11231-25 Authorizing a Direct Loan to the Developer of an Economic Development Facility (Low-Barrier Intake Emergency Shelter Project) and Approving other Matters in Connection Therewith

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On the date specified in the notice of the Public Hearing, the Commission conducted the Public Hearing, and adopted its evaluative report and resolution, which have been transmitted to the Common Council, finding that the financing of a portion of the Project complies with the purposes and provisions of the Act and that such financing will be of benefit to the health and welfare of the City and its citizens. The Commission has performed all actions required of it by the Act preliminary to the adoption of this Ordinance and has approved and forwarded to the Common Council the forms of: (1) the Loan Agreement; (2) the Funding and Reimbursement Agreement (the "Funding Agreement") between the City and the South Bend Redevelopment Commission (the "Redevelopment Commission"); and (3) this Ordinance (the Loan Agreement, the Funding Agreement, and this Ordinance, collectively, the"Financing Agreements"). Pursuant to Indiana Code 36-7-14-39(b)(4) and Indiana Code 36-7-25-3(a), the Redevelopment Commission may use certain incremental property taxes, among other purposes, to reimburse the City for expenditures (including loans) made for local public improvements (which include buildings, parking facilities, and all expenses reasonably incurred in connection with the acquisition and redevelopment of property) that are physically located in or physically connected to, or directly serve or benefit, each of the Allocation Areas. The Redevelopment Commission has adopted its Resolution No. 3646 on August 14,2025, determining, subject to appropriations thereof by the Redevelopment Commission, to make available certain tax increment revenues on deposit in the allocation fund for (i) the River West Allocation Area(the"River West TIF Revenues"), (ii)the South Side Allocation Area(the"South Side TIF Revenues"), and(iii)the River East Allocation Area(the"River East TIF Revenues"and together with the River West TIF Revenues and the South Side TIF Revenues, collectively, the "TIF Revenues") to simultaneously reimburse the City for its costs incurred to fund each draw on the Loan to the Developer with respect to the Project. NOW,THEREFORE,BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,AS FOLLOWS: SECTION I. Findings; Public Benefits. The Common Council hereby finds and determines that the Project involves the acquisition and construction of an"economic development facility" as that phrase is used in the Act; that the Project will increase employment opportunities and increase diversification of economic development in the City, will improve and promote the economic stability, development and welfare in the City, will encourage and promote the expansion of industry, trade and commerce in the City and the location of other new industries in the City; that the public benefits to be accomplished by the making of the Loan to the Developer to finance and/or reimburse Project costs, in tending to overcome insufficient employment opportunities,insufficient diversification of industry and lack of adequate housing,are greater than the cost of public works or services (as that phrase is used in the Act) which will be required by the Project; and,therefore, that the financing of a portion of the Project by the making the Loan to the Developer under the Act: (i) will be of benefit to the health and general welfare of the City; and(ii) complies with the Act. Approval of Financing. The proposed financing of the Project by the funding of the Loan to the Developer under the Act, in the form that such financing was approved by the Commission, is hereby approved. SECTION III. Terms of the Loan. (a) A portion of the costs of the Project will be funded by the Loan to the Developer on a draw basis(each draw on the Loan, a"Draw"). The City shall fund the Loan on a draw basis in the aggregate principal amount not to exceed Four Million Dollars ($4,000,000), from (i) South Side TIF Revenues in the amount $465,377, (ii) River West TIF Revenues in the amount of$2,475,686, and (iii) River East TIF Revenues in the amount of $1,058,937, then on deposit in the applicable allocation fund for each of the Allocation Areas and made available by the Redevelopment Commission to the City for the purposes of making the Loan to the Developer under the Act and the terms of the Loan Agreement. The Loan shall (i) mature no later than December 31, 2029, on the date set forth in the final Loan Agreement (the "Maturity Date"), (ii)bear no interest, except as provided herein,and(iii)be secured by the pledge of an unsecured promissory note of the Developer. Subject to the Unavoidable Delay provisions of the Loan Agreement,the principal of each outstanding Draw on the Loan shall be forgiven upon the earlier of(i) the substantial completion of the Project as evidenced by receipt of the certificate 2