HomeMy WebLinkAboutResolution No. 2026-03 (KCG Donald & Main LP) - SignedRESOLUTION NO. 2026-03
A RESOLUTION OF THE SOUTH BEND ECONOMIC
DEVELOPMENT COMMISSION AUTHORIZING A
DIRECT LOAN TO THE DEVELOPER OF AN ECONOMIC
DEVELOPMENT FACILITY (HEARTWOOD COMMONS
PROJECT) AND APPROVING OTHER MATTERS IN
CONNECTION THEREWITH
WHEREAS, the City of South Bend, Indiana (the “City”), is a municipal corporation and
political subdivision of the State of Indiana and by virtue of I.C. 36-7-11.9, I.C. 36-7-12 and I.C.
36-7-14 (collectively, the “Act”) and has previously established the South Bend Economic
Development Commission (the “Commission”) to investigate, study, and survey the need for
additional job opportunities, industrial diversification, water services, and pollution control
facilities in the City, and recommend actions to improve or promote job opportunities, industrial
diversification, water services, and availability of pollution control facilities in the City; and
WHEREAS, the Act declares that the financing and refinancing of economic development
facilities (as defined in the Act) constitutes a public purpose; and
WHEREAS, pursuant to the Act, the City is authorized to make loans for the purpose of
financing, reimbursing or refinancing all or a portion of the costs of acquisition, construction,
renovation, installation and equipping of economic development facilities in order to foster
diversification of economic development and creation or retention of opportunities for gainful
employment in or near the City; and
WHEREAS, KCG Development LLC, a Florida limited liability company has informed
the City that it desires to construct certain economic development facilities within the City which
will consist of an apartment building with fifty (50) affordable housing units at 2018-2020 S. Main
Street in the South Side Development Area (the “South Side Development Area”) in the City, with
an approximate total development cost of Sixteen Million Seven Hundred Thousand Dollars
($16,700,000) including a private investment of no less than Fifteen Million Dollars ($15,000,000)
to be expended in connection with the Project (collectively, the “Project”); and
WHEREAS, KCG Donald & Main, LP, an Indiana limited partnership (the “Developer”),
has been formed for the purpose of undertaking the Project and will be the borrower under the
Loan Agreement; and
WHEREAS, the Project will be located in or physically connected to, and will directly
serve and benefit, the South Side Development Area and the South Side Development Area
Allocation Area (the “Allocation Area”); and
WHEREAS, the Developer has advised the City and the Commission regarding the Project,
and requested that the City make a loan to the Developer on a draw basis pursuant to the Act in a
total amount not to exceed One Million Seven Hundred Thousand Dollars ($1,700,000) for the
purpose of financing or reimbursing a portion of the costs of the Project (the “Loan”) as described
in the proposed Financing and Loan Agreement between the City and the Developer (the “Loan
Agreement”); and
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WHEREAS, the Commission has studied the Project and the proposed financing of the
Project and its effect on the health and general welfare of the City and its citizens; and
WHEREAS, the completion of the Project results in the diversification of industry, the
creation of jobs and the creation and retention of business opportunities in the City; and
WHEREAS, pursuant to I.C. § 36-7-12-24, the Commission published notice of a public
hearing (the “Public Hearing”) on the proposed financing of a portion of the costs of the Project,
and the Commission held the public hearing on the Project on September 29, 2026; and
WHEREAS, there has been submitted to the Commission prior to this meeting substantially
final forms of: (a) the Loan Agreement; (b) the Funding and Reimbursement Agreement (the
“Funding Agreement”) between the City and the South Bend Redevelopment Commission (the
“Redevelopment Commission”); and (c) the Ordinance of the Common Council (the “Common
Council”) authorizing the Loan (the “Ordinance” and, together with the Loan Agreement and the
Funding Agreement, collectively, the “Financing Agreements”); and
WHEREAS, pursuant to Indiana Code 36-7-14-39(b)(4), the Redevelopment Commission
may use certain incremental property taxes, among other purposes, to reimburse the City for
expenditures (including loans) made for local public improvements (which include buildings,
parking facilities, and all expenses reasonably incurred in connection with the acquisition and
redevelopment of property) that are physically located in or physically connected to the Allocation
Area; and
WHEREAS, the Redevelopment Commission has adopted its Resolution No. 3679 on
September 24, 2026, determining, subject to appropriation by the Redevelopment Commission, to
make available tax increment revenues on deposit in the allocation fund for the Allocation Area
(the “South Side TIF Revenues”) to simultaneously reimburse the City for its costs incurred to
fund each draw on the Loan to the Developer with respect to the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE SOUTH BEND ECONOMIC
DEVELOPMENT COMMISSION AS FOLLOWS:
SECTION 1. The Commission hereby finds, determines, ratifies and confirms that the
diversification of industry, the retention of business opportunities and the retention of opportunities
for gainful employment within the jurisdiction of the City is desirable, serves a public purpose,
and is of benefit to the health and general welfare of the City; and that it is in the public interest
that the City take such action as it lawfully may to encourage the diversification of industry, the
retention of business opportunities, and the retention of opportunities for gainful employment
within the jurisdiction of the City.
SECTION 2. The Commission hereby determines that the Project is an “economic
development facility” within the meaning of I.C. 36-7-11.9-3.
SECTION 3. The Commission hereby determines that the Project will not have a material
adverse competitive effect on any similar facilities already constructed or operating in or near the
City.
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SECTION 4. The Commission hereby approves the report with respect to the Project
presented at this meeting. The Secretary of this Commission is directed to submit such report to
the executive director or chairman of the plan commission of the City.
SECTION 5. The Commission hereby finds, determines, ratifies and confirms that
making the Loan to the Developer, in an aggregate amount not to exceed One Million Seven
Hundred Thousand Dollars ($1,700,000), to finance a portion of the cost of the Project, will be of
benefit to the health and general welfare of the City, will serve the public purposes referred to
above in accordance with the Act, and fully comply with the Act. Furthermore, the Commission
hereby finds and determines that the Loan may be subject to forgiveness upon satisfaction of
certain conditions described in the Financing Agreements, and acknowledges that, in the event that
the Loan is forgiven, the consideration received by the City for the Loan being forgiven is the
completion of the Project by the Developer and the economic benefits resulting to the City
therefrom.
SECTION 6. The financing of the Project by making the Loan to the Developer, in an
aggregate amount not to exceed One Million Seven Hundred Thousand Dollars ($1,700,000), is
hereby approved.
SECTION 7. The Commission hereby approves and recommends to the Common
Council of the City the terms of the following documents in the form presented at this meeting: (a)
the Loan Agreement (including the promissory note from the Developer); (b) the Funding
Agreement; and (c) the Ordinance.
SECTION 8. Any officer of the Commission is hereby authorized and directed, in the
name and on behalf of the Commission, to execute any and all other agreements, documents and
instruments, perform any and all acts, approve any and all matters, and do any and all other things
deemed by him or her to be necessary or desirable in order to carry out and comply with the intent,
conditions and purposes of this resolution (including the preambles hereto and the documents
mentioned herein), the Project and the making of the Loan, and any such execution, performance,
approval or doing of other things heretofore effected be, and hereby is, ratified and approved.
SECTION 9. The Secretary of this Commission shall transmit this resolution, together
with the forms of the Financing Agreements approved by this resolution, to the Common Council.
SECTION 10. This resolution shall be in full force and effect upon adoption.
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