HomeMy WebLinkAbout6A1 Resolution No. 3626 Approving Development Agreement (J.C. Hart Company) - Signed_updatedSouth Bend Redevelopment Commission
227 West Jefferson Boulevard, Room 1308, South Bend, Indiana
Redevelopment Commission Agenda Item
DATE : 1/6/25
FROM: Caleb Bauer, Executive Director of Community
Investment
SUBJECT: Resolution No. 3626 & J.C. Hart Development
Agreement
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: Resolution approving the Development Agreement for J.C. Hart Company, Inc.,
supporting redevelopment project in the Riverwalk Allocation Area
SPECIFICS: The Commission will consider a resolution that, if adopted, would approve a Development Agreement
with J.C. Hart Company, Inc. (the “Developer”) to provide support of a transformative redevelopment project at a
property on the west bank of the St. Joseph River (the southern half of the Crowe campus). The Developer will
demolish the existing south building and construct 2 new multi-family residential buildings (291 total
apartments) and a 398-space parking garage.
The Development Agreement specifies the funding support provided by the Commission to the Developer will be
in the form of Pledged TIF Revenues, which will consist of a percentage of incremental property tax revenue for
the Riverwalk Allocation Area generated by the development. The bond will generate $14,845,000 in net
proceeds at closing to unlock the project with $29,748,550 in debt service obligations over 20 years,1 funded
entirely from property tax increment generated by the development.
The City will also undertake the necessary public infrastructure improvements including utilities and streets to
support the Project. The street network established and utilities installed will also complement future
development in the River Glen office park area to the south. In the event of a material default by the Developer,
the City would be entitled to be reimbursed for its actual costs expended in furtherance of the necessary public
improvements.
The Developer commits to invest no less than $61.5 million and complete the project by the end of 2028.
1 The correct timeframe is a 25-year term. For purposes of clarifying the record, the Redevelopment
Commission corrected this misstatement at its March 13, 2025 meeting.
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
January 9, 2025
South Bend Redevelopment Commission
227 West Jefferson Boulevard, Room 1308, South Bend, Indiana
Redevelopment Commission Agenda Item
D ATE : 1/6/25
FROM: Caleb Bauer, Executive Director of Community
Investment
SUBJECT: Resolution No. 3626 & J.C. Hart Development
Agreement
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: Resolution approving the Development Agreement for J.C. Hart Company, Inc.,
supporting redevelopment project in the Riverwalk Allocation Area
SPECIFICS: The Commission will consider a resolution that, if adopted, would approve a Development Agreement
with J.C. Hart Company, Inc. (the “Developer”) to provide support of a transformative redevelopment project at a
property on the west bank of the St. Joseph River (the southern half of the Crowe campus). The Developer will
demolish the existing south building and construct 2 new multi-family residential buildings (291 total
apartments) and a 398-space parking garage.
The Development Agreement specifies the funding support provided by the Commission to the Developer will be
in the form of Pledged TIF Revenues, which will consist of a percentage of incremental property tax revenue for
the Riverwalk Allocation Area generated by the development. The bond will generate $14,845,000 in net
proceeds at closing to unlock the project with $29,748,550 in debt service obligations over 20 years, funded
entirely from property tax increment generated by the development.
The City will also undertake the necessary public infrastructure improvements including utilities and streets to
support the Project. The street network established and utilities installed will also complement future
development in the River Glen office park area to the south. In the event of a material default by the Developer,
the City would be entitled to be reimbursed for its actual costs expended in furtherance of the necessary public
improvements.
The Developer commits to invest no less than $61.5 million and complete the project by the end of 2028.
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
January 9, 2025
RESOLUTION NO. 3626
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
APPROVING A FORM OF DEVELOPMENT AGREEMENT AMONG THE CITY OF
SOUTH BEND, INDIANA, THE SOUTH BEND REDEVELOPMENT COMMISSION,
AND J.C. HART COMPANY, INC.
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 the Redevelopment of Cities and Towns Act of 1953
which has been codified in Indiana Code 36-7-14, as amended from time to time (the “Act”); and
WHEREAS, there has been presented to the Commission for its consideration an Economic
Development Agreement in the form set forth at Exhibit A attached hereto and incorporated herein
(the “Agreement”); and
WHEREAS, pursuant to the Agreement, J.C. Hart Company, Inc., an Indiana corporation
(the “Developer”), would agree to undertake the design, construction, and equipping of certain
economic development facilities located within the City of South Bend, Indiana (the “City”),
consisting of the development and construction of 2 buildings housing 291 apartments and a 398-
space structured garage (collectively, the “Project”), which Project shall be located in the
Riverwalk Allocation Area in the City (the “Area”), and the Commission would provide certain
incentives related thereto as further described in the Agreement; and
WHEREAS, the Commission believes that the approval of the Agreement is in the best
interests of the citizens of the City and necessary for the redevelopment and economic development
of the Area; and
WHEREAS, the Commission has determined that the completion of the Project is in the
best interests of the citizens of the City, and, therefore, the Commission desires to approve the
form of the Agreement.
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment
Commission as follows:
1.The Commission hereby approves the Agreement substantially in the form attached
hereto and authorizes the President of the Commission and Secretary of the Commission to execute
and attest, respectively, said Agreement in the form attached hereto, with such changes as the
President and Secretary shall approve, such approval to be evidenced by the execution and
attestation thereof.
2
2.The President and Secretary are hereby authorized and directed to take all such
actions and to execute and attest, respectively, all such instruments, including, without limitation,
the Agreement as they shall deem proper and necessary upon the advice of counsel to carry out
the transactions contemplated by this Resolution.
3.This Resolution shall take effect, and be in full force and effect, upon passage and
approval by the Commission, in conformance with applicable law.
ADOPTED AND APPROVED at a meeting of the South Bend Redevelopment
Commission held on the 9th day of January, 2025.
SOUTH BEND
REDEVELOPMENT COMMISSION
President
ATTEST:
Vice President
A-1
Exhibit A
(See attached Form of Economic Development Agreement)
DMS 45742968v2