Laserfiche WebLink
CITY OF SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION MEETING – February 5, 2026 <br /> <br />Page | 4 <br /> <br />and alignment with state priorities. The approval process is designed to be <br />streamlined. <br /> <br />Over 30 years, the state’s total contribution is capped at $225 million. If <br />that cap is reached before the district expires, the agreement allows for <br />good-faith negotiations to potentially increase the cap. This district <br />provides strong returns on investment for both the City and the State. If the <br />full $225 million is realized, it would fund major strategic downtown <br />projects. A Baker Tilly analysis estimates that the completed district could <br />add more than $1 billion annually to Indiana’s GDP and generate over $600 <br />million in state and local tax revenue. State incentives would not exceed <br />20% of any single project. The district is expected to support nearly 2,500 <br />new jobs in South Bend, with additional indirect and induced job growth. It <br />also supports the creation of an innovation hub that enables the University <br />of Notre Dame to expand applied research. In a full build-out scenario, the <br />district could generate approximately $45 million annually in state sales and <br />income tax revenue, meaning the state would return only about one-third of <br />what is generated. <br /> <br />The district aligns closely with the downtown plan currently under <br />development. Projects underway, proposed developments, and future <br />opportunity sites largely overlap with the IDD boundary. This gives the City <br />a powerful tool to move quickly on future redevelopment opportunities. The <br />long-term vision is a vibrant, connected downtown that welcomes everyone <br />to gather, live, work, and enjoy community life. <br /> <br />Mr. Bauer stated that before you today are several agreements and a <br />resolution related to the Colfax Corner MLLLC project. As part of today’s <br />process, a public hearing is required. The Colfax Corner project is located on <br />the block north of Colfax Ave., between Lafayette Bldv. and Main St. The <br />project includes both redevelopment and new construction. The existing <br />South Bend Tribune building will be renovated, and a new office building will <br />be constructed on the site currently occupied by the Main Street Row <br />buildings. The financing terms range from 25 to 30 years. No existing City <br />revenue is pledged to this project. Instead, the project uses only the new <br />taxes generated once development is complete. This approach allows the <br />City to preserve other revenue for core services and infrastructure needs <br />elsewhere. <br /> <br />Key metrics include approximately 400 full-time employees (or equivalent) <br />occupying about 202,000 square feet across the renovated existing building <br />and the new construction. The total investment is $154 million, with an <br />estimated direct economic impact of more than $750 million over 10 years. <br />Approximately 35% of the space will be occupied by university faculty and <br />staff, and 90% of construction labor will be sourced locally.