Redevelopment Commission Agenda & Packet 03.13.25 - Revised

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