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HomeMy WebLinkAbout5B3 Amendment to Development Agreement (River Walk LLC) - SignedSouth Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item D ATE : 5/19/25 FROM: Erik Glavich, Director, Growth & Opportunity SUBJECT: Amendment to Development Agreement for River Walk L.L.C. (The Pointe residential development project) 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: Amendment Development Agreement for property located at 703 Northside Blvd., South Bend, Indiana 46601 (River Walk L.L.C.) SPECIFICS: On August 22, 2024, the Commission entered into a Development Agreement with River Walk L.L.C., an entity owned by a local developer, for the redevelopment of long-vacant property on Northside Boulevard. west of St. Peter Street. The developer plans to build 13 individual housing units, which continues the activation of properties near Howard Park and within walking distance of downtown South Bend. The original Development Agreement specifies that the Funding Amount provided by Commission will not exceed $500,000 and the private investment commitment by the Developer will be no less than $10,000,000. The Developer also commits to completing the project by December 31, 2027. Due to unique challenges posed by the site, including environmental issues which have added development costs, additional support is necessary to ensure the successful completion of the project. The proposed amendment to the Development Agreement, if adopted, would increase the funding amount to $1,250,000 and the private investment commitment $14,000,000. No other amendments would be made. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION May 22, 2025  FIRST AMENDMENT TO DEVELOPMENT AGREEMENT This FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (this “First Amendment”) is made and entered into to be effective as of May 22, 2025, by and between South Bend Redevelopment Commission (“Commission”), and River Walk L.L.C., an Indiana limited liability company (“Developer”). RECITALS A.The Commission and Developer entered into that certain Development Agreement, dated effective as of August 22, 2024, ( the “Agreement”) for development of certain real property located in St. Joseph County, City of South Bend, State of Indiana as more particularly described in Exhibit A of the Agreement (the “Property”). All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement. B.The Property poses unique challenges that threaten its development and successful completion of the Project, as defined in the Agreement. C.The Commission affirms its belief that accomplishing the Project as is in the best interests of the health, safety, and welfare of the City and its residents. D.The Commission and the Developer now desire to amend the Agreement to reflect increases to the Funding Amount and Private Investment amount. AGREEMENT NOW, THEREFORE, in consideration of these premises, and the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Developer and the Commission hereby agree as follows: 1.Recitals. The recitals set forth above, including each and every recital contained therein, are incorporated into and made a part of this First Amendment as though fully set forth herein. 2.Amendments. The Agreement is hereby amended as follows: a)In Section 1.3, the text “Five Hundred Thousand Dollars ($500,000.00)” shall be deleted and replaced with the following: “One Million Two Hundred Fifty Thousand Dollars ($1,250,000.00).” b)In Section 1.4 the text “Ten Million Dollars ($10,000,000.00)” shall be deleted and replaced with the following: “Fourteen Million Dollars ($14,000,000.00).” 2 3.Entire Agreement; Conflict. Except as otherwise stated herein, all other terms, conditions and agreements contained in the Agreement remain unmodified and in full force and effect. To the extent a conflict exists between the terms of this First Amendment and the Agreement, the terms of this First Amendment shall control. 4.Counterparts; Electronic or Facsimile Transmission. This First Amendment may be executed in counterparts which, when combined, shall constitute one instrument. The electronic or facsimile transmission of a signed counterpart of this First Amendment shall be binding upon the party whose signature is contained on the transmitted copy. [Signature Page Follows.] I. I Assessed Value. "Assessed Value" means the market value-in-use of a property, used for prope1ty tax assessment purposes as determined by the St. Joseph County Assessor. 1.2 Board of Works. "Board of Works" means the Board of Public Works of the City, a public body granted the power to award contracts for public works pursuant to I.C. 36-1-12. 1.3 Funding Amount. "Funding Amount" means an amount not to exceed Five Hundred Thousand Dollars ($500,000.00) of tax increment finance revenues to be used for paying the costs associated with the construction, equipping, inspection, and delivery of the Local Public Improvements. 1.4 Private Investment. "Private Investment" means an amount no less than Ten Million Dollars ($10,000,000.00) to be expended by the Developer for the costs associated with constructing the improvements set forth in the Project Plan, including architectural, engineering, and any other costs directly related to completion of the Project that are expected to contribute to increases in the Assessed Value of the Developer Prope1ty. SECTION 2. INTERPRETATION, TERMS, AND RECITALS. 2.1 Interpretation. (a)The terms "herein," "hereto," "hereunder," and all terms of similar impo1t shall be deemed to refer to this Agreement as a whole rather than to any A1ticle of, Section of, or Exhibit to this Agreement. (b)Unless otherwise specified, references in this Agreement to (i) "Section" or "Article" shall be deemed to refer to the Section or A1ticle of this Agreement bearing the number so specified, (ii) "Exhibit" shall be deemed to refer to the Exhibit of this Agreement bearing the letter or number so specified, and (iii) references to this "Agreement" shall mean this Agreement and any exhibits and attachments hereto. (c)Captions used for or in Sections, Articles, and Exhibits of this Agreement are for convenience of reference only and shall not affect the construction of this Agreement. (d)The terms "include," "including," and "such as" shall each be construed as if followed by the phrase "without being limited to." 2.2 Recitals. The Recitals set forth above are incorporated into and are a part of this Agreement for all purposes. SECTION 3. ACCESS. 3.1 Grant of Easement. The Developer will grant to the Commission a temporary, non- exclusive easement on, in, over, under and across any part(s) of the Developer Property (the "Easement") in the form attached hereto as Exhibit D, to permit the Commission to fulfill its obligations under this Agreement, including the construction, equipping, inspection, and delivery of the Local Public Improvements. The Easement shall (a) inure to the benefit of the Commission 2