Laserfiche WebLink
CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 12, 2026 <br /> <br />Page | 4 <br /> <br />the City will proceed with next steps for this property after the 30 day <br />waiting period required by state law during which City staff cannot <br />negotiate a purchase of the property. <br /> <br />4. Budget Request (Western Ave. Transformation, Phase I) <br />Joseph Molnar, Assistant Director of Growth and Opportunity, is <br />requesting $200,000 from the River West TIF for design and <br />engineering work for the Western Avenue Transformation District. This <br />project redevelops the former Rabbi Shulman public housing site and <br />adjacent parcels to the northeast into approximately 208 mixed-income <br />housing units. The developer selected is The Michaels Organization. <br />Because of the project’s scale, funding is coming from multiple sources, <br />including the Community Foundation of St. Joseph County, READI 2.0 <br />funds, a HUD Section 108 loan, and both 4% and 9% Low-Income <br />Housing Tax Credits. <br /> <br />Demolition of the Rabbi Shulman site is underway and nearing <br />completion. Design and engineering work is currently being led by the <br />local firm JPR, which has completed approximately 30% design for <br />infrastructure and utility improvements for the southern phase of the <br />project (Phase 1A). The developer has submitted a 4% non-competitive <br />LIHTC application and is awaiting state approval, which is expected. A <br />9% competitive application is also in progress and due in July, with RDC <br />staff assisting on required documentation. <br /> <br />The $200,000 request will support continued design and engineering for <br />the southern portion of the site. These costs will ultimately be <br />reimbursed through the HUD Section 108 loan, with River West TIF <br />funding allowing the work to continue without delay. This funding will <br />help ensure the project stays on track as it replaces substandard housing <br />with a high-quality, mixed-income neighborhood in the downtown area. <br /> <br />Vice President Relos inquired about the 4% and 9% references; Joe <br />Molnar explained that those percentages do not reflect portions of the <br />overall project cost. They refer to different types of Low-Income <br />Housing Tax Credits (LIHTC) that the developer, The Michaels <br />Organization, has applied for. The 4% and 9% credits apply to different <br />phases of the project. The southern portion of the site—formerly the <br />Rabbi Shulman Housing Authority property—is being developed as <br />Phase 1A and is associated with the 4% non-competitive tax credit <br />application. The northern portion will be developed in a later subphase <br />using 9% competitive tax credits. <br /> <br />President Warner inquired about the breakdown of the funding. Caleb <br />Bauer explained, the Section 108 loan is considered a local public match.