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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 <br /> <br />Page | 9 <br /> <br />financial risk. Once the bonds are issued, there is no obligation for the <br />City to cover any shortfall. <br /> <br />Mr. Barrett asked whether there is a cap on the City’s financial <br />commitment. Mr. Glavich explained that support is limited to the <br />pledged revenue streams, including 90% of TIF revenues and certain <br />eligible taxes, as structured through the bond issuance. The bond <br />amount establishes the City’s effective financial cap. Mr. Dealh further <br />clarified that any revenues exceeding debt service requirements would <br />be retained by the City, and once the bonds are paid off, all TIF revenues <br />are reverted to the City. The developer assumes the risk of achieving the <br />projected 7.5% return, and the City has no additional obligation beyond <br />the agreed structure. He also mentioned that the room rates are in line <br />with other average daily rooms with competitive hotels in the downtown <br />area. <br /> <br />Murray Miller asked whether property tax projections accounted for <br />SB1-related impacts. Mr. Glavich explained that initial estimates did not <br />fully incorporate certain changes, but updated analyses by Baker Tilly <br />include the effects of applicable deductions and caps. Mr. Glavich further <br />clarified that recent SB1 changes, including expanded deductions for <br />non-homestead residential properties, were incorporated into the <br />projections, resulting in lower assessed values and corresponding tax <br />revenues for multifamily components. <br /> <br />Kendra Martin raised concerns about potential impacts on utilities, <br />including water and power capacity, and asked whether the project <br />would incorporate sustainability features such as rooftop solar or <br />graywater reuse. Ms. Brotherson responded that solar is not currently <br />planned for the site. However, the City and developer have been <br />coordinating on drainage and infrastructure planning to ensure <br />adequate capacity and system performance. <br /> <br />Motion was made by Gillian Shaw to approve the Notice to Commence <br />Agreement, second by David Relos. <br /> <br />On the motion: <br />• David Relos, President: YEA <br />• Karen White, Vice President: YEA <br />• Gillian Shaw, Commissioner: YEA <br />• Ophelia Gooden-Rodgers, Commissioner: YEA <br /> <br />The motion carried; the Commission approved the Agreement on June 25, <br />2026.