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<br />FUNDING AND REIMBURSEMENT AGREEMENT
<br />This FUNDING AND REIMBURSEMENT AGREEMENT, is made and entered into as
<br />of July 1, 2026 (the “Agreement”) by and between the CITY OF SOUTH BEND, INDIANA (the
<br />“City”), a municipal corporation duly organized and validly existing under the laws of the State of
<br />Indiana (the “State”), and the SOUTH BEND REDEVELOPMENT COMMISSION (the
<br />“Redevelopment Commission”), as governing body of the CITY OF SOUTH BEND
<br />REDEVELOPMENT DISTRICT, a special taxing district duly organized and validly existing
<br />under the laws of the State of Indiana (the “District”).
<br />WHEREAS, Indiana Code 36-7-11.9 and 36-7-12, as supplemented and amended
<br />(collectively, the “Act”), authorizes and empowers the City to make direct loans to users or
<br />developers (each as defined under the Act) for the cost of acquisition, construction, or installation
<br />of economic development facilities, with such loans to be secured by the pledge of one or more
<br />taxable or tax-exempt debt obligations of the users or developers, for diversification of economic
<br />development and promotion of job opportunities in or near such City and vests the City with
<br />powers that may be necessary to enable it to accomplish such purposes; and
<br />WHEREAS, the City, upon finding that the Project (as hereinafter defined) and the
<br />proposed financing of the construction thereof will create additional employment opportunities in
<br />the City; will benefit the health, safety, morals, and general welfare of the citizens of the City and
<br />the State; and will comply with the purposes and provisions of the Act, adopted an ordinance
<br />approving a loan to Beacon Apartments Preservation LLC, an Indiana limited liability company
<br />(the “Borrower”); and
<br />WHEREAS, the City intends to make a direct loan to the Borrower, pursuant to the
<br />provisions of the Act, this Agreement, and the Financing and Loan Agreement, dated as of July 1,
<br />2026, between the City and the Borrower (the “Loan Agreement”), all for the purpose of financing
<br />a portion of the Project; and
<br />WHEREAS, pursuant to Indiana Code 36-7-14-39(b)(4), the Redevelopment Commission
<br />may use certain incremental property taxes to reimburse the City for expenditures (including loans)
<br />made for local public improvements (which include buildings and all expenses reasonably incurred
<br />in connection with the acquisition and redevelopment of property) that are physically located in or
<br />physically connected to the Allocation Area (as defined herein); and
<br />WHEREAS, pursuant to Resolution No. 3672, adopted by the Redevelopment Commission
<br />on June 11, 2026, a copy of which is attached hereto as Exhibit A (the “Authorizing Resolution”),
<br />the Commission has authorized the use of Tax Increment Revenues (as defined herein), in the total
<br />amount of not to exceed One Million Two Hundred Fifty Thousand Dollars ($1,250,000) from
<br />moneys then currently on deposit in the Allocation Fund (as defined herein), in order to reimburse
<br />the City for expenditures made, or to be made, to finance a portion of the Project costs.
<br />NOW THEREFORE, in consideration of the premises, the covenants and agreements
<br />hereinafter contained, and for other valuable consideration, the receipt and sufficiency of which
<br />are hereby acknowledged, the City and the District hereby agree and covenant.
<br />(End of Recitals)
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