HomeMy WebLinkAbout5B1 Second Amendment to Development Agreement (Miami Hills)
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
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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.
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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