HomeMy WebLinkAbout6A3 TIF Pledge Resolution No. 3630 -Taxable Econ. Dvlpmnt. Tax Increment (J.C. Hart) - SignedSouth Bend Redevelopment Commission
227 West Jefferson Boulevard, Room 1308, South Bend, Indiana
Redevelopment Commission Agenda Item
D ATE : 2/25/25
FROM: Erik Glavich, Director, Growth & Opportunity
SUBJECT: Public Hearing
Resolution No. 3629 (Confirming Resolution)
Resolution No. 3630 (J.C. Hart TIF Pledge)
Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res.
* Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the
authorization of the expenditure of such funds shall be void and of no effect.
PURPOSE OF REQUEST: Public hearing and resolution to confirm the establishment of the Riverwalk Allocation
Area; Resolution to pledge TIF revenues for the Riverwalk project
SPECIFICS: The Commission will consider 2 resolutions that, if adopted, would finalize the establishment of the
Riverwalk Allocation and pledge TIF revenues from the new allocation area in support of the transformative
Riverwalk project. The project will consist of 2 new multi-family residential buildings (approximately 291 total
apartments) and a parking garage with approximately 398 spaces. The City is considering the issuance of Taxable
Economic Development Tax Increment Revenue Bonds, Series 2025, and a portion of the net proceeds of such
bonds would be used for the purpose of financing a portion of the costs of the project. The bonds would be
purchased by J.C. Hart Company, Inc. (the “Developer”).
Resolution No. 3629, if adopted, would confirm the Commission’s Declaratory Resolution No. 3627, adopted on
1/9/25, which would amend the River West Development Area and would create the new Riverwalk Allocation
Area. The amendment to the River West Development Area and the creation of the new Riverwalk Allocation
Area were also approved by the South Bend Plan Commission on 1/21/25 and the Common Council on 2/10/25.
Prior to consideration of Resolution No. 3629, the Commission will hold a public hearing.
Resolution No. 3630, if adopted, would pledge TIF revenues from the Riverwalk Allocation Area to the Developer
in support of the project. The Commission entered into a Development Agreement with the Developer on
1/9/25, which established that the support provided by the Commission to the Developer will be in the form of
Pledged TIF Revenue. This Pledged TIF Revenue—90% of the TIF revenue over the life of the bond, if issued—
would be used by the Developer to pay the principal and interest on the bonds. Moreover, this resolution would
pledge additional 6% of TIF revenues until such additional revenue equals $1.342 million. As stated in
Declaratory Resolution No. 3627, the full development of the Riverwalk Allocation Area with the improvements
discussed above would not proceed as planned without the contribution of tax increment revenues to be
derived from the Riverwalk Allocation Area to the Riverwalk project.
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
February 27, 2025
RESOLUTION NO. 3630
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
PLEDGING CERTAIN TAX INCREMENT REVENUES TO THE PAYMENT OF
CERTAIN TAXABLE ECONOMIC DEVELOPMENT TAX INCREMENT REVENUE
BONDS OF THE CITY OF SOUTH BEND FOR THE J.C. HART DEVELOPMENT
PROJECT
WHEREAS, the South Bend Redevelopment Commission (the “Commission”), the
governing body of the City of South Bend, Indiana, Department of Redevelopment (the
“Department”) 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 has heretofore adopted a declaratory resolution (as
subsequently confirmed and amended from time to time, the “Declaratory Resolution”)
designating an area known as the River West Development Area (the “Area”) as an economic
development area pursuant to the Act, designating the Area as an allocation area pursuant to
Section 39 of the Act (the “Allocation Area”), and approving an economic development plan for
the Area (the “Plan”); and
WHEREAS, the Commission on January 9, 2025, approved and adopted its Resolution No.
3627 for the purpose of making additional amendments to the Area and the Plan including to
designate a portion of the Allocation Area as a separate allocation area pursuant to Section 39 of
the Act to be known as the Riverwalk Allocation Area (“Riverwalk Allocation Area”) for purposes
of capturing ad valorem property taxes levied and collected on all taxable real property from the
incremental assessed value located in the Riverwalk Allocation Area (such tax increment revenues,
including any future tax increment revenues generated as a result of the redesignation of the
Riverwalk Allocation Area, the “Riverwalk Allocation Area TIF Revenues”); and
WHEREAS, the Commission and J.C. Hart Company, Inc. (the “Company”), have entered
into a Development Agreement, dated as of January 9, 2025 (the “Development Agreement”),
whereby the Company agreed that the Company, or an affiliate thereof will undertake the
development and construction of 2 buildings housing approximately 291 apartments and an
approximately 398-space structured garage to be located in Riverwalk Allocation Area (the
“Project”); and
WHEREAS, the City is considering the issuance of its City of South Bend, Indiana,
Taxable Economic Development Tax Increment Revenue Bonds, Series 2025 (J.C. Hart
Development Project), in a maximum aggregate principal amount not exceeding $17,000,000 (the
“Bonds”), a portion of the net proceeds of such Bonds to be used for the purpose of financing a
portion of the costs of the Project; and
WHEREAS, the Commission desires to pledge a portion of the Riverwalk Allocation Area
TIF Revenues consisting of: (i) ninety percent (90%) of the Riverwalk Allocation Area TIF
Revenues (the “90% Pledge Revenues”), and (ii) an additional annual amount equal to six percent
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(6.0%) of the Riverwalk Allocation Area TIF Revenues (the “6% Pledge Revenues”) until such
time as the aggregate of such additional annual amounts equals $1,342,000 (the “6% Pledge
Amount”), following which the only amount of the Riverwalk Allocation Area TIF Revenues
pledged shall be the 90% Pledge Revenues (clauses (i) and (ii), collectively, the “Pledged TIF
Revenues”) to the payment of the principal of and interest on the Bonds; and
WHEREAS, the Commission has determined that the undertaking of the Project, the
issuance of the Bonds by the City and the pledge of the Pledged TIF Revenues in the manner set
forth herein will further the purposes of the Declaratory Resolution and the Plan, each as amended;
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment
Commission, as follows:
1.The Commission hereby pledges the Pledged TIF Revenues to the payment of the
principal of and interest on the Bonds as follows: (i) the 90% Pledge Revenues are pledged for a
term of years not less than the term of the Bonds and (ii) the 6% Pledge Revenues are pledged
until such time as the aggregate amount of such additional annual amounts of Riverwalk Allocation
Area TIF Revenues equals the 6% Pledge Amount.
2.The pledge of the Pledged TIF Revenues made herein shall be effective as set forth
in I.C. 5-1-14-4 without the recording of this Resolution other than in the records of the
Commission or the filing of any other instrument. Notwithstanding the foregoing, in the event that
the Pledged TIF Revenues are in excess of the amount necessary to make scheduled principal and
interest payments on the Bonds when due and to pay any outstanding amounts due and owing on
the Bonds due to shortfalls in Pledged TIF Revenues in previous years (the “Excess TIF
Revenues”), the Commission shall retain and apply such Excess TIF Revenues solely to the
payment of the principal of and interest on the Bonds when due or, at the option of the Commission
in accordance with the terms of the Bonds, to redeem a portion of the outstanding
Bonds. Notwithstanding anything herein to the contrary, at such time as the aggregate amount of
the additional annual amounts of the 6% Pledge Revenues equals the 6% Pledge Amount, the 6%
Pledge Revenues shall no longer be pledged hereunder and the Commission shall retain the 6%
Pledge Revenues received by the Commission and may use the 6% Pledge Revenues for any
purpose under the Act.
3.The President and Secretary of the Commission are hereby authorized and directed
to enter into a pledge agreement on behalf of the Commission (the “Pledge Agreement”) providing
that the Pledged TIF Revenues are pledged as described herein and containing such other terms
consistent with this Resolution to evidence the intent of the Commission to secure the Bonds solely
with the Pledged TIF Revenues as described herein.
4.Any officer of the Commission is hereby authorized to take such further actions
and execute on behalf of the Commission such further documents or agreements as any such officer
deems necessary or appropriate to effectuate the purposes of this Resolution.
5.This Resolution shall be deemed to take effect immediately upon adoption by the
Commission. The provisions of this Resolution shall constitute a contract binding between the
Commission and the holder or holders of the Bonds and after the issuance of said Bonds, this
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Resolution shall not be repealed or amended in any respect which would adversely affect the right
of such holder or holders of said Bonds.
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ADOPTED AND APPROVED at a meeting of the South Bend Redevelopment
Commission held on the 27th day of February, 2025.
SOUTH BEND
REDEVELOPMENT COMMISSION
By:
Troy Warner, President
ATTEST:
Eli Wax, Secretary
DMS 46303620