HomeMy WebLinkAbout5A7 First Amendment to Development Agreement (Property Bros.) - SignedSouth Bend
Redevelopment Commission
215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana
Redevelopment Commission Agenda Item
D ATE : 12/3/25
FROM: Joseph Molnar – Assistant Director of Growth
& Opportunity
SUBJECT: First Amendment to Real Estate Development
Agreement – Property Bros Sherman Ave
Project
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 First Amendment to Development Agreement for Property Bros
Sherman Ave Project
SPECIFICS: On June 13, 2024, the RDC and Property Bros LLC simultaneously entered into a Real Estate
Purchase Agreement to transfer property located at 619 & 620 Sherman Ave and 1021 ½ 1023 ½ Lincoln
Way West and a Development Agreement in order to construct new duplexes with six (6) total new
residential units.
Property Bros LLC has completed the construction of the housing and was able to construct two (2) new
housing structures with a total of six (6) residential units on the property located at 619 & 620 Sherman
Ave . Property Bros LLC did not need to use the property located at 1021 ½ 1023 ½ Lincoln Way West to
complete their commitments and desires to transfer back to the Commission’s ownership. Staff believe
that transferring back this property for redevelopment in the future would be in the best interests of the
Commission. This amendment updates the Project scope to remove the parcel on Lincoln Way West.
Staff requests approval.
______________ ___________Pres/V-Pres
ATTEST: __________ ________Secretary
Date: _____________ _______
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION
December 11, 2025
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FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
This FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (this “First
Amendment”) is made and entered into to be effective as of December 11, 2025, by and between
the City of South Bend, Department of Redevelopment, acting by and through its governing body,
the South Bend Redevelopment Commission (the “Commission”), and Property Bros LLC, an
Indiana limited liability company with offices at 1251 N. Eddy St, Suite 200, South Bend, IN
46617(the “Developer”).
RECITALS
A.The Commission and the Developer entered into that certain Development
Agreement dated effective June 13, 2024 (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. All capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to such terms in the Development Agreement.
B.Concurrently with the execution of the Development Agreement, the Commission
entered into a certain Real Estate Purchase Agreement (the “Purchase Agreement”) under which
the Commission agreed to sell to Developer certain real property to be included in the Project.
C.Certain circumstances have changed since the execution of the Development
Agreement and Purchase Agreement, and the Commission and the Developer now collectively
desire to amend the Development Agreement to remove one of the parcels of real property from
the Project scope, which parcel is expected to be transferred back to the Commission’s ownership
through an amendment to the Purchase Agreement, executed concurrently herewith.
D.The Commission believes that updating the terms of the Development Agreement
to reflect such changes 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 First Amendment as though fully set forth
herein.
2.Amendments. The Development Agreement is hereby amended as follows:
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a)The Commission’s notice and copy addresses provided in Section 9.8 Notice and
Demands shall be amended to read as follows:
Commission: South Bend Redevelopment Commission
215 S. Dr. Martin Luther King Jr. Blvd., Suite 500
South Bend, IN 46601
Attn: Executive Director, Department of Community
Investment
With a copy to: South Bend Legal Department
215 S. Dr. Martin Luther King Jr. Blvd., Suite 600
South Bend, IN 46601
Attn: Corporation Counsel
b)The following text from Exhibit A shall be deleted in its entirety:
Key Number: 71-08-02-335-008.000-026
Local Parcel Number: 018-1074-3131
Legal Description: Lot 2 40 Ft W Side Cushings First Add
Commonly Known As: 1021 1/2-1023 1/2 Lincoln Way West
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 First Amendment and
the Development Agreement, the terms of this First Amendment shall control. Capitalized terms
used in this First Amendment will have the meanings set forth in the Development Agreement
unless otherwise stated herein.
4.Counterparts; Electronic or Facsimile Transmission. This First Amendment
may be executed in counterparts which, when combined, shall constitute one instrument. The
electronic or facsimile transmission of a signed counterpart of this First Amendment shall be
binding upon the party whose signature is contained on the transmitted copy.
Signature Page Follows
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IN WITNESS WHEREOF, Commission and Developer have executed this First
Amendment to Development Agreement to be effective as of the date set forth above.
SOUTH BEND REDEVELOPMENT COMMISSION
By:___________________________________
Troy Warner, President
Attest: ___________________________________
Eli Wax, Secretary
PROPERTY BROS LLC
By:_____________________________
Jordan Richardson, Chief Executive Officer