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FINANCING AND LOAN AGREEMENT <br /> THIS FINANCING AND LOAN AGREEMENT made and entered into as of July 1,2026, <br /> by and between the City of South Bend, Indiana,a municipal corporation and political subdivision <br /> existing under the laws of the State of Indiana (the "City"), and Beacon Apartments Preservation <br /> LLC, an Indiana limited liability company (the "Borrower"), under the following circumstances <br /> summarized in the following recitals(the capitalized terms not defined in the recitals are as defined <br /> in Article I hereof): <br /> A. Indiana Code, Title 36, Article 7, Chapters 11.9 and 12, each as supplemented and <br /> amended (collectively, the "Act"), authorizes and empowers the City to make loans to provide <br /> funding for economic development projects and facilities and vests the City with powers that may <br /> be necessary 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 loan to the Borrower in the amount not to exceed One Million Two Hundred <br /> Fifty Thousand Dollars ($1,250,000) (the "Loan"), to finance a portion of the construction, <br /> renovation and/or rehabilitation of economic development projects and facilities within the <br /> meaning of the Act, consisting of the construction, renovation and/or rehabilitation of up to one <br /> hundred seventy-four (174) affordable housing rental units in the existing Beacon Heights <br /> development in the River West Development Area in the City, with an approximate total <br /> redevelopment cost of Forty-Seven Million Dollars ($47,000,000.00) including a private <br /> investment of no less than Forty-Seven Million Dollars ($47,000,000.00) to be expended by the <br /> 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 /> D. The City desires to facilitate the development of the Project by making the Loan to <br /> the Borrower from available funds of the City and the Redevelopment Commission(as hereinafter <br /> defined)to finance a portion of the Project. <br /> E. 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 hereof <br /> F. 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 /> G. 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 />