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FINANCING AND LOAN AGREEMENT <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 /> 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) (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. <br /> NOW,THEREFORE, in consideration of the premises and the mutual representations and <br /> agreements hereinafter contained, the City and the Borrower agree as follows: <br />