Redevelopment Commission Minutes 02.27.25 - Signed

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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 27, 2025 3 1. Public Hearing Regarding Further Amendment of River West Development Area for the Purpose of Establishing a New Allocation Area (Riverwalk Allocation Area) Erik Glavich, Director of Growth and Opportunity, presented items 6A1- 3. Mr. Glavich explained that this is nearly the last stage of establishing the new allocation area for the Riverwalk residential development. He reviewed the scope of the project for the new members of the Commission. Mr. Glavich gave a summary of the development agreement, which is a project-based tax-exempt financing development agreement with developers J.C. Hart Company Inc. Mr. Glavich explained the agreement is for transformative residential housing for two (2) multi-family residential buildings (291 total apartments) and a 398-space parking garage. A minimum $61.5 million in private investment is required per the agreement with City funding some infrastructure improvements (i.e.new street; utilities) through the $5.64 million READI 2.0 award on the west bank of the St. Joseph River. He stated that the Crowe headquarters would remain, however, the southern building would be demolished. Mr. Glavich explained that, what is being asked today is to confirm the process for establishing a new allocation area that will allow incremental tax revenue to be directed in support of the project. He also presented renderings of the project area. Mr. Glavich stated that it’s going to be an urban, walkable area, restoring the street network, providing amenities to not just the residents who will be living there but all of the connecting areas as well. Mr. Glavich stated that private investment commitment is $61.5 million minimum, a developer-purchase bond issuance that generates an estimated $14.845 million in gross proceeds, with $11.925 million in net proceeds after funding bond issuance costs and capitalized interest. 90% of incremental revenue pledged to debt service and an estimated total principal and interest of $29.7 million over a 25-year term. An additional 6% incremental revenue up to $1.342 million (then reverts to 90%). Mr. Glavich explained the timeline, starting with the approvals now, leading into J.C. Hart closing on the property, mid-year closing on the bonds and the City addressing the utilities. Third and fourth quarters of the year, developer construction with a 30-month construction timeline completed by the end of 2028. Mr. Glavich stated that the Commission will be considering the first Resolution No. 3629. If this resolution were to be adopted and approved by the Redevelopment Commission, it would confirm the resolution adopted on January 9th that established the new allocation area out of the River West development area. The second Resolution