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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 <br /> <br />3 <br /> <br />All of this supports the creation of a 110-bed low-barrier intake <br />center called the New Day Intake Center. <br /> <br />The purchase agreement covers Lot 1, which is on the north side of <br />the property located on Old Cleveland Rd. The proposed sale price is <br />$1,000. <br /> <br />The buyer agrees to: <br />• Start construction within 12 months after the sale closes. <br />• Invest $10 million in private funds. <br />• Finish construction within 36 months of closing. <br /> <br />The agreement also includes a 15-year operational commitment. <br />During this time, the project must follow rules from the HOME ARP <br />federal program, which is managed locally by the Department of <br />Community Investment for the St. Joseph County Housing Consortium. <br />If these conditions aren’t met during the 15 years, the City (RDC) has <br />the right to take back the property through a reversion clause. <br /> <br />The option agreement is to buy the Knights Inn property on Lincoln <br />Way West. A few years ago, the City of South Bend helped acquire <br />this site to temporarily continue operations for the Motels4Now <br />program. <br /> <br />Under this option: <br />• The Commission can purchase the property for $1 after the New <br />Day Intake Center is built. <br />• There will be a 6-month window after construction is complete to <br />allow time for moving operations from the Knights Inn to the new <br />facility. <br />• The option to purchase remains valid for five years after the New <br />Day Intake Center is finished. <br /> <br />The development agreement outlines what the New Day Intake Center <br />team (a nonprofit 501(c)(3)) is committing to: <br /> <br />• They will build a low-barrier emergency shelter with at least 110 <br />beds. The current plan is for around 120 beds, but that number <br />could change slightly depending on final designs and construction <br />costs. <br />• The shelter must be fully built and open by December 31, 2027, <br />subject to all applicable permitting and regulatory approvals. <br />• The team will also sign a 5-year operating agreement with the City <br />of South Bend, which includes specific commitments for how the <br />shelter will run.