5A3 Resolution No. 3639 Authorizing Use TIF (Monreaux) - Signed

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South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item D ATE : 5/19/25 FROM: Erik Glavich, Director, Growth and Opportunity SUBJECT: Resolution No. 3639: Authorizing Use of Increased TIF Revenues and First Amendment to Development Agreement for “The Monreaux” Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res. * Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the authorization of the expenditure of such funds shall be void and of no effect. PURPOSE OF REQUEST: Resolution authorizing the use of increased TIF Revenues and approving First Amendment to a Development Agreement for the Monreaux residential development. SPECIFICS: The Commission will consider Resolution No. 3639 which, if adopted, would: (1) authorize the increase in expenditure to up to $3,300,000 in River West TIF revenues in support of the Monreaux residential development; and (2) approve an amendment to the Development Agreement with The Monreaux LLC and Delta Ventures Ltd. (jointly the “Developer”) to recognize certain changes in the Project. Delta Ventures Ltd. is a non- profit entity created under common ownership with The Monreaux LLC. On November 20, 2023, the Commission entered into a Development Agreement with the Developer for the construction of the “Monreaux” affordable housing project at 505, 507, 511, and 513 S. Michigan Street, the former “Fat Daddy’s” site. The Commission also entered into a Purchase Agreement on July 14, 2022, for the sale of the property for the Monreaux project. The due diligence period established by the Purchase Agreement was amended 3 times—now set to expire on June 30, 2025—as the Developer has worked through design, engineering, and financing. The Development Agreement established a total funding amount of $2,300,000 and a private investment amount of $13,700,000. Cost increases and other challenges since the execution of the Development Agreement have necessitated consideration by the Commission to increase support to ensure successful completion of the project. The amendment to the Development Agreement would make the following changes to the conditions of the agreement: •Increase the funding amount to $3,300,000 (up from $2,300,000) •Increase the private investment commitment to $17,700,000 (up from $13,700,000) •Adjust the project plan (Exhibit B) to reflect changes in the project: o Decrease the total square footage of the building to 56,000 square feet from 65,000 square feet o Reduce the minimum number of residential units to 57 from 60 _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION May 22, 2025 