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Home My WebLink About5A2 Resolution No. 3672 (Authorizing TIF Fund Forgivable Loan Beacon Heights) - SignedSouth Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Redevelopment Commission Agenda Item D ATE : 6.5.26 FROM: Joseph Molnar, Deputy Director Department of Community Investment SUBJECT: Beacon Heights Renovation Resolution 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 Resolution Authorizing the Use of River West TIF Revenues in the amount of $1.25M to fund an EDC Loan for the Renovation of Beacon Heights SPECIFICS: Beacon Heights is an existing affordable apartment complex with approximately 174 housing units on the west side of the City of South Bend with a primary address of 3401 Ardmore Trail. The complex was constructed in the mid 1940s and has served as affordable housing for the South Bend community for decades. The property is in need of improvements both to the housing units and the common spaces. L+M Development Partners has entered into an agreement to purchase the property from the existing owner and is in the process of receiving Low Income Housing Tax Credits from the Indiana Housing and Community Development Authority. L+M has established an Indiana based LLC – Beacon Apartments Preservation, LLC – to manage and renovate the property. The planned redevelopment represents an approximate $47 million private investment to fully renovate all existing housing units on the property, ensuring long-term affordability and improving living conditions for residents. Critically, the project will proceed as a "renovation in place," meaning no current residents will be displaced during construction. The Beacon Heights Project directly supports the City’s mission to advance neighborhood revitalization and expand and preserve affordable housing opportunities within the City. The project will: •Preserve and improve an existing affordable housing community •Leverage substantial private investment into the River West Development Area •Maintain long-term affordability through LIHTC financing •Improve housing quality without displacing existing residents The proposed resolution authorizes the Commission to allocate up to $1,250,000 in River West TIF revenues, subject to appropriation, to fund an EDC Loan supporting the project. This resolution is the first step in the EDC Loan process. If approved, staff will return to the Commission with a proposed development agreement setting forth the detailed terms and conditions of the funding. The Commission ______________ ___________Pres/V-Pres ATTEST: __________ _______ _ Date: _____________ _______ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION June 11, 2026  South Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana will also be asked to hold a public hearing and adopt a resolution appropriating the TIF funds at a future meeting. Approvals and related actions will also be required by the Economic Development Commission and the Common Council. No TIF funds will be disbursed unless and until all required approvals are obtained and the acquisition of the property by L+M Development Partners (through Beacon Apartments Preservation, LLC) is successfully completed. Staff recommends approval of the resolution. RESOLUTION NO. 3672 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE USE OF RIVER WEST TIF REVENUES FOR THE BEACON HEIGHTS PROJECT AND OTHER RELATED MATTERS WHEREAS, the South Bend Redevelopment Commission (the “Commission”), the governing body of the South Bend Department of Redevelopment and the Redevelopment District of the City of South Bend, Indiana, exists and operates under the provisions of Indiana Code 36- 7-14, as amended from time to time (the “Act”); and WHEREAS, the Commission is committed to improving the City of South Bend, Indiana (the “City”) by administering and funding projects that support economic development, public infrastructure, and neighborhood revitalization; and WHEREAS, the Commission is currently negotiating a development agreement (the “Development Agreement”) with Beacon Apartments Preservation LLC, an Indiana limited liability company (the “Developer”), for the construction, renovation and/or rehabilitation of up to one hundred seventy-four (174) affordable housing units in the existing Beacon Heights development in the River West Development Area (as hereinafter defined) in the City, with an approximate total redevelopment cost of Forty-Seven Million Dollars ($47,000,000) including a private investment of no less than Forty-Seven Million Dollars ($47,000,000) to be expended by the Developer (collectively, the “Project”); and WHEREAS, the Commission has previously adopted a declaratory resolution, as subsequently confirmed and amended, which (i) declared the River West Development Area (the “River West Development Area”) as an economic development area pursuant to Section 41 of the Act, (ii) designated the River West Development Area as an allocation area pursuant to Section 39 of the Act (the “River West Allocation Area”), for the purpose of capturing property tax proceeds derived from incremental assessed valuation of real property in such allocation area which is in excess of the “base assessed value” (such property tax proceeds, hereinafter referred to as “River West TIF Revenues”), (iii) created the River West Allocation Area Fund (the “River West Allocation Fund”) into which all River West TIF Revenues are deposited, all pursuant to and as described Section 39 of the Act, and (iv) approved an economic development plan for the River West Development Area (the “Plan”); and WHEREAS, subject to the final terms of the Development Agreement to be approved by the Commission, the Commission would agree to contribute River West TIF Revenues in an amount of up to One Million Two Hundred Fifty Thousand Dollars ($1,250,000), subject to appropriation, toward the cost of the Project, subject to the completion of all procedures required by law; and WHEREAS, the Commission has sufficient River West TIF Revenues on deposit in the River West Allocation Fund to contribute River West TIF Revenues toward costs of the Project, which will directly serve and benefit, or be physically located in or connected to, the River West Allocation Area; and 2 WHEREAS, the Commission now desires to contribute a total amount of not to exceed $1,250,000 of River West TIF Revenues, subject to appropriation thereof, toward the cost of the Project subject to the approval of the Development Agreement by the Commission and completion of all procedures required by law, and authorize and approve other actions related thereto, subject to the terms and conditions set forth below; NOW, THEREFORE, BE IT RESOLVED BY THIS SOUTH BEND REDEVELOPMENT COMMISSION AS FOLLOWS: SECTION 1. The Commission hereby finds and determines that the Project, and the use of River West TIF Revenues to contribute to the Project as described herein, directly serves and benefits the River West Allocation Area, furthers the purposes for which the River West Development Area was created, and helps accomplish the Plan. SECTION 2. Subject to the approval of the Development Agreement by the Commission and the completion of all procedures required by law, the Commission hereby authorizes the contribution of not to exceed $1,250,000 of River West TIF Revenues, subject to appropriation thereof, toward the cost of the Project. The use of River West TIF Revenues as described herein shall be junior and subordinate to any currently outstanding or future bonds or lease obligations of the Commission payable from River West TIF Revenues. SECTION 3. The Commission hereby authorizes a public hearing to be held on the appropriation of an amount of River West TIF Revenues in an amount not to exceed $1,250,000 to provide funding to reimburse the City for the loan from the City to the Developer and further authorizes the staff of the Department of Community Investment, with assistance from counsel, to cause the notice of such hearing to be published and posted as required by law. SECTION 4. This resolution shall take effect immediately upon adoption by the Commission. ADOPTED at a meeting of the South Bend Redevelopment Commission held on June 11, 2026, in the City Hall Council Chambers, 3rd Floor, 215 S. Dr. Martin Luther King, Jr., Blvd., South Bend, Indiana, 46601. SOUTH BEND REDEVELOPMENT COMMISSION By: David Relos, President ATTEST: Eli Wax, Secretary DMS 52932444v1