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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 28, 2025 <br /> <br />7 <br /> <br />Upon a motion by Troy Warner for approval with the missing Section <br />8.3 language, regarding Liquidated Damages Defined (Exhibit E), <br />seconded by Eli Wax, the motion carried unanimously; the <br />Commission approved the Development Agreement with the amended <br />language on August 28, 2025. <br /> <br />2. Second Amendment to Development Agreement (Cascade-Wharf <br />Partners, LLC) <br /> <br />Joseph Molnar, Assistant Director of Growth and Opportunity, stated in <br />the agreement included in the packet, there was a typo in Section F. It <br />states that “Section 9.4 shall be deleted in the following text,” but no <br />text followed. To clarify, we are not proposing to delete Section 9.4. <br />The updated version—prepared by Laura Hensley—simply removes <br />that erroneous line. As a result, the lettering of subsequent sections (G <br />and onward) shifts up by one letter, but there are no substantive <br />changes to the content. <br /> <br />On to the development agreement itself: to orient ourselves, this <br />pertains to the site formerly known as the Wharf site, now referred to <br />as the Cascade Building. The Redevelopment Commission and Wharf <br />Partners originally entered into a development agreement in February <br />2018, which was amended once in December of the same year. The <br />agreement envisioned a two-phase project for the complete <br />redevelopment of the vacant property located along the Saint Joseph <br />River in the East Bank neighborhood, just north of Seitz Park. <br /> <br />Let’s begin with an overview of Phase One. The Redevelopment <br />Commission (RDC) committed just over $2.7 million to the project and <br />fully expended that amount. The developer originally committed $19.25 <br />million, but the actual investment totaled approximately $24.5 million— <br />an increase of more than $5 million beyond the initial commitment. <br />Regarding job creation, the original development agreement required a <br />minimum of 20 jobs from the restaurant component. According to <br />reports from the developer, that number has doubled, with current <br />employment ranging between 40 to 45 positions, depending on exact <br />hiring levels at the time. Before the project began, the assessed value <br />of the Phase One parcel was just over $100,000, resulting in a tax <br />liability of approximately $3,000. Today, the assessed value of the <br />completed Phase One development stands at $22,356,000, with the <br />actual paid tax liability reflected in the 2024 pay year with a payback <br />period of 13 years. <br /> <br />Under the original agreement, the developer was required to <br />accommodate the needs of the City’s Seitz Park renovation and the <br />University of Notre Dame’s hydroelectric project. Specifically, they