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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – November 24, 2025 <br /> <br />Page | 9 <br /> <br />Purpose: <br />As projects become more complex, we need funding before entering <br />purchase or development agreements to perform due diligence. This <br />includes: <br />• Urban design studies to determine best site use and infrastructure <br />placement. <br />• Preliminary construction cost estimates from engineering firms. <br />• Limited underwriting for multifamily projects to validate rent <br />assumptions. <br /> <br />How It Works: <br />• Funds will cover early-stage work (e.g., design review, cost <br />estimates). <br />• When a development agreement is finalized, any pre-development <br />expenses will be reimbursed to this fund from project allocations. <br />• If a project does not proceed, the expense remains in this account. <br /> <br />Why It Matters: <br />This approach ensures the Commission has clear insight into potential <br />costs and risks before committing to agreements, especially for large, <br />complex downtown projects involving utilities, stormwater, and other <br />infrastructure challenges. <br /> <br />Recommendation: <br />Approve the creation of this fund to improve due diligence and minimize <br />financial risk for the Commission. <br /> <br />Commissioner Gooden-Rodgers asked for clarification on when funds <br />are used from this account, the Commission will receive updates <br />throughout the year—not just during the annual budget review. Mr. <br />Bauer explained that if a future development agreement comes before <br />you, staff will note that $5,000 was spent on construction cost estimates <br />to prepare that agreement. If the agreement includes an appropriation <br />for infrastructure, that amount will reimburse the pre-development fund <br />so it can continue to support other projects. <br /> <br />Secretary Wax asked if the RDC has created an internal SOP for this <br />process and Mr. Bauer stated we don’t have a formal SOP yet, but the <br />intent is that these funds will only be used for professional services <br />provided by designated Redevelopment Services staff. This is strictly for <br />work that supports preparation of agreements with the Commission— <br />not for publicly bid projects or construction work. <br /> <br />Commissioner Shaw stated that these numbers don’t seem concerning, but <br />how were they calculated? Are they based on typical pre-development costs?