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The Redevelopment Authority <br /> November 15, 2011 Meeting Minutes <br /> $35M development. Although people didn't know what he did, he had 500 groups <br /> come through in the first year to look at the condos. 100 of the 500 were from <br /> South Bend. The first year of the Ivy Quad development only four were sold, the <br /> second year seventeen were sold. This development allows people to see the <br /> quality of his development so he can sell them a unit on the river. In trying to fix <br /> South Bend, five years ago all he heard was that people won't move downtown <br /> because there is no grocery store or drug store. But he believes if the City gives <br /> free land for development that people will move in because their housing will cost <br /> less and their taxes will be less but they will still be paying property tax. They will <br /> be willing to drive a mile or two to a grocery store which is closer perhaps than if <br /> they lived in Granger. They will have a view of the river. This is the first time this <br /> type of housing has been built in the area in thirty years. South Bend used to have <br /> this type of dense urban housing. In Chicago people think of Michigan Avenue, <br /> but what makes Chicago is all of the dense neighborhoods near the downtown that <br /> feed into the downtown. To fix the downtown you need to improve people's <br /> perception of the downtown and have more people living there. As you have the <br /> critical mass of housing you will have businesses come to cater to the demand that <br /> comes from it. Mr. Matthews said he has been trying to get people to move into <br /> good, quality housing. The six on the river will get people's attention. The density <br /> of the development at the Troeger site on Niles Avenue is about 20-22 units per <br /> acre. If he finds other parking lots to do the same thing in he is creating that same <br /> density. The Transpo site on the river is ten and one half acres. With this type of <br /> housing you could have 220 homes, at $250,000 per home, which is $50M of <br /> assessed value in ten acres, and would net $500,000 in property taxes for the City. <br /> Compare this to a subdivision in Granger where each house sits on a quarter to a <br /> third of an acre and your assessed value goes up eight fold per acre. That acre <br /> costs the same to maintain for police patrol, snow removal, and maintaining the <br /> roads. At the Troeger site he is trying to use the view of the river as an example of <br /> row houses that he can stamp out around the city. <br /> Mr. Alvarez asked what his market was. Mr. Matthews said he can say how much <br /> they will cost but there is not a market presently, but he believes he is creating <br /> one. Mr. Alvarez asked about plans for west of the river. Mr. Matthews said he <br /> has plans for west of the river but not for units to sell. To improve an area, the <br /> first people willing to move in are risk oblivious, and then you have the cautious <br /> who are willing to take a risk because they see the potential. Then there are the <br /> Hipsters and Yuppies, and then perhaps the New Jersey dentist. The New Jersey <br /> dentist won't move in on the west side of South Bend. To step up the downtown <br /> west of the river- you start with the less expensive uses—the artist, the hipster. <br /> The people he is selling to are the hipster type—they like living downtown. The <br /> current lending market— Sallie Mae and Freddie Mac don't lend money to new <br /> condo projects. If a condo project exists and is 75% sold out and has less than <br /> 15% investor ownerships that can turn as rentals, and if it is turned over to the <br /> homeownership association to self manage then Freddie and Fannie will give you <br /> 3 <br />