HomeMy WebLinkAboutResolution No. 3604 (466 Works Additional Appropriations)CITY OF SOUTHBEND
REDEVELOPMEN
Redevelopment Commission Agenda
DATE: 7/23/24
T
COMMISS - N
Item �ff1P�ir�e�s/V-Pres
ATTEST: `� ya �/�C�cr-etary
Date:
7 2 s 2-
FROM: Erik Glavich, Director, Growth & Opportunity
Approved D Not Approved
SUBJECT: Resolution No. 3604 (466 Works)
SOUTH BEND REDEVELOPMENT COMMISSION
Which TIF? circle one River West; River East; South Side Dou las Road West Washington
PURPOSE OF REQUEST: Resolution No. 3604 appropriating TIF revenues for 466 Works scattered site
infill housing project
SPECIFICS: The Commission will consider a resolution that will appropriate an amount not to
exceed $1.25 million for the first draw for the 466 Works scattered site infill housing project.
466 Works will build 30 new single-family homes over 3 years and can draw up to $116,000 for
each house it plans to build each year.
On June 25, the Commission approved a development agreement and a resolution,
respectively, providing TIF funds for the project. As a reminder, the total funding provided by
Commission will not exceed $3,500,000 and the private investment by the Developer will be no
less than $5,283,000. The Developer agrees to complete the project by December 31, 2027.
Funding will be provided via a loan that will be forgiven if the Developer completes the project
as committed.
INTERNAL USE ONLY: Project Code:
Total Amount new/change (inc/dec) in budget:
Break down:
Costs: Engineering Amt: ; Other Prof Sery 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 $
EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
1400S County -City Building 227 W. Jefferson Blvd. South Bend, Indiana 46601, p 574.235.9371 f 574.235.9021 www.southbendin.gov
RESOLUTION NO.3604
A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT
COMMISSION APPROPRIATING CERTAIN FUNDS IN CONNECTION
WITH A DIRECT LOAN TO THE DEVELOPER OF AN ECONOMIC
DEVELOPMENT FACILITY (SOUTHEAST NEIGHBORHOOD
PROJECT)
WHEREAS, the South Bend Redevelopment Commission (the "Commission"), the
governing body of the South Bend Department of Redevelopment and the Redevelopment District
of the City of South Bend, Indiana (the "District"), exists and operates under the provisions of
Indiana Code 36-7-14, as amended from time to time (the "Act"); and
WHEREAS, the Commission is committed to improving the City of South Bend, Indiana
(the "City") by administering and funding projects that support economic development, public
infrastructure, and neighborhood revitalization; and
WHEREAS, the Commission has previously adopted a declaratory resolution, as
subsequently confirmed and amended, which (i) declared the South Side Development Area (the
"South Side Development Area") as redevelopment area pursuant to Section 15 of the Act, (ii)
designated the South Side Development Area as an allocation area pursuant to Section 39 of the
Act (the "South Side Allocation Area"), for the purpose of capturing property tax proceeds derived
from incremental assessed valuation of real property in such allocation area which is in excess of
the "base assessed value" (such property tax proceeds, hereinafter referred to as "South Side TIF
Revenues"), (iii) created the South Side Allocation Area Fund into which all South Side TIF
Revenues are deposited, all pursuant to and as described Section 39 of the Act, and (iv) approved
a development plan for the South Side Development Area; and
WHEREAS, 466 Works Community Development Corporation, an Indiana nonprofit
corporation (the "Developer"), has informed the City that it desires to acquire and construct certain
economic development facilities within the meaning of Indiana Code 36-7-11.9 and 36-7-12 within
the City which will consist of up to thirty (30) single-family detached homes containing two (2) to
four (4) bedrooms of which (i) at least forty percent (40%) of the homes will be sold at a price that
is affordable to households earning one hundred twenty percent (120%) or less of the Area Median
Income, with an approximate total development cost of Eight Million Eight Hundred Seventy-
three Thousand Dollars ($8,873,000), on certain parcels of real property generally located in the
Southeast neighborhood in the City (collectively, the "Project"), and has requested that the City
make a loan to the Developer on a draw basis for the purposes of financing or reimbursing the
Developer for a portion of the costs of acquisition and construction of the Project; and
WHEREAS, the Common Council of the City adopted its loan ordinance (the "Loan
Ordinance") on July 22, 2024, which Loan Ordinance authorizes the issuance and funding of a
forgivable loan from the City to the Developer on an annual draw basis (the "Loan") over a three
(3) year period, with each annual draw amount equal to the sum of approximately $116,000 per
home the Developer expects to construct each year, in the total aggregate principal amount not to
exceed Three Million Five Hundred Thousand Dollars ($3,500,000) to finance a portion of the
Project; and
WHEREAS, the Commission previously adopted its Resolution No. 3602 on June 27,
2024, determining, subject to annual appropriation by the Commission, to make available the
South Side TIF Revenues to simultaneously reimburse the City for its costs incurred to fund each
draw on the Loan to the Developer with respect to the Project; and
WHEREAS, the Commission now desires to appropriate an amount not to exceed One
Million Two Hundred Fifty Thousand Dollars ($1,250,000) to fund the first draw on the Loan to
the Developer with respect to the Project; and
WHEREAS, notice has been given and this date a public hearing has been conducted
regarding such appropriation, as required by Indiana law;
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT
COMMISSION, AS FOLLOWS:
SECTION 1. 1. An appropriation in an amount not to exceed One Million Two
Hundred Fifty Thousand Dollars ($1,250,000), is hereby made for the purpose of simultaneously
reimbursing the City for expenditures made, or to be made, by the City to fund the first draw on
the Loan to the Developer with respect to the Project, and the funds to meet this appropriation will
be provided out of the South Side TIF Revenues collected in the South Side Allocation Area. Said
appropriation shall be in addition to all other appropriations provided for in the existing budget
and tax levy.
SECTION 2. The officers of the Commission and the Controller of the City are
hereby directed to make any and all required filings, if any, with the Department of Local
Government Finance in connection with this resolution.
SECTION 3. The President, Vice President or any other officer or member of the
Commission are hereby authorized to take all such actions and to execute all such instruments as
are desirable to carry out the transactions contemplated by this resolution, in such forms as such
officer or member executing the same shall deem proper, to be conclusively evidenced by the
execution thereof.
SECTION 4. This Resolution shall be in full force and effect from and after its
passage.
2
ADOPTED at a meeting of the South Bend Redevelopment Commission held on July 25,
2024, in Room 1308, County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana,
46601.
SOUTH BEND REDEVELOPMENT
COMMISSION
By:
Troy Warner, President
ATTEST:
Vivian G. Sa1Le, Secretary
DMS 43957138v1