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45pUTH 6F O ,1t11j111�1�1� �� Department of Community 1865 Investment Memorandum December 12, 2013 TO: South Bend Redevelopment Commission FROM: David Relos, Economic Resourcesot- SUBJECT: Second Amendment to Development Agreement - Eddy Street Commons On February 15, 2008, the Redevelopment Commission, Redevelopment Authority, City of South Bend, and Kite Realty Group LP entered in to a Development Agreement for the construction of Eddy Street Commons. A First Amendment to this Development Agreement was signed on May 2, 2008, which finalized streets and alleys to be included in the development. In light of the economic conditions that took place as this project began, a Second Amendment (Amendment) has been planned since early 2009, but put on hold until there was a better understanding of project completion and its impact on property values and the community at large. This project has had dramatic cumulative impacts. From 2010 - 2013, they are estimated to be: • Direct construction impact (ongoing): 2,600 workers on site since 2009, creating $43.5 million in household earnings and an output (economic activity generated) of $139.4 million • Indirect construction impact (snowball effect): 606 jobs with household earnings of $56 million and output of $187.6 million • Fiscal impact (taxes including state sales, state and county income, innkeepers, and property) of $17.6 million • Direct economic impact: 140 new jobs with household earnings of $9.7 million and output of $36.2 million • Indirect economic impact: 149 new jobs with household earnings of $13.7 million and output of $121.5 million This Amendment will facilitate ongoing Eddy Street development and its next construction phases, in turn continuing and increasing the impacts mentioned above. 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574 - 235 -9371 1 FAX: 574 - 235 -9021 1 SOUTHBENDIN.GOV