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LOAN AGREEMENT <br /> This LOAN AGREEMENT made and entered into as of 1, 2025 <br /> (the"Agreement"),by and between the City of South Bend, Indiana, a municipal corporation and <br /> political subdivision existing under the laws of the State of Indiana (the "City"), and J.C. Hart <br /> Company, Inc., an Indiana corporation (the "Company"), under the following circumstances <br /> summarized in the following recitals(the capitalized terms not defined in the recitals are as defined <br /> in Article I hereof): <br /> A. Indiana Code, Title 36, Article 7, Chapters 11.9 and 12, as supplemented <br /> and amended(collectively,the"Act"),authorizes and empowers the City to issue bonds and make <br /> loans to provide funding for economic development projects and facilities and vests the City with <br /> powers that may be necessary to enable it to accomplish such purposes. <br /> B. The Company has proposed undertaking an economic development project <br /> in the City consisting of the development and construction of 2 buildings housing approximately <br /> 291 apartments and an approximately 398 space structured garage(the"Project"). <br /> C. In conjunction with undertaking the Project, the Company has requested <br /> certain economic development incentives from the City consisting of the issuance of its Taxable <br /> Economic Development Tax Increment Revenue Bonds, Series 2025 (J.C. Hart Development <br /> Project) in the aggregate principal amount of not to exceed $17,000,000 (the "Bonds") and the <br /> loan of a portion of the proceeds thereof to the Company to finance a portion of the costs of the <br /> Project. <br /> C. The City believes that developing the Project as described herein is in the <br /> best interests of the health, safety and welfare of the City and its residents and complies with the <br /> public purposes and provisions of the Act, and based upon the information presented to the City <br /> by the Company, the City has determined that the Project constitutes an economic development <br /> project and an economic development facility as defined by the Act. <br /> E. The City desires to facilitate the development of the Project by issuing the <br /> Bonds and making a loan to the Company from the proceeds of the Bonds (the"Loan"). <br /> F. The Bonds will be issued under the Indenture (as hereinafter defined) and <br /> will be payable from (i) the TIF Revenues (as defined in the Indenture), (ii) the Taxpayer Direct <br /> Payments(as defined in the Indenture)made by the Company, and(iii)to the extent the foregoing <br /> sources are not sufficient,the Loan Payments(as hereinafter defined). <br /> G. The parties hereto agree that it is of mutual benefit for the parties hereto to <br /> enter into this Agreement relating to the Project and the Loan that will include the commitments <br /> of each of the parties. <br /> H. The City, the South Bend Redevelopment Commission and the Company <br /> entered into an Economic Development Agreement dated as of January 9,2025 (the"Development <br /> Agreement"), pursuant to which the parties agreed to their respective commitments with respect <br /> to the development of the Project. <br /> NOW, THEREFORE, in consideration of the premises and the mutual <br /> representations and agreements hereinafter contained,the City and the Company agree as follows: <br />