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<br />LOAN AGREEMENT <br /> <br />This LOAN AGREEMENT made and entered into as of ____________ 1, 2025 <br />(the “Agreement”), by and between the City of South Bend, Indiana, a municipal corporation and <br />political subdivision existing under the laws of the State of Indiana (the “City”), and J.C. Hart <br />Company, Inc., an Indiana corporation (the “Company”), under the following circumstances <br />summarized in the following recitals (the capitalized terms not defined in the recitals are as defined <br />in Article I hereof): <br /> <br />A. Indiana Code, Title 36, Article 7, Chapters 11.9 and 12, as supplemented <br />and amended (collectively, the “Act”), authorizes and empowers the City to issue bonds and make <br />loans to provide funding for economic development projects and facilities and vests the City with <br />powers that may be necessary to enable it to accomplish such purposes. <br />B. The Company has proposed undertaking an economic development project <br />in the City consisting of the development and construction of 2 buildings housing approximately <br />291 apartments and an approximately 398 space structured garage (the “Project”). <br />C. In conjunction with undertaking the Project, the Company has requested <br />certain economic development incentives from the City consisting of the issuance of its Taxable <br />Economic Development Tax Increment Revenue Bonds, Series 2025 (J.C. Hart Development <br />Project) in the aggregate principal amount of not to exceed $17,000,000 (the “Bonds”) and the <br />loan of a portion of the proceeds thereof to the Company to finance a portion of the costs of the <br />Project. <br />C. The City believes that developing the Project as described herein is in the <br />best interests of the health, safety and welfare of the City and its residents and complies with the <br />public purposes and provisions of the Act, and based upon the information presented to the City <br />by the Company, the City has determined that the Project constitutes an economic development <br />project and an economic development facility as defined by the Act. <br />E. The City desires to facilitate the development of the Project by issuing the <br />Bonds and making a loan to the Company from the proceeds of the Bonds (the “Loan”). <br />F. The Bonds will be issued under the Indenture (as hereinafter defined) and <br />will be payable from (i) the TIF Revenues (as defined in the Indenture), (ii) the Taxpayer Direct <br />Payments (as defined in the Indenture) made by the Company, and (iii) to the extent the foregoing <br />sources are not sufficient, the Loan Payments (as hereinafter defined). <br />G. The parties hereto agree that it is of mutual benefit for the parties hereto to <br />enter into this Agreement relating to the Project and the Loan that will include the commitments <br />of each of the parties. <br />H. The City, the South Bend Redevelopment Commission and the Company <br />entered into an Economic Development Agreement dated as of January 9, 2025 (the “Development <br />Agreement”), pursuant to which the parties agreed to their respective commitments with respect <br />to the development of the Project. <br />NOW, THEREFORE, in consideration of the premises and the mutual <br />representations and agreements hereinafter contained, the City and the Company agree as follows: