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Home My WebLink AboutEDC Minutes 2.12.24Item 2.a SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION February 12, 2024, at 8:00 am BPW Conference Room, 13th Floor https://tinyurl.com/EDCCOSB2024 The South Bend Economic Development Commission was called to order at 8:10 am 1. Roll Call Members Present: Rafael Morton, Vice-President Renata Matousova, Secretary Luis Zapata, Commissioner Karen White, Commissioner Members Absent: Cecilia Lopez Monterrosa, President Staff: Danielle Campbell Weiss, Assistant City Attorney Mary Sears, Board Secretary Others Present: Caleb Bauer, Executive Director, DCI Erik Glavich, Director, Growth & Opportunity, DCI Michael Surak, VP, RealAmerica Lisa Lee, Attorney, Ice Miller 2. Election of Officers Upon a motion by Secretary, Renata Matousova and seconded by Commissioner Luis Zapata the Commission approved keeping the current slate of officers for 2024; motion carried unanimously, on February 12, 2024. 3. Approval of Minutes Upon a motion by Secretary Renata Matousova and seconded by Commissioner Luis Zapata the Commission approved the meeting minutes of December 11, 2023; motion carried unanimously, on February 12, 2024. 4. New Business A. Presentation of RealAmerica Project Erik Glavich, Director, Economic Growth and Opportunity presented RealAmerica Project. We are asking the Commission to approve the TIF funds that have been authorized by the Redevelopment Commission in the form of a loan to RealAmerica Development, LLC. and Legacy 25, Inc. which are jointly under the same ownership of RealAmerica for the February 12, 2024 Diamond View and Stadium flats apartments located near the ballpark. Maps were shown as to where the development will take place. Project cost is $25.3M. The required private investment is $21.5M with an estimate of over $30M. Diamond View apartments are affordable housing units. RealAmerica contracted with Logan Community Resources to provide housing for some of the people that they work with. The space will also have a dedicated community space for those residents. Stadium Flats is the name for the two market rate buildings. Each building will house forty-five market rate units. On January 11, 2024, the Redevelopment Commission approved a development agreement which provided $3.8M in TIF funding to be split between the two housing projects. The commitment from RealAmerica is $21.5M with a completion date in thirty - six months. Due to state guidelines and requirements, the affordable building will be completed end of 2025. Redevelopment Commission approved two resolution which helped the project move forward authorizing the TIF funds to be in the form of a loan. The city started working on this project in 2021. It started with a tax abatement. IHCDA announced an award for the project in January 2023. Redevelopment Commission approved a third amendment to the purchase agreement in May 2023. Common Council reconfirmed an eight -year tax abatement in June 2023 and then re-confirmed the tax abatement for the market-rate building. The last steps would be for the Economic Commission to approve the reports and resolution. Common Council will approve once more, and Redevelopment Commission will meet to vote on signing the loan documents. RealAmerica is planning on breaking ground next month. B. Approval of Project Report Mr. Erik Glavich presented the project report which is reflected in 4A for approval by the Economic Development Commission. Michael Surak, VP RealAmerica noted that the cost estimate is on the lower side. They are looking at spending $16M on the affordable housing side and around $20M on Stadium Flats. Secretary Renata Matousova asked what the AMI breakdown would be. Mr. Surak noted that Diamond View is eighteen units at 30% AMI, twelve units at 50% AMI, twelve units at 70% AMI and eighteen units at 80% AMI. Secretary Renata Matousova asked if this is a forgivable loan and what the terms are. Mr. Glavich stated yes, it is a forgivable loan. The terms included the requirements by RealAmerica aligned with the development agreement approved by the Redevelopment Commission which includes the private investment amount, job creation and the tax abatement. Commissioner White asked what part of the agreement is specifically for the Logan Center. Mr. Surak stated that there are twelve units. These units are set -up for roommate situations. They will be three-bedroom units that will be larger. All units have the same materials used throughout both buildings. The building will include retail, a café, and other types of stores. The folks at Logan Center are excited about the apartments. February 12, 2024 Commissioner Zapata asked about background of RealAmerica. Mr. Surak stated that they are a vertically integrated real estate development and construction and different company, and the company was started about almost thirty years ago by Ronda, Shrewsbury with the intent and purpose of developing affordable housing throughout the state of Indiana. Shortly after the development company was created, the RealAmerica management was started to manage the properties that we opened and make sure that they are being held to the same standards of which we were, you know, developing and building the properties too. Shortly after that RealAmerica construction was created to be the general contractor on all of the projects. To date we have done approximately forty development and ninety-six of those are affordable housing developments utilizing low-income housing tax credits. We have done several market rate and what we what we would kind of call missing metal market rate developments where one of which is the LaSalle and hotel conversion . We have done similar projects in Fort Wayne and then we've done a mix of middle market rate senior housing at affordable rates. We hate projects from South Bloomington, Columbus, Indianapolis to South Bend and Elkhart. Legacy25 is a non-profit organization that is affiliated with RealAmerica that provides services to residents. RealAmerica is a for profit organization. Secretary Renata Matousova asked if market research was done into the demand for apartments in the area. Mr. Glavich stated yes there is still a significant need for both market rate and affordable housing. Motion was made by Commissioner Morton and seconded by Secretary Renata Matousova, the motion carried unanimously, the Commission approved the project report for RealAmerica on February 12, 2024. C. Public Hearing regarding loan A notice went out on January 28, 2024, regarding the public hearing on the RealAmerica loan today. A Public Hearing regarding the loan was opened up for Commission comments and considerations. No Comments were made. The Commission portion was closed. A Public Hearing regarding the loan was opened up to the public for comments and considerations. No Comments were made by the public. The Public Hearing was closed. D. Presentation of form of loan agreement and form of Ordinance Mr. Erik Glavich Presented a Presentation of form of loan agreement and form of Ordinance. See above presentation by Mr. Glavich and Mr. Surak. Motion was made by Commissioner Morton and seconded by Secretary Renata Matousova, the motion carried unanimously, the Commission approved form of February 12, 2024 loan agreement and form of ordinance for RealAmerica on February 12, 2024. E. Approval of Resolution No. 2024-1 making findings relating to the financing of certain local public improvements to serve Economic Development Facilities, approving such financing and form of loan agreement related thereto. Motion was made by Commissioner Morton and seconded by Secretary Renata Matousova, the motion was carried unanimously, the Commission approved Resolution No. 2024-1 on February 12, 2024. 5. Adjournment at 8:37 am _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________