HomeMy WebLinkAbout5A2 RDC Memo_DevelopmentAgreement_PropertyBros_2024-06-11_signedRedevelopment Commission Agenda Item
DATE: 6/11/24
FROM: Erik Glavich, Director, Growth & Opportunity
SUBJECT: Development Agreement (Property Bros LLC)
Which TIF? (circle one) River West; River East; South Side; Douglas Road; West Washington
PURPOSE OF REQUEST: Development Agreement for three properties on Sherman Avenue with Property
Bros LLC
SPECIFICS: The Commission will consider a Development Agreement with Property Bros LLC, a
small-scale developer committed to providing high-quality affordable housing in South Bend.
The developer is undertaking a project to construct new residential buildings in the Near
Northwest Neighbor, on and near the Lincoln Way West corridor. This Agreement would
specifically support the construction of 3 new duplexes, which are part of a larger residential
housing project the Developer is undertaking.
This Agreement specifies that (1) the Funding Amount provided by Redevelopment Commission
will not exceed $75,000 and (2) the Private Investment by the Developer will be no less than
$925,000. The Funding Amount will be used for Local Public Improvements such as site and
foundation preparation and work.
The Developer seeks to acquire the parcels on which the duplexes will be built via a Real Estate
Purchase Agreement with the Commission (the Commission will consider the purchase
agreement at the June 13 meeting). The Developer agrees to complete the project within 36
months of closing on the property.
In September 2023, the Commission entered into Development Agreement with the Developer
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.
_________________________Pres/V-Pres
ATTEST: __________________Secretary Date:
_June 13, 2024
Approved Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
Page | 2
The properties for which this new Agreement applies are adjacent to the new duplex the
Developer committed to build in the September 2023 agreement.
Staff recommends approval of this Development 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 $_____________