Resolution No. 2024-3 (Intend Indiana)

Home Browse Search

FINANCING AND LOAN AGREEMENT THIS FINANCING AND LOAN AGREEMENT made and entered into as of ___________ 1, 2024, by and between the City of South Bend, Indiana, a municipal corporation and political subdivision existing under the laws of the State of Indiana (the “City”), and Affordable HomeMatters Indiana LLC, a single member limited liability company owned and operated by Intend Indiana, Inc., an Indiana nonprofit corporation (the “Borrower”), under the following circumstances summarized in the following recitals (the capitalized terms not defined in the recitals are as defined in Article I hereof): A. Indiana Code, Title 36, Article 7, Chapter 12, as supplemented and amended (collectively, the “Act”), authorizes and empowers the City to make loans to provide funding for economic development projects and facilities and vests the City with powers that may be necessary to enable it to accomplish such purposes. B. The Borrower has requested a certain economic development incentive from the City in the form of a forgivable loan to the Borrower in the amount of not to exceed Five Million Dollars ($5,000,000) (the “Loan”), to finance a portion of the construction of economic development projects and facilities within the meaning of the Act, consisting of up to ninety-two (92) single-family detached homes containing two (2) to four (4) bedrooms of which (i) at least forty (40) homes will be sold to households earning less than eighty percent (80%) of the Area Median Income (“AMI”), (ii) at least seventeen (17) homes will be sold to households earning between eighty percent (80%) of AMI and one hundred twenty percent (120%) of AMI, and (iii) the remainder will be sold at the market rate, with an approximate total development cost of Twenty-five Million Dollars ($25,000,000), on certain parcels of real property generally located in the Lincoln Park neighborhood in the City (collectively, the “Project”). C. The City believes that developing the Project as described herein is in the best interests of the health, safety and welfare of the City and its residents and complies with the public purposes and provisions of the Act, and based upon the information presented to the City by the Borrower, the City has determined that the Project constitutes an economic development project and an economic development facility as defined by applicable law. E. The City desires to facilitate the development of the Project by making the Loan to the Borrower on a draw basis from available funds of the City and the Redevelopment Commission (as hereinafter defined) to finance a portion of the Project. F. This Loan Agreement provides for the repayment by the Borrower of the Loan and further provides for the Borrower’s repayment obligation to be evidenced by the promissory note in substantially the form attached as Exhibit A hereto (the “Note”), unless the Loan is forgiven upon satisfaction of the conditions set forth in Section 4.3 hereto. G. The parties hereto agree that it is of mutual benefit for the parties hereto to enter into this Agreement relating to the Project and the Loan that will include the commitments of each of the parties.