HomeMy WebLinkAbout5A5 Development Agreement (Monreaux)Redevelopment Commission Agenda Item
DATE: 11/16/23
FROM: Erik Glavich, Director, Growth & Opportunity
SUBJECT: “The Monreaux” Development Agreement
Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington
PURPOSE OF REQUEST: Development Agreement and Resolution Authorizing Use of TIF Revenues for
The Monreaux LIHTC project (505, 507, 511, and 513 S. Michigan St.)
SPECIFICS: The Commission will consider two separate items: (1) a Development Agreement
with The Monreaux LLC and Delta Ventures Ltd. (jointly the “Developer”) to provide funding in
support of a low-income housing tax credit project called The Monreaux and (2) a Resolution
authorizing the use of TIF funds in the form of a loan to the Developer. Delta Ventures Ltd. is a
non-profit entity created under common ownership with The Monreaux LLC.
The Developer will construct a new building at the former Fat Daddy’s site containing 60
apartments with no fewer than 46 units dedicated to low- to moderate-income tenants. The
Commission approved a Real Estate Purchase Agreement with The Monreaux LLC on July 14,
2022, which was amended on July 13, 2023.
The Commission will first consider for approval the Development Agreement. If the Commission
approves the Agreement, the Commission will then consider the Resolution.
The Agreement specifies that (1) the Funding Amount provided by Redevelopment Commission
will not exceed $2,300,000 and (2) the Private Investment by the Developer will be no less than
$13,700,000. In alignment with the Real Estate Purchase Agreement, as amended, the
Developer agrees to complete the project within 36 months of the Closing Date. Staff
recommends approval of this Development Agreement.
Staff recommends the Commission approve the Development Agreement and adopt the
Resolution.
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: _11.20.23____________
Approved Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
Page | 2
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 $_____________
November 2023