25-28 Resolution Approving the Issuance of Tax Increment Revenue Bonds for Improvements that Support Residential Housing Developments and All Matters Related Thereto

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Authority (IFA). On January 22, 2025,the City was informed by IFA that the loan application was approved. Through the RIF program,the funds provided by the IFA would be made available to the City through IFA's purchase of Redevelopment District Bonds issued by the South Bend Redevelopment Commission. RIF loan funds can be used to support the project such as continued environmental remediation and demolition of structures at the Drewrys site and Portage Elwood shopping plaza,the construction of new streets, curbs, sidewalks, and tree lawns, the construction of a storm sewer system,the installation of sanitary sewer lines, the installation of water main lines and a lateral connection system, and the installation of street lighting. On April 24, 2025, the Redevelopment Commission approved and adopted its resolution authorizing the issuance of tax increment revenue bonds for the purpose of financing the cost of certain local public improvements for the Drewrys site project. Indiana Code requires the Common Council to provide its authorization before the bonds can be issued. Adoption of Resolution No. 25-28 by the Common Council would enable the City to access the RIF loan funds provided by IFA. Debt service on the bonds would be paid through Tax Increment Financing revenues collected in the River West Development Area. The current interest rate as established by the IFA is 3.15 percent, and interest-only payments would begin six months after IFA purchases the bonds. Payments on principal would begin 12 months following substantial completion of the project. Final maturity of the bonds will be no later than 20 years from the date of issuance. The Drewrys site residential housing development will lead a transformation of a blighted area in the northwest part of the City into a vibrant residential area located near amenities such as the Coal Line Trail. We have made significant progress in the past few years to prepare the site for redevelopment: the City partnered with the Environment Protection Agency to remediate potential contamination, resulting in a site certified as clean by the agency in 2023. The City has been demolishing remaining buildings and removing debris in preparation for redevelopment of the site. Access to potential funding sources such as the RIF loan is key to ensuring this historic project can move forward as planned. Sincerely, Caleb Bauer Executive Director Department of Community Investment CC: South Bend Redevelopment Commission Sandra Kennedy, Corporation Counsel