HomeMy WebLinkAboutReport and Findings (Cedar Glen LLC)REPORT AND FINDINGS OF FACT OF THE
SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION
CONCERNING THE PROPOSED FINANCING OF
ECONOMIC DEVELOPMENT FACILITIES FOR
MAH CEDAR GLEN, LLC
The South Bend Economic Development Commission (the "Commission") proposes to
recommend to the Common Council (the "Council") of the City of South Bend, Indiana (the
"City") that it finance the acquisition, construction, renovation, installation and equipping of
certain economic development facilities to be developed by Merchants Affordable Housing
Corp. (the "Developer") and owned by MAH Cedar Glen, LLC (the "Owner," and together with
the Developer, the "Applicants").
The proposed economic development facilities to be undertaken by the Developer and
owned by the Owner will consist of acquisition, construction, renovation, installation and
equipping of a 179 -unit affordable multi -family housing facility to be located within the City at
425 South 25' Street, South Bend, IN (the "Project"), having a total estimated project cost of
$12,109,806.
The public purpose for which the Bonds are being issued is to finance economic
development facilities (being the Project) which will create or retain opportunities for gainful
employment and business opportunities.
The Developer, on behalf of the Owner, has requested that the City issue one or more
series of the City of South Bend, Indiana, Economic Development Multifamily Housing Revenue
Bonds, Series 2019 (MAH Cedar Glen, LLC Project) (with such further or different series
designation as may be necessary, desirable or appropriate, including such series designation to
indicate the year in which the bonds are issued) (the "Bonds") in the aggregate principal amount
not to exceed Seven Million Three Hundred Thousand Dollars ($7,300,000), for the purpose of
providing funds for paying all or a portion of the costs of the Project and paying all incidental
expenses incurred on account of the issuance of the Bonds.
The Commission estimates that no new material public works or services, including
public ways, schools, water, sewer, street lights and fire protection, will be made necessary or
desirable by the Project, because any such works or services already exist or will be provided by
the respective Applicants or other parties.
Based upon information submitted in the application of the Applicants and other
information available to the Commission, the Commission hereby makes tentative findings of
fact that (a) the proceeds of the Bonds will be used to finance all or a portion of the Project,
(b) the use of the proceeds of the Bonds to finance the Project will not be used to subsidize rents
to be paid by tenants or occupants of the Project, and (c) the tenants are expected to pay rent
similar to similar facilities existing in the area. Therefore, based upon such findings of fact, the
Commission tentatively determines that the acquisition, renovation, and equipping of the Project
will not have an adverse competitive effect on any similar facilities already constructed or
operating in or near the City.
The Commission estimates that, upon completion and as a result of the Project,
approximately 6 new full-time equivalent jobs will be created, with an estimated total annual
payroll and benefits of approximately $225,625 and it is estimated that, upon completion and as
a result of the Project, local construction participation is estimated at roughly $1,290,000, or 30%
of the rehabilitation budget.
Adopted this 16th day of April 2019.
SOUTH MIC
DEVE PPMENT COMM ION
Tim Scott, President
Consuella Hopkins, Vice President
ATTEST:
uentin Pitdps, Secretary
US 122724012.03