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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – May 14, 2026 <br /> <br />Page | 5 <br /> <br />Upon a motion by David Relos for approval, seconded by Gillian Shaw, <br />the motion carried unanimously; the Commission approved the <br />Development Agreement as presented on May 14, 2026. <br /> <br />4. Purchase Agreement (Scott St. NNN) <br />Joseph Molnar, Deputy Director of Community Investment, presented <br />the second agreement with a trusted local partner, this time with Near <br />Northwest Neighborhood, Inc. (NNN), for a housing project on Scott St. <br />The proposal includes the sale of City-owned, vacant parcels (acquired in <br />2024) located near Lincoln Way West, Madison, and Leland Streets. The <br />project complements nearby developments by Advantix and Allen <br />Edwin, which are currently under construction and expected to deliver <br />new affordable and workforce housing units. <br /> <br />NNN, a longstanding community development partner, proposes <br />construction of at least 11 income-based housing units with a total <br />investment of approximately $3 million. The purchase price is $1,000, <br />contingent upon NNN securing Federal Home Loan Bank Affordable <br />Housing Program (AHP) funding. If funding is not awarded, the <br />agreement will be terminated, and the City will retain ownership. <br /> <br />The closing deadline is the end of 2027 to allow the NNN to apply for <br />multiple AHP funding cycles if needed. Construction must begin within <br />12 months of closing and be completed within 36 months thereafter. <br /> <br />Kathy Schuth, Executive Director of the Near Northwest Neighborhood <br />Inc. expressed appreciation for the City’s partnership and noted the <br />project builds on land strategically assembled by the Redevelopment <br />Commission. She stated the proposal will deliver for-sale, income-based <br />housing, including a mix of detached homes and townhouse-style units <br />designed to reflect neighborhood character while improving <br />affordability through construction efficiencies. <br /> <br />Ms. Schuth outlined financing through the Federal Home Loan Bank <br />Affordable Housing Program, in partnership with 1st Source Bank, along <br />with additional local funding support. She noted the City’s land <br />contribution strengthens the project’s competitiveness. <br /> <br />NNN plans to apply for funding in June, with award announcements <br />expected in November. If awarded, closing would occur shortly <br />thereafter, with construction anticipated to begin in spring 2027. If <br />unsuccessful, NNN intends to reapply in a subsequent funding cycle. <br /> <br />Councilmember Canneth Lee spoke in favor of this project. <br />