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HomeMy WebLinkAboutResolution No. 3658 (Adopting the 2026 Annual Spending Plan) - SignedSouth Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Redevelopment Commission Agenda Item D ATE : 11/20/2025 F ROM: Erik Glavich, Director of Growth & Opportunity SUBJECT: Resolution No. 3658 and 2026 Annual Spending Plan 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: Resolution No. 3658 adopting 2026 Annual Spending and providing RDC staff authority to update the plan as necessary SPECIFICS: Under IC 36-7-14-12.7, the RDC is required to file by December 1 an annual spending plan for the upcoming calendar year with the Department of Local Government Finance, Office of the Mayor, and the Common Council. Pending adoption by the RDC, this resolution would accomplish the following: •Formally approve the enclosed Annual Spending Plan for 2026 •Direct RDC staff to file the spending plan as required •Provide RDC staff the authority to amend the spending plan if necessary ______________ ___________Pres/V-Pres ATTEST: __________ ________Secretary Date: _____________ _______ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION November 24, 2025  RESOLUTION NO. 3658 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION ADOPTING AN ANNUAL SPENDING PLAN FOR YEAR 2025 AND AUTHORIZING REDEVELOPMENT STAFF TO UNDERTAKE CERTAIN RELATED ACTS WHEREAS, the South Bend Redevelopment Commission (“Commission”) is the governing body of the City of South Bend Department of Redevelopment established under the Redevelopment of Cities and Towns Act of 1953, as amended, being I.C. 36-7-14-1 et seq. (the “Act”); and WHEREAS, Section 12.7 of the Act requires the Commission to file with the Department of Local Government Finance, Office of the Mayor, and the Common Council an annual spending plan for the upcoming calendar year setting forth its planned expenditures; and WHEREAS, Department of Redevelopment staff members (“Redevelopment Staff”) have helped to prepare a spending plan for the Commission for calendar year 2026 (the “2026 Spending Plan”), attached hereto as Exhibit A; and WHEREAS, the Commission now desires to approve and adopt the 2026 Spending Plan and authorize Redevelopment Staff to conduct certain acts related thereto. NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: 1.The Commission approves and adopts the 2026 Spending Plan attached hereto as Exhibit A. 2.The Commission directs Redevelopment Staff to take all necessary steps to file the 2026 Spending Plan with the Department of Local Government Finance, Office of the Mayor, and the South Bend Common Council, and to take any other steps required under the Act. 3.In the event amendments to the 2026 Spending Plan are later needed, the Commission hereby directs Redevelopment Staff to amend the 2026 Spending Plan accordingly, and take all other appropriate measures to document any such amendments as required by the Act. 4. . This Resolution shall be in full force and effect after its adoption by the South Bend Redevelopment Commission. ADOPTED at a meeting of the South Bend Redevelopment Commission held on November 24, 2025. SOUTH BEND REDEVELOPMENT COMMISSION ______________________________ Troy Warner, President ATTEST: _______________________ Eli Wax, Secretary EXHIBIT A 2026 South Bend Redevelopment Commission Spending Plan South Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana TO: Indiana Department of Local Government Finance Mayor James Mueller South Bend Common Council FROM: Troy Warner, President, South Bend Redevelopment Commission DATE: November 24, 2025 RE: Annual Spending Plan of the South Bend Redevelopment Commission for Calendar Year 2026 (IC 36-7-14-12.7) SPENDING PLAN FOR 2026 (Note: The following represent anticipated amounts.) A.Overview Under Indiana Code (“IC”) 36-7-14-12.7, the South Bend Redevelopment Commission (the “Redevelopment Commission” or the “Commission”) is required to file an annual spending plan for the upcoming calendar year with the Department of Local Government Finance, Office of the Mayor, and the Common Council. The report below describes planned expenditures by the Redevelopment Commission for calendar year 2026. This spending plan is based on projected incremental revenues for all development areas to be $42,876,524 and anticipated revenue for the Redevelopment General Fund to be $1,438,000. This spending plan has been prepared using information currently available to the Redevelopment Commission and its staff. Unexpected opportunities or needs may arise in 2026, making it appropriate for the Redevelopment Commission to make expenditures not anticipated by this spending plan. Such unanticipated expenditures could arise for several reasons including, but not limited to, the necessity to complete unforeseen projects; opportunities to modify debt payments; new unanticipated economic development or redevelopment opportunities; and support from both public and private entities, including grants or loans. In the event amendments to this spending plan are needed, the Redevelopment Commission will comply with the instructions set forth in the Memorandum issued by the Department of Local Government Finance on August 28, 2024. South Bend Redevelopment Commission 2 B.Debt Payments Anticipated debt payments in 2026 are provided below. T71521 - River West Development Area •227 - Lease Rental Revenue Bonds of 2023, Series A: $1,080,400 •Lease Rental Revenue Bonds of 2024, Series B: $1,888,596 •200 - Lease Rental Revenue Bonds of 2019 (Double Tracking Project): $1,035,500 •210 - Taxable Economic Development Tax Increment Revenue Bonds, Series 2020 (Community Ed. Center): $323,415 •South Bend Redevelopment Authority Lease Rental Revenue Refunding Bonds, Series 2013: $84,500 •169 - Redevelopment District Bonds, Series 2018: $987,375 •135 - 2015 Redevelopment Authority Lease Rental Revenue Bonds: $1,713,500 T71522 - River East Development Area •227 - RDA Lease Rental Revenue Bonds of 2023, Series A: $1,620,600 T71523 - River East Residential •2015 Eddy Street Commons Refunding Revenue Bonds: $2,471,500 •163 - 2017 Taxable Economic Development Revenue Bonds, Series 2017 (Eddy Street Commons Phase II): $1,951,250 As of the date of this report, the total anticipated debt payments in 2026 will be $13,156,636. The anticipated debt payments described above include permissible reimbursements to the City of South Bend pursuant to IC 36-7-14-39(b)(4) for debt payments. The Redevelopment Commission would consider additional debt payments in 2026 as part of its annual spending plan if the need for such additional expenditures materializes that would further the goals of the Redevelopment Commission. C.Payments to Eligible Entities for Educational and Training Programs (e.g., School Corporation(s)) (pursuant to IC 36-7-25-7) As of the date of this report, the Redevelopment Commission anticipates payments in 2026 to eligible entities for educational and training programs pursuant to IC 36-7-25-7 will be $141,807. The Redevelopment Commission would consider additional payments in 2026 to eligible entities for educational and training programs (pursuant to IC 36-7-25-7) as part of its annual spending plan if the need for such an expenditure materializes that would further the goals of the Redevelopment Commission. D.Capital Expenditures Contemplated by the Economic Development Plan(s) or Redevelopment Plan(s), as amended Commission-controlled funds can be used as capital expenditure allocations in support of economic development and/or redevelopment. These types of projects include (1) South Bend Redevelopment Commission 3 transportation enhancement projects (e.g., curbs, gutters, shoulders, street paving, street construction, bridge improvements, sidewalk improvements, pathway improvements, street lighting, traffic signals, signage, parking lot improvements, site improvements, landscape buffers, and demolition costs); (2) utility infrastructure projects such as utility relocation, water lines, water wells, water towers, lift stations, wastewater lines, storm water lines, retention ponds, ditches, and storm water basin improvements; (3) public park improvements; (4) recreational improvements and equipment; and (5) projects to enhance cultural attractiveness. Capital expenditures can also include the use of funds for real property acquisition and improvements, as well as for equipment and personal property acquisitions and installation. Permissible incentives provided through a development agreement or real estate purchase agreement that support a development or a redevelopment project are also considered capital expenditures. As of the date of this report, the Redevelopment Commission anticipates the following capital expenditures in 2026: •Real property acquisition and improvements: $11,881,122 •Infrastructure improvements including, but not limited to, transportation enhancement projects, utility infrastructure projects, and public park improvements: $6,312,481 The Redevelopment Commission would consider additional capital expenditures in 2026 as part of its annual spending plan if the need for such an expenditure materializes that would further the goals of the Redevelopment Commission. E.Expenditures from the Redevelopment General Fund (a.k.a. Pokagon-South Bend Fund) Expenditures by the Redevelopment Commission from the Redevelopment General Fund are to be used in support of initiatives broadly aimed at contributing to the improvement of educational opportunities in the City of South Bend and addressing poverty and unemployment in the City. As of the date of this report, the estimated sum of expenditures in 2026 from the Redevelopment General Fund not discussed elsewhere in this report will be up to $3,600,000. The Redevelopment Commission would consider additional expenditures from the Redevelopment General Fund in 2026 that contribute to the improvement of educational opportunities in the City of South Bend or address poverty and unemployment in the City as part of its annual spending plan if the need for such additional expenditures materializes that would further the goals of the Redevelopment Commission. South Bend Redevelopment Commission 4 F.Grants and Contributions 1.Contributions to Local Economic Development Organizations and similar organizations As of the date of this report, the Redevelopment Commission does not anticipate any contributions in 2026 to Local Economic Development Organizations and similar organizations. However, the Commission would consider making contributions to Local Economic Development Organizations and similar organizations in 2026 as part of its annual spending plan if the need for such a contribution materializes that would further the goals of the Redevelopment Commission. 2.Contributions to local non-profit organizations The Redevelopment Commission has in the past supported local non-profit organizations whose missions, services, and commitments to the community would further the goals of the Commission. The support of the Commission to these organizations can be provided through mechanisms such as donation agreements or contracted services, among other ways. As of the date of this report, total estimated contributions to local non-profit organizations in 2026 will be $1,481,216. The Redevelopment Commission would consider providing additional contributions to local non-profit organizations in 2026 as part of its annual spending plan if the need for such an expenditure materializes that would further the goals of the Redevelopment Commission. 3.Grants or loans to enable eligible low-income individuals and families to purchase or lease residential units in a multiple unit residential structure (pursuant to IC 36-7-14- 12.2(a)(24)) As of the date of this report, the Redevelopment Commission does not anticipate any expenditure in 2026 in the form of a grant or loan to enable eligible low-income individuals and families to purchase or lease residential units in a multiple unit residential structure. However, the Commission would consider providing grants or loans in 2026 to enable eligible low-income individuals and families to purchase or lease residential units in a multiple unit residential structure as part of its annual spending plan if the need for such an expenditure materializes that would further the goals of the Redevelopment Commission. 4.Grants or loans to provide financial assistance to neighborhood development corporations (pursuant to IC 36-7-14-12.2(a)(25)) to permit them to: (A) provide financial assistance for the purposes described in paragraph F.3 above; or (B) construct, rehabilitate, or repair commercial property As of the date of this report, the Redevelopment Commission does not anticipate supporting neighborhood development corporations through expenditures that will permit them to provide financial assistance for the purposes described in paragraph F.3 above or construct, rehabilitate, or repair commercial property. However, the Commission would consider providing grants or loans in 2026 to provide financial assistance to South Bend Redevelopment Commission 5 neighborhood development corporations (pursuant to IC 36-7-14-12.2(a)(25)) as part of its annual spending plan if the need for such an expenditure materializes that would further the goals of the Redevelopment Commission. 5.Other legally permitted grants or loans As of the date of this report, the Redevelopment Commission does not anticipate expenditures in 2026 for any legally permitted grants or loans that have not been addressed elsewhere in this report. The Redevelopment Commission would consider providing other legally permitted grants or loans in 2026 as part of its annual spending plan if the need for such an expenditure materializes that would further the goals of the Redevelopment Commission. G.Professional Expenses (e.g., legal, accounting, project supervision expenses, and other) The Redevelopment Commission provides support for redevelopment projects, infrastructure projects, and other initiatives through expenditures for professional services including, but not limited to, legal services, engineering and design services, studies, and more. As of the date of this report, the Redevelopment Commission anticipates expenditures for professional expenses in 2026 will be $9,903,262. The Redevelopment Commission would consider additional expenditures for permitted professional expenses in 2026 as part of its annual spending plan if the need for such an expenditure materializes that would further the goals of the Redevelopment Commission. H.Expenditures Related to Capital and Operating Expenses for Police or Fire Services (including such things as salaries and benefits, and acquisition of public safety vehicles and equipment) As of the date of this report, the Redevelopment Commission does not anticipate expenditures in 2026 for expenditures related to capital and operating expenses for police or fire services. However, the Commission would consider expenditures related to capital and operating expenses for police or fire services as part of its annual spending plan if the need for such an expenditure materializes that would further the goals of the Redevelopment Commission. I.Expenditures from Proceeds of Bonds (Including Expenditures for Residential Housing Development Programs), Lease Financings, or Tax Anticipation Warrants As of the date of this report, the Redevelopment Commission does not anticipate expenditures in 2026 from proceeds of bonds (including expenditures for residential housing development programs), lease financings, or tax anticipation warrants that are not discussed elsewhere in this report. The Redevelopment Commission would consider expenditures from proceeds of bonds (including expenditures for residential housing development programs), lease financings, or South Bend Redevelopment Commission 6 tax anticipation warrants as part of its annual spending plan if the need for such an expenditure materializes that would further the goals of the Redevelopment Commission. J.Other Anticipated Expenditures As of the date of this report, the Redevelopment Commission does not anticipate other expenditures in 2026 that are not discussed elsewhere in this report. TOTAL OF (B)-(J): $46,476,524 K.Expenditures from State or Federal Grants or Loans, Foundation Grants or Loans, or Funds Provided to Redevelopment Commission by Other Political Subdivisions Expenditures from state or federal grants or loans, foundation grants or loans, or funds provided to the Redevelopment Commission by other political subdivisions have been included in the estimated expenditure amounts already discussed in this report. This includes grants the City has received in support of projects, including the following: •Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant: The City was awarded this $2,400,000 grant from the U.S. Department of Transportation in August 2022. The available funding will reimburse the City for expenses incurred to study needed transportation improvements in the street network around the South Bend Farmers Market, commonly referred to as the Market District. The City’s match for the grant is $600,000. •Outdoor Recreation Legacy Partnership Grant: In April 2024, the City was awarded a $7,500,000 grant from the National Parks Service for the Kennedy Park Rehabilitation Project, which includes a new outdoor aquatic facility, picnic pavilions, walking paths, educational naturalized landscaping, playground, athletic fields/courts, and improved access for the surrounding neighborhood. The City’s match for the grant is $7,500,000. •Regional Economic Acceleration and Development Initiative (READI) Grant: The historic redevelopment project in downtown South Bend—the Madison Lifestyle District—was awarded $11,780,000 in READI funds in October 2022 by the Indiana Economic Development Corporation (IEDC). The funds awarded to the developer will reimburse the City for expenditures associated with the project. The City’s commitment after reimbursement will be $12,220,000. •READI 2.0 Grant – Riverfront West: The City’s Riverfront West transformation project was awarded $5,640,000 in READI 2.0 funds in December 2024 by the IEDC. The funds will reimburse the City for expenditures associated with the project. The City’s commitment after reimbursement will be $16,664,535. •READI 2.0 Grant – Western Avenue Transformation District: The Western Avenue Transformation District is a 208-unit mixed-income housing development on the site of former public housing buildings. This project was awarded $4,500,00 in READI 2.0 Blight and Redevelopment funding. The City will contribute matching funds to the project through a HUD loan of $10,000,000 and an additional $2,050,000. South Bend Redevelopment Commission 7 •Indiana Finance Authority (IFA) Residential Infrastructure Fund (RIF) Loan: In January 2025, the City was notified that it was approved for a RIF loan in the amount of $2,570,000 million for the Drewrys Site Revitalization residential housing development. The City has and will occasionally apply for grants and other sources of funding that would complement support for projects provided by the Redevelopment Commission. The Commission may incur additional unforeseen expenditures in 2026 if the City is awarded financial support for projects that otherwise may not have been included in the discussions throughout this spending plan. In the event the Commission incurs unplanned spending in 2026, this spending plan will be amended accordingly.