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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 <br /> <br />Page | 8 <br /> <br />Commissioner Gooden-Rodgers had additional questions, Ms. <br />Brotherson indicated the residential component (approximately 190– <br />195 units) is planned at around 100% AMI, intended to serve workforce <br />housing needs without income restrictions. Finally, Ms. Brotherson <br />noted that while the City is leading certain infrastructure work, the <br />developer’s contractors are expected to utilize local subcontractors and <br />labor where feasible. <br /> <br />Commissioners Shaw confirmed that the 90% revenue pledge applies to <br />Phase I and asked whether the City would cover any shortfall if revenues <br />do not meet projections. Ms. Brotherson clarified that the bonds are not <br />a general obligation of the City and that the developer assumes the <br />revenue risk once issued. In response to a follow-up question, Mr. <br />Glavich noted that if revenues exceed bond debt service requirements, <br />the surplus would be retained by the City. <br /> <br />President Relos asked whether this financing approach was anticipated <br />from the outset. Ms. Brotherson clarified that the original development <br />agreement (March 2024) contemplated a tax abatement; however, the <br />IDD financing tool did not exist at that time. Once it became available <br />approximately a year and a half ago, the City shifted to this approach, <br />which replaced the need for a tax abatement. <br /> <br />Commissioner Gooden-Rodgers asked about the timeline. Mr. Dealh <br />reported that construction of the multifamily and hotel components is <br />expected to begin in December 2026, with financing and site readiness <br />aligned for project completion by the end of 2028 with the garage <br />completed in 2027. <br /> <br />Commissioner Marcus Ellison asked about how many full-time jobs will <br />be associated with Phase I? Mr. Dealh indicated that the multifamily <br />component will generate limited jobs (approximately 4–5 positions for <br />property management and maintenance), while the hotel is expected to <br />create 50–60 jobs, including hotel and restaurant staff. The parking <br />garage will be City-owned and operated, with staffing consistent with <br />other City garages. <br /> <br />Mr. Glavich also noted that, consistent with prior agreements, the City <br />will work toward a parking arrangement with Beacon Health System to <br />allow use of the garage by employees and visitors. <br /> <br />Matt Barrett asked about the projected 7.5% return and whether the <br />City is obligated to ensure that return. Mr. Glavich clarified that the <br />return is not guaranteed by the City. The developer agreed to a 7.5% <br />return threshold (reduced from 8%) and assumes the associated