Laserfiche WebLink
<br />South Bend Redevelopment Commission <br />227 West Jefferson Boulevard, Room 1308, South Bend, Indiana <br /> <br /> <br /> <br />Redevelopment Commission Agenda Item <br /> <br />DATE : 8/26/2025 <br /> <br />FROM: Erik Glavich, Director, Growth and Opportunity <br /> <br />SUBJECT: Second Amendment to Development Agreement <br />for “The Monreaux” <br /> <br /> <br />Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res. <br />* Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the <br />authorization of the expenditure of such funds shall be void and of no effect. <br /> <br />PURPOSE OF REQUEST: Second Amendment to a Development Agreement with The Monreaux LLC and Delta <br />Ventures Ltd. (collectively, the “Developer”) for the Monreaux residential development <br /> <br />SPECIFICS: The Commission will consider a Second Amendment to the Development Agreement that, if adopted, <br />would authorize an additional $303,000 in TIF expenditures to support the Monreaux project. Cost increases and <br />other challenges since the execution of the Development Agreement have necessitated consideration by the <br />Commission to increase support to ensure successful completion of the project. The additional funds would be <br />used to assist the Developer in making architectural improvements. <br /> <br />On November 20, 2023, the Commission entered into a Development Agreement with the Developer for the <br />construction of “The Monreaux” affordable housing project at 505, 507, 511, and 513 S. Michigan Street, the <br />former “Fat Daddy’s” site. The Commission also entered into a Purchase Agreement on July 14, 2022, for the sale <br />of the property for the Monreaux project. The due diligence period established by the Purchase Agreement was <br />amended 3 times—now set to expire on September 30, 2025—as the Developer has worked through design, <br />engineering, and financing. <br /> <br />The Development Agreement was amended on May 22, 2025 (the First Amendment). It increased the Funding <br />Amount to $3,300,000 (from $2,300,000) and increased the Private Investment commitment to $17,700,000 <br />(from $13,700,000). The total project will consist of a 57,000 square foot building and 57 residential units, of <br />which 45 are income restricted. <br /> <br />The Funding Amount authorized through the original Development Agreement and First Amendment would be <br />provided to the Developer in accordance with a loan agreement, which establishes that the loan would be <br />forgiven if the Developer completes the project as committed. In alignment with the Real Estate Purchase <br />Agreement, as amended, the Developer agrees to complete the project within 36 months of the Closing Date. <br /> <br />If the Commission were to approve this Second Amendment to the Development Agreement, the additional <br />$303,000 would not be included in the loan amount; it would instead be subject to the procurement processes <br /> <br /> <br /> _________________________Pres/V-Pres <br /> <br />ATTEST: __________________Secretary <br /> <br />Date: ____________________ <br /> <br /> APPROVED Not Approved <br />SOUTH BEND REDEVELOPMENT COMMISSION