Redevelopment Commission Agenda & Packet 10.23.25 - Revised

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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – October 9, 2025 3 approval to submit it formally, which was done just before the federal government shutdown. The decision timeline is now uncertain, but the City expects to receive the loan, which would reimburse demolition costs. If the federal government shutdown continues and delays the award notification for the Section 108 loan, we may need to postpone the demolition. We can only use the loan funds to reimburse costs after we officially receive the award. So, while we expect these funds to be reimbursed, we will not proceed with demolition unless that reimbursement is confirmed. To be clear, the uncertainty lies in the timeline due to the federal government shutdown—not in the availability of funding itself. Zach Hurst, Senior Engineer, stated bids were opened and read aloud at the September 23 Board of Public Works meeting. Nine bids were received, with the lowest responsive bid being submitted by Green Demolition at a price of $1,348,000. The project is anticipated to begin in November with building cleanout and asbestos abatement. Demolition will continue through the winter with final grading and seeding to be completed before April 15, 2026. Secretary Wax asked for clarification that he understands correctly, you're requesting appropriation today, but you won’t actually spend it until you receive confirmation that it will be reimbursed, right? Mr. Bauer said, to walk you through our thinking: if the federal government shutdown were to extend significantly beyond this date, we might consider amending the scope of the READI reimbursement dollars with the State of Indiana. That could also lead to an amendment of the Section 108 loan—essentially allowing the state’s grant funds to cover the demolition costs, while Section 108 loan funds could then be used to reimburse other project-related expenses. We have several options available, and we won’t proceed until we’re confident that the expenditure meets the eligibility criteria for reimbursement from one of the applicable grant or loan sources supporting this project. President Warner and Vice President Relos asked what the next steps after the demolition are and how does HUD fit into the picture. Mr. Bauer explained how HUD fits into the picture. HUD plays a role in this project through its Section 108 loan program, which allows cities to borrow against future Community Development Block Grant (CDBG) allocations. In this case, the City of South Bend is applying for a $10 million Section 108 loan to help fund infrastructure work for both Phase 1 and Phase 2 of the redevelopment project. The loan would be repaid over 25 years using a portion of the city’s annual CDBG funds, and the