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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING –January 9, 2025 <br />3 <br />5.Old Business <br />A.None <br />6.New Business <br />A.River West Development Area <br />1.Resolution No. 3626 Approving Development Agreement (J.C. Hart <br />Company) <br />Caleb Bauer, Executive Director of Community Investment, presented <br />items 6A1 and 6A2 together. This Resolution approving the <br />Development Agreement for J.C Hart Company, Inc., supporting the <br />redevelopment project in the Riverwalk Allocation Area. Mr. Bauer <br />stated that this is a project-based tax-exempt financing development <br />agreement with developers J.C. Hart Company Inc. Mr. Bauer <br />explained the agreement is for transformative residential housing for <br />two (2) multi-family residential buildings (291 total apartments) and a <br />398-space parking garage. A minimum $61.5 million in private <br />investment with City funds infrastructure (new street; utilities) through <br />$5.64 million READI 2.0 award on the west bank of the St. Joseph <br />river. He stated that the Crowe headquarters would remain, however, <br />the southern building would be demolished. Mr. Bauer explained that <br />the apartments would be market rate and gave a breakdown of the <br />units (12 studio units, 156 one-bedroom units, 103 two-bedrooms units, <br />and 20 three-bedroom units) with 398 parking spaces in the garage <br />and 214 surface lot spaces. Mr. Bauer stated that private investment <br />commitment is $61.5 million minimum, a developer-purchase bond <br />issuance that generates an estimated $14.845 million in gross <br />proceeds, with $11.925 million in net proceeds after funding bond <br />issuance costs and capitalized interest. 90% of incremental revenue <br />pledged to debt service and an estimated total principal and interest of <br />$29.7 million over a 20-year term.1 An additional 6%incremental <br />revenue up to $1.342 million (then reverts to 90%). Mr. Bauer <br />explained the timeline for the project starting January-March 2025, <br />Redevelopment Commission, Economic Development Commission & <br />Common Council review, end of March, developer closes on project <br />property, mid-year, close the bond, then infrastructure and developer <br />construction begins, and completion of the project will be then end of <br />2028. Vice President Relos asked about the additional 6% increment <br />captured and Mr. Bauer stated that the debt service commitments <br />we're proposing today is a self-funded incentive and only using <br />property tax revenues from the development itself to fund this bond <br />issuance. Commissioner Shaw asked about the READI 2.0 award and <br />how it impacts this project. Mr. Bauer explained that it <br />1 The correct timeframe is a 25-year term. For purposes of clarifying the record, the Redevelopment <br />Commission corrected this misstatement at its March 13, 2025 meeting.