EDC Minutes 2.6.25 - Signed - Laserfiche WebLink

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CITE" OF SOUTH BE -ND ECONOMIC DEVELOPMENT COMMISSION February 6, 2025 Murray Miller, 23698 Western Ave. Pastor Canneth Lee, Councilman Emma Adlam, Baker Tilly - Virtual 2. Approval of Minutes Upon a motion by Commission Karen White for approval, second by Secretary Renata Matousova, the motion carried unanimously; the Commission approved the minutes of the regular meeting of July 9, 2024. 3. Election of Officers Upon a motion by Commissioner Luis Zapata and seconded by Secretary Renata Matousova, the Commission approved keeping the current slate of officers for 2025; motion carried unanimously, on February 6, 2025. 4. New Business A. Riverwalk Project (J.C. Hart Company, Inc.) a. Presentation of Project and Economic Development Revenue Bond Financing Caleb Bauer, Executive Director of Community Investment, presented all agenda items together for the Riverwalk project. Mr. Bauer explained that today the City is proposing an economic development revenue bond financing, which is sometimes referred to as a project -based tax increment financing allocation area, which would support an apartment complex development along the St. Joseph River, from the JC Hart company. The project includes two (2) new multi -family residential buildings (291 total apartments) and a 398-space parking garage with a minimum of $61.5 million in private investment with the City funding infrastructure (new street; utilities) through a $5.64 million READI 2.0 award. Mr. Bauer explained that how the financing works, it captures the future tax increment generated from the development project to fund the bond issuance that will unlock some upfront net proceeds but ultimately will be the responsibility of the developer to back those debt service obligations and the City would not have a property tax backup. 90% of the property tax revenue after the development is completed would be committed to debt service obligations over the lifetime of this allocation area, 25 years, an additional 6% of incremental revenue would be committed to pay up to a certain sum and the City of South Bend would hold the revenue of this one (1) parcel allocation area. Mr. Bauer stated that most of the funding goes into the two (2) structures, however, the structured parking garage is estimated to be $10.3 million and is a big part of the project and is not usually viable without incentives for the developer. Mr. Bauer shared the timeline of the project completing at the end of 2028. Caleb Bauer, Executive Director of Community Investment, explained the