HomeMy WebLinkAbout5A3 Second Amendment to Development Agreement (The Monreaux) - Signed
South Bend Redevelopment Commission
227 West Jefferson Boulevard, Room 1308, South Bend, Indiana
Redevelopment Commission Agenda Item
DATE : 9/9/2025
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 through material purchases.
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.
10th September 25