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HomeMy WebLinkAbout5B1 Second Amendment to Development Agreement (J.C. Hart Co., Inc) - SignedSouth Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Redevelopment Commission Agenda Item DAT E : 12/8/25 FROM: Erik Glavich, Director of Growth & Opportunity SUBJECT: Second Amendment to Economic Development Agreement (J.C. Hart) 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 a Second Amendment to JC Hart Development Agreement SPECIFICS: This Second Amendment to the JC Hart development agreement simply extends the completion date, and other associated end dates, by one year to accommodate delays due to efforts to relocate utilities on and around the project site. Demolition of the existing building is ongoing and the City’s utility work is proceeding. This Second Amendment would make the following amendments to the development agreement: •Project Completion: The date by which JC Hart commits to have completed the project is changed to December 31, 2029, from December 31, 2028. •Closing with Respect to the Bonds: The date by which the closing with respect to the bonds must take place is updated to December 31, 2026, from December 31, 2025. As background, on January 9, 2025, the Commission entered into an economic development agreement with J.C. Hart Company in support of the transformational project taking place on the western bank of the St. Joseph River in downtown South Bend. The Developer commitments included the demolition of an existing office building, construction of two (2) new multi-family residential buildings with a minimum of two hundred and ninety-one (291) units, and a three hundred and ninety-eight (398) parking space garage. The minimum Developer investment is $61.5 million. The City committed to undertaking the construction of public infrastructure improvements to support the project, including those necessary to re-establish a street grid and utility network at the project site, including construction of new streets, curbs and sidewalks, installation of lighting, relocation of existing or building of new utilities serving the project site, and other improvements in support of the project as agreed upon between the parties. The agreement was amended on March 13, 2025 (the First Amendment) to better clarify the Local Public Improvements to which the City committed to complete. ______________ ___________Pres/V-Pres ATTEST: __________ ________Secretary Date: _____________ _______ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION December 11, 2025  1 SECOND AMENDMENT TO ECONOMIC DEVELOPMENT AGREEMENT This SECOND AMENDMENT TO ECONOMIC DEVELOPMENT AGREEMENT (this “Second Amendment”), is made effective as of the _____ day of ___________________, 2025, by and among the CITY OF SOUTH BEND, INDIANA, a political subdivision and municipal corporation of the State of Indiana (the “City”), the CITY OF SOUTH BEND DEPARTMENT OF REDEVELOPMENT acting by and through its governing body, the SOUTH BEND REDEVELOPMENT COMMISSION (the “Redevelopment Commission” and together with the City, the “City Bodies”), and J.C. HART COMPANY, INC., an Indiana corporation (“Developer”). R E C I T A L S: A.The City Bodies and Developer are parties to a certain Economic Development Agreement dated as of January 9, 2025, as amended by that certain First Amendment to Economic Development Agreement made effective March 13, 2025 (as amended, the “Original Agreement”). B.The City Bodies and Developer desire to further modify and amend the terms of the Original Agreement to extend certain deadlines contained in the Original Agreement, all as set forth herein. NOW, THEREFORE, in consideration of the mutual promises set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follo ws: 1.Incorporation of Recitals; Definitions. The foregoing recitals are incorporated herein. Capitalized terms not otherwise defined herein shall have the meanings given such terms in the Original Agreement. 2.Extension of Deadlines. The City Bodies and Developer agree to extend certain deadlines under the Original Agreement as follows: a.Completion Date. The City Bodies and Developer agree to extend the Completion Date by one (1) year. Accordingly, the date “December 31, 2028” located in the definition of Completion Date in Article I of the Original Agreement is hereby deleted and replaced with “December 31, 2029”. The date “December 31, 2028” located in Section 4.01 and Section 4.03 of the Original Agreement is hereby deleted and replaced with “December 31, 2029”. b.Costs. The City Bodies and Developer agree to extend the date by which Closing must occur to avoid triggering an obligation to pay certain costs and fees of the City Bodies by one (1) year. Accordingly, the date “December 31, 2025” located in Section 8.04 is hereby deleted and replaced with “December 31, 2026”. Docusign Envelope ID: 8FFF8F72-BEE0-4955-8960-3225BB960D2F 11th. December 2 c.Termination. The City Bodies and Developer agree to extend the date by which Closing must occur to avoid triggering a right to terminate the Original Agreement in favor of the City Bodies by one (1) year. Accordingly, the date “December 31, 2025” located in Section 8.06 is hereby deleted and replaced with “December 31, 2026”. 3.Continuing Effect. Except as expressly set forth herein, the Original Agreement remains unmodified and in full force and effect. To the extent of any inconsistency between the terms and provisions of this Second Amendment and the Original Agreement, the terms and provisions of this Second Amendment shall control. 4. Miscellaneous. This Second Amendment may be executed in multiple counterparts, each of which shall be deemed an original, but together shall constitute one and the same instrument. Each party has the right to rely upon a facsimile or e-mail counterpart of this Second Amendment signed by the other party to the same extent as if such party received an original counterpart. This Second Amendment shall extend to, be binding upon and inure to the benefit of the respective heirs, devisees, legal representatives, successors, permitted assigns and beneficiaries of the parties hereto. [SIGNATURES ON THE FOLLOWING PAGE(S)] Docusign Envelope ID: 8FFF8F72-BEE0-4955-8960-3225BB960D2F 3 IN WITNESS WHEREOF, the City Bodies and Developer have executed this Second Amendment to be effective as of the date set forth above. CITY: CITY OF SOUTH BEND, INDIANA By: James Mueller, Mayor REDEVELOPMENT COMMISSION: SOUTH BEND REDEVELOPMENT COMMISSION By: Printed: ___________________________________ Title: _____________________________________ ATTEST: By: Printed: ___________________________________ Title: _____________________________________ [signatures continue on the following page] Docusign Envelope ID: 8FFF8F72-BEE0-4955-8960-3225BB960D2F Troy Warner President Eli Wax Secretary 4 DEVELOPER: J.C. HART COMPANY, INC., an Indiana corporation By: ________________________________ John C. Hart, Jr., Chairman Docusign Envelope ID: 8FFF8F72-BEE0-4955-8960-3225BB960D2F