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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING –January 9, 2025 <br /> <br />4 <br /> <br />was for the overall Riverfront West area, and this includes this project, <br />and we were awarded $5.6 million, and it is enough for the J.C. Hart <br />project for the street network and utility relocation costs. <br /> <br />Chandler Sturgis, with J.C. Hart Company, Inc., explained that there is <br />TIF funding needed at the site with all of the utilities underground and <br />the expense of rerouting them as well as the demolition of the existing <br />building. Mr. Sturgis stated that the parking garage will also factor into <br />the cost. President Warner recapped, we are capturing the increase in <br />taxes that will come from the finalized development and using that then <br />to pay the bond plus then there will be the excess left from that to go <br />towards the parking garage and $1.3 million and then potentially the <br />excess will go into the TIF. Mr. Bauer stated that separately the READI <br />2.0 award, from the Regional Development Authority, is matched by <br />the increment in the project-based TIFF. Therefore, at this time we're <br />not requesting any appropriation of the River West Development Area <br />tax agreement financing revenues. Commissioner Wax asked how <br />confident the READI 2.0 award will cover the majority of the project <br />needs and Mr. Bauer stated he was confident it would cover the utility <br />relocation. Commissioner Wax also asked about previous J.C. Hart <br />projects and Mr. Sturgis gave the success of Midtown Flats in Carmel, <br />Modan Square and the East Bank in Noblesville as examples. He <br />explained that J. C. Hart has been in business since 1976 and <br />manages over 6000 units in the greater Indianapolis area as well as in <br />Bloomington, West Lafayette and Toledo, Ohio. Commissioner Shaw <br />asked about the use of local contactors and Mr. Sturgis stated that <br />they would act as general contractors and would make the best effort <br />to use local contactors as that is more cost effective. <br /> <br />Mr. Randy Rompola with Barnes & Thornburg stated that the Bond is a <br />common financing tool that's used across the state. He stated that the <br />mechanism of financing is a bit unique in the sense that the <br />Redevelopment Commission or the Redevelopment Authority isn't the <br />bond issuer, it's the City of South Bend using the economic <br />development statute. He explained that the Redevelopment <br />Commission pledges the increment from the project to the payment of <br />the debt service. The Common Council will adopt a bond ordinance <br />that will authorize the issuance of the bonds, and the bonds will be <br />issued through the City. The Redevelopment Commission’s role is to <br />first adopt the declaratory resolution designate this project specific <br />allocation area and complete that process. And the second step would <br />be coming later, having a Redevelopment Commission Resolution <br />where you would actually pledge the project increment to pay the debt <br />service on the bonds, and that pledge goes to the payment of the <br />bonds that are being issued by the City. The bond proceeds, then will <br />be sold and the bond proceeds, then will be by the City loan pursuant