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HomeMy WebLinkAboutRedevelopment Commission Agenda & Packet 08.28.25 South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Agenda Regular Meeting, August 28, 2025 – 9:30 a.m. BPW Conference Room 13th Floor or https://tinyurl.com/RDC-2025-4T Meeting Recording Link: https://tinyurl.com/RDC-Meeting-Recordings 1. Roll Call • Troy Warner, President – (Council) January 2025 to December 2025 • Dave Relos, Vice President – (Mayor) January 2025 to December 2025 • Eli Wax, Secretary – (Mayor) February 2025 to December 2025 • Gillian Shaw, Commissioner – (Mayor) January 2025 to December 2025 • Ophelia Gooden-Rodgers, Commissioner – (Council) February 2025 to December 2025 • Marcus Ellison, Non-Voting Advisor – (School Board) February 2025 to December 2026 2. Approval of Minutes A. Minutes of the Regular Meeting of August 14, 2025 3. Approval of Claims A. Claims Allowance August 12, 2025 4. Old Business A. None 5. New Business A. River West Development Area 1. Purchase Agreement (Sunoco on 1335 Portage Ave.) 2. Resolution No. 3647 (Accepting Drewry’s Property 1408 Elwood from BPW) 3. Real Estate Donation Agreement (Property at 1724 Kendall St.) 4. Second Amendment to Development Agreement (The Monreaux) B. River East Development Area 1. Development Agreement (The Yard) 2. Second Amendment to Development Agreement (Cascade-Wharf Partners, LLC) 6. Progress Reports A. Tax Abatement B. Common Council C. Other 7. Next Commission Meeting Thursday, September 11, 2025, 9:30 a.m. at 4th Floor Council Chambers CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES August 14, 2025, at 9:30 a.m. BPW Conference Room, 13th Floor, County-City Building https://tinyurl.com/RDC-2025-2T Meeting Recording Link: https://tinyurl.com/RDC-Meeting-Recordings The South Bend Redevelopment Commission was called to order at 9:31 a.m. President Troy Warner presiding. 1. ROLL CALL • Troy Warner, President – (Council) January 2025 to December 2025 • Dave Relos, Vice President – (Mayor) January 2025 to December 2025 • Eli Wax, Secretary – (Mayor) February 2025 to December 2025 • Ophelia Gooden-Rodgers, Commissioner – (Council) February 2025 to December 2025 • Marcus Ellison, Non-Voting Advisor – (School Board) February 2025 to December 2026 Members Absent: Gillian Shaw, Commissioner Legal Staff: Danielle Campbell Weiss, Senior Asst. City Attorney Redevelopment Staff: Caleb Bauer, Exec. Director, DCI Joseph Molnar, Asst. Dir. of Growth and Opp., DCI Erin Michaels, Property Development Manager, DCI - Virtual Tim Corcoran, Chief Planner, DCI - Virtual Lidya Abreha, Project Manager, Engineering Tamina Ewing, Neighborhood Program Specialist, DCI Laura Hensley, Board Secretary, DCI Others Present: Marlene & Thomas Nowak, 1709 Wayne St. Brian Connolly, 1523 Sunnymede Ave. Joe Weber, 1112 Sunnymede Ave. Margaret Neil, 511 St. Joseph St. Becky Czarnecki, 805 Arch Ave. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 2 Ben Capdevielle, 511 Margaret Ave. Eddie Bradley, 17815 Woodthrush Matt Barrett, 110 S. Niles Ave. Anna Johnson, 630 Cushing St. Sam Linn, 528 River Ave. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, July 24, 2025 Upon a motion by Ophelia Gooden-Rodgers for approval, second by David Relos, the motion carried unanimously; the Commission approved the minutes of the regular meeting of July 24, 2025. 3. Approval of Claims A. Claims Allowances July 29, 2025 Upon a motion by David Relos for approval second by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved the claims allowances of July, 29, 2025. 4. Old Business A. None 5. New Business A. River West Development Area 1. Purchase Agreement (New Day Intake Center) Caleb Bauer, Executive Director of Community Investment, presented agenda items 541-4 together. The site at 4022 Old Cleveland Rd, which is about 14.5 acres in total. Staff are working to divide the land, and the purchase agreement being discussed today covers 7 acres on the north side. a) The purchase agreement for that land. b) An option to buy land at the Knights Inn site on Lincoln Way West. c) A development agreement to help fund the New Day Intake Center. d) A resolution to start the process for a forgivable loan, which needs approval from several groups. This step begins the process but doesn’t finalize it today. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 3 All of this supports the creation of a 110-bed low-barrier intake center called the New Day Intake Center. The purchase agreement covers Lot 1, which is on the north side of the property located on Old Cleveland Rd. The proposed sale price is $1,000. The buyer agrees to: • Start construction within 12 months after the sale closes. • Invest $10 million in private funds. • Finish construction within 36 months of closing. The agreement also includes a 15-year operational commitment. During this time, the project must follow rules from the HOME ARP federal program, which is managed locally by the Department of Community Investment for the St. Joseph County Housing Consortium. If these conditions aren’t met during the 15 years, the City (RDC) has the right to take back the property through a reversion clause. The option agreement is to buy the Knights Inn property on Lincoln Way West. A few years ago, the City of South Bend helped acquire this site to temporarily continue operations for the Motels4Now program. Under this option: • The Commission can purchase the property for $1 after the New Day Intake Center is built. • There will be a 6-month window after construction is complete to allow time for moving operations from the Knights Inn to the new facility. • The option to purchase remains valid for five years after the New Day Intake Center is finished. The development agreement outlines what the New Day Intake Center team (a nonprofit 501(c)(3)) is committing to: • They will build a low-barrier emergency shelter with at least 110 beds. The current plan is for around 120 beds, but that number could change slightly depending on final designs and construction costs. • The shelter must be fully built and open by December 31, 2027, subject to all applicable permitting and regulatory approvals. • The team will also sign a 5-year operating agreement with the City of South Bend, which includes specific commitments for how the shelter will run. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 4 • The city plans to provide $500,000 per year for five years to help cover operating costs. This funding comes from the annual budget approved by the sub-income council. • While the operating agreement isn’t finalized yet, a summary of its terms is included in the development agreement for reference. Financial Commitments: • The New Day team will invest at least $10 million privately. • The Redevelopment Commission will contribute $4 million through a forgivable loan using tax increment financing (TIF) funds. This loan will work like a regular loan with interest. Once the project is completed and meets its goals, the loan can be forgiven, effectively turning it into a grant. The timeline for the New Day Intake Center must be: • Completed within 36 months after construction begins. • Fully open and ready to receive guests by December 31, 2027. The loan agreement with the City is expected to be finalized before January 1, 2026, assuming all necessary approvals are received from other decision-making bodies. These approvals are still pending, so this timeline could change. Once the project is substantially complete, the New Day Intake Center team will be required to: • Submit an annual report to the Commission for 10 years, showing that they are following all required codes and post-completion standards. • These reporting requirements are included as an exhibit in the development agreement. There will also be separate reporting requirements tied to the operating agreement, which will be finalized closer to the time the facility opens. The New Day Intake Center must: • Run the low-barrier emergency shelter year-round. • Be accessible to everyone, regardless of sobriety, income, ID status, or whether they participate in services. • Create individual housing plans to help guests move into permanent housing as quickly as possible. • However, due to limited housing options, some guests may need to stay longer until suitable housing becomes available. • Work closely with community partners to provide on-site support services, including: • Physical and mental health care CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 5 • Substance use treatment • Legal assistance • Employment support There are 16 more requirements listed in the agreement exhibit, which the Commission can review. Reporting Requirements: After the center is completed, the New Day team must submit an annual report to the Commission for 10 years, showing they’re meeting all post-construction standards. These requirements are outlined in Exhibit E of the development agreement. Funding Resolution No. 3646: The final item is a resolution to begin the forgivable loan process, using Tax Increment Financing (TIF) funds. • Funds will come from three commercial TIF districts: • River West: $2.4 million • River East: $1 million • Southside: just under $500,000 Although the project isn’t located in all three districts, the city believes it benefits the entire community, which is why funding is being drawn proportionally from each. Vice President Relos asked about details of the phases. Sheila McCarthy, Executive Director of the New Day Intake Center, explained that the project is being built in two phases: Phase One: • Includes the administration building (called the Blue Center). • Builds half of the shelter units—think of it as one side of the full layout. • This phase is 94% funded, with support from HOME ARP funds. Phase Two: • Covers the remaining shelter units—the top section of the layout. • The goal is to start Phase Two right after Phase One, to keep momentum and simplify funding and planning. Sheila emphasized that this phased approach helps the team manage such a large project and build on the success they’ve already had at the Lincoln Way West location. For example, this summer alone, they’ve helped place a dozen people into housing. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 6 She concluded by saying that providing safe shelters with support services is key to ending homelessness and helping people transition into permanent housing. Secretary Wax asked about an estimate of the demolition costs for the Lincolnway West site and Mr. Bauer stated an estimate of $200-250. Mr. Wax also asked about site security and Mr. Bauer stated that New Day is working in coordination with the South Bend Police Department and will have fencing and gates to the facility. Ms. McCarthy stated that since 2020 they have had over 800 guests and 600 are no longer homeless. They also meet monthly with SBPD and Chief Ruszkowski is in support of this project, and the new facility will have a better intake process that should reduce security issues. Commissioner Gooden-Rodgers asked about the intake process of becoming a guest at the facility. Ms. McCarthy explained that at Our Lady of the Road, where many people already go for breakfast, laundry, and showers three days a week, they are able to get more information on the intake process for shelter which begins on Friday mornings. Here’s how it works: • Staff will add you to the waitlist and ask about 20 questions to understand your situation. • They’ll check if there’s another shelter or program that might help you right away. • You’ll check in regularly during breakfast, and when a spot opens up, they’ll invite you to join them at the motel. • Once accepted, you’ll go through a 30-minute orientation, get your room key, towels, and toiletries, and settle into your space. Ms. McCarthy also explained that transportation will be provided. Deb Adams asked if the gardens will be run by Unity gardens and Ms. McCarthy stated no, they are run by New Day. Both President Warner and Vice President Relos commended the staff for the hard work on this project and should be a model for other cities. Secretary Wax expressed reservations and concerns for the surrounding neighborhood, however, also spoke in favor of the project and would like updates regarding the operating and development agreements. Upon a motion by David Relos for approval, seconded by Ophelia Gooden-Rodgers, the motion carried unanimously; the Commission approved the Purchase Agreement as presented on August 14, 2025. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 7 2. Option to Purchase Agreement & Memorandum of Option (Current Motels4Now, Our Lady of the Road) Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Option to Purchase Agreement and Memorandum of Option as presented on August 14, 2025. 3. Development Agreement (New Day Intake Center) Upon a motion by David Relos for approval, seconded by Troy Warner, the motion carried unanimously; the Commission approved the Development Agreement as presented on August 14, 2025. 4. Resolution No. 3646 Pledging TIF to Fund Forgivable Loans (New Day Intake Center) – RWDA, REDA, SSDA TIF Districts Upon a motion by David Relos for approval, seconded by Ophelia Gooden-Rodgers, the motion carried unanimously; the Commission approved Resolution No. 3646 as presented on August 14, 2025. 5. Resolution No. 3641 (Accepting Transfer of 1636 LWW from County Commissioners) Joseph Molnar, Assistant Director of Growth and Opportunity, presented a Resolution for the property at 1636 Lincoln Way West is located just off the main corridor, west of the Internet neighborhood, and south of the far-left neighborhood near Holy Cross School and the new Coal Line. In 2022, the city demolished the old South Bend Brewing Association building on this site due to safety concerns—parts of the structure were falling into the street and sidewalks. After demolition, a lien was placed on the property to cover the costs, but the owner didn’t pay it. Because of the unpaid lien, the property went through the tax sale process last fall. When properties aren’t purchased at the initial tax sale, the Redevelopment Commission (RDC) can request the tax certificate from the county commissioners before it goes to the next sale. This spring, RDC staff requested the county to begin that process. The county commissioners approved Resolution R-14-C-2025, transferring the tax certificate to the RDC on July 29, 2025. Now, Resolution 3641 allows the RDC to officially accept the certificate and authorizes the City’s Department of Law to secure the title and necessary documents to fully acquire the property. RDC staff believe this site is a strong candidate for future redevelopment. The property is near, the Coal Line trail (Phase 1) and the planned Coal Line trail CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 8 (Phase 3) of the project, the new infill housing by Intend Indiana and partners, the newly opened Dream Center, and Kennedy Park, which is also set for improvements. This resolution is just the first step—accepting the tax certificate. It will take a few months for the city’s legal team and RDC staff to complete the process of taking full control of the property. Vice President Relos asked if there were any environmental issues with the demolition of the property and Mr. Molnar stated no. Upon a motion by David Relos for approval with the amended date, seconded by Eli Wax, the motion carried unanimously; the Commission approved Resolution No. 3641 with the amended date of July 29, 2025 for the date the Commissioner’s approved R-14-C-2025 in the seventh paragraph of the recitals as presented on August 14, 2025. 6. Budget Request (Leighton Building Renovations) Lidya Abreha, Project Manager, Engineering, presented this budget request for $100,000 to cover consulting fees for the next stage of renovations for the Leighton building for conceptual and schematic design. Secretary Wax asked to give a progress update and if there have been previous appropriations for this project. Caleb Bauer stated that he didn’t have the exact amount with me right now, but we’ll get that information to you. I believe the funding was part of a combined appropriation for several properties the Commission recently acquired, including the garage and the Latent building. One reason for this additional request is that the layout of the building has changed since we first looked at it. The YMCA received funding through the READI program to create a pre-K center within the building. We’ve been working with them to finalize the square footage needed for their space, which will be located on the first floor. A formal agreement for that is coming soon. These updates have shifted the design from what we originally envisioned a year ago. Also, part of this funding will allow a third-party review of issues related to the ballast tank for the pool. The YMCA has already made significant upgrades to the pool and its mechanical systems. The first floor of the building is planned to house a pre-K facility operated by the YMCA. We're currently in negotiations, and the agreement may include a limited number of pre-K service benefits for city employees. The second floor will include some city office space, CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 9 primarily for departments that are overflowing from City Hall. These will be non-public-facing offices. Part of this floor also contains mechanical systems for the pool. The third and fourth floors will remain YMCA facilities, and we hope to finalize a long-term agreement to formalize that arrangement soon. Upon a motion by Eli Wax for approval, seconded by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved the Budget Request as presented on August 14, 2025. 7. Open Bids for Disposition of Property (Taylor, Wayne & Western Lots) Joseph Molnar, Assistant Director of Growth and Opportunity, stated that no bids were submitted and we will proceed with next steps for this property. 8. First Amendment to Network Operating Center Lease (Union Station) Joseph Molnar, Assistant Director of Growth and Opportunity, stated that last year, the Redevelopment Commission (RDC) acquired Union Station as part of a broader agreement involving several properties. Along with the property, RDC also took over an existing lease agreement with 1547 CSR, dating from last year. 1547 CSR owns the adjacent data center, which currently uses Union Station as its main public entrance. Although they’re working on building separate entrances and expanding their data center, they still rely on Union Station for access and operations. Under the lease, 1547 occupies a small 1,000 sq. ft. space in Union Station for offices used by their security and staff. In exchange, they provide 24/7 security and monitoring for the entire building, including the parking lot—at no cost to the city. This includes gated access, check-ins, and on-site personnel. If the city were to hire a private firm for similar services, it would likely cost $10,000–$15,000 per month. The current lease ends on August 19, 2025, but the proposed amendment would extend it by one year, giving 1547 more time to complete their separate entrance. During this extension, they’ll continue providing full security services. Once 1547 finishes their entrance and fully transitions out of Union Station, the city will take over responsibility for securing the building. The goal is to fully separate the two properties, which have shared ownership for decades. Secretary Wax asked about an early termination provision and future plans for the building. Danielle Campbell Weiss, Senior Assistant City Attorney, will confirm that there is. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 10 As for the future of Union Station, the City is exploring the possibility of reactivating it as a full-time Amtrak station. Discussions are ongoing, and while there’s no official update yet, the City believes Union Station would be a better location than the current Amtrak station, which is about two miles west. Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Amendment as presented on August 14, 2025. 9. Second Amendment to Development Agreement (The Monreaux) President Warner asked for a motion to table this agenda item. Upon a motion by Eli Wax to Table, seconded by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved to table the Amendment as presented on August 14, 2025. B. Redevelopment General Fund 1. Home Repair Program Mortgage Release (722 E. Ewing) Tamina Ewing, Neighborhood Program Specialist, presented the mortgage release. President Warner explained that this issue comes up every 18–24 months. Years ago, the city ran a home repair program for qualifying residents—typically seniors or low-income households. Instead of paying upfront, a lien was placed on the property to be repaid later, usually when the home was sold or transferred. Now, about 20 years later, we’re seeing requests to release those liens as homes are being sold or passed on through estates. The lien covers the cost of repairs and must be cleared before the sale. Secretary Wax asked for a total count and Ms. Ewing stated she would work on that. We don’t currently have a full count of how many liens are still active, but that information can be found with a few hours of research through the office of the recorder. To clarify: the lien is being released, not the home itself. It’s typically released to the owner or their heirs. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the Mortgage Release as presented on August 14, 2025. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 11 6. Progress Reports A. Tax Abatement B. Common Council C. Other 7. Next Commission Meeting Thursday, August 28, 2025, 9:30 a.m. at BPW Conference Room 13th Floor 8. Adjournment Thursday, August 14, 2025, 10:32 a.m. ______________________________ ______________________________ Eli Wax, Secretary Troy Warner, President City of South Bend Department of Administration & Finance Claims Allowance Request To:South Bend Redevelopment Commission From:Kyle Willis, City Controller Date:Tuesday, August 12, 2025 Pursuant to Indiana Code 36-4-8-7, I have audited and certified the attached claims and submit them for allowance in the following amounts: GBLN-0114449 $101,033.98 GBLN-0115189 $412,101.34 GBLN-0000000 $0.00 Total:$513,135.32 _______________________________ Kyle Willis The attached claims described above were allowed in the following total amount at a public meeting on the date stated below: South Bend Redevelopment Commission By:_______________________________ Name: Date: Attest: _______________________________ Name: South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item DATE : 8/22/2025 FROM: Joseph Molnar, Assistant Director of Growth & Opportunity SUBJECT: Purchase Agreement – 1335 Portage Ve 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: Approve the Purchase Agreement for 1335 Portage Ave SPECIFICS: The Redevelopment Commission acquired the Portage Elwood Shopping Center in December of 2024. The City is currently designing plans for the redevelopment of the Shopping Center as well as the adjacent former Drewrys Brewery property. The property located at 1335 Portage Ave is a former auto repair shop that is adjacent to the Shopping Center. The auto repair shop is closed and owned by the trust of the former owner who has passed away. The trust had no interest in continuing to operate the property as an auto repair shop. Acquiring the property at 1335 Portage would aid in the design of the redevelopment of the Shopping Center and add property for redevelopment along the Portage Ave corridor. The specifics of the agreement are: • Purchase Price of $100,850 (average of two appraisals) • 60 day due diligence period • 30 day closing period Staff recommend approval of the Purchase Agreement which will help in redevelopment efforts of the Portage Ave corridor. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item DATE : 8/22/2025 FROM: Joseph Molnar, Assistant Director of Growth & Opportunity SUBJECT: Acceptance of 1408 Elwood from BPW 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: Approve Resolution Accepting 1408 Elwood (former Drewrys Brewery Parcel) from BPW to RDC SPECIFICS: The City of South Bend, through the entity of the Board of Public Works (BPW), acquired the former Drewrys Brewery property at 1408 Elwood via a tax certificate in June 2022. At the time of acquisition, the site was in complete disrepair and constituted a risk to the health and safety of the surrounding neighborhood. Since acquisition, the City and a variety of partners, including the Environmental Protection Agency and the Indiana Department of Environmental Management, have expended considerable resources to address the safety concerns and clean up the site. Those actions have included: • Significant environmental testing • Removal of environmental contaminants • Removal of all partially demolished buildings • Removal of all buildings that were fire damaged • Removal of all remaining industrial buildings • Removal of underground storage tanks There are a few items left in the remediation portion of the cleanup including the final removal of some remaining foundations. Once those foundations are removed, the site will be ready for the next phase of redevelopment. City staff believe this is an appropriate time to transfer the property to the Redevelopment Commission (RDC), which is a more appropriate entity than the BPW for the next stages of redevelopment planning. Also, the RDC is the owner of the adjacent Portage Elwood Shopping Center. Having both sites under common ownership will aid in the combined redevelopment efforts of both properties. Staff recommends approval of the resolution. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION RESOLUTION NO. 3647 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION ACCEPTING THE TRANSFER OF REAL PROPERTY FROM THE CITY OF SOUTH BEND, ACTING THROUGH ITS BOARD OF PUBLIC WORKS WHEREAS, the City of South Bend, acting through its Board of Public Works (the “City”) is the owner of certain property identified herein; and WHEREAS, pursuant to I.C. 36-1-11-8, the City, may transfer or exchange property with another governmental entity upon terms and conditions agreed upon by the two (2) entities as evidenced by the adoption of substantially identical resolutions of each entity; and WHEREAS, the South Bend Redevelopment Commission (the “Commission”), the governing body of the South Bend, Indiana, Department of Redevelopment (the “Department”) exists and operates under the provisions of I.C. 36-7-14, as amended from time to time (the “Act”) and is a body corporate and politic; and WHEREAS, the City desires to the transfer to the Commission certain real property as set forth in Exhibit “A” attached (collectively referred to as the “Property”); and WHEREAS, the Commission desires to accept the transfer of the Property from the City for purposes of redevelopment and; WHEREAS, the City has adopted a resolution consistent with the requirement of Indiana § 36–1–11–8. NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT COMMISSION AS FOLLOWS: 1. The transfer of the following described real property situated in St. Joseph County, Indiana: See Exhibit “A” by the City to the Commission, without consideration, shall be, and hereby is, approved and authorized. 2. The Assistant Director for Growth & Opportunity for the City of South Bend shall cause the recording of a quit claim deed conveying all the right, title and interest of the South Bend Redevelopment Commission in and to the Property, for the use and benefit of its Department of Redevelopment. 3. This Resolution shall be in full force and effect upon its adoption. 2 ADOPTED at a meeting of the South Bend Redevelopment Commission held on _____________________, at 227 West Jefferson Boulevard, 13th Floor, South Bend, Indiana 46601. CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT ______________________________ Signature ______________________________ Printed Name and Title South Bend Redevelopment Commission ATTEST: ______________________________ Signature ______________________________ Printed Name and Title South Bend Redevelopment Commission 3 EXHIBIT A Parcel Description Parcel ID: 018-1094-3943 State ID: 71-08-02-101-006.000-026 Address: 1408 Elwood Ave Legal Description: N W Pt Ex Parcel Sold Sec 2-37-2e South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item DATE : 8/21/25 FROM: Erin Michaels – Property Development Manager SUBJECT: Real Estate Donation Agreement – 1724 Kendall St 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: Approval of Proposed Real Estate Donation Agreement for Vacant Parcel at 1724 Kendall St SPECIFICS: The proposed Real Estate Donation Agreement would allow the Redevelopment Commission to accept one vacant residential parcel located at 1724 Kendall St from 2010 Investment Group LLC (the “Group). The Group has contacted Commission staff and wishes to donate this parcel to the Redevelopment Commission to further redevelopment in the Rum Village neighborhood. The due diligence period would be sixty (60) days from approval of this agreement and the closing deadline would be 30 days from the end of the due diligence period. The City owns thirty (30) vacant parcels in this neighborhood and adding this parcel to the City’s portfolio will help to further redevelopment in this area. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item DATE : 8/26/2025 FROM: Erik Glavich, Director, Growth and Opportunity SUBJECT: Second Amendment to Development Agreement for “The Monreaux” 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: Second Amendment to a Development Agreement with The Monreaux LLC and Delta Ventures Ltd. (collectively, the “Developer”) for the Monreaux residential development SPECIFICS: The Commission will consider a Second Amendment to the Development Agreement that, if adopted, would authorize an additional $303,000 in TIF expenditures to support the Monreaux project. Cost increases and other challenges since the execution of the Development Agreement have necessitated consideration by the Commission to increase support to ensure successful completion of the project. The additional funds would be used to assist the Developer in making architectural improvements. On November 20, 2023, the Commission entered into a Development Agreement with the Developer for the construction of “The Monreaux” affordable housing project at 505, 507, 511, and 513 S. Michigan Street, the former “Fat Daddy’s” site. The Commission also entered into a Purchase Agreement on July 14, 2022, for the sale of the property for the Monreaux project. The due diligence period established by the Purchase Agreement was amended 3 times—now set to expire on September 30, 2025—as the Developer has worked through design, engineering, and financing. The Development Agreement was amended on May 22, 2025 (the First Amendment). It increased the Funding Amount to $3,300,000 (from $2,300,000) and increased the Private Investment commitment to $17,700,000 (from $13,700,000). The total project will consist of a 57,000 square foot building and 57 residential units, of which 45 are income restricted. The Funding Amount authorized through the original Development Agreement and First Amendment would be provided to the Developer in accordance with a loan agreement, which establishes that the loan would be forgiven if the Developer completes the project as committed. In alignment with the Real Estate Purchase Agreement, as amended, the Developer agrees to complete the project within 36 months of the Closing Date. If the Commission were to approve this Second Amendment to the Development Agreement, the additional $303,000 would not be included in the loan amount; it would instead be subject to the procurement processes _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana to which traditional local public improvements are subject. This Second Amendment does not amend the forgivable loan fund amount or details. This Second Amendment would also amend the Agreement by incorporating the following provisions: • Updating a reference to when the loan agreement with the Developer must be executed • Clarifying when commitments under the Development Agreement have been met • Other standard development agreement provisions, including the description of local public improvements, that are necessary for the Commission to purchase siding materials Staff recommends approval of the Second Amendment. The Monreaux project is vital to the stabilization and continued growth of the southern end of downtown South Bend. In addition to providing needed affordable housing options, the project along with others in the area will be transformative. 1 SECOND AMENDMENT TO DEVELOPMENT AGREEMENT This SECOND AMENDMENT TO DEVELOPMENT AGREEMENT (this “Second Amendment”) is made and entered into to be effective as of August 28, 2025, by and between the City of South Bend, Department of Redevelopment, acting by and through its governing body, the South Bend Redevelopment Commission (“Commission”), and The Monreaux LLC, an Indiana limited liability company with offices at 1335 Pyle Avenue, South Bend, Indiana 46615, and Delta Ventures Ltd. (collectively, the “Developer”). RECITALS A. The Commission and the Developer entered into that certain Development Agreement dated effective November 20, 2023, as amended by a First Amendment to Development Agreement dated May 22, 2025 (collectively the “Development Agreement” or as may be referred to as simply 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 Development Agreement. All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Development Agreement. B. Certain circumstances have changed since the execution of the First Amendment to Development Agreement, and the Commission and the Developer now collectively desire to further amend the Development Agreement to increase the Funding Amount to support architectural improvements to the Project. C. The Developer has revised designs for the Project and is prepared to move forward to fulfill the commitments of the Development Agreement and other agreements with the Commission related to this Project. D. The Commission believes that the architectural changes to which the Developer is committed and to which the increase in the Funding Amount would be used for are in the best interests of the health, safety, and welfare of the City and its residents. E. The Commission and the Developer now desire to amend the Development Agreement as set forth herein. 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 Second Amendment as though fully set forth herein. 2. Amendments. The Development Agreement is hereby amended as follows: a) Section 1.3 shall be deleted in its entirety and replaced with the following: 2 “1.3 Funding Amount. “Funding Amount” means the total of: (a) an amount not to exceed Three Million Three Hundred Thousand Dollars ($3,300,000.00) of tax increment finance revenues 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 pursuant to the terms of the Loan Agreement, which will be used for paying a portion of the Local Public Improvements; and (b) an amount not to exceed Three Hundred Three Thousand Dollars ($303,000.00) of tax increment finance revenues to be used for paying the costs associated with the Local Public Improvements procured by the Board of Works to purchase exterior siding materials for certain architectural improvements to the Project.” b) A new Section 1.4 shall be inserted in SECTION 1. DEFINITIONS, which states as follows: “1.4 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.” c) In the last sentence of Section 3.1, the text “January 31, 2024” shall be deleted and replaced with the following: “January 31, 2026.” d) Section 3.3 shall be deleted in its entirety and replaced with the following text: 3.3 Timeframe for Completion. The Developer hereby agrees to complete the Project as set forth in the Project Plan and any other obligations the Developer may have under this Agreement by the completion date established in the Purchase Agreement, or otherwise agreed between the Developer and the Commission, as may be modified due to unforeseen circumstances and delays (the “Mandatory Project Completion Date”). The Developer further agrees the total Project will be completed in accordance with the Project Plan attached hereto as Exhibit B. (a) Upon issuance of Certificates of Occupancy for the entirety of the Project, and upon Developer’s determination that it has substantially completed the Project, the Developer shall submit a written certificate to the Commission stating that the Project has been completed and is ready for use (the “Affidavit of Completion”). Upon the Commission’s receipt of the Affidavit of 3 Completion, it shall conduct a final inspection at a date and time agreeable to the Developer. After the final inspection is conducted, the Commission shall provide a determination to the Developer indicating that: (i) the Project is substantially complete, and this Agreement shall immediately terminate; or (ii) one or more components of the Project are not complete, with explanation of how to how to cure the incomplete component(s). (b) Notwithstanding any provision of this Agreement to the contrary, the Developer’s failure to complete the Project or 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, and the Developer will be required to repay (i) all Funding Amounts received in accordance with the terms of the Loan Agreement; and (ii) One Hundred Fifty Percent (150%) of the portion of the Funding Amount expended by the Commission for paying the costs associated with the Local Public Improvements procured by the Board of Works to purchase exterior siding materials for certain architectural improvements to the Project, of the as of the date of the Commission’s demand, as further set forth in Section 6.1 of this Agreement. e) The First sentence of Section 3.4(b) shall be deleted and replaced with the following text: On or before June 30 and December 31 of each year following the commencement of construction until substantial completion of the Project, the Developer shall submit to the Commission a report, in the format set forth in Exhibit D, demonstrating the Developer’s good-faith compliance with the terms of this Agreement. f) In Section 3.7, the reference to “Exhibit F” shall be deleted and replaced with “Exhibit E.” g) A new Section 3.9 shall be inserted in SECTION 3. DEVELOPER’S OBLIGATIONS, which states as follows: “3.9 Grant of Easement. Upon assuming ownership of the Developer Property, 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 F, to permit the Commission to fulfill its obligations under this Agreement, including the construction, 4 equipping, inspection, and delivery of the Local Public Improvements. The Easement shall (a) inure to the benefit of the Commission and the Board of Works or any contractors acting on behalf of the Commission in connection with the construction, equipping, inspection, and delivery of the Local Public Improvements; (b) shall bind the Developer and its grantees, successors, and assigns; and (c) shall terminate no later than upon completion of the Local Public Improvements, as determined by the Board of Works.” h) A new Exhibit F shall be inserted in the form attached hereto as Exhibit 1. i) A new Section 3.10 shall be inserted in SECTION 3. DEVELOPER’S OBLIGATIONS, which states as follows : “3.10 Obtain Necessary Easements. The Developer agrees to obtain any and all easements from any governmental entity and/or any other third parties that the Developer or the Commission deems necessary or advisable in order to complete the Local Public Improvements, and the obtaining of such easements is a condition precedent to the Commission’s obligations under this Agreement.” j) A new Section 3.11 shall be inserted in SECTION 3. DEVELOPER’S OBLIGATIONS, which states as follows : “3.11 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), exclusive of the Local Public Improvements, which shall be paid for by the Commission by and through the Funding Amount subject to the terms of this Agreement.” k) A new Section 3.12 shall be inserted in SECTION 3. DEVELOPER’S OBLIGATIONS, which states as follows : “3.12 Specifications for Local Public Improvements. The Developer will be responsible for the preparation of all bid specifications related to the Local Public Improvements, and the Developer will pay all costs and expenses of such preparation, provided, however, that if the Commission pays any costs or expenses of such preparation, then the amount paid by the Commission will be deducted from the Funding Amount. The Developer will submit all bid specifications related to the Local Public Improvements to the City of South Bend Engineering Department (the “Engineering Department”). The Engineering 5 Department may approve or disapprove said bid specifications for the Project in its sole discretion and may request revisions or amendments to be made to the same. The Commission shall not be required to expend the Funding Amount unless the Engineering Department has approved all bid specifications.” l) A new Section 4.4 shall be inserted in SECTION 4. COMMISSION’S OBLIGATIONS, which states as follows: “4.4 Completion of Local Public Improvements. (a) The Commission hereby agrees to complete (or cause to be completed) the Local Public Improvements described in Exhibit C attached hereto on a schedule to be reasonably determined and agreed to by the Commission and the Developer, as may be modified due to unforeseen circumstances and delays. (b) Before any work on the Local Public Improvements will commence, (a) the Commission will have received satisfactory plans and specifications for the Project and responded in accordance with Section 3.5 (“Submission of Plans and Specifications for Project”) of this Agreement, and (b) the Engineering Department will have received satisfactory bid specifications for the Local Public Improvements and approved the same in accordance with Section 3.12 (“Specifications for Local Public Improvements”) of this Agreement. (c) The Local Public Improvements will be completed in accordance with all applicable public bidding and contracting laws and will be subject to inspection by the Engineering Department or its designee. (d) Notwithstanding anything contained herein to the contrary, in the event the costs associated with the Local Public Improvements procured by the Board of Works to purchase exterior siding materials for certain architectural improvements to the Project are in excess of the Funding Amount, Developer, at its sole option, may determine to pay to the Commission the amount of the excess costs to permit timely completion of the Local Public Improvements by the Commission, or an agent of the Commission, which amounts shall be applied for such purpose. If Developer chooses not to pay any such excess costs of the Local Public Improvements (above the Funding Amount), the Commission may reduce the scope of the Local Public 6 Improvements to the amount which may be funded with the Funding Amount. In no event will the Commission be required to spend more than the Funding Amount in connection with the Local Public Improvements.” m) In Section 6.1, the last sentence shall be deleted in its entirety and replaced with the following text: “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 (i) all Funding Amounts received in accordance with the terms of the Loan Agreement; and (ii) One Hundred Fifty Percent (150%) of the portion of the Funding Amount expended by the Commission for costs associated with the the Local Public Improvements procured by the Board of Works to purchase exterior siding materials for certain architectural improvements to the Project, as of the date of the Commission’s demand, as agreed upon monetary damages sustained by the Commission, the City, and citizens of South Bend for the Commission’s direct investment into the Project, the negative impact upon the Commission’s ability to develop other projects in South Bend, and expenses of City employees supporting the Project, including, redevelopment staff, engineering staff, and legal department staff. Notwithstanding the foregoing, the Commission hereby agrees to simultaneously provide notice of any default to the investor member of The Monreaux LLC, Cinnaire Fund for Housing Limited Partnership 41, a Delaware limited partnership, its successors and/or assigns (the “Investor”) at its current corporate headquarters using the procedures set forth in Section 8.8 (“Notices and Demands”). The Investor shall have the right, but not the obligation, to cure any default on behalf of the Developer and shall have an additional thirty (30) days after the Developer's cure period to cure such default. The Commission agrees to accept any such performance or payment tendered by the Investor on behalf of Developer as if it had been performed or tendered by the Developer.” n) Section 8.8 is hereby revised to include the following notice parties: Investor: Cinnaire Fund for Housing Limited Partnership 41 c/o Cinnaire 41, Inc. 1118 S. Washington Ave. Lansing, MI 48910 7 Attn: Asset Management With a copy to: Kutak Rock LLP 1650 Farnam St. Omaha, NE 68102 Attn: Asher R. Ball o) In EXHIBT C, Description of Local Public Improvements, the first sentence shall be deleted in its entirety and replaced with the following: Local Public Improvements will include site work, purchase of exterior siding materials for certain architectural improvements to the Project, and other improvements in support of the construction of the Project as agreed upon between the Parties, in accordance with all applicable laws and regulations. 3. Entire Agreement; Conflict. Except as otherwise stated herein, all other terms, conditions and agreements contained in the Development Agreement remain unmodified and in full force and effect. To the extent a conflict exists between the terms of this Second Amendment and the Development Agreement, the terms of this Second Amendment shall control. Capitalized terms used in this Second Amendment will have the meanings set forth in the Development Agreement unless otherwise stated herein. 4. Counterparts; Electronic or Facsimile Transmission. This Second Amendment may be executed in counterparts which, when combined, shall constitute one instrument. The electronic or facsimile transmission of a signed counterpart of this Second Amendment shall be binding upon the party whose signature is contained on the transmitted copy. Signature Page Follows 8 IN WITNESS WHEREOF, Commission and Developer have executed this Second Amendment to Development Agreement to be effective as of the date set forth above. SOUTH BEND REDEVELOPMENT COMMISSION ___________________________________ Troy Warner, President Attest: ___________________________________ Eli Wax, Secretary THE MONREAUX LLC ___________________________________ Devereaux Peters, Managing Member DELTA VENTURES LTD. ___________________________________ Sophia Porter, Director 1-1 EXHIBIT 1 EXHIBIT F Form of Easement 1-2 GRANT OF TEMPORARY EASEMENT THIS INDENTURE, made as of the _________ of ____________, 20___ (the “Effective Date”), by and between The Monreaux LLC, an Indiana Limited Liability Company, with offices at 1335 Pyle Avenue, South Bend, Indiana 46615 (the “Grantor”), and the South Bend Redevelopment Commission, governing body of the City of South Bend Department of Redevelopment, 1400S County-City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601 (the “Grantee”). WITNESSETH: For the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which Grantor hereby acknowledges, Grantor hereby grants, conveys, and warrants to Grantee a temporary, non-exclusive easement (the “Easement”) on, in, over, under and across the real property described in attached Exhibit 1 (the “Property”) for the construction, equipping, and delivery of certain improvements on the Property (the “Local Public Improvements”), together with the right of ingress to and egress from the Easement for said purposes, all pursuant to a certain Development Agreement by and between Grantor and Grantee, dated November 20 2023, and subsequently amended on May 22, 2025, and August 14, 2025 (the “Development Agreement”). Capitalized terms not otherwise defined herein shall have the meanings set forth in the Development Agreement. The Easement granted herein shall pertain to the air, surface, and subsurface rights and interests of Grantor, for the use and benefit of Grantee, and its successors and assigns, to the extent necessary to accomplish and carry out the construction, equipping, and delivery of the Local Improvements on the Property. The Easement hereby granted includes the right and privilege for Grantee at reasonable times to clean and remove from said Easement any debris or obstructions interfering with said Easement. The Easement granted herein, and its associated benefits and obligations, shall inure to the benefit of Grantee and Grantee’s contractors acting on Grantee’s behalf in connection with the Local Public Improvements. Notwithstanding anything contained herein to the contrary, unless extended in writing by Grantor, the Easement shall terminate and be of no further force and effect on the date (hereinafter, the “Construction Termination Date”) of the earliest of the following: (a) completion of the Local Public Improvements; (b) expiration or earlier termination of the Development Agreement; or (c) such earlier date as Grantor and Grantee may agree to in writing. 1-3 IN WITNESS WHEREOF, Grantor has executed this Grant of Temporary Easement on the date shown in the acknowledgment set forth below to be effective as of the Effective Date. GRANTOR: The Monreaux LLC Printed: Devereaux Peters Its: Managing Member STATE OF _________________ ) ) SS: COUNTY OF _________________ ) Before me, the undersigned, a Notary Public in and for said State, personally appeared Devereaux Peters, to me known to be the Managing Member of the Grantor in the above Grant of Temporary Easement, and acknowledged the execution of the same as the Grantor’s free and voluntary act and deed. WITNESS my hand and Notarial Seal this __________ day of _______________, 20____. ________________________________________________ ___________________________________, Notary Public Residing in _________________ County, _____________ My Commission Expires: _______________________ I affirm, under the penalties for perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law. /s/ Danielle Campbell Weiss This instrument was prepared by Danielle Campbell Weiss, Senior Assistant City Attorney, City of South Bend, Indiana, Department of Law, 227 W. Jefferson Boulevard, Suite 1200S, South Bend, IN 46601. 1-4 EXHIBIT 1 Description of Property Tax ID No. 018-3017-0628 Parcel Key No. 71-08-12-306-010.000-026 Legal Description: 132 Ft E End Lot 19 Martins Add Commonly known as: 505 S. Michigan Street, South Bend, Indiana 46601 Tax ID No. 018-3017-0629 Parcel Key No. 71-08-12-306-011.000-026 Legal Description: N 44' Lot 20 Martins Add Commonly known as: 507 S. Michigan Street, South Bend, Indiana 46601 Tax ID No. 018-3017-0631 Parcel Key No. 71-08-12-306-012.000-026 Legal Description: S 1-3 Lot 20 Martins Add Commonly known as: 511 S. Michigan Street, South Bend, Indiana 46601 Tax ID No. 018-3017-0632 Parcel Key No. 71-08-12-306-013.000-026 Legal Description: Lot 21 & N 1/2 Vac Alley S & Adj Martins Add Commonly known as: 513 S. Michigan Street, South Bend, Indiana 46601 South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item DATE : 8/26/2025 FROM: Erik Glavich, Director of Growth & Opportunity SUBJECT: Development Agreement, The Yard 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: Development Agreement with Earth Designs Real Estate, LLC, and related entities for the redevelopment of property on East LaSalle Avenue between Hill Street and Niles Avenue SPECIFICS: The proposed Development Agreement with local developer Frank Perri (Manager of Earth Designs Real Estate, LLC, Greater Lowell Holdings LLC, and 520 E LaSalle LLC, collectively the “Developer”) would, if approved, support the creation of an entertainment and hospitality destination known as “The Yard” on underutilized property on East LaSalle Avenue west of Hill Street. The Yard will feature dining, entertainment, and recreational attractions in a family-friendly urban environment. Under the terms of the proposed agreement, the Developer would expend a minimum of $11 million on the project. The Redevelopment would provide $3.075 million in support of the project, including the planned construction of curbs, sidewalks, and/or walkways; fencing and parking lot repairs for property south of and adjacent to The Yard which will be accessible to users of The Yard. The Developer would have until the end of 2029 to complete the project as described in the agreement. In addition to the proposed support from the Commission, the St. Joseph County Board of Managers for Hotel- Motel Tax awarded the project a $750,000 grant with matching funding from the Commission. The project site has long faced challenges for redevelopment, and the Developer has made substantial investments in redevelopment projects in and around the East Race and east downtown area. This includes the acquisition of property located at 501 East LaSalle Avenue, a former gas station that had served as a barrier to further redevelopment in the area. The Yard will be an important asset to South Bend and further accelerate investment in the downtown area. Staff recommend approval of the development agreement. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION DEVELOPMENT AGREEMENT This Development Agreement (this “Agreement”), is effective as of August 28, 2025 (the “Effective Date”), by and between the City of South Bend (the “City”), Department of Redevelopment, acting by and through its governing body, the South Bend Redevelopment Commission (the “Commission”), and Greater Lowell Holdings LLC, an Indiana Limited Liability Company, Earth Designs Real Estate, LLC, an Indiana Limited Liability Company, and 520 E LaSalle LLC, an Indiana Limited Liability Company, each with a principal mailing address of P.O. Box 148, South Bend, Indiana 46624-0148 (together and collectively, 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, Greater Lowell Holdings LLC, Earth Designs Real Estate, LLC, and 520 E LaSalle LLC are related entities operating under shared ownership; and WHEREAS, the Developer owns certain real property described in Exhibit A, together with all improvements thereon and all easements, rights, licenses, and other interests appurtenant thereto; and WHEREAS, the Developer is in the process of acquiring certain other real property described in Exhibit B, together with all improvements thereon and all easements, rights, licenses, and other interests appurtenant thereto; and WHEREAS, the property described in Exhibit A and the property described in Exhibit B together and collectively are henceforth known as the “Developer Property” for the purposes of this Agreement; 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 and site plans (collectively, the “Project Plan”) attached hereto as Exhibit C; and WHEREAS, the Developer is committed to enhancing the vibrancy, livability, and quality of place of the neighborhoods surrounding the Developer Property, as well as to fostering economic resiliency and job creation in the City; and WHEREAS, the Developer has made substantial investments in redevelopment projects in and around the Developer Property, including the acquisition of the property located at 501 East LaSalle Avenue, a former gas station that had served as a barrier to further redevelopment in the area; and 2 WHEREAS, on July 31, 2025, the St. Joseph County Board of Managers for Hotel-Motel Tax awarded project a grant of Seven Hundred Fifty Thousand Dollars ($750,000.00) to be made available to the Developer with matching funding from the Commission; and WHEREAS, the Developer desires to redevelop the Developer Property into an entertainment and hospitality destination designed to transform an underutilized site into a vibrant public destination known as “The Yard,” which will feature dining, entertainment, and recreational attractions in a family-friendly urban environment; WHEREAS, the Developer Property is located within the corporate boundaries of the City within the River East Development Area (the “Area”); and WHEREAS, the Commission has adopted (and subsequently amended, from time to time) a development plan, which contemplates development of the Area consistent with the Project; and 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 the local public improvements stated in Exhibit D and Exhibit E (together and collectively, the “Local Public Improvements”) and the financing thereof, subject to the terms and conditions of this Agreement and in accordance with the Act. 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 Three Million Seventy-Five Thousand Dollars ($3,075,000.00) 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 Liquidated Damages. “Liquidated Damages” means (a) One Hundred Fifty Percent (150%) of the portion of the Funding Amount expended by the Commission in furtherance of the local public improvements as defined in Exhibit D and (b) One Hundred Percent (100%) of the portion of the Funding Amount expended by the Commission in furtherance of the local public improvements as defined in Exhibit E. 3 1.5 Private Investment. “Private Investment” means an amount no less than Eleven Million Dollars ($11,000,000.00) 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. 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. ACCESS. 3.1 Grant of Easement. (a) Upon execution of this Agreement, the Developer will grant to the Commission a temporary, non-exclusive easement on, in, over, under and across any part(s) of the property described in Exhibit A in the form attached hereto as Exhibit F, to permit the Commission to fulfill its obligations under this Agreement, including the construction, equipping, inspection, and delivery of the Local Public Improvements. (b) Upon assuming ownership of the property described in Exhibit B, the Developer will grant to the Commission a temporary, non-exclusive easement on, in, over, under and across any part(s) of the property described in Exhibit B in the form attached hereto as Exhibit G, to permit the Commission to fulfill its obligations under this Agreement, including the construction, equipping, inspection, and delivery of the Local Public Improvements. 4 (c) The grants of easement described in paragraph (a) and paragraph (b) in this Section 3 (together and collectively, henceforth known as “the Easement”) shall (i) inure to the benefit of the Commission and the Board of Works or any contractors acting on behalf of the Commission in connection with the construction, equipping, inspection, and delivery of the Local Public Improvements; (ii) shall bind the Developer and its grantees, successors, and assigns; and (iii) shall terminate no later than upon completion of the Local Public Improvements, as determined by the Board of Works. SECTION 4. DEVELOPER’S OBLIGATIONS. 4.1 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. 4.2 The Project. (a) The Developer will perform all necessary work to complete the improvements set forth in the Project Plan attached hereto as Exhibit C and the plans and specifications to be approved by the City Planner, or his designee, pursuant to Section 4.7 (“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 C and the plans and specifications to be approved by the Commission pursuant to Section 4.7 (“Submission of Plans and Specifications for Project”) of this Agreement. 4.3 Cooperation. The Developer agrees to endorse and support the Commission’s efforts to expedite the Local Public Improvements through any required planning, design, public bidding, construction, inspection, waiver, permitting, and related regulatory processes. 4.4 Obtain Necessary Easements. The Developer agrees to obtain any and all easements from any governmental entity and/or any other third parties that the Developer or the Commission deems necessary or advisable in order to complete the Local Public Improvement s, and the obtaining of such easements is a condition precedent to the Commission’s obligations under this Agreement. 4.5 Timeframe for Completion. The Developer hereby agrees to complete the Project as set forth in the Project Plan and any other obligations the Developer may have under this Agreement by December 31, 2029 (the “Mandatory Project Completion Date”). The Developer further agrees the total Project will be completed in accordance with the Project Plan attached hereto as Exhibit C. Notwithstanding any provision of this Agreement to the contrary, the Developer’s failure to complete the Project or 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. 5 4.6 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 H, 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. 4.7 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. 4.8 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), exclusive of the Local Public Improvements, which shall be paid for by the Commission by and through the Funding Amount subject to the terms of this Agreement. 4.9 Specifications for Local Public Improvements. The Developer will be responsible for the preparation of all bid specifications related to the Local Public Improvements, and the Developer will pay all costs and expenses of such preparation, provided, however, that if the Commission pays any costs or expenses of such preparation, then the amount paid by the Commission will be deducted from the Funding Amount. The Developer will submit all bid specifications related to the Local Public Improvements to the City of South Bend Engineering Department (the “Engineering Department”). The Engineering Department may approve or disapprove said bid specifications for the Project in its sole discretion and may request revisions or amendments to be made to the same. The Commission shall not be required to expend the Funding Amount unless the Engineering Department has approved all bid specifications. 4.10 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. 4.11 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 6 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 I 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). 4.12 Information. The Developer agrees to provide any and all due diligence items with respect to the Project reasonably requested by the Commission. SECTION 5. COMMISSION’S OBLIGATIONS. 5.1 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. 5.2 Completion of Local Public Improvements. (a) The Commission hereby agrees to complete (or cause to be completed) the Local Public Improvements described in Exhibit D and Exhibit E attached hereto on a schedule to be reasonably determined and agreed to by the Commission and the Developer, as may be modified due to unforeseen circumstances and delays. (b) Before any work on the Local Public Improvements will commence, (i) the Developer will have closed on the purchase of the property described in Exhibit B, (ii) the Commission will have received satisfactory plans and specifications for the Project and responded in accordance with Section 4.7 (“Submission of Plans and Specifications for Project”) of this Agreement, and (iii) the Engineering Department will have received satisfactory bid specifications for the Local Public Improvements and approved the same in accordance with Section 4.9 (“Specifications for Local Public Improvements”) of this Agreement. (c) The Local Public Improvements will be completed in accordance with all applicable public bidding and contracting laws and will be subject to inspection by the Engineering Department or its designee. (d) Notwithstanding anything contained herein to the contrary, in the event the costs associated with the Local Public Improvements are in excess of the Funding Amount, Developer, at its sole option, may determine to pay to the Commission the amount of the excess costs to permit timely completion of the Local Public Improvements by the Commission, or an agent of the Commission, which amounts shall be applied for such purpose. If Developer chooses not to pay any such excess costs of the Local Public Improvements (above the Funding Amount), the Commission may reduce the scope of the Local Public Improvements to the amount which may be funded with the Funding Amount. In no event will the Commission be required to spend more than the Funding Amount in connection with the Local Public Improvements. 7 5.3 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. 5.4 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 6. COOPERATION IN THE EVENT OF LEGAL CHALLENGE. 6.1 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. 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 6.1, which shall survive such invalidation, nullification, or setting aside. SECTION 7. TERMINATION CONTINGENT UPON FAILURE TO ACQUIRE PROPERTY 7.1 In the event the Developer fails to close by December 31, 2025, on the purchase of the property described in Exhibit B, this Agreement shall terminate and become null and void, and neither Party shall have any further rights or obligations under this Agreement. SECTION 8. DEFAULT. 8.1 Default. Any failure by either Party to perform any term or provision of this Agreement, which failure continues uncured for a period of thirty (30) 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 thirty (30) days after the notice described in this Section 8.1, then no default shall exist and the noticing Party shall take no further action. 8.2 Reimbursement Obligation. 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, then the Commission shall be entitled to recover from Developer the Liquidated Damages as defined in Section 8.3. The Parties acknowledge and agree that the actual damages to the Commission, the City, and its citizens in the event of a default by Developer would be difficult or impossible to determine, and the Liquidated 8 Damages represents the best estimate of the Parties as to the amount of such damages at the time of execution and delivery of this Agreement. If the Developer fails to perform and complete the work within the timeframe fixed for completion, the Liquidated Damages shall be considered not as a penalty, but as agreed upon monetary damages sustained by the Commission, the City, and citizens of South Bend for the Commission’s direct investment into the Project, the negative impact upon the Commission’s ability to develop other projects in South Bend, and expenses of City employees supporting the Project, including, redevelopment staff, engineering staff, legal department staff, and a construction manager on site. 8.3 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 9. NO AGENCY, JOINT VENTURE, OR PARTNERSHIP; CONFLICT OF INTEREST; INDEMNITY. 9.1 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. 9.2 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 9 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. 9.3 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. SECTION 10. MISCELLANEOUS. 10.1 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. 10.2 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. 10.3 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. 10.4 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. 10 10.5 Attorneys’ Fees. In the event the Commission pursues any legal action (including arbitration) to enforce or interpret this Agreement, Developer shall pay Commission’s reasonable attorneys’ fees and other costs and expenses (including expert witness fees). 10.6 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 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. 10.7 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. 10.8 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: Greater Lowell Holdings LLC Earth Designs Real Estate, LLC 520 E LaSalle LLC P.O. Box 148 South Bend, IN 46624-0148 Attn: Frank Perri With a copy to: ______________________________ ______________________________ ______________________________ Attn: _________________________ Commission: South Bend Redevelopment Commission 1400S County-City Building 11 227 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 10.9 Governing Law. This Agreement is governed by and construed in accordance with the laws of the State of Indiana. 10.10 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. 10.11 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. 10.12 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). 10.13 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. 10.14 Exhibits. All exhibits described herein and attached hereto are incorporated into this Agreement by reference. 10.15 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. 12 10.16 Time. Time is of the essence of this Agreement. Signature Page Follows 13 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 GREATER LOWELL HOLDINGS LLC ______________________________ Frank Perri, Manager EARTH DESIGNS REAL ESTATE, LLC ______________________________ Frank Perri, Manager 520 E LASALLE LLC ______________________________ Frank Perri, Manager EXHIBIT A Description of Property Owned by the Developer as of the Effective Date Tax ID No. 018-5008-0225 Parcel Key No. 71-08-12-201-001.000-026 Legal Description: Lot 72 O P Lowell Lot 71 Commonly known as: 501 East LaSalle Avenue Tax ID No. 018-5008-0235 Parcel Key No. 71-08-12-201-005.000-026 Legal Description: W 105' Of Lot 78 O P Lowell Commonly known as: 523 East LaSalle Avenue Tax ID No. 018-5008-0236 Parcel Key No. 71-08-12-201-006.000-026 Legal Description: E 60' Of Lot 78 O P Lowell Commonly known as: 529 East LaSalle Avenue Tax ID No. 018-5008-0234 Parcel Key No. 71-08-12-201-004.000-026 Legal Description: S 1/2 Lot 77 O P Lowell Commonly known as: 307 North Hill Street Tax ID No. 018-5008-0233 Parcel Key No. 71-08-12-201-003.000-026 Legal Description: N 1/2 Lot 77 O P Lowell Commonly known as: 315 North Hill Street Tax ID No. 018-5008-0232 Parcel Key No. 71-08-12-201-002.000-026 Legal Description: Lot 76 & S1/2 vac alley N & adj O P Lowell 13/14 Vac ord#10170-12 09- 10-12 Commonly known as: 317 North Hill Street Tax ID No. 018-5008-0231 Parcel Key No. 71-08-01-453-008.000-026 Legal Description: S 1/2 Lot 75 & N 1/2 Vac alley S & Adj O P Lowell 13/14 Vac Ord#10170- 12 09-10-12 Commonly known as: 319 North Hill Street Tax ID No. 018-5008-0230 Parcel Key No. 71-08-01-453-007.000-026 Legal Description: N 1/2 Lot 75 O P Lowell Commonly known as: 321 North Hill Street EXHIBIT B Description of Property to be Acquired by Developer Tax ID No. 018-5005-0120 Parcel Key No. 71-08-12-204-010.000-026 Legal Description: 42 Ft W End 8 Ft N S Lot 86 & 42 Ft W End Lot 85 O P Lowell Commonly known as: 520 East LaSalle Avenue Tax ID No. 018-5005-0121 Parcel Key No. 71-08-12-204-011.000-026 Legal Description: E 30 Ft Of W 72 Ft Lot 85 & E 30 Ft Of W 72 Ft 8 Ft N Side Lot 86 O P Lowell Commonly known as: 522 East LaSalle Avenue Tax ID No. 018-5005-0124 Parcel Key No. 71-08-12-204-015.000-026 Legal Description: 29 Ft N Side 58 Ft S Side Lot 86 O P Lowell Commonly known as: 229 North Hill Street Tax ID No. 018-5005-0125 Parcel Key No. 71-08-12-204-016.000-026 Legal Description: 29'S Side Lot 86 O P Lowell Commonly known as: 223 North Hill Street EXHIBIT C 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: The Developer will redevelop Developer Property into a hospitality and entertainment setting and transform a formerly underutilized site into a vibrant public destination. The Developer plans to complete the project in the following two phases: Phase 1 • Demolition of structures at 319 North Hill Street (Parcel Key No. 71-08-01-453- 008.000-026) and 529 East LaSalle Avenue (Parcel Key No. 71-08-12-201- 006.000-026); • Site preparation and general site cleanup; and • Renovation and adaptive commercial reuse of real property located at 321 North Hill Street (Parcel Key No. 71-08-01-453-007.000-026). Phase 2 • Redevelopment of existing real property located at 501 East LaSalle Avenue (Parcel Key No. 71-08-12-201-001.000-026) to be used commercially as a commissary kitchen, parking lot, and central trash facility; • Renovation of existing real property located at 523 East LaSalle Avenue (Parcel Key No. 71-08-12-201-005.000-026); • Development of a formal entryway into The Yard, which will include storage space, an office, and restrooms totaling approximately one thousand eight hundred (1,800) square feet; • Construction of a two-story pavilion of approximately six thousand (6,000) square feet with restrooms, an assembly kitchen, and a retail establishment, such as a bar; • Construction of an approximately fifteen thousand (15,000) square foot concert lawn with bandshell; • Construction of other outdoor amenities including fire pits and an approximately two thousand two hundred (2,200) square foot playground; and • Installation of decorative fencing and landscaping. C-2 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. C-3 Site Plan Parcel Key Numbers 71-08-12-201-005.000-026 71-08-12-201-006.000-026 71-08-12-201-004.000-026 71-08-12-201-003.000-026 71-08-12-201-002.000-026 71-08-01-453-008.000-026 71-08-01-453-007.000-026 C-4 C-5 Site Plan Parcel Key Number 71-08-12-201-001.000-026 EXHIBIT D Description of Local Public Improvements Subject to the One Hundred Fifty Percent (150%) Reimbursement Obligation The Commission will complete, or cause to be completed, the following work in accordance with the terms and conditions of this Agreement and in compliance with all applicable laws and regulations: • Repair and reconstruction of the parking lot located at 522 East LaSalle Avenue (Parcel Key No. 71-08-12-204-011.000-026), 229 North Hill Street (Parcel Key No. 71-08-12-204-015.000-026), and 223 North Hill Street (Parcel Key No. 71-08- 12-204-016.000-026); • Construction of curbs, sidewalks, and/or pedestrian walkways; • Fencing for protection and to direct pedestrian traffic; and • Any other local public improvements eligible to be paid from tax increment finance revenues as agreed upon between the Parties. 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 for the Local Public Improvements as defined in this Exhibit D and in Exhibit E. The Developer shall have the sole responsibility to fund any and all costs associated with Local Public Improvements which exceed the Funding Amount. Any and all costs associated with improvements not explicitly described above and not approved pursuant to Section 4.9 (“Specifications for Local Public Improvements”) or that require funding above the Funding Amount are the sole responsibility of the Developer. EXHIBIT E Description of Local Public Improvements Subject to the One Hundred Percent (100%) Reimbursement Obligation The Commission will complete, or cause to be completed, the following work in accordance with the terms and conditions of this Agreement and in compliance with all applicable laws and regulations: • Installation of new utilities that serve the Developer Property including one-inch copper water service laterals, two-inch copper water service laterals, four-inch ductile iron fire protection service laterals, and six-inch SDR-35 PVC sewer laterals. 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 for the Local Public Improvements as defined in Exhibit D and in this Exhibit E. The Developer shall have the sole responsibility to fund any and all costs associated with Local Public Improvements which exceed the Funding Amount. Any and all costs associated with improvements not explicitly described above and not approved pursuant to Section 4.9 (“Specifications for Local Public Improvements”) or that require funding above the Funding Amount are the sole responsibility of the Developer. EXHIBIT F Form of Easement for Property Owned by the Developer as of the Effective Date F-2 GRANT OF TEMPORARY EASEMENT THIS INDENTURE, made as of the _________ of ____________, 2025 (the “Effective Date”), by and between Greater Lowell Holdings LLC, an Indiana Limited Liability Company, with a principal mailing address of P.O. Box 148, South Bend, Indiana 46624-0148 (the “Grantor”), and the South Bend Redevelopment Commission, governing body of the City of South Bend Department of Redevelopment, 1400S County-City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601 (the “Grantee”). WITNESSETH: For the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which Grantor hereby acknowledges, Grantor hereby grants, conveys, and warrants to Grantee a temporary, non-exclusive easement (the “Easement”) on, in, over, under and across the real property described in attached Exhibit 1 (the “Property”) for the construction, equipping, and delivery of certain improvements on the Property (the “Local Public Improvements”), together with the right of ingress to and egress from the Easement for said purposes, all pursuant to a certain Development Agreement by and between Grantor and Grantee, dated ____________, 2025 (the “Development Agreement”). Capitalized terms not otherwise defined herein shall have the meanings set forth in the Development Agreement. The Easement granted herein shall pertain to the air, surface, and subsurface rights and interests of Grantor, for the use and benefit of Grantee, and its successors and assigns, to the extent necessary to accomplish and carry out the construction, equipping, and delivery of the Local Improvements on the Property. The Easement hereby granted includes the right and privilege for Grantee at reasonable times to clean and remove from said Easement any debris or obstructions interfering with said Easement. The Easement granted herein, and its associated benefits and obligations, shall inure to the benefit of Grantee and Grantee’s contractors acting on Grantee’s behalf in connection with the Local Public Improvements. Notwithstanding anything contained herein to the contrary, unless extended in writing by Grantor, the Easement shall terminate and be of no further force and effect on the date (hereinafter, the “Construction Termination Date”) of the earliest of the following: (a) completion of the Local Public Improvements; (b) expiration or earlier termination of the Development Agreement; or (c) such earlier date as Grantor and Grantee may agree to in writing. F-3 IN WITNESS WHEREOF, Grantor has executed this Grant of Temporary Easement on the date shown in the acknowledgment set forth below to be effective as of the Effective Date. GRANTOR: Greater Lowell Holdings LLC Printed: Frank Perri Its: Manager STATE OF _________________ ) ) SS: COUNTY OF _________________ ) Before me, the undersigned, a Notary Public in and for said State, personally appeared Frank Perri, to me known to be the Manager of the Grantor in the above Grant of Temporary Easement, and acknowledged the execution of the same as the Grantor’s free and voluntary act and deed. WITNESS my hand and Notarial Seal this __________ day of _______________, 20____. ________________________________________________ ___________________________________, Notary Public Residing in _________________ County, _____________ My Commission Expires: _______________________ I affirm, under the penalties for perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law. /s/ Danielle Campbell Weiss This instrument was prepared by Danielle Campbell Weiss, Senior Assistant City Attorney, City of South Bend, Indiana, Department of Law, 227 W. Jefferson Boulevard, Suite 1200S, South Bend, IN 46601. F-4 EXHIBIT 1 Description of Property Tax ID No. 018-5008-0225 Parcel Key No. 71-08-12-201-001.000-026 Legal Description: Lot 72 O P Lowell Lot 71 Commonly known as: 501 East LaSalle Avenue Tax ID No. 018-5008-0235 Parcel Key No. 71-08-12-201-005.000-026 Legal Description: W 105' Of Lot 78 O P Lowell Commonly known as: 523 East LaSalle Avenue Tax ID No. 018-5008-0236 Parcel Key No. 71-08-12-201-006.000-026 Legal Description: E 60' Of Lot 78 O P Lowell Commonly known as: 529 East LaSalle Avenue Tax ID No. 018-5008-0234 Parcel Key No. 71-08-12-201-004.000-026 Legal Description: S 1/2 Lot 77 O P Lowell Commonly known as: 307 North Hill Street Tax ID No. 018-5008-0233 Parcel Key No. 71-08-12-201-003.000-026 Legal Description: N 1/2 Lot 77 O P Lowell Commonly known as: 315 North Hill Street Tax ID No. 018-5008-0232 Parcel Key No. 71-08-12-201-002.000-026 Legal Description: Lot 76 & S1/2 vac alley N & adj O P Lowell 13/14 Vac ord#10170-12 09- 10-12 Commonly known as: 317 North Hill Street Tax ID No. 018-5008-0231 Parcel Key No. 71-08-01-453-008.000-026 Legal Description: S 1/2 Lot 75 & N 1/2 Vac alley S & Adj O P Lowell 13/14 Vac Ord#10170- 12 09-10-12 Commonly known as: 319 North Hill Street Tax ID No. 018-5008-0230 Parcel Key No. 71-08-01-453-007.000-026 Legal Description: N 1/2 Lot 75 O P Lowell Commonly known as: 321 North Hill Street EXHIBIT G Form of Easement for Property to be Acquired by the Developer G-2 GRANT OF TEMPORARY EASEMENT THIS INDENTURE, made as of the _________ of ____________, 2025 (the “Effective Date”), by and between 520 E LaSalle LLC, an Indiana Limited Liability Company, with a principal office address of P.O. Box 148, South Bend, Indiana 46624-0148 (the “Grantor”), and the South Bend Redevelopment Commission, governing body of the City of South Bend Department of Redevelopment, 1400S County-City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601 (the “Grantee”). WITNESSETH: For the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which Grantor hereby acknowledges, Grantor hereby grants, conveys, and warrants to Grantee a temporary, non-exclusive easement (the “Easement”) on, in, over, under and across the real property described in attached Exhibit 1 (the “Property”) for the construction, equipping, and delivery of certain improvements on the Property (the “Local Public Improvements”), together with the right of ingress to and egress from the Easement for said purposes, all pursuant to a certain Development Agreement by and between Grantor and Grantee, dated ____________, 2025 (the “Development Agreement”). Capitalized terms not otherwise defined herein shall have the meanings set forth in the Development Agreement. The Easement granted herein shall pertain to the air, surface, and subsurface rights and interests of Grantor, for the use and benefit of Grantee, and its successors and assigns, to the extent necessary to accomplish and carry out the construction, equipping, and delivery of the Local Improvements on the Property. The Easement hereby granted includes the right and privilege for Grantee at reasonable times to clean and remove from said Easement any debris or obstructions interfering with said Easement. The Easement granted herein, and its associated benefits and obligations, shall inure to the benefit of Grantee and Grantee’s contractors acting on Grantee’s behalf in connection with the Local Public Improvements. Notwithstanding anything contained herein to the contrary, unless extended in writing by Grantor, the Easement shall terminate and be of no further force and effect on the date (hereinafter, the “Construction Termination Date”) of the earliest of the following: (a) completion of the Local Public Improvements; (b) expiration or earlier termination of the Development Agreement; or (c) such earlier date as Grantor and Grantee may agree to in writing. G-3 IN WITNESS WHEREOF, Grantor has executed this Grant of Temporary Easement on the date shown in the acknowledgment set forth below to be effective as of the Effective Date. GRANTOR: 520 E LaSalle LLC Printed: Frank Perri Its: Manager STATE OF _________________ ) ) SS: COUNTY OF _________________ ) Before me, the undersigned, a Notary Public in and for said State, personally appeared Frank Perri, to me known to be the Manager of the Grantor in the above Grant of Temporary Easement, and acknowledged the execution of the same as the Grantor’s free and voluntary act and deed. WITNESS my hand and Notarial Seal this __________ day of _______________, 20____. ________________________________________________ ___________________________________, Notary Public Residing in _________________ County, _____________ My Commission Expires: _______________________ I affirm, under the penalties for perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law. /s/ Danielle Campbell Weiss This instrument was prepared by Danielle Campbell Weiss, Senior Assistant City Attorney, City of South Bend, Indiana, Department of Law, 227 W. Jefferson Boulevard, Suite 1200S, South Bend, IN 46601. G-4 EXHIBIT 1 Description of Property Tax ID No. 018-5005-0120 Parcel Key No. 71-08-12-204-010.000-026 Legal Description: 42 Ft W End 8 Ft N S Lot 86 & 42 Ft W End Lot 85 O P Lowell Commonly known as: 520 East LaSalle Avenue Tax ID No. 018-5005-0121 Parcel Key No. 71-08-12-204-011.000-026 Legal Description: E 30 Ft Of W 72 Ft Lot 85 & E 30 Ft Of W 72 Ft 8 Ft N Side Lot 86 O P Lowell Commonly known as: 522 East LaSalle Avenue Tax ID No. 018-5005-0124 Parcel Key No. 71-08-12-204-015.000-026 Legal Description: 29 Ft N Side 58 Ft S Side Lot 86 O P Lowell Commonly known as: 229 North Hill Street Tax ID No. 018-5005-0125 Parcel Key No. 71-08-12-204-016.000-026 Legal Description: 29'S Side Lot 86 O P Lowell Commonly known as: 223 North Hill Street EXHIBIT H Form of Report to Commission H-2 City of South Bend Department of Community Investment Development Agreement Review Answer the questions below 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: ___________________ EXHIBIT I 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 South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item DATE : 8/25/25 FROM: Joseph Molnar, Assistant Director of Growth & Opportunity SUBJECT: Second Amendment Cascade (Wharf) 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: Second Amendment to the Development Agreement with Wharf Partners, LLC, for completion of the Cascade development SPECIFICS: The Redevelopment Commission (RDC) entered into a Development Agreement with Wharf Partners LLC (the “Developer”) effective February 22, 2018. That Development Agreement was amended by a First Amendment effective December 13, 2018 (collectively, the “Agreement”). The Agreement envisioned a two-phase project for the complete redevelopment of the property located just northwest of Seitz Park along the eastern bank of the St. Joseph River. Phase I was completed on December 23, 2019, with the completion of the seven-story tower and underground parking garage. The Developer’s commercial tenant opened a ground floor restaurant open to the public on August 15, 2024, and the jobs created by Phase 1 are more than double the number required by the Agreement. The Agreement established the RDC’s $5,237,000.00 in total for Phases I and II. To date, the RDC has expended $2,737,000.00 of the funding amount through the completion of Phase I. The Agreement also established a Private Investment commitment of not less than $38,500,000 for Phases I and II. Through the completion of Phase I, the Developer has expended $24,500,000 of the Private Investment. Under the Agreement, the Developer had an obligation to accommodate the needs of the City’s parks and trails projects, the project commonly known as the Notre Dame hydroelectric project, reconstruction of Seitz Park, and any other construction or improvement projects in the vicinity of the project site to avoid disruption of the completion of those projects. The Notre Dame hydroelectric project and the City’s Seitz Park project occurred at a location adjacent to the Cascade project, and each of those projects experienced significant unforeseen delay, which were outside the Developer’s reasonable control and impacted the Developer’s ability to proceed with Phase II. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana The Developer kept Commission staff informed on a continuous basis of its efforts in completing Phase II, including on the factors that arose outside of the Developer’s reasonable control. These delays caused Phase II to be delayed and thus not completed prior to the completion date as was originally defined in the Agreement. As of this memo, no portion of the RDC Funding Amount has been expended on Phase II. The Notre Dame hydroelectric project and the City’s Seitz Park project were recently completed, and the Developer is ready to begin Phase II. The Developer has revised and expanded the designs for Phase II, and the proposed Second Amendment to Development Agreement would change the following terms: • Increase the Funding Amount to $9,737,000 (up from $5,237,000) • Increase the Private Investment Commitment to $63,000,000 (up from $38,500,000) • Adjust the project plan to reflect changes in the project: o A minimum of 20 housing units o Increase the minimum size of the Phase II building to 7 stories of residential units (up from 5 stories) o Commercial space of no less than 10,000 square feet o One of the following: (1) an additional story of commercial space; (2) an additional story of 4 residential units; or (3) 10,000 square feet of multi-family space. o Remove Part 2 of Phase II which envisioned a third smaller building • Update the deadlines to recognize the delay that the Notre Dame hydroelectric and Seitz Park projects caused on Phase II o Update new commence construction deadline for Phase II to no later than June 30, 2026 o Update new completion deadline to no later than June 30, 2029 • Update language in the Agreement which asserts the RDC would not be required to expend the Funding Amount unless the Common Council granted the Developer a Real Property Tax Abatement with respect to the elements of Phase II of the Project. The Agreement included a provision that focused on a possible hotel or multi-family residences. This Second Amendment would maintain the intent of the RDC through the Agreement to encourage a tax abatement, this Second Amendment alters the tax abatement language to restrict it to commercial property. The Developer does not intend to apply for an abatement on the residential portions of the project, which make up most of the newly designed Phase II. In total, the Developer is intending to expend a minimum of $38,500,000 investment into Phase II of the project, far exceeding Phase II estimates at the time the Agreement was approved in 2018. This scale of construction will provide further tax revenues, add increased vitality to the East Bank area and greater Downtown South Bend, and activate a currently vacant lot. Staff recommend approval of the Second Amendment. 1 SECOND AMENDMENT TO DEVELOPMENT AGREEMENT This SECOND AMENDMENT TO DEVELOPMENT AGREEMENT (this “Second Amendment”) is made and entered into to be effective as of August 28, 2025 (the “Effective Date”), by and between the South Bend Redevelopment Commission (the “Commission”), and Wharf Partners, LLC, an Indiana limited liability company with its registered address at P.O. Box 148, South Bend, Indiana 46624 (the “Developer”) (each a “Party,” and collectively the “Parties”). RECITALS A. The Commission and the Developer entered into a certain Development Agreement dated effective February 22, 2018, as amended by a First Amendment to Development Agreement dated December 13, 2018 (collectively the “Development Agreement,” attached hereto as Exhibit A), pertaining to certain Local Public Improvements (“LPI”) to renovate, rehabilitate, and activate the Developer Property, as defined in the Development Agreement, which is located in the River East Development Area (the “Project”). B. Section 4.5 of the Development Agreement established commencement and completion deadlines for each of the two phases of the Project (“Phase I” and “Phase II”). C. The Developer completed Phase I of the Project, with the residential units having been issued a Certificate of Occupancy on December 23, 2019, the private underground parking garage issued a Certificate of Occupancy on December 23, 2019. D. The Developer’s commercial tenant opened a ground floor restaurant opening to the public on August 15, 2024, and met the required Job Creation Requirements. E. The Development Agreement defined the Funding Amount to be an amount not to exceed Five Million Two Hundred Thirty-Seven Thousand Dollars ($5,237,000.00) of tax increment finance revenues to be used for paying the costs associated with the construction, equipping, inspection, and delivery of the LPI, with a minimum Private Investment amount of not less than Thirty Eight Million Five Hundred Thousand Dollars ($38,500,000) for the costs associated with completing the improvements set forth in the Project Plan (inclusive of Phase I and Phase II , Parts 1 and 2), 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. F. Through the completion of Phase I, the Commission has expended Two Million Seven Hundred Thirty-Seven Thousand Dollars ($2,737,000.00) of the Funding Amount. G. Through the completion of Phase I, the Developer has expended Twenty-Four Million Five Hundred Thousand ($24,500,000) of the Private Investment. H. Under the Development Agreement, the Developer had an obligation to accommodate the needs of the City’s parks and trails projects, the project commonly known as the Notre Dame hydroelectric project and reconstruction of Seitz Park, and any other construction or improvement projects in the vicinity of the Project to avoid disruption to such projects. 2 I. The Notre Dame hydroelectric project and the City’s Seitz Park project occurred at a locations adjacent to the Project and each experienced significant unforeseen delays, which were outside the Developer’s reasonable control, and impacted the Developer’s ability to construct its Phase II. J. The Developer has kept the Commission informed on a continuous basis of its efforts in constructing the Project, including the factors that arose outside of the Developer’s reasonable control, which caused Phase II of the Project to be delayed and not completed prior to the completion date as it was originally defined in the Development Agreement. K. As of the Effective Date of this Second Amendment, no portion of the Funding Amount has been expended on Phase II of the Project. L. The conflicting projects in the vicinity of the Developer Property have recently been completed and the Parties now desire to amend the Development Agreement to increase the Funding Amount and Private Investment, and to recognize certain other changes in the Project. M. The Developer has revised designs for Phase II of the Project and is prepared to move forward to fulfill the commitments of the Development Agreement as set forth herein. N. The Commission believes that the Developer completing Phase II of the Project as described in this Second Amendment is in the best interests of the health, safety, and welfare of the City and its residents. O. The Parties now desire to amend the Development Agreement as set forth herein. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises and obligations stated in the Development Agreement and this Second Amendment, the adequacy of which is hereby acknowledged, the Parties 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 Second Amendment as though fully set forth herein. 2. Amendments. The Development Agreement is hereby amended as follows: a) In Section 1.3, the text “Five Million Two Hundred Thirty-Seven Thousand Dollars ($5,237,000.00)” shall be deleted and replaced with the following: “Nine Million Seven Hundred Thirty-Seven Thousand Dollars ($9,737,000.00).” b) In Section 1.4, the text “Thirty-Eight Million Five Hundred Thousand Dollars ($38,500,000.00)” shall be deleted and replaced with the following: “Sixty-Three Million Dollars ($63,000,000.00).” 3 c) In Section 4.5, the second and third sentences, specifically containing the following text, shall be deleted: “The Developer hereby agrees to commence substantial elements of Phase II of the Project by no later than June 30, 2021 (the "Phase II Commencement Deadline"). The Developer hereby agrees to reach substantial completion of the entirety of the Project, inclusive of Phase I and Parts 1 and 2 of Phase II, in accordance with the Project Plan attached hereto as Exhibit Band the plans and specifications submitted to the Commission pursuant to Section 4.8 of this Agreement, by September 31, 2023 (the “Project Completion Deadline”).” and replaced with the following: “The Developer hereby agrees to commence substantial elements of Phase II of the Project by no later than June 30, 2026 (the “Phase II Commencement Deadline”). The Developer hereby agrees to reach substantial completion of the entirety of the Project, inclusive of Phase I and Parts 1 and 2 of Phase II, in accordance with the Project Plan attached hereto as Exhibit B and the plans and specifications submitted to the Commission pursuant to Section 4.8 of this Agreement, by June 30, 2029 (the “Project Completion Deadline”). d) The entirety of Section 5.2(b)(i) shall be deleted and replaced with the following: 5.2(b)(i) The South Bend Common Council, upon the Commission’s favorable recommendation, has granted the Developer a real property tax abatement with respect to only the commercial elements of Phase II of the Project. e) The entirety of Section 5.3 shall be deleted and replaced with the following: 5.3 Funding Amount Closing. Notwithstanding anything contained herein to the contrary, once the Commission has expended or obligated, through its own contracts or contracts entered into on its behalf by the Board of Works serving as its agent, at least Nine Million and Six Hundred Eighty-Seven Thousand Dollars ($9,687,000). The Commission will not be required to expend any further portion of the Funding Amount or otherwise complete any further Local Public Improvements. The Parties mutually acknowledge and agree that, in such circumstances, the Commission's obligation to expend the Funding Amount will be fully satisfied and discharged without the necessity of expending the entire sum of Nine Million Seven Hundred Thirty-Seven Thousand Dollars ($9,737,000.00). 4 f) Section 9.4 shall be deleted in its entirety and replaced with the following text: g) Section 9.16 shall be added to the Development Agreement as a new section as follows: 9.16 Waiver. Neither the failure nor the 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 other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. h) Exhibit B (“Project Plan”) shall be replaced in its entirety with Exhibit B attached to this Second Amendment. i) Exhibit C (“Description of Local Public Improvements”) shall be replaced in its entirety with Exhibit C attached to this Second Amendment. 3. Entire Agreement; Conflict. Except as otherwise stated herein, all other terms, conditions and agreements contained in the Development Agreement remain unmodified and in full force and effect. To the extent a conflict exists between the terms of this Second Amendment and the Development Agreement, the terms of this Second Amendment shall control. Capitalized terms used in this Second Amendment will have the meanings set forth in the Development Agreement unless otherwise stated herein. 4. Counterparts; Electronic or Facsimile Transmission. This Second Amendment may be executed in counterparts which, when combined, shall constitute one instrument. The electronic or facsimile transmission of a signed counterpart of this Second Amendment shall be binding upon the party whose signature is contained on the transmitted copy. Signature Page Follows 5 IN WITNESS WHEREOF, Commission and Developer have executed this Second Amendment to Development Agreement to be effective as of the date set forth above. SOUTH BEND REDEVELOPMENT COMMISSION ___________________________________ Troy Warner, President Attest: ___________________________________ Eli Wax, Secretary WHARF PARTNERS LLC, an Indiana limited liability company ___________________________________ Frank Perri, Manager EXHIBIT A Development Agreement, as amended 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: Phase I Construct a single building consisting, at a minimum, of the following: • Seven (7) stories with thirteen (13) housing units; • Commercial and multi-family space of no less than a combined seven thousand seven hundred (7,700) square feet; and • A private underground parking garage. Phase II Construct a single building consisting, at a minimum, of the following: • Seven (7) stories with twenty (20) housing units; and • Commercial space of no less than a combined ten thousand (10,000) square feet; • One of the following: (A) one (1) additional story with either four (4) additional housing units; or (B) one (1) additional story of commercial space; or (C) multi-family space totaling no less than ten thousand (10,000) square feet; and • A private underground parking garage. EXHIBIT C Description of Local Public Improvements The Commission will complete, or cause to be completed, the following work in accordance with the terms and conditions of this Agreement and in compliance with all applicable laws and regulations: Phase I Site preparation, infrastructure elements, and/or other improvements to the Developer Property necessary for the Developer's completion of Phase I the Project, to be further specified by the Developer as soon as reasonably practicable. Phase II Site preparation, infrastructure elements, construction materials, and/or other exterior improvements to the Developer Property necessary for the Developer's completion of Phase II the Project, to be further specified by the Developer, and approved by the Commission, as soon as reasonably practicable. It is understood between the Parties that the Commission will contribute an amount not to exceed the Funding Amount specified in Section 1.3 (Funding Amount) of this Agreement for the Local Public Improvements. The Developer shall have the sole responsibility to fund any and all costs associated with Local Public Improvements which exceeds this amount. Any and all costs associated with improvements not explicitly described above and not approved pursuant to Section 4.10 (Specifications for Local Public Improvements) or that require funding above the Funding Amount are the sole responsibility of the Developer.