2 Redevelopment Commission Minutes 03.26.26 - TABLED

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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 26, 2026 Page | 8 and awarded to a contractor that is relatively local and utilizes a significant amount of local labor. Staff indicated that the majority of the work is expected to be completed by local workers. Commissioner Shaw asked about the consequences of not proceeding with the project, including safety concerns and whether the Riverwalk would eventually need to be closed. Mr. Sherman explained that the Riverwalk is currently experiencing settlement issues but is not considered unsafe at this time. Venues, Parks, and Arts would continue to monitor conditions and would close the area if it became unsafe. Mr. Sherman noted that the improvements are necessary long-term, as the new design will use deep pier support rather than resting on the riverbed, preventing future settlement issues. The existing East Race dock is also in deteriorating condition and would eventually need to be closed if not replaced. Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Budget Request as presented on March 26, 2026. D. River East Development Area 1. 3rd Amendment to the Wharf Development Agreement Joseph Molnar, Deputy Director of Community Investment, presented this 3rd Amendment to the Development Agreement with Wharf Partners, LLC for completion of the Cascade development. The Third Amendment relates to the northern parcel of the Wharf site, located just north of the recently discussed Riverwalk improvements. The southern portion, known as Cascade Phase One, was completed and opened in 2019. This amendment addresses Phase Two, which is planned for the adjacent northern parcel next to the expanded Riverwalk. The original development agreement between the Redevelopment Commission and Wharf Partners was approved in 2018 and envisioned a two-phase redevelopment of a vacant riverfront property across from Seitz Park in the East Bank neighborhood. Phase One included a seven-story tower and the Cascade restaurant, which opened in August 2024. While the building was completed in late 2019, the restaurant was delayed due to the COVID-19 pandemic and its impact on the hospitality industry. Phase One exceeded expectations. The developer invested $5.25 million more than originally committed and restaurant employment more than doubled to approximately 65 employees. Prior to redevelopment, the site generated roughly $3,000 annually in property taxes. Today, the project generates approximately $210,000 per year, representing an increase of more than 6,800 percent, with an estimated payback period of 13 years. This does not include additional income tax revenue