5A2 Notice to Commence Agreement (Madison Lifestyle, Great Lakes Capitol) - Fully Executed

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FW ` South Bend _ Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana outstanding items necessary for completion of the project and required under the Development Agreement, including final approvals, permits, and related project agreements, while allowing construction to proceed. ■ Financial Metrics and Commission Sul2ngrt: The Development Agreement established a target return on cost of 8%. This Notice reflects GLC's agreement to proceed with a reduced 7.5% return threshold and defines the Commission's commitments intended to support achievement of that threshold. • Leveraging the South Bend IDD: This Notice incorporates the use of the South Bend IDD as a component of project support in lieu of City support via tax abatement. To support the project, the City will pursue the issuance of approximately $17.99 million in IDD-backed developer - purchased bonds and the pass -through of construction -related sales tax revenues generated by the project, each subject to IEDC approval. • IDD Reporting Obligations: This Notice establishes that the Developer is responsible for ensuring data is reported by contractors and subcontractors to support IDD revenue tracking and compliance and to maximize the availability of IDD funds back into the project. Phase 2 Timing and Ob#i ag tions: The Parties acknowledge that Phase 2 remains subject to further planning and agreement. The Notice establishes the process and timeline for Phase 2, including a deadline of October 31, 2027, for execution of a separate Phase 2 Notice to Commence. If Phase 2 does not proceed, the Commission may require GLC transfer the Phase 2 property back to the Commission in accordance with the Agreement.