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HomeMy WebLinkAbout5A2 First Amendment to Development Agreement (Liberty Tower) - SignedSouth Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Redevelopment Commission Agenda Item DATE: 12/5/2025 FROM: Joseph Molnar, Assistant Director of Growth & Opportunity SUBJECT: First Amendment Liberty Tower 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: Approval of First Amendment Liberty Tower Agreement SPECIFICS: The Commission and the Developer entered into a certain Development Agreement dated effective April 12, 2023, to renovate, rehabilitate, and activate the top half of Liberty Tower in downtown South Bend. The Developer committed to converting the top floors into 90 apartment units, repair and rehabilitate the attached parking garage, create meeting/event spaces, and open a 7th floor commercial establishment. The Developer ’s minimum investment commitment was $13.1 million for the improvements. The Developer has made significant progress towards the completion of the above commitments, including exceeding the minimum investment amount by several million dollars. While the improvements to the parking garage and event spaces are complete, the apartments will not be fully completed by the December 31, 2025, deadline Delays resulting from delayed material deliveries due to the Tariffs implemented in the spring of 2025 contributed significantly to delaying completion. Certificate of Occupancy are expected to be issued for all the apartments in the next few months. The attached First Amendment extends the completion of Phase I of the project to June 30, 2026, and Phase II of the project which is rehabilitating 4,000 square feet of commercial and/or retail space until June 30, 2027. The First Amendment also increases the minimum commitment by the Developer to $18 million while not increasing the Commission’s contribution to the project. Staff recommend approval. ______________ ___________Pres/V-Pres ATTEST: __________ ________Secretary Date: _____________ _______ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION December 11, 2025 