3biii Financing and Loan Agreement

Home Browse Search

FINANCING AND LOAN AGREEMENT THIS FINANCING AND LOAN AGREEMENT made and entered into as of July 1, 2026, by and between the City of South Bend, Indiana, a municipal corporation and political subdivision existing under the laws of the State of Indiana (the “City”), and Beacon Apartments Preservation LLC, an Indiana limited liability company (the “Borrower”), under the following circumstances summarized in the following recitals (the capitalized terms not defined in the recitals are as defined in Article I hereof): A. Indiana Code, Title 36, Article 7, Chapters 11.9 and 12, each as supplemented and amended (collectively, the “Act”), authorizes and empowers the City to make loans to provide funding for economic development projects and facilities and vests the City with powers that may be necessary to enable it to accomplish such purposes. B. The Borrower has requested a certain economic development incentive from the City in the form of a loan to the Borrower in the amount not to exceed One Million Two Hundred Fifty Thousand Dollars ($1,250,000) (the “Loan”), to finance a portion of the construction, renovation and/or rehabilitation of economic development projects and facilities within the meaning of the Act, consisting of the construction, renovation and/or rehabilitation of up to one hundred seventy-four (174) affordable housing rental units in the existing Beacon Heights development in the River West Development Area in the City, with an approximate total redevelopment cost of Forty-Seven Million Dollars ($47,000,000.00) including a private investment of no less than Forty-Seven Million Dollars ($47,000,000.00) to be expended by the Borrower (collectively, the “Project”). C. The City believes that developing the Project as described herein is in the best interests of the health, safety and welfare of the City and its residents and complies with the public purposes and provisions of the Act, and based upon the information presented to the City by the Borrower, the City has determined that the Project constitutes an economic development project and an economic development facility as defined by applicable law. D. The City desires to facilitate the development of the Project by making the Loan to the Borrower from available funds of the City and the Redevelopment Commission (as hereinafter defined) to finance a portion of the Project. E. This Loan Agreement provides for the repayment by the Borrower of the Loan and further provides for the Borrower’s repayment obligation to be evidenced by the promissory note in substantially the form attached as Exhibit A hereto (the “Note”), unless the Loan is forgiven upon satisfaction of the conditions set forth in Section 4.3 hereof. F. The parties hereto agree that it is of mutual benefit for the parties hereto to enter into this Agreement relating to the Project and the Loan that will include the commitments of each of the parties. G. The South Bend Redevelopment Commission, for and on behalf of the City of South Bend, Department of Redevelopment, and the Borrower have entered into a Development