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<br />FINANCING AND LOAN AGREEMENT <br /> <br />THIS FINANCING AND LOAN AGREEMENT made and entered into as of <br />___________ 1, 2025, by and between the City of South Bend, Indiana, a municipal corporation <br />and political subdivision existing under the laws of the State of Indiana (the “City”), and New Day <br />Intake Center, Inc., an Indiana nonprofit corporation (the “Borrower”), under the following <br />circumstances summarized in the following recitals (the capitalized terms not defined in the <br />recitals are as defined in Article I hereof): <br /> <br />A. Indiana Code, Title 36, Article 7, Chapter 12, as supplemented and amended <br />(collectively, the “Act”), authorizes and empowers the City to make loans to provide funding for <br />economic development projects and facilities and vests the City with powers that may be necessary <br />to enable it to accomplish such purposes. <br />B. The Borrower has requested a certain economic development incentive from the <br />City in the form of a forgivable loan to the Borrower in the amount of not to exceed Four Million <br />Dollars ($4,000,000) (the “Loan”), to finance a portion of the construction, renovation or <br />rehabilitation of certain real property in the City to develop a no less than one hundred and ten <br />(110) bed lower-barrier emergency shelter, with an approximate total development cost of <br />Fourteen Million Dollars ($14,000,000) including a private investment of no less than Ten Million <br />Dollars ($10,000,000) to be expended by the Borrower (collectively, the “Project”). <br />C. The City believes that developing the Project as described herein is in the best <br />interests of the health, safety and welfare of the City and its residents and complies with the public <br />purposes and provisions of the Act, and based upon the information presented to the City by the <br />Borrower, the City has determined that the Project constitutes an economic development project <br />and an economic development facility as defined by applicable law. <br />E. The City desires to facilitate the development of the Project by making the Loan to <br />the Borrower on a draw basis from available funds of the City and the Redevelopment Commission <br />(as hereinafter defined) to finance a portion of the Project. <br />F. This Loan Agreement provides for the repayment by the Borrower of the Loan and <br />further provides for the Borrower’s repayment obligation to be evidenced by the promissory note <br />in substantially the form attached as Exhibit A hereto (the “Note”), unless the Loan is forgiven <br />upon satisfaction of the conditions set forth in Section 4.3 hereto. <br />G. The parties hereto agree that it is of mutual benefit for the parties hereto to enter <br />into this Agreement relating to the Project and the Loan that will include the commitments of each <br />of the parties. <br />H. The South Bend Redevelopment Commission, for and on behalf of the City of <br />South Bend, Department of Redevelopment, and the Borrower have entered into a Development <br />Agreement dated as of August 14, 2025 (the “Development Agreement”) pursuant to which the <br />parties agreed to their respective commitments with respect to the development of the Project.