Redevelopment Commission Agenda & Packet 08.28.25

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South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana The Developer kept Commission staff informed on a continuous basis of its efforts in completing Phase II, including on the factors that arose outside of the Developer’s reasonable control. These delays caused Phase II to be delayed and thus not completed prior to the completion date as was originally defined in the Agreement. As of this memo, no portion of the RDC Funding Amount has been expended on Phase II. The Notre Dame hydroelectric project and the City’s Seitz Park project were recently completed, and the Developer is ready to begin Phase II. The Developer has revised and expanded the designs for Phase II, and the proposed Second Amendment to Development Agreement would change the following terms: • Increase the Funding Amount to $9,737,000 (up from $5,237,000) • Increase the Private Investment Commitment to $63,000,000 (up from $38,500,000) • Adjust the project plan to reflect changes in the project: o A minimum of 20 housing units o Increase the minimum size of the Phase II building to 7 stories of residential units (up from 5 stories) o Commercial space of no less than 10,000 square feet o One of the following: (1) an additional story of commercial space; (2) an additional story of 4 residential units; or (3) 10,000 square feet of multi-family space. o Remove Part 2 of Phase II which envisioned a third smaller building • Update the deadlines to recognize the delay that the Notre Dame hydroelectric and Seitz Park projects caused on Phase II o Update new commence construction deadline for Phase II to no later than June 30, 2026 o Update new completion deadline to no later than June 30, 2029 • Update language in the Agreement which asserts the RDC would not be required to expend the Funding Amount unless the Common Council granted the Developer a Real Property Tax Abatement with respect to the elements of Phase II of the Project. The Agreement included a provision that focused on a possible hotel or multi-family residences. This Second Amendment would maintain the intent of the RDC through the Agreement to encourage a tax abatement, this Second Amendment alters the tax abatement language to restrict it to commercial property. The Developer does not intend to apply for an abatement on the residential portions of the project, which make up most of the newly designed Phase II. In total, the Developer is intending to expend a minimum of $38,500,000 investment into Phase II of the project, far exceeding Phase II estimates at the time the Agreement was approved in 2018. This scale of construction will provide further tax revenues, add increased vitality to the East Bank area and greater Downtown South Bend, and activate a currently vacant lot. Staff recommend approval of the Second Amendment.