Full Packet - Laserfiche WebLink

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24 OPTION TO PURCHASE AGREEMENT THIS EXCLUSIVE OPTION TO PURCHASE AGREEMENT (the "Option Agreement") is made and entered into by and between the South Bend Redevelopment Commission, governing body of the South Bend Department of Redevelopment ("Commission"), and REVS DEVELOPMENT LLC, an Domestic Limited Liability Company, with offices at 56085 Chapel Lane, South Bend, Indiana 46619(the “Developer”) (the “Developer”) (the Commission and the Developer are each sometimes referred to herein as a "Party" or collectively as the "Parties"). PRELIMINARY STATEMENT Developer is the owner of certain real estate, as more particularly described in Exhibit 1 to this Option Agreement (the "Property"). The Parties have entered into a certain Development Agreement dated November 25 2024 (the “Development Agreement”) relating to the Developer’s construction of new housing units in South Bend and the Commission’s contribution to certain Local Public Improvements on the Property (the "Development Agreement"). The Parties acknowledge and agree if the Developer does not proceed with completing the Project as set forth in the Development Agreement, the Commission, the City, and citizens of the South Bend will suffer significant injury. Therefore, if Developer fails (a) to complete the Project by the Mandatory Project Completion Date, or (b) to expend the full amount of the Private Investment by the Mandatory Project Completion Date in accordance with the requirements set forth in the Development Agreement, the Commission shall be entitled to an exclusive option to purchase the Project Property (“Option”), and, in the event of exercise of said Option, Developer agrees to sell the Property to the Commission, upon the terms and conditions hereinafter set forth. Unless otherwise specified herein, all capitalized terms have the meaning set forth in the Development Agreement. In consideration of the mutual promises contained in this Option Agreement, the Parties agree to the following: AGREEMENT 1. Exclusive Option to Purchase. The Developer hereby grants the Commission the exclusive Option to purchase the Property, subject to the terms and conditions set forth herein. The Option must be exercised by Commission, if at all, no later than one year after the trigger events set forth in the Development Agreement (the “Option Period”), which shall occur if Developer fails to (a) complete the Project by the Mandatory Project Completion Date, or (b) to expend the full amount of the Private Investment by the Mandatory Project Completion Date in accordance with the requirements set forth in the Development Agreement. 2. Consideration. As a consideration for this Option, the Parties acknowledge that the Commission will pay the Funding Amount and construct the Local Public Improvements as set forth in the Development Agreement (the “Option Payment”).