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HomeMy WebLinkAbout6A(3) c Pt C�) DISBURSEMENT AGREEMENT THIS DISBURSEMENT AGREEMENT("Agreement") made and entered into as of the_day of August, 2014 by and between the CITY OF SOUTH BEND REDEVELOPMENT COMMISSION ("Commission") and EQUAL CONSTRUCTION, LLC, an Indiana limited liability company ("Owner"). WHEREAS,the Commission has approved a proposal for the rehabilitation and renovation of the Historic Hoffman Hotel located at 120 West LaSalle Avenue, South Bend, Indiana ("Property") by Owner, including infrastructure improvements, as further set forth in the Development Agreement entered into by and between the South Bend Redevelopment Commission and Hoffman Hotel Apartment Housing Partners, L.P.,("Project"); and WHEREAS, the Commission has authorized the expenditure of the maximum amount of One Hundred Seventy-Five Thousand Dollars ($175,000.00) ("TIF Funds") for the redevelopment of the Property for those purposes permitted in IC 36-7-14-39 and undertaken in connection with the renovation of the Project, pursuant to the Development Agreement, attached hereto as Exhibit A and incorporated herein. Now, therefore, in consideration of the covenants, promises and agreements herein provided, it is hereby mutually agreed: 1. That the Owner has on deposit the TIF Funds in the sum of One Hundred Seventy-Five Thousand Dollars($175,000.00), in lawful money of the United States of America, as an escrow account ("Escrow") held on behalf of the Commission to be used for certain costs of completion of the Project set forth in the Development Agreement("Local Public Improvements"). 2. That the TIF Funds shall only be released or disbursed to Owner in whole or in part upon receipt of, and in the amount set forth in, a written authorization in the form of Exhibit B attached hereto ("Draw Request"), subject to the following: (a) Upon receipt of a Draw Request, and approval by South Bend Redevelopment Staff ("Staff") pursuant to the Development Agreement on behalf of the Commission, the Staff shall, by the end of the next business day following the approval of such Draw Request, authorize transfer, in immediately available funds, the amount requested in each Draw Request as set forth in the Draw Request from the Escrow to the Owner for payment of Local Public Improvements costs. (b) Draw Requests may be for the payment of all reasonable and necessary expenses as set forth in the Development Agreement and Indiana law regarding public bidding and common construction wage. [REMAINDER OF PAGE BLANK] IN WITNESS WHEREOF, the undersigned have executed this Disbursement Agreement as of the day and year first above written. COMMISSION: CITY OF SOUTH BEND, DEPARTMENT OF REDEVELOPMENT Signature Printed Name and Tide South Bend Redevelopment Commission ATTEST: Signature Printed Name and Title South Bend Redevelopment Commission STATE OF INDIANA ) SS: COUNTY OF ST.JOSEPH ) Before me, the undersigned, a Notary Public for and in said County and State this day of , 2014, personally appeared and , the and of the South Bend Redevelopment Commission, and acknowledged execution of the foregoing Disbursement Agreement for and on behalf of the South Bend Redevelopment Commission for the use and purposes contained therein. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal. (SEAL) ,Notary Public Commission expires: Resident of County, (Signature Page to Disbursement Agreement) -2 - OWNER: EQUAL CONSTRUCTION,LLC By: William J. Hollingsworth, Member STATE OF INDIANA ) SS: COUNTY OF ST.JOSEPH ) Before me, a Notary Public in and for said County and State, personally appeared William J. Hollingsworth, Member of Equal Construction, LLC, and acknowledged the execution of the foregoing Disbursement Agreement for and on behalf of Equal Construction, LLC for the use and purposes contained therein. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal. (SEAL) ,Notary Public Commission expires: Resident of County, (Signature Page to Disbursement Agreement) -3 - Exhibit"A" DEVELOPMENT AGREEMENT f 1 t -4 - Exhibit"B" DRAW REQUEST The undersigned, for and on behalf of EQUAL CONSTRUCTION, LLC, (hereinafter, the "Owner"), hereby requests a disbursement pursuant to the Disbursement Agreement dated 2014 ("Agreement"), by and between Owner and SOUTH BEND REDEVELOPMENT COMMISSION ("Commission"), in the amount of and _/100 Dollars ($ ). Owner further acknowledges the prior receipt from Commission of the sum of and _/100 Dollars ($ ), representing in the aggregate prior disbursements heretofore made to Owner by Commission under the Agreement. The disbursement hereby requested shall be paid directly to Owner or as follows: As an inducement to Commission to make the disbursement hereby requested, the undersigned represents and warrants to Commission that: (a)the costs of an aggregate amount set forth have been made or incurred and were necessary for the installation, equipping or construction of the Local Public Improvements and were made or incurred in accordance with the construction contracts, plans and specifications, or purchase contracts therefor then in effect; (b) the amount paid or to be paid is reasonable and represents a part of the amount payable for the costs of the Local Public Improvements all in accordance with the cost budget; and that such payment was not paid in advance of the time, if any, fixed for payment and was made in accordance with the terms of any contracts applicable thereto and in accordance with usual and customary practice under existing conditions; (c) no part of the costs was included in any Draw Request previously filed with the Commission under the provisions hereof; and (d) true and correct invoices or purchase contracts are attached hereto; all in compliance with IC 36-7-14, the Development Agreement and the Disbursement Agreement. Executed this day of , 201 "Owner" EQUAL CONSTRUCTION, LLC By: William J. Hollingsworth, Member - 5 -