HomeMy WebLinkAbout5A1 7th Amendment to Real Estate Purchase Agreement (Diamond View) - SignedSouth Bend Redevelopment Commission
227 West Jefferson Boulevard, Room 1308, South Bend, Indiana
Redevelopment Commission Agenda Item
D ATE : 03/24/2025
FROM: Joseph Molnar – Assistant Director of Growth &
Opportunity
SUBJECT: Seventh Amendment to Real America Purchase
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: Extension of Closing Date Real America Purchase Agreement
SPECIFICS: In 2021, Real America and the RDC approved an agreement to sell RDC owned real
estate at the northwestern corner of South St. and Lafayette Blvd. for the construction of
apartment units at a variety of cost points.
The fifth amendment approved by the RDC on February 5, 2024, separated out the market
rate and Low-Income Housing Tax Credit (“LIHTC”) parcels for separate closing dates. The
LIHTC parcel is currently under construction with anticipated opening of 60 affordable income
restricted apartments by end of 2025.
The sixth amendment extended the closing for the market rate parcel only for no later than
March 31, 2025. This was due to environmental abatement work performed on the market
rate parcel projected to be completed no later than January 2025 with final reporting being
provided in March 2025.
Due to unforeseen circumstances, and the environmental abatement becoming larger in scope
than initially intended, the environmental abatement was not finished until February 2025.
The work is complete, total costs being approximately $250,000 fully funded by the Indiana
Brownfields Program (“IBP”) and the Developer is waiting for final release in the form of a
Comfort Letter from the IBP. That release is expected for April 2025. After that release is
granted, the Developer intends to proceed with closing. This Seventh Amendment extends the
closing dates for the Market Rate parcels until July 31, 2025. No other substantive changes are
considered.
Staff requests approval.
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
March 27, 2025