HomeMy WebLinkAbout1 RDC Packet 2.23.23South Bend Redevelopment Commission
227 West Jefferson Boulevard, Room 1308, South Bend, Indiana
Agenda
Regular Meeting, February 23, 2022 – 9:30 a.m.
http://tiny.cc/__RDC2023 or BPW Conference Room 13th Floor
1.Roll Call
2.Approval of Minutes
A.Minutes of the Regular Meeting of Thursday, February 9, 2023
3.Approval of Claims
A.Claims Allowance Request 2.15.23
4.Old Business
5.New Business
A.Opening and Reading of Receipt of Bids
1.Property at LWW.Leland.Marion
2. Property at Salvation Army Building
3. Property at 18 Chestnut
B.South Side Development Area
1.Second Amendment to Development Agreement (Miami Hills)
C. Administrative
1.Estoppel Agreement (RDC and MarMain)
6.Progress Reports
A.Tax Abatement
B.Common Council
C.Other
7.Next Commission Meeting:
Thursday, March 9, 2023, 9:30 am
Adjourn
ITEM 1
South Be n d
Redevelopment Commission
227 West Jefferson Boulevard, Room 1308, South Bend, IN
SOUTH BEND REDEVELOPMENT COMMISSION
SCHEDULED REGULAR MEETING
February 9, 2023 – 9:30 am
http://tiny.cc/RDC2023 or BPW Conference Room
Presiding: Marcia Jones, President
The meeting was called to order at 9:30 a.m.
1.ROLL CALL
Members Present: Marcia Jones, President – IP
Troy Warner, Vice-President – IP
Vivian Sallie, Secretary - IP
Eli Wax, Commissioner - IP
Dave Relos, Commissioner – IP
Leslie Wesley, Commissioner - V
IP = In Person V = Virtual
Members Absent:
Legal Counsel: Sandra Kennedy, Esq.
Redevelopment Staff: Mary Brazinsky, Board Secretary
Joseph Molnar, RDC Staff
Others Present: Erik Glavich
Laura Althoff
Rachel Boyles
Jitin Kain
Charlotte Brach
Matt Barrett
Randy Rampola
Emma Adlam
Kyle Willis
Benjamin Dougherty
Aaron Perri
Kara Boyles
Chris Dressel
Rachel Tomas Morgan
Katrina Marquardt
Leslie Biek
Griffin Johnson
Chris Gerard
DCI – IP
DCI – V
DCI – V
Engineering – V
Engineering – V
Resident
Barnes & Thornburg
Baker Tilly
Admin & Finance
Admin & Finance
VPA - IP
Engineering - IP
DCI – IP
Common Council – V
Resident – V
Engineering - V
The Hill – V
Bear Brew - V
ITEM 2A
South Bend Redevelopment Commission Regular Meeting – February 9, 2023
2.Approval of Minutes
•Approval of Minutes of the Regular Meeting of Thursday, January 26, 2023
Secretary Sallie noted that Commissioner Wax title is incorrect.
Upon a motion by Commissioner Relos, seconded by Vice-President Warner,
the motion carried unanimously, with above mention change, the Commission
approved the minutes of the regular meeting of Thursday, January 26, 2023.
3.Approval of Claims
•Claims Submitted for February 24, 2023
Upon a motion by Secretary Sallie, seconded by Commissioner Relos, the
motion carried unanimously, the Commission approved the claim for February
24, 2023
4.Old Business
5.New Business
A.River West Development Area
1.Resolution No. 3571 (Claey’s Candy)
Mr. Molnar Presented Resolution No. 3571 (Claey’s Candy). In April 2022 the
Commission agreed to an option to purchase the land which includes the current
Claey’s Candy factory and three parcels that are part of the parking lot. Four
Winds Field and the city have leased those parking spaces for a number of years.
Claey’s has expanded and built a new factory on Nimitz Parkway, and they have
notified the city they are ready to move. The city is ready to exercise the option to
purchase. This resolution gives staff the authority to go forward with that option.
Commissioner Wax asked what the price was.
Mr. Molnar stated it was $550k for both the factory building and the parking lots.
Commissioner Wax asked if the city has a plan after the purchase of the property.
Mr. Molnar stated that the city has been interested in parking for some time now.
There have been discussions with perhaps south been housing authority but no
firm commitments at this time.
Commissioner Wax asked if we will re-coup the money.
Mr. Molnar stated we hope.
Commissioner Wax asked what the business perspective would be.
South Bend Redevelopment Commission Regular Meeting – February 9, 2023
Mr. Molnar stated the value for the city is in the ownership of the parking lots for
the fields. South Bend Housing is perhaps looking into a major renovation of that
entire block. This also helped Claey’s move and expand creating more jobs.
Upon a motion by Commissioner Wax, seconded by Vice-President Warner, the
motion carried unanimously, the Commission approved Resolution No. 3571
(Claey’s Candy) submitted on Thursday, February 9, 2023.
2. Seventh Amendment (REPA Bear Brew LLC)
Mr. Molnar Presented Seventh Amendment (REPA Bear Brew LLC). This is for
the property formerly the Gates Service Center which was sold in 2016 to Bare
Hands Brewery for the commitment of establishing a brewery and restaurant.
During the most recent amendment they were to start construction on September
1st of the past year, that did not happen. They pulled demo permits and began
getting the site ready for construction with demolition of some of the building. The
next deadline was February 1st for a rough in inspection meaning the electric and
everything was ready to frame up the walls and start finishing the space with an
opening date of September 1, 2023.
Mr. Gerard contacted the city stating that the original construction was pushed
back due to the construction company’s projects and is asking for a project
extension. We confirmed that HVAC and general construction permits have been
pulled by the contractors and confirmed work is ongoing at the site.
Mr. Gerard stated that all the permits are pulled, and they are working to complete
the project. Framing material and HVAC equipment were being delivered.
Contractors are stating they should have it completed by March 1, 2023, so they
can move forward.
Commissioner Relos asked how close the project is to the rough in inspection by
the building department.
Mr. Gerard stated 50%. It should take approximately 3 weeks to complete.
Secretary Sallie thanked Mr. Gerard for coming in person to present the
Commission with an update. She asked if he would come back and present an
update closer to September.
Mr. Gerard stated he would.
Vice-President Warner asked if there is a restaurant portion to the building.
Mr. Gerard stated yes there would be a full service restaurant with a small pilot
brewery set-up of seven barrels which is like 14 full size kegs and 45 barrels per
weekly production.
Secretary Sallie asked about parking according to the blueprint.
South Bend Redevelopment Commission Regular Meeting – February 9, 2023
Mr. Gerard stated that the city asked for some curved areas and grass areas to
make it more aesthetically pleasing to the customers.
Commissioner Wax states he understands construction delays and he is really
looking forward to the project completion. He recommends coming forward before
a deadline is missed, consulting with staff regarding changes or extensions.
Mr. Gerard stated he would be sure to do that.
Commissioner Relos asked if September 1, 2023, date is for certificate of
occupancy?
Mr. Gerard stated yes. They are actually hoping to open by opening of baseball
season but doubt that will happen.
Commissioner Relos noted that this project has been going on for a long time.
When he worked for the city, he brought the documents out to their Granger
operation to get them signed. As a note this has been going on for six years and
there have been a number of other restaurants in the downtown area that have
transformed older buildings without any problems.
Mr. Gerard stated that this project was a little more in-depth than those and then
the pandemic was a delay and also legal issues with the city, but he feels that
things have turned around and they are showing a consistent effort to finish.
Commissioner Relos noted that Rose Lily moved to a new location which was an
empty building by Howard Park. The old buttons and bows is now turned into a
bar/restaurant.
Mr. Gerard stated he does not feel like this is apples to apples, but they are doing
their best to finish it by the deadline.
Upon a motion by Commissioner Wax, seconded by Vice-President Warner, the
motion carried unanimously, the Commission Seventh Amendment (REPA Bear
Brew LLC) submitted on Thursday, February 9, 2023.
3.Budget Request (LaSalle Park Improvements)
Mr. Perri Presented Budget Request (LaSalle Park Improvements). On the heels
of a pretty comprehensive soil remediation at LaSalle Park that is just wrapping
up, we seek to put park back into significantly better condition than it was originally
found. We have a community driven plan that includes the addition of a restroom
facility, a picnic pavilion, basketball/pickleball tennis courts, roller skating trail and
some general connectivity and landscaping in the park. The total estimate plus
contingency is $1.33M, of which we have already taken $500k from the park fund.
We are asking the commission for $874,571 from the River West TIF.
Commission approval is requested.
South Bend Redevelopment Commission Regular Meeting – February 9, 2023
Upon a motion by Commissioner Relos, seconded by Secretary Sallie, the
motion carried unanimously, the Commission Budget Request (LaSalle Park
Improvements) submitted on Thursday, February 9, 2023.
4.Budget Request (Kennedy SRTS)
Ms. Boyles Presented Budget Request (Kennedy SRTS). This is a request form
the River West TIF for the Kennedy SRTS project which is an INDOT project in
which federal funding is received which is a matching project. For the design, the
city is responsible for initially budgeting 100% or the design but it is 80%
reimbursable. The same is true for the construction, we provide 20% and the
state covers the rest. We are getting ready to start design which is mostly
sidewalk, ADA curb ramps around Kennedy School trying to go as far as we can in
terms of radius with the $2M budget allocated. This request is for $300k which will
be 80% reimbursable.
President Jones asked if there was existing sidewalk?
Ms. Boyles stated that yes, it is all existing sidewalk that they are repairing. This
covers striping and crosswalks too. $2M is the construction grant amount.
Secretary Sallie asked what the completion date of the project would be.
Ms. Boyles state fiscal year 2023 so we will need to be under contract by May or
June of this year working through the design this year, but she doesn’t anticipate
construction until June or July 2024. They take a little longer.
Upon a motion by Vice-President Warner, seconded by Secretary Sallie, the
motion carried unanimously, the Commission approved Budget Request
(Kennedy SRTS) submitted on Thursday, February 9, 2023.
B.River East Residential
1.Budget Request (Seitz Park Phase II)
Ms. Boyles Presented Budget Request (Seitz Park Phase II). This request is from
River East Residential TIF in the amount of $1M for Seitz Park Phase II which has
multiple components. This will cover three of the outstanding engineering
agreements which includes design elements. There have been some extensions
and duration of this project which were longer than anticipated. The designer has
spent more time on providing construction administration and design related to
Gintz Road adjacent to the park and taking us into the new part of the park. There
have been some unforeseen con ditions related to the river wall with different
structural elements that we have encountered in opening the park. This budget
request will help cover the costs as well as additional repairs. Commission
approval is requested.
Vice-President Warner asked for an updated timeline of completion.
Ms. Boyles stated August of 2023.
South Bend Redevelopment Commission Regular Meeting – February 9, 2023
Upon a motion by Commissioner Relos, seconded by Vice-President Warner,
the motion carried unanimously, the Commission approved Budget Request
(Seitz Park Phase II) submitted on Thursday, February 9, 2023.
C.River East Development Area
1.Development Agreement (ND QOZB)
Mr. Glavich Presented Development Agreement (ND QOZB). Mr. Glavich
Presented Budget Request (Appropriation Legal Fees Expense). This developer
is the owner of the old St. Joseph Medical Center building that is just north of St.
Joseph High School. This building has been vacant since 2014. The developer is
converting the building into a 60-unit apartment building. Council has unanimously
approved a tax abatement for this property. Twenty percent of its apartments will
be available to low/moderate income households as outlined in the abatement.
The developer has agreed to put $12M worth of renovations into the building. This
is a part of a larger plan the developer has for the property including townhomes
or condos which would than exceed in excess of $25M in development. The
development agreement before you today only impacts the current building. Staff
is asking for a $500k commitment to assist the developer with upgrading drainage
to the property; with any remaining dollar they would go towards exterior
surrounding improvements. The developer is committed to completion of this
project by the end of 2024.
Mr. Relos noted that a percentage is low/mod but is there college availability to the
units.
Mr. Glavich states that is stipulated in the memorandum of agreement related to
the tax abatement. The tax abatement is beyond when the development
agreement would end.
Commissioner Wax asked for more information on the project.
Griffin Johnson stated the $12M does not include the building acquisition. They
are currently demolishing the inside of the building and have all of the interior walls
drywalled. Electrical, plumbing and mechanical are in process. They have spent
$800k on demolition alone so far. Throughout the building is all new framing,
electrical and plumbing. They are on track for June completion of the apartment
renovations but will take approximately one more month to have them furnished
and get IT services. It has been a very fast-paced project. We are hoping to be
open for the Fall 2023 school year. We understand from the University that there
is a need for graduate students as their building is being re purposed for
undergraduate students.
Commissioner Wax what will happen beyond this project.
South Bend Redevelopment Commission Regular Meeting – February 9, 2023
Mr. Johnson stated the plan is for 25 townhomes lining the existing streets and to
the west of the property there will be a little dog park with lighting, security
cameras, etc. We have provided a concept plan to the department of community
investment, and we think we are well on our way with that project.
Mr. Glavich added that it has been a pleasure to work with Griff and their local
representatives. They have asked a lot of questions and want to make sure they
are complying with all of our requirements.
Commissioner Wax asked if we should anticipate another development agreement
for the future development.
Mr. Johnson stated that he does not believe so. Hopefully this request will be
connected to their second phase in terms of the storm drainage for the property.
Matt Barrett, resident, asked the commission, in the future to look into item 9.5 of
the agreement regarding attorney fees in the event of litigation, mediation or
arbitration between the parties that none of the parties shall be entitled to any
award of attorney fees. Please consider this when writing agreements in case of
breach of agreement.
Ms. Kennedy, per the commission’s request, will look into this item.
Vice-President Warner stated that the council approved a tax abatement for this
project.
Mr. Glavich stated that Council passed an 8-year abatement for the property.
Estimates show that currently under the tax rate of last year the building would
have accumulated approximately $211k in taxes over 8 years. With this
development the net taxes paid/estimated will be $1.1M. That is without the
townhomes.
Commissioner Wax stated that going forward in the future that it would be helpful
to be aware of potential agreements that the city is engaging with developers. He
fully supports this project and their next project.
Upon a motion by Commissioner Wax, seconded by Vice-President Warner, the
motion carried unanimously, the Commission approved Development Agreement
(ND QOZB) submitted on Thursday, February 9, 2023.
2.Budget Request (Appropriation Legal Fees Expense)
Mr. Glavich Presented Budget Request (Appropriation Legal Fees Expense). This
is a request for $150k from River East TIF to cover legal fees related to the
litigation against Commerce Center Development, LLC. On January 12, 2023 the
commission authorized the city to engage in litigation and contract with outside
counsel to enforce the terms of the development agreement. Commission
approval is requested.
South Bend Redevelopment Commission Regular Meeting – February 9, 2023
Commissioner Sallie asked if this would cover all of the fees.
Ms. Kennedy states this should be more than enough.
Commissioner Wax asked if we have entered into an agreement with the RDA.
Ms. Kennedy stated we are meeting on February 13th.
Upon a motion by Commissioner Wax, seconded by Vice-President Warner, the
motion carried unanimously, the Commission approved Budget Request
(Appropriation Legal Fees Expense) submitted on Thursday, February 9, 2023.
D.River West Development Area
1.Resolution No. 3572 (Regarding Special Tax SB 2023 Projects)
Mr. Glavich Presented Resolution No. 3572 (Regarding Special Tax SB 2023
Projects). Mr. Randy Rampola, Barnes and Thornburg noted that this is a
concluding resolution for the Redevelopment Commission. The Commission has
held a public hearing, approved a form of lease. This trailing resolution is the
mechanics of lease financing. This lease is payable from TIF out of the River East
and River West areas. In order to get the best interest rate in the market there
would be a tax backup. This resolution provides the mechanics of that tax backup.
Essentially, you are agreeing every year in August to make sure that you have
sufficient TIF revenues to make the following lease payments over 12 months the
following calendar year. This also provides for the lowest interest rate.
Common Council did approve the execution of the lease. They did approve the
bond financing at Monday night's meeting. Tomorrow, the Redevelopment
Authority will be asked to consider the actual bond resolution to authorize the
issuance of the bonds. You'll also sign the lease. We're anticipating the first series
of bonds that would fund the River East and River West improvements to be
issued sometime in April 2023. The 2nd series will come when the Beacon
Improvement District improvements, public and private have been finalized and
that'll be later in the year at some point.
Commissioner Wax clarified that the Redevelopment Commission can issue a tax
to cover on top of everyone’s property tax?
Mr. Rampola stated that the tax would be levied upon the Redevelopment district
which has boundaries within the city. As I mentioned before as the city does with
other financings that are outstanding, we would look to make sure that there are
sufficient tax increment revenues in that case. It would be subject to the DLGF
approval they would look at the tax and make sure it's sufficient to pay the debt
service on the bonds and then the taxes would be collected.
Commissioner Wax asked Mr. Rampola if everything had been covered by bond
counsel.
Mr. Rampola stated that we give our opinion relating to the validity of the bonds
and make sure everything is lined up from our standpoint.
South Bend Redevelopment Commission Regular Meeting – February 9, 2023
Commissioner Wax stated that at Council, the Beacon portion of the bonds
wouldn’t be issued until an agreement with Beacon was finalized with the city.
Mr. Glavich states that we will get confirmation of that and round back with the
commission.
Upon a motion by Commissioner Wax, seconded by Secretary Sallie, the
motion carried unanimously, the Commission approved Resolution No. 3572
(Regarding Special Tax SB 2023 Projects) submitted on Thursday, February 9,
2023.
E.South Side Development Area
1.Budget Request (High Street Improvements)
Mr. Dressel Presented Budget Request (High Street Improvements). This budget
request is for $200k for the High Street Sidewalk Project. This will be for the
Miami Hills project that was adopted by council in 2020. Their priorities included
the category of infrastructure. Mr. Dressel provided a map of the project
improvement areas. Some of the High Street sidewalks are actually missing. This
presented the highest priority from Donmoyer to Ridgedale. We have an
opportunity to add a handicapped ramp to the curb and sidewalks. We hope to
get this underway this year with completion in 2024. Commission approval is
requested.
Commissioner Wax states that his districts students go to Monroe around the
corner. It is very difficult to navigate this especially in the winter months. This will
be a big benefit to the neighborhood.
Commissioner Relos asked if we have the right of way.
Mr. Dressel stated yes.
Upon a motion by Commissioner Wax, seconded by Vice-President Warner, the
motion carried unanimously, the Commission approved Budget Request (High
Street Improvements) submitted on Thursday, February 9, 2023.
6.Progress Reports
A.Tax Abatement
B.Common
C.Other
1.Mr. Bauer who is out sent an email to be read that two low income tax
credit projects, Real America just east of Four Wins and well as project
Thrive were approved. We also found out that the Monroe project was also
approved with full approval coming in November with a total of 160
affordable units and 74 market rate units. Two projects are currently on
RDC land.
South Bend Redevelopment Commission Regular Meeting – February 9, 2023
7.Next Commission Meeting:
Thursday, February 23, 2023
8.Adjournment
Thursday, February 9, 2023, 10:40 a.m.
Vivian Sallie, Secretary Marcia Jones, President
City of South Bend
Department of Administration & Finance
Claims Allowance Request
To:South Bend Redevelopment Commission
From:Kyle Willis, City Controller
Date:Wednesday, February 15, 2023
Pursuant to Indiana Code 36-4-8-7, I have audited and certified the attached claims and
submit them for allowance in the following amounts:
GBLN-0051464 $27,210.61
GBLN-0051738 $21,615.10
GBLN-0000000 $0.00
Total:$48,825.71
_______________________________
Kyle Willis
The attached claims described above were allowed in the following
total amount at a public meeting on the date stated below:48,825.71$
South Bend Redevelopment Commission
By:_______________________________
Name:
Date:
ITEM 3A
Attest:_______________________________
Name:
Redevelopment Commission Agenda Item
DATE: 2/16/22
FROM: Joseph Molnar
SUBJECT: Bid Opening
Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington
PURPOSE OF REQUEST: Bid Opening
Lincoln Way West / Marion / Leland
Specifics: On January 26th, 2023, the Redevelopment Commission Approved the request to
advertise property at Lincoln Way West / Marion / Leland for public bid. Those bids are due
February 23rd at 9:00 a.m. and any bids received need to be read into the record.
INTERNAL USE ONLY: Project Code: _______________________________________________;
Total Amount new/change (inc/dec) in budget: _______________; Break down:
Costs: Engineering Amt: ______________________; Other Prof Serv Amt_________________;
Acquisition of Land/Bldg (circle one) Amt: ___________; Street Const Amt ________________;
Building Imp Amt_________; Sewers Amt_________; Other (specify) Amt: ________________
___________________________________________. Going to BPW for Contracting? Y/N
Is this item ready to encumber now? ____ Existing PO#__________ Inc/Dec $_____________
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
ITEM 5A1
Redevelopment Commission Agenda Item
DATE: 2/16/22
FROM: Joseph Molnar
SUBJECT: Bid Opening
Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington
PURPOSE OF REQUEST: Bid Opening
Former Salvation Army Building
Specifics: On January 26th, 2023, the Redevelopment Commission Approved the request to
advertise property at the former Salvation Army Building for public bid. Those bids are due
February 23rd at 9:00 a.m. and any bids received need to be read into the record.
INTERNAL USE ONLY: Project Code: _______________________________________________;
Total Amount new/change (inc/dec) in budget: _______________; Break down:
Costs: Engineering Amt: ______________________; Other Prof Serv Amt_________________;
Acquisition of Land/Bldg (circle one) Amt: ___________; Street Const Amt ________________;
Building Imp Amt_________; Sewers Amt_________; Other (specify) Amt: ________________
___________________________________________. Going to BPW for Contracting? Y/N
Is this item ready to encumber now? ____ Existing PO#__________ Inc/Dec $_____________
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
ITEM 5A2
Redevelopment Commission Agenda Item
DATE: 2/16/22
FROM: Joseph Molnar
SUBJECT: Bid Opening
Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington
PURPOSE OF REQUEST: Bid Opening
18 Chestnut – Vac Lot 50 X 120 / 18 VAC L34 6X20 Walnut
Specifics: On January 26th, 2023, the Redevelopment Commission Approved the request to
advertise property at 18 Chestnut – Vac Lot 50 X 120 / 18 VAC L34 6X20 Walnut for public bid. Those
bids are due February 23rd at 9:00 a.m. and any bids received need to be read into the record.
INTERNAL USE ONLY: Project Code: _______________________________________________;
Total Amount new/change (inc/dec) in budget: _______________; Break down:
Costs: Engineering Amt: ______________________; Other Prof Serv Amt_________________;
Acquisition of Land/Bldg (circle one) Amt: ___________; Street Const Amt ________________;
Building Imp Amt_________; Sewers Amt_________; Other (specify) Amt: ________________
___________________________________________. Going to BPW for Contracting? Y/N
Is this item ready to encumber now? ____ Existing PO#__________ Inc/Dec $_____________
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
ITEM 5A3
Redevelopment Commission Agenda Item
DATE: February 21, 2023
FROM: Zach Hurst, PE
SUBJECT: Second Amendment to DA – Miami Hills
Funding Source* (circle one) River West; River East; South Side; Douglas Road; West Washington; RDC General
*Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller,
then the authorization of the expenditure of such funds shall be void and of no effect.
Purpose of Request:
This Second Amendment to the Development Agreement with Miami Hills MF II LLC (Miami Hills
Apartment Complex) corrects a Scrivener’s Error with respect to the Funding Amount specified in
the agreement.
The Funding Amount ($1,654,305) should reflect the total dollar amount between the City
contribution through Redevelopment Commission ($1,000,000) and the private contribution
towards the construction project ($654,305). Thought of differently, the Funding Amount should
also align with the value of the contracts executed through Board of Public Works ($70,000
architect’s fee and $1,584,305 construction project).
The Funding Amount in the First Amendment was short by $70,000 – the value of the architect’s
fee. This Second Amendment corrects this issue, and also confirms receipt of $654,305 from
Miami Hills MF II LLC.
INTERNAL USE ONLY: Project ID: PROJ 327 ;
Total Amount – New Project Budget Appropriation $_______________;
Total Amount – Existing Project Budget Change (increase or decrease) $_______________;
Funding Limits: Engineering: $_____________________; Other Prof Serv Amt $_______________;
Acquisition of Land/Bldg (circle one) Amt: $___________; Street Const Amt $________________;
Building Imp Amt $_________; Sewers Amt $_________; Other (specify) Amt $ ________________
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
ITEM 5B1
1
SECOND AMENDMENT TO DEVELOPMENT AGREEMENT
THIS SECOND AMENDMENT TO DEVELOPMENT AGREEMENT (this “Second
Amendment”) is made on ___________, 2023, by and between the South Bend Redevelopment
Commission, the governing body of the City of South Bend Department of Redevelopment (the
“Commission”), and Miami Hills MF II, LLC (the “Developer”) (each a “Party,” and collectively
the “Parties”).
RECITALS
A.The Commission and the Developer entered into a Development Agreement dated
effective February 10, 2022 (the “Development Agreement”), pertaining to certain local public
improvements ("LPI") to renovate, rehabilitate, and activate the Developer Property, which is
located in the South Side Development Area (the "Project").
B.The Development Agreement was amended by a First Amendment to Development
Agreement dated January 12, 2023 (“First Amendment”), which increased the Funding Amount
to reflect the Developer’s contribution and allow the awarding of the bid for the Project.
C.The amount set forth as the Funding Amount in the First Amendment, however, did
not reflect funds already spent by the Commission on the plans and specifications for the public
bid in the amount of Seventy Thousand Dollars ($70,000).
D.The Parties now wish to enter into this Second Amendment to correct the Funding
Amount.
NOW, THEREFORE, in consideration of the mutual promises and obligations stated in the
Development Agreement, the First Amendment, and this Second Amendment, the adequacy of
which is hereby acknowledged, the Parties agree as follows:
1. Section 1.3 shall be deleted in its entirety and replaced with the following:
1.3 Funding Amount. “Funding Amount” means an amount not to exceed One
Million Six Hundred Fifty-Four Thousand Three Hundred Five Dollars
($1,654,305.00) of tax increment finance revenues to be used for paying the costs
associated with the construction, equipping, inspection, and delivery of the Local
Public Improvements.
2.The Commission acknowledges the receipt of Six Hundred Fifty-Four Thousand
Three Hundred Five Dollars ($654,305) from the Developer in payment of the overage.
3.The Parties hereby expressly reaffirm their respective obligations under the
Development Agreement and the First Amendment, and, unless expressly modified by this Second
Amendment, the terms and provisions of the Development Agreement as modified by the First
Amendment remain in full force and effect.
4.Capitalized terms used in this Second Amendment will have the meanings set forth
in the Development Agreement and the First Amendment unless otherwise stated herein.
2
5.The recitals set forth above are hereby incorporated into the operative provisions of
this Second Amendment.
6.This Second Amendment will be governed and construed in accordance with the
laws of the State of Indiana.
7.This Second Amendment may be executed in separate counterparts, each of which
when so executed shall be an original, but all of which together shall constitute one and the same
instrument. Any electronically transmitted version of a manually executed original shall be deemed
a manually executed original.
IN WITNESS WHEREOF, the Parties hereby execute this Second Amendment to
Development Agreement as of the first date stated above.
SOUTH BEND REDEVELOPMENT
COMMISSION
By:____________________________________
Marcia I. Jones, President
ATTEST:
By:____________________________________
Vivian Sallie, Secretary
MIAMI HILLS MF, LLC
a Delaware limited liability company
By: _____________________________________
Gregory B. Jones, Chief Investment Officer
ESTOPPEL AND AGREEMENT
THIS ESTOPPEL AND AGREEMENT (this “Agreement”) is made as of
February 23, 2023, by MARMAIN (JV), LLC, a Delaware limited liability company,
having an address at 125 West Marion Street, South Bend, Indiana 46601 (“Owner” or
“Borrower”), CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT,
acting by and through its governing body, the South Bend Redevelopment Commission, having
an address at 1400 S. County-City Building, 227 W. Jefferson Blvd., South Bend, Indiana 44061
(“Commission”), in favor of RMWC WA CREDIT LLC, having an address at 130 East 59th
Street, 13th Floor, Suite A, New York, New York 10022 (together with its successors and/or
assigns, “Lender”).
A. Reference is hereby made to that certain Development Agreement dated effective as of
October 13, 2022, executed by and between Commission and Owner (the “Development
Agreement”). A true and correct copy of which Development Agreement is attached hereto as
Exhibit A.
B. The parties hereto have been informed that Lender anticipates making a loan (the
“Loan”) to Borrower pursuant to a certain Construction Loan Agreement (the “Loan
Agreement”) between Borrower and Lender and secured by a certain Mortgage, Security
Agreement and Financing Statement from Borrower in favor of Lender (as amended, modified
and in effect from time to time, the “Security Instrument”) encumbering certain property (the
“Property”) owned by Borrower, which Property is the subject of the Development Agreement.
NOW THEREFORE, in order to induce Lender to make the Loan to Borrower and for
other consideration the receipt and sufficiency of which are hereby acknowledged, the parties
hereto intending to be legally bound hereby represent, warrant, covenant and agree as follows:
1. The Commission certifies that:
(a) Other than as set forth in the Development Agreement, there are no other
understandings with respect to the subject matter set forth therein among the parties hereto.
(b) The Development Agreement is in full force and effect, has not been
supplemented, amended, modified or superseded since its original execution, and no other
agreements or understandings exist between the Commission and the Owner with respect to the
Property.
(c) As of the date hereof, the Owner is not in default or in violation of any of its
obligations under the Development Agreement and the Commission has no actual knowledge of
the existence of any event which, with the giving of notice, the passage of time or both would
constitute a default by the Owner under the Development Agreement.
(d) The Commission does not have any right of first refusal or option to purchase the
Property.
ITEM 5C1
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(e) The Commission has not filed any mechanics’, materialman’s or other similar
liens or claims for work, labor or materials affecting the Property which are or may become liens
prior to, or equal or coordinate with, the Lender’s lien.
(f) The Commission acknowledges that Owner has satisfied the requirements of
Section 5.2(b) of the Development Agreement.
(g) As of the date hereof, the Commission has expended $32,700 of the Funding
Amount (as that term is defined in the Development Agreement) and the City of South Bend,
Indiana Board of Public Works, acting as the agent of the Commission, has awarded a bid for the
Local Public Improvements (as defined in the Development Agreement) amounting to $443,987,
which amounts total less than Funding Amount (as defined in the Development Agreement).
2. The parties hereto hereby consents and agrees to each of the following
covenants and agreements for the benefit of Lender:
(a) The parties hereto shall not amend, supplement, terminate or modify the
Development Agreement without the prior written consent of Lender.
(b) The Commission hereby covenants and agrees to deliver to Lender at the address
set forth above (or such other address as may be designated by Lender) written notice of any
default by Borrower under the Development Agreement simultaneously with sending such notice
to Borrower and that no notice of default given to Borrower, and no exercise of any remedy by
any of the parties hereto as a result of any such default, shall be effective unless such notice shall
have been delivered to Lender. Notwithstanding the foregoing, to the extent that no notice is
required under the Development Agreement, written notice shall not be required to be provided
to either the Lender or the Borrower.
(c) The parties hereto hereby covenant and agree that Lender shall have the right, but
not the obligation, to cure any default by Borrower under the Development Agreement and
Lender shall be afforded (i) sixty (60) days to cure any such default beyond the expiration of any
applicable notice and cure periods set forth in the Development Agreement, or (ii) in the event
that any such default cannot, with reasonable diligence, be cured within such sixty (60) day
period, such longer time as may be reasonably required to complete such cure, provided Lender
notifies the applicable parties hereto of its intention to cure such default and Lender promptly
commences and diligently pursues such cure to completion. The parties hereto acknowledge and
agree that (i) any liens imposed by the Development Agreement shall be subordinate to the lien
of the Security Instrument and (ii) any indemnity obligations and/or reimbursement obligations
of Borrower under the Development Agreement shall be subject and subordinate to its
obligations to Lender under the terms of the Loan.
(d) Upon the acquisition of the Property (through foreclosure, power of sale, deed in
lieu of foreclosure or otherwise) by Lender, Lender’s nominee or designee or by any third party
(including, without limitation, any third party transferee obtaining title from Lender or Lender’s
nominee or designee) (each of the foregoing, a “Successor Owner”), the parties hereto shall
recognize such Successor Owner as successor in interest to Borrower’s rights and interests under
the Development Agreement. The powers conferred on Lender hereunder are solely to protect
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Lender’s interests in the Development Agreement and shall not impose any duty upon Lender to
exercise any such powers. To the extent that any approval rights, consent rights or other rights or
privileges are granted to Borrower under the Development Agreement, then the parties hereto
acknowledge and agree that in such approval rights, consent rights or other rights, protections or
privileges shall inure for the benefit of Lender. Commission agrees and acknowledges that upon
receipt of notice of the occurrence of an Event of Default (as defined in the Loan Agreement), to
follow all written instructions of Lender as assignee of Borrower hereunder.
3. Any notice, demand or other communication required or permitted under the
terms of this Agreement may be delivered (a) by hand-delivery (which will be deemed delivered
at the time of receipt), (b) by registered or certified mail, return receipt requested (which will be
deemed delivered three (3) days after mailing) or (c) by overnight courier service (which will be
deemed delivered on the next business day) to each Party’s respective addresses and
representatives stated below.
Borrower: MarMain (JV), LLC
125 West Marion Street
South Bend, Indiana 46601
Attention: Michael Serposs
Commission: South Bend Redevelopment Commission
1400 S. County-City Building
227 W. Jefferson Blvd.
South Bend, Indiana 46601
Attention: Executive Director
South Bend Department of Community Investment
with a copy to: South Bend Legal Department
1200 S. County-City Building
227 W. Jefferson Blvd.
South Bend, Indiana 46601
Attention: Corporation Counsel
Lender: RMWC WA Credit LLC
c/o RMWC
130 East 59th Street, 13th Floor, Suite A
New York, New York 10022
Attention: Steven Fischler
with a copy to: Nelson Mullins Riley & Scarborough, LLP
201 17th Street, Suite 1700
Atlanta, Georgia 30363
Attention: Rusty A. Fleming, Esq.
4. This Agreement and the rights and obligations of the parties hereunder shall in all
respects be governed by and construed and enforced in accordance with the laws of the State of
Indiana.
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5. This Agreement shall be binding upon the parties hereto and each of their
respective successors and assigns.
6. Each of the parties hereto represent and warrant that the execution and delivery of
this Agreement have been duly authorized by all requisite entity action on their part and the
signatory executing this Agreement on their behalf is duly authorized to so execute this
Agreement.
7. This Agreement may be executed in any number of duplicate originals and each
duplicate original shall be deemed to be an original. The failure of any party hereto to execute
this Agreement, or any counterpart hereof, shall not relieve the other signatories from their
obligations hereunder.
8. This Agreement and the representations, warranties and covenants contained
herein are given with the understanding that this Agreement constitutes a material inducement
for Lender in making the Loan to Borrower and that Lender shall rely hereon in making the Loan
to Borrower. This Agreement and the representations, warranties and covenants contained
herein may be relied upon by Lender, its successors and assigns and any nationally recognized
statistical rating agency rating any securities issued in connection with the Loan or any portion
thereof. To the extent that there are any conflicts between the terms of this Agreement and the
Development Agreement, the terms of this Agreement shall control.
[NO FURTHER TEXT ON THIS PAGE]
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day
and year first above written.
BORROWER:
MARMAIN (JV), LLC, a Delaware limited
liability company
By: MarMain Holdings LLC, a Delaware
limited liability company
Its: Sole Member
By: MarMain (GP), LLC, a Delaware limited
liability company
Its: Manager
By: Oldtown Capital Partners LLC, a
Delaware limited liability company
Its: Manager
By:______________________
Name: Michael Serposs
Title: Manager
[SIGNATURES CONTINUE ON NEXT PAGE]
COMMISSION:
CITY OF SOUTH BEND,
DEPARTMENT OF
REDEVELOPMENT, acting by and
through its governing body, the South Bend
Redevelopment Commission
By:_______________________________
Marcia I. Jones, President
Attest:______________________________
Vivian Salllie, Secretary
EXHIBIT A
Development Agreement
(attached hereto)