5A9 Second Amendment to Development Agreement (The Monreaux) - TABLED

Home Browse Search

South Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item DATE : 8/11/2025 FROM: Erik Glavich, Director, Growth and Opportunity SUBJECT: Second Amendment to Development Agreement for “The Monreaux” 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: Second Amendment to a Development Agreement for the Monreaux residential development SPECIFICS: The Commission will consider a Second Amendment to the Monreaux Development Agreement that, if adopted, would authorize an additional $303,000 in TIF expenditures to support the Monreaux project. Cost increases and other challenges since the execution of the Development Agreement have necessitated consideration by the Commission to increase support to ensure successful completion of the project. The additional funds would be used to assist the Developer in making architectural improvements. On November 20, 2023, the Commission entered into a Development Agreement with the Developer for the construction of “The Monreaux” affordable housing project at 505, 507, 511, and 513 S. Michigan Street, the former “Fat Daddy’s” site. The Commission also entered into a Purchase Agreement on July 14, 2022, for the sale of the property for the Monreaux project. The due diligence period established by the Purchase Agreement was amended 3 times—now set to expire on September 30, 2025—as the Developer has worked through design, engineering, and financing. The Development Agreement was amended on May 22, 2025 (the First Amendment). It increased the Funding Amount to $3,300,000 (from $2,300,000) and increased the Private Investment commitment to $17,700,000 (from $13,700,000). The total project will consist of a 57,000 square foot building and 57 residential units, of which 45 are income-restricted. The Funding Amount authorized through the original Development Agreement and First Amendment would be provided to the Developer in accordance with a loan agreement, which establishes that the loan would be forgiven if the Developer completes the project as committed. In alignment with the Real Estate Purchase Agreement, as amended, the Developer agrees to complete the project within 36 months of the Closing Date. If the Commission were to approve this Second Amendment to the Development Agreement, the additional $303,000 would not be included in the loan amount; it would instead be subject to the procurement processes _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION August 14, 2025