Laserfiche WebLink
CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING –November 25, 2024 <br /> <br />7 <br /> <br />Mr. Bauer explains the first of these agreements is an assignment of <br />project funds agreement. READI 1.0 from the Indiana Economic <br />Development Corporation and the local RDA selected this project for a <br />$11.78 million award, one of the largest awards in the state of Indiana. <br />Funds would be used to supplement the city's funds per the <br />development agreement, for the construction of the public structured <br />parking garage that will serve the development and offset parking <br />needs for Beacon Health System. This agreement assigns those funds <br />and subjects the Commission to a subgrant agreement terms by GLC. <br /> <br />Mr. Bauer explains the second of these agreements is a confirmation <br />agreement. This asserts that READI funds can be used to reimburse <br />the Commission for costs incurred that were not clearly specified in the <br />development agreement with GLC (South Bend Medical Foundation <br />demolition). It clarifies those responsibilities of the Commission that <br />relate to the project funds. It also confirms certain aspects of the <br />development agreement and commitments of both GLC and the <br />Commission to cooperate in good faith to ensure success of the <br />project. <br /> <br />Linda Brotherson, Representative with Great Lakes Capital, stated that <br />this agreement is making sure the project is moving along in a timely <br />fashion and the READI funds are spent correctly. The confirmation <br />agreement acts as a notice to commence that would typically be seen <br />later in the project. Mr. Bauer also explained the process of the site, <br />first is demolition, then a new parking lot would be constructed, the <br />Board of Public Works issued an RFP for a construction manager to <br />oversee the project, and this will keep the project within budget and on <br />the completion schedule. <br /> <br />Commissioner Eli Wax asked for a timeline update with the lease <br />extension for the other buildings. Ms. Brotherson stated that we need <br />to have the READI dollars spent by June 2025. Everything is tracking <br />and we are not changing any dates. President Troy Warner expressed <br />concern about deadlines for spending those funds and Ms. Brotherson <br />stated that this agreement facilitates this process. <br /> <br />Commissioner Relos asked about the 8% return in the agreement. Ms. <br />Brotherson stated that it would track with the development agreement, <br />and it is a return percentage and we would not be able to issue a <br />notice to commence without reaching the 8%. Mr. Bauer explained that <br />the risk with issuing a Notice to Commence is, parties could <br />theoretically back out. However, with this new change of language, <br />we're simply restating that and then clarifying that it will be considered <br />as it relates to the economic negotiations of the rate for the parking <br />license. She explained that the RDC has other funds, and we are trying