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� F 0) .. Community & Economic Development r ', 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fax 574/235 -9021 To: Redevelopment Commission From: David Relos, Economic Development Planner�j k - Subject: Rushton Building, 501 W. Washington K/" Memorandum of Understanding (MOU) & Development Agreement Date: October 25, 2011 Built in 1906 by the brothers John and Edward Rush, respectively the President and Treasurer of the Fidelity Land Company, the four story Rushton was the City's first high rise apartment building. The building first housed key people who played pivotal roles in turn of the century South Bend, and later housed many of the teachers at Central High School. Since 2002, the building has stood vacant. Indiana Landmarks for the past several years has tried to gain control of the building, and now stands ready to turn the building over to South Bend Heritage Foundation (SBHF) for development into a 23 unit, low to moderate income senior housing complex. Because the Rushton was built with common kitchen and dining areas, extensive remodeling of the building is required. Total development costs are estimated to be $3.4 million. Funding for the project will come from $2.8 million Low Income Housing Tax Credits and $277,700 Historic Tax Credits. To fully fund the project, SBHF requests $322,300 in West Washington Chapin Development Area TIF. The attached MOU and Development Agreement detail each party's responsibilities. Commission improvements will allow off street parking for residents and visitors, necessary site utility upgrades, sidewalks and curbs, landscaping and lighting, exterior tuck pointing and cleaning, and new thermo windows. Commission participation in this project is contingent on SBHF being granted the Low Income and Historic Tax Credits through the Indiana Housing & Community Development Authority and the Indiana Division of Historic Preservation, which will be announced in February 2012. If the tax credits are awarded, construction will begin October 2012, with project completion October 2013. Staff requests Commission approval of this MOU and Development Agreement, to allow this signature building to be repurposed into a senior housing complex on the edge of the downtown area. What We Do Today Makes A Difference!