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HomeMy WebLinkAbout5A3 Development Agreement (New Day Intake Center) - SignedDEVELOPMENT AGREEMENT This Development Agreement (this “Agreement”), is effective as of August 14, 2025 (the “Effective Date”), by and between the City of South Bend, Department of Redevelopment, acting by and through its governing body, the South Bend Redevelopment Commission (the “Commission”), and the New Day Intake Center, Inc. an Indiana nonprofit organization, with its registered address being 424 S. Michigan St., #11162, South Bend, Indiana 46634 (the “Developer”) (each, a “Party,” and collectively, the “Parties”). RECITALS WHEREAS, the Commission exists and operates under the provisions of the Redevelopment of Cities and Towns Act of 1953, as amended (I.C. 36-7-14 et seq., the “Act”); and WHEREAS, the Act provides that the clearance, replanning, and redevelopment of redevelopment areas are public uses and purposes for which public money may be spent; and WHEREAS, the Commission owns certain real property described in Exhibit A, which, concurrently with this Agreement, is being sold to Developer through a certain Real Estate Purchase Agreement (the “Purchase Agreement’), together with all improvements thereon and all easements, rights, licenses, and other interests appurtenant thereto (collectively, the “Developer Property”); and WHEREAS, the Developer provides lower-barrier emergency shelter and basic needs in a welcoming, dignified environment for individuals in crisis, and serves as a first-stop crisis response that connects people to housing and support using evidence-informed, Person-Centered practices to break the cycle of homelessness by building human and provider connections and offering a safe return for individuals facing future housing crises; and WHEREAS, the Developer currently has private financing and desires to construct, renovate, or otherwise rehabilitate certain elements of the Developer Property (the “Project”) in accordance with the project plan (the “Project Plan”) attached hereto as Exhibit B; and WHEREAS, the Developer Property is located within the corporate boundaries of the City within the area known as the River West Development Area for which it will serve, as well as all other areas of the City, including the River East Development Area and South Side Development Area (collectively, the “Areas”) by housing unsheltered individuals; and WHEREAS, the Commission has adopted (and subsequently amended, from time to time) a development plan, which contemplates development of the Areas consistent with the Project; and WHEREAS, the Commission and the Developer agree on certain shared principles, including that shelter should be Housing-Focused, Person-Centered, Trauma-Informed, Low- Barrier, and Harm-Reducing; and 2 WHEREAS, the Commission believes that accomplishing the Project as described herein is in the best interests of the health, safety, and welfare of the City and its residents; and WHEREAS, the Commission desires to facilitate and assist the Project by undertaking to simultaneously reimburse the City for its costs incurred or to be incurred in providing draws on a loan pursuant to a certain loan agreement (the “Loan Agreement”) that the Parties anticipate the Developer and the City executing pursuant to Indiana Code 36-7-12 to fund in part certain local public improvements stated in Exhibit C (the “Local Public Improvements”) in accordance with the Act, subject to the terms and conditions of this Agreement and the certain Loan Agreement. NOW, THEREFORE, in consideration of the mutual promises and obligations stated in this Agreement, the adequacy of which is hereby acknowledged, the Parties agree as follows: SECTION 1. DEFINITIONS. Unless otherwise defined in this Agreement, capitalized terms used in this Agreement have the following meanings: 1.1 Assessed Value. “Assessed Value” means the market value-in-use of a property, used for property 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 Four Million Dollars ($4,000,000.00) consisting of tax increment finance revenues to be provided to the City by the Commission subject to annual appropriation by the Commission to simultaneously reimburse the City for its costs incurred, or to be incurred through the Loan Agreement that will be subsequently executed by the Parties, to make the Loan on a draw basis pursuant to the terms of the Loan Agreement which will be used for paying a portion of 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 Property. The Private Investment does not include the Funding Amount. 1.5 Lower-Barrier Shelter: “Lower-Barrier Shelter” means an emergency shelter that minimizes entry requirements, allowing access without preconditions such as sobriety, employment, identification, or participation in treatment programs, except where needed for safety. 1.6 Diversion: “Diversion” means a strengths-based, problem-solving conversation conducted at shelter entry to identify safe alternatives to shelter. 3 1.7 Housing-Focused Case Management: “Housing-Focused Case Management” means a collaborative service approach that helps shelter guests identify housing goals, navigate housing resources, and remove barriers to Permanent Housing as quickly as possible. 1.8 Trauma-Informed Care: “Trauma-Informed Care” means services designed and delivered with an understanding of the prevalence and impact of trauma. 1.9 Coordinated Entry (CE): “Coordinated Entry” or “CE” means a centralized process through which people experiencing homelessness are assessed and prioritized for housing and services. 1.10 By-Name List (BNL): “By-Name List” or “BNL” means a real-time, continually updated list of all known people experiencing homelessness in the community. 1.11 Permanent Housing: “Permanent Housing” means stable housing without time limits, including RRH and PSH. 1.12 Return to Homelessness: “Return to Homelessness” means when a person who has exited homelessness into Permanent Housing re-enters homelessness within one year. 1.13 Unduplicated Count: “Unduplicated Count” means the total number of unique individuals served during a reporting period. 1.14 90-Day Housing Benchmark: “90-Day Housing Benchmark” means a best-practice benchmark aiming for the majority of shelter guests to secure Permanent Housing within 90 days of entry into shelter, with the understanding that achieving this benchmark depends on the availability of zero/low-income affordable rental housing in the community. 1.15 Homeless: An individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning: (a) Has a primary nighttime residence that is a public or private space not meant for human habitation; or (b) Is living in a publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, and local government programs; or (c) Is exiting an institution where (s)he has resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution. 1.16 Harm-Reducing: An approach that prioritizes reducing the negative consequences of behaviors associated with substance use, trauma, or other risk factors, without requiring abstinence or compliance with treatment as a condition of access to shelter or services. Harm reduction meets individuals where they are and works to minimize harm to their health, dignity, and safety while supporting progress toward stability and well-being. 4 1.17 Person-Centered: A philosophy and practice that respects and responds to the unique needs, strengths, preferences, and goals of each individual. Person-Centered services are grounded in the belief that people are experts in their own lives, and supports are designed in collaboration with them—not for them—empowering individuals to take the lead in their journey toward housing and wellness. SECTION 2. INTERPRETATION, TERMS, AND RECITALS. 2.1 Interpretation. (a) The terms “herein,” “hereto,” “hereunder,” and all terms of similar import shall be deemed to refer to this Agreement as a whole rather than to any Article 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 Article 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. DEVELOPER’S OBLIGATIONS. 3.1 Generally. The Parties acknowledge and agree that the Commission’s agreements to perform and abide by the covenants and obligations set forth in this Agreement are material consideration for the Developer’s commitment to perform and abide by the covenants and obligations of the Developer contained in this Agreement. The Parties further acknowledge and agree that the Developer’s obligations under this Agreement are hereby conditioned upon the execution and closing of the Loan Agreement. In the event that subsequent negotiations by the parties do not result in an executed Loan Agreement by March 31 , 2026, this Agreement shall become null and void. 3.2 The Project. (a) The Developer will perform all necessary work to complete the improvements set forth in the Project Plan attached hereto as Exhibit B and the plans and specifications to be approved by the City Planner, or his designee, 5 pursuant to Section 3.5 (“Submission of Plans and Specifications for Project”) of this Agreement, which improvements shall comply with all zoning and land use laws and ordinances. (b) The Developer will expend the Private Investment to complete the Project in accordance with the Project Plan attached hereto as Exhibit B and the plans and specifications to be approved by the Commission pursuant to Section 3.5 (“Submission of Plans and Specifications for Project”) of this Agreement. 3.3 Timeframe for Completion. The Developer hereby agrees to complete the Project as set forth in the Project Plan attached hereto as Exhibit B. and any other obligations the Developer may have under this Agreement by thirty-six (36) months from the Construction Commencement Date as defined in the Purchase Agreement, or on a timeframe as otherwise agreed between the Developer and the Commission, as may be modified due to unforeseen circumstances and delays (the "Mandatory Project Completion Date"). Notwithstanding any provision of this Agreement to the contrary, the Developer’s failure to complete the Project, expend the Private Investment, or fulfill any other obligations the Developer may have under this Agreement by the Mandatory Project Completion Date will constitute a default under this Agreement without any requirement of notice of or an opportunity to cure such failure. 3.4 Reporting Obligations. (a) Upon the letting of contracts for substantial portions of the Project and again upon substantial completion of the Project, the Developer hereby agrees to report to the Commission the number of local contractors and local laborers involved in the Project, the amount of bid awards for each contract related to the Project, and information regarding which contractor is awarded each contract with respect to the Project. (b) On or before June 30 and December 31 of each year until substantial completion of the Project, the Developer shall submit to the Commission a report, in the format set forth as Exhibit D, demonstrating the Developer’s good-faith compliance with the terms of this Agreement. The report shall include the following information and documents: (i) a status report of the construction completed to date, (ii) an update on the project schedule, (iii) an itemized accounting generally identifying the Private Investment to date, and (iv) a status report of the number of jobs created for employment at the Developer Property. (c) On or before April 15 of the year that is one year after substantial completion of the Project and on each April 15 thereafter until April 15 of the year that is ten (10) years after substantial completion of the Project, the Developer shall submit to the Commission a report containing the information as set forth in Exhibit E. 6 3.5 Submission of Plans and Specifications for Project. Promptly upon completion of all plans and specifications for the Project, or changes thereto, and prior to the Commission’s expenditure of the Funding Amount, the Developer shall deliver a complete set thereof to the City’s Executive Director Department of Community Investment, or his or her designee, who may approve or disapprove said plans and specifications for the Project in his or her sole discretion and may request revisions or amendments to be made to the same. 3.6 Costs and Expenses of Construction of Project. The Developer hereby agrees to pay, or cause to be paid, all costs and expenses of planning, construction, management, and all other activities or purposes associated with the Project (including legal, architectural, and engineering fees). 3.7 Non-Interference. Developer hereby agrees to use commercially reasonable efforts to minimize disruption for those living and working near the Developer Property during construction of the Project. 3.8 Insurance. The Developer shall purchase and maintain comprehensive insurance coverage as is appropriate for the work being performed with respect to the Project. The Developer shall provide proof of such adequate insurance to the Commission and shall notify the Commission and the City of any change in or termination of such insurance. During the period of construction or provision of services regarding any Local Public Improvements, the Developer shall maintain insurance in the kinds and for at least the minimum amounts as described in Exhibit F attached hereto and the Commission and the City shall be named as additional insureds on such policies (but not on any worker’s compensation policies). 3.9 Information. The Developer agrees to provide any and all due diligence items with respect to the Project reasonably requested by the Commission. 3.10 Governance and Operations. Not later than December 31, 2025, the Developer agrees to amend its governance structure to include four (4) members of its Board of Directors who shall be appointed by the Mayor of the City of South Bend. Such appointments shall be made in accordance with the Developer’s bylaws and applicable law, and shall remain in effect indefinitely, unless otherwise agreed in writing by the Parties. The Developer further agrees to cooperate in good faith with the Community Liaison Committee established by the City for the purpose of addressing neighborhood concerns related to the Project. The Developer shall designate appropriate staff or leadership to participate in regular meetings of the Committee and to support collaborative resolution of community issues. 3.11 HOME-ARP Compliance. It is anticipated that Developer will be selected as a subrecipient of a certain HOME American Rescue Plan (HOME-ARP) Non-Congregate Shelter Development funds, granted under CDFA 14.239, HOME Investment Partnership Program, Department of Housing and Urban Development, Office of Community Planning and Development, Grant Number M-21-DP-18-0208. (the “HOME-ARP Grant”). Provided the HOME-ARP Grant is awarded to Buyer as anticipated, as further consideration under this Agreement, the Developer affirms and agrees that it shall be bound by and shall comply with all requirements set forth in the HOME-ARP Grant for the entirety of the fifteen (15) year restricted use and compliance period. 7 SECTION 4. COMMISSION’S OBLIGATIONS. 4.1 Generally. The Parties acknowledge and agree that the Developer’s agreement to perform and abide by the covenants and obligations set forth in this Agreement is material consideration for the Commission’s commitment to perform and abide by the covenants and obligations of the Commission contained in this Agreement. 4.2 Cooperation. The Commission agrees to endorse and support the Developer’s efforts to expedite the Project through any required planning, design, permitting, waiver, and related regulatory processes, provided, however, that the Commission will not be required to expend any money in connection therewith. 4.3 Public Announcements, Press Releases, and Marketing Materials. The Commission hereby agrees to coordinate all public announcements and press releases relating to the Project with the Developer. SECTION 5. COOPERATION IN THE EVENT OF LEGAL CHALLENGE. 5.1 Cooperation. In the event of any administrative, legal, or equitable action or other proceeding instituted by any person not a party to this Agreement challenging the validity of any provision of this Agreement, the Parties shall cooperate in defending such action or proceeding to settlement or final judgment including all appeals. Each Party shall select its own legal counsel; however, Developer shall reimburse the Commission for its reasonable attorneys’ fees associated with the Commission’s defense of this Agreement against a third-party lawsuit due to Developer’s negligence or breach of this Agreement. In no event shall the Commission be required to bear the fees and costs of the Developer’s attorneys. The Parties agree that if any other provision of this Agreement, or this Agreement as a whole, is invalidated, rendered null, or set aside by a court of competent jurisdiction, the Parties agree to be bound by the terms of this Section 5.1, which shall survive such invalidation, nullification, or setting aside. SECTION 6. DEFAULT. 6.1 Default. Any failure by either Party to perform any term or provision of this Agreement, which failure continues uncured for a period of sixty (60) days following written notice of such failure from the other Party, shall constitute a default under this Agreement. Any notice given pursuant to the preceding sentence shall specify the nature of the alleged failure and, where appropriate, the manner in which said failure satisfactorily may be cured. Upon the occurrence of a default under this Agreement, the non-defaulting Party may (a) terminate this Agreement, or (b) institute legal proceedings at law or in equity (including any action to compel specific performance) seeking remedies for such default. If the default is cured within sixty (60) days after the notice described in this Section 6.1, then no default shall exist and the noticing Party shall take no further action. In the event that the Developer fails (a) to complete the Project by the Mandatory Project Completion Date, or (b) to expend the full amount of the Private Investment by the Mandatory Project Completion Date, Developer will be considered in default, and the Developer will be required to repay all Funding Amounts received in accordance with the Loan Agreement. 8 6.2 Force Majeure. Notwithstanding anything to the contrary contained in this Agreement, none of the Parties shall be deemed to be in default where delays in performance or failures to perform are due to, and a necessary outcome of, war, insurrection, strikes or other labor disturbances, walk-outs, riots, floods, earthquakes, fires, casualties, acts of God, acts of terrorism, restrictions imposed or mandated by governmental entities, enactment of conflicting state or federal laws or regulations, new or supplemental environments regulations, contract defaults by third parties, or similar basis for excused performance which is not within the reasonable control of the Party to be excused (each, an event of “Force Majeure”). Upon the request of any of the Parties, a reasonable extension of any date or deadline set forth in this Agreement due to such cause will be granted in writing for a period necessitated by the event of Force Majeure, or longer as may be mutually agreed upon by all the Parties. SECTION 7. NO AGENCY, JOINT VENTURE, OR PARTNERSHIP; CONFLICT OF INTEREST; INDEMNITY. 7.1 No Agency, Joint Venture or Partnership. The Parties acknowledge and agree that: (a) The Project is a private development; (b) None of the Commission, the Board of Works, or the Developer has any interest or responsibilities for, or due to, third parties concerning any improvements until such time, and only until such time, that the Commission, the Board of Works, and/or the Developer expressly accepts the same; and (c) The Parties hereby renounce the existence of any form of agency relationship, joint venture or partnership between the Commission, the Board of Works, and the Developer and agree that nothing contained herein or in any document executed in connection herewith shall be construed as creating any such relationship between the Commission, the Board of Works, and the Developer. 7.2 Conflict of Interest; Commission Representatives Not Individually Liable. No member, official, or employee of the Commission or the City may have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is, directly or indirectly, interested. No member, official, or employee of the Commission or the City shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the Commission or for any amount which may become due to the Developer, or its successors and assigns, or on any obligations under the terms of this Agreement. No partner, member, employee, or agent of the Developer or successors of them shall be personally liable to the Commission under this Agreement. 7.3 Indemnity. The Developer agrees to indemnify, defend, and hold harmless the Commission and the City from and against any third-party claims suffered by the Commission or the City resulting from or incurred in connection with the Local Public Improvements or the Project. 9 SECTION 8. MISCELLANEOUS. 8.1 Severability. If any term or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining terms and provisions of this Agreement shall continue in full force and effect unless amended or modified by mutual consent of the parties. 8.2 Waiver. Neither the failure nor any delay on the part of a Party to exercise any right, remedy, power, or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power, or privilege preclude any other or further exercise of the same or of any right, remedy, power, or privilege with respect to any occurrence be construed as a waiver of any such right, remedy, power, or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 8.3 Other Necessary Acts. Each Party shall execute and deliver to the other Parties all such other further instruments and documents as may be reasonably necessary to accomplish the Project and the Local Public Improvements contemplated by this Agreement and to provide and secure to the other Parties the full and complete enjoyment of its rights and privileges hereunder. Notwithstanding the foregoing, the Parties understand and agree that certain actions contemplated by this Agreement may be required to be undertaken by persons, agencies, or entities that are not a party to this Agreement, including, but not limited to certain permits, consents, and/or approvals (to the extent they have not yet been obtained and completed), and that any action by such third parties shall require independent approval by the respective person, agency, entity, or governing body thereof. 8.4 Dispute Resolution; Waiver of Jury Trial. Any action to enforce the terms or conditions of this Agreement or otherwise concerning a dispute under this Agreement will be commenced in the courts of St. Joseph County, Indiana, unless the Parties mutually agree to an alternative method of dispute resolution. The Parties acknowledge that disputes arising under this Agreement are likely to be complex and they desire to streamline and minimize the cost of resolving such disputes. In any legal proceeding, each Party irrevocably waives the right to trial by jury in any action, counterclaim, dispute, or proceeding based upon, or related to, the subject matter of this Agreement. This waiver applies to all claims against all parties to such actions and proceedings. This waiver is knowingly, intentionally, and voluntarily made by both Parties. 8.5 Attorneys’ Fees. In the event either Party pursues any legal action (including arbitration) to enforce or interpret this Agreement, each Party shall bear its own attorneys’ fees and other costs and expenses (including expert witness fees). 8.6 Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Project: (a) The Developer will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Developer agrees to post in conspicuous places, available to employees and 10 applicants for employment, notices setting forth the provisions of this nondiscrimination clause; and (b) The Developer will state, in all solicitations or advertisements for employees placed by or on behalf of the Developer, that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. 8.7 Counterparts. This Agreement may be executed in separate counterparts, each of which when so executed shall be an original, but all of which together shall constitute one and the same instrument. Any electronically transmitted version of a manually executed original shall be deemed a manually executed original. 8.8 Notices and Demands. Any notice, demand, or other communication required or permitted under the terms of this Agreement may be delivered (a) by hand-delivery (which will be deemed delivered at the time of receipt), (b) by registered or certified mail, return receipt requested (which will be deemed delivered three (3) days after mailing), or (c) by overnight courier service (which will be deemed delivered on the next business day) to each Party’s respective addresses and representatives stated below. Developer: New Day Intake Center, Inc. Attn: Sheila McCarthy PO Box 11162 South Bend, IN 46634 With a copy to: Sopko, Nussbaum, Inabnit & Kaczmarek Attn: Richard A. Nussbaum II 210 S. Michigan St Suite 500 South Bend, IN 46601 Commission: South Bend Redevelopment Commission 1400S County-City Building 227 W. Jefferson Blvd. South Bend, IN 46601 Attn: Executive Director, South Bend Department of Community Investment With a copy to: South Bend Legal Department 1200S County-City Building 227 W. Jefferson Blvd. South Bend, IN 46601 Attn: Corporation Counsel 8.9 Governing Law. This Agreement is governed by and construed in accordance with the laws of the State of Indiana. 11 8.10 Authority. Each undersigned person executing and delivering this Agreement on behalf of a Party represents and certifies that he or she is the duly authorized officer or representative of such Party, that he or she has been fully empowered to execute and deliver this Agreement on behalf of such Party, and that all necessary action to execute and deliver this Agreement has been taken by such Party. 8.11 No Third-Party Beneficiaries. Nothing in this Agreement, express or implied, is intended or shall be construed to confer upon any person, firm, or corporation other than the Parties hereto and their respective successors or assigns, any remedy or claim under or by reason of this Agreement or any term, covenant, or condition hereof, as third-party beneficiaries or otherwise, and all of the terms, covenants, and conditions hereof shall be for the sole and exclusive benefit of the Parties herein. 8.12 Assignment. The Developer’s rights under this Agreement shall be personal to the Developer and shall not run with the land. The Developer may not assign its rights or obligations under this Agreement to any third party without obtaining the Commission’s prior written consent to such assignment, which the Commission may give or withhold in its sole discretion. In the event the Developer seeks the Commission’s consent to any such assignment, the Developer shall provide to the Commission all relevant information concerning the identities of the persons or entities proposed to be involved in and an explanation of the purposes for the proposed assignment(s). 8.13 Further Assurances. The Parties agree that they will each undertake in good faith, as permitted by law, any action and execute and deliver any document reasonably required to carry out the intents and purposes of this Agreement. 8.14 Exhibits. All exhibits described herein and attached hereto are incorporated into this Agreement by reference. 8.15 Entire Agreement. No representation, promise, or inducement not included in this Agreement will be binding upon the Parties hereto. This Agreement cannot be modified except by mutual agreement of the Parties set forth in a written instrument signed by the Parties’ authorized representatives. 8.16 Time. Time is of the essence of this Agreement. Signature Page Follows 12 IN WITNESS WHEREOF, the Parties hereby execute this Agreement to be effective as of the Effective Date stated above. SOUTH BEND REDEVELOPMENT COMMISSION ______________________________ Troy Warner, President ATTEST: ______________________________ Eli Wax, Secretary NEW DAY INTAKE CENTER, INC. ______________________________ Sheila McCarthy, Executive Director 13 EXHIBIT A Description of Developer Property Tax ID No. The northern half of 71-03-28-100-004.000-009 subtracting out a 60’ wide section for access to the southern half of the lot equating to an estimated 7.02 acres Parcel Key No. The northern half of 025-1010-0380 equating to an estimated 7.02 acres Legal Description: The northern half of 14.93 Ac S Side Cleveland Rd Beg 165' W Of Ne Cor Nw Sec 28-38-2e equating to an estimated 7.02 acres to be subdivided prior to closing Commonly known as: 4022 Old Cleveland Road 14 EXHIBIT B Project Plan The Developer will complete the following work in accordance with the terms and conditions of this Agreement and in compliance with all applicable laws and regulations: ●Developer will redevelop the Property into a no less than one hundred and ten (110) bed Lower-Barrier Shelter. ●The Provider shall ensure that the shelter is fully operational and open to receive guests no later than thirty-six (36) months after Construction Commencement Date defined in the Purchase Agreement, or another date agreed to in writing by Parties, subject to all applicable permitting and regulatory approvals. The Developer will complete the work contemplated herein in accordance with the terms and conditions of this Agreement and in compliance with all applicable laws and regulations. The structures will be considered complete upon the issuance of Certificates of Occupancy. The Developer shall also enter into a five-year Operating Agreement with the City of South Bend describing the required operations of the homeless intake center upon completion, which shall include, at a minimum, the requirement for the Developer to follow each of the following terms: 1.Operate low-barrier emergency shelter beds year-round (365 days), ensuring accessibility to individuals regardless of sobriety, income, identification, or participation in services. 2.Deliver comprehensive emergency shelter services that are Housing-Focused, Person-Centered, Trauma-Informed, and low-barrier. NDIC will implement practices that promote equity, dignity, and rapid housing outcomes, while ensuring guest safety, engagement, and connection to community resources. 3. Work collaboratively with OrgCode Consulting to assist in the development and implementation of Standard Operating Procedures (SOPs) necessary for the effective and compliant operation of the shelter. Such SOPs shall be completed and approved prior to the commencement of shelter operations. 4. Provide immediate and equitable access to basic needs, including three daily meals, hygiene supplies, showers, laundry services, storage, mailing address, and access to phones, internet, and computers. 5. Conduct Diversion conversations with all new guests at intake to explore safe alternatives to shelter, document outcomes, and reduce unnecessary shelter stays. 6. Ensure that 100% of guests meet with a Housing-Focused Case Manager within 48 hours of entry to begin developing a tailored Housing Plan within 7 days. 7. Conduct a triage of new shelter guests within 14 days of shelter entry using approved Coordinated Entry tools to determine acuity and support prioritization for housing resources. 8. Develop individualized Housing Plans focused on rapid exit to Permanent Housing, including identification of barriers, action steps, and coordination with 15 housing providers and mainstream resources. 9. Actively engage with community partners to coordinate and deliver on-site supportive services including physical health, mental health, substance use, legal services, and employment assistance. 10.Provide regular access to crisis de-escalation, conflict mediation, and safety planning, particularly for individuals impacted by trauma, intimate partner violence, or acute mental health needs. 11. Maintain staffing levels and staff competencies to support a safe, welcoming environment with 24/7 supervision, trained in Trauma-Informed care, de- escalation, motivational interviewing, and cultural humility. 12.Participate fully in the local Coordinated Entry system (IN-502) and ensure all eligible guests are added to the By-Name List within 72 hours of shelter entry. 13.Enter all client-level data into the Homeless Management Information System (HMIS) in accordance with CoC data quality standards and reporting timelines. 14. Support continuous quality improvement by gathering guest feedback, reviewing outcomes, and participating in CoC-led training, evaluation, and fidelity monitoring activities. 15. Submit all required program reports, emergency plans, and outcome documentation in accordance with contract reporting timelines and performance review processes. 16.As needed, maintain a waitlist to manage shelter access in accordance with best practices. The operating agreement terms described here will be in effect for five years from the date of project occupancy. 16 EXHIBIT C Description of Local Public Improvements Local Public Improvements will include site work and improvements in support of the construction of the Project as agreed upon between the Parties, in compliance with all applicable laws and regulations It is understood between the Parties that the Commission will contribute an amount not to exceed the Funding Amount specified in Section 1.3 of this Agreement. Any and all costs that require funding above the Funding Amount are the sole responsibility of the Developer. 17 EXHIBIT D Form of Report to Commission City of South Bend Department of Community Investment Development Agreement Review Answer the below questions and return to the Department of Community Investment. Project Information Project Name: __________________________________________________________ Address: _______________________________________________________________ Construction Completed to Date: Project Schedule Update: Itemized Accounting of Private Investment to Date: Number of Jobs Created: Name: _______________________________________ Address: _______________________________________ _______________________________________ Position: _______________________________________ Email: _______________________________________ Signature: ___________________________________ Date: ___________________ 18 EXHIBIT E Post Completion Reporting Contents (Report to be provided annually to the Commission) Measurable Outcomes: ●Number of people moved into Permanent Housing, broken down by housing type. ●Length of time participants stay in the emergency shelter (aiming for housing placement within 90 days). ●Percentage of those housed who do not Return to Homelessness in the community within one year. ●Percentage of guests exiting to Permanent Housing within 90 days of shelter entry (90- Day Housing Benchmark). Measurable Outputs: ●Total Unduplicated Count of number of people served. ●Total number of meals provided. ●Total number of community partners providing services on-site. ●Number of people added to the By-Name List/CE list. ●100% of guests will have access to meals, showers, laundry, mail, and technology. ●100% of guests will meet with a Case Manager within 48 hours of entry. ●100% of guests will have a Housing Plan within 7 days of entry. ●100% of new shelter intakes will receive a Diversion attempt. Definitions for Key Performance Terms: ●Permanent Housing Placement: When a guest exits the shelter and enters Rapid Re- Housing (RRH), Permanent Supportive Housing (PSH), or any non-time-limited housing. ●Length of Stay: The number of days from shelter entry to exit, measured per individual. ●Housing Stability: Measured as the percentage of individuals housed who do not Return to Homelessness in the community within 12 months. ●Diversion Success: The percentage of new shelter intakes that are diverted to safe, alternative housing options without entering the shelter system. ●Service Engagement: The percentage of guests who complete a Housing Plan and meet with a Case Manager within the required timelines. PERFORMANCE BENCHMARKS Benchmarks will align with HMIS reporting standards and ESG CAPER formats. Shelter will target the 90-Day Housing Benchmark, aiming for at least 50% of shelter exits to result in Permanent Housing placements within 90 days. 19 EXHIBIT F Minimum Insurance Amounts A.Worker’s Compensation 1.State Statutory 2.Applicable Federal Statutory 3.Employer’s Liability $100,000.00 B.Comprehensive General Liability 1. Bodily Injury a.$5,000,000.00 Each Occurrence b. $5,000,000.00 Annual Aggregate Products and Completed Operation 2.Property Damage a.$5,000,000.00 Each Occurrence b. $5,000,000.00 Annual Aggregate C.Comprehensive Automobile Liability 1. Bodily Injury a.$500,000.00 Each Person b. $500,000.00 Each Accident 2.Property Damage a.$500,000.00 Each Occurrence