HomeMy WebLinkAbout5A1 RDC Memo_PurchaseAgreement_PropertyBros_2024-06-11_signedRedevelopment Commission Agenda Item
DATE: 6/11/24
FROM: Erik Glavich, Director, Growth & Opportunity
SUBJECT: Purchase Agreement (Property Bros LLC)
Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington
PURPOSE OF REQUEST: Purchase Agreement for three parcels (619, 620 Sherman Ave. and 1021 1/2-
1023 1/2 Lincoln Way West) with Property Bros LLC
SPECIFICS: Through a transfer agreement with the Board of Public Works (Resolution No. 3590,
February 22, 2024), the Commission acquired certain property—27 parcels total—to encourage
its redevelopment. Commission staff now presents a Real Estate Purchase Agreement with
Property Bros LLC (the “buyer”) for 3 of the parcels. This Agreement will be considered with a
separate development agreement in support of the buyer’s efforts.
The buyer is a small-scale developer committed to providing high-quality affordable housing in
South Bend. In September 2023, the Commission entered into Development Agreement with
the buyer to provide financial support ($150,400) for the rehabilitation of a 4-plex on Scott St.,
the rehabilitation of a duplex on Cottage Grove Ave., and the construction of a new duplex on
Sherman just north of Lincoln Way West. The two rehabs are currently nearing completion, and
the Developer recently began construction on the new duplex.
The properties for which this Agreement applies are adjacent to the new duplex the buyer is
constructing. By acquiring the properties, the buyer can incorporate the parcels into his larger
project to build new residential units near the Sherman-Lincoln Way West intersection.
The Agreement commits the buyer to the following:
•Sale price of $1,000
•Complete construction of 5 duplexes, which includes the duplex on Sherman that the
buyer has already begun constructing
•Expend no less than $1.575 million on the project
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: _____6/13/24_________
Approved Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
x
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•Begin construction within 12 months of closing and complete construction within 36
months of closing
The buyer is committed to supporting South Bend residents in need of quality affordable
housing, particularly on the west side of the City.
Staff recommends approval of this Purchase Agreement.
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 $_____________