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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 <br /> <br />Page | 7 <br /> <br />investment in the north downtown area. INDOT is also developing a <br />roundabout for traffic and safety concerns. <br /> <br />Mr. Glavich stated that the development agreement was approved in <br />March 2024, when the project was still in its early stages. Since then, the <br />project has evolved to improve feasibility, including increasing <br />residential units from 150 to 190 and expanding the hotel from 105 to <br />119 rooms. The developer has identified an upscale national hotel brand <br />(Tempo by Hilton) for the project. The commercial component has also <br />been refined to include a French café-style restaurant and other public- <br />facing amenities. The Notice to Commence updates the original project <br />plan to reflect these changes and aligns the agreement with the project’s <br />current scope as well as local public improvements. <br /> <br />Rich Dealh with Great Lakes Capital introduced himself and Linda <br />Brotherson as in-house counsel and members of the development team. <br />He thanked City staff and the Commission for extending the due <br />diligence period and noted strong collaboration with City staff to refine <br />a transformative project aligned with broader downtown and Beacon <br />Health priorities. Mr. Dealh highlighted ongoing coordination efforts <br />related to site planning, infrastructure, garage construction, and project <br />scheduling to ensure the development is financially viable with a pledge <br />of tax revenues. He expressed appreciation for progress on Phase I and <br />continued interest in advancing Phase II in alignment with surrounding <br />downtown investments. Deal concluded by noting the team’s focus on <br />delivering a project that supports the area’s long-term vision. <br /> <br />Commissioner Gooden-Rodgers asked about projected tax revenues <br />from the project. Mr. Dealh reported that estimated annual property tax <br />revenue from Phase I (hotel and multifamily) is approximately $950,000 <br />to $1,000,000. Mr. Dealh noted that about 90% of these revenues, along <br />with certain state-related revenues (including employment and sales <br />taxes), would be pledged to support bond financing. Based on this <br />analysis, financial advisors estimated these revenues could support a <br />bond of approximately $17.9 million for Phase I. <br /> <br />President Relos asked whether the revenue projections applied to Phase <br />I or both phases. Linda Brotherson with Great Lakes Capital <br />clarified that the estimates reflect Phase I only and are based on <br />analyses developed with Baker Tilly during the extended due diligence <br />period. It was further noted that the proposed financing is a self- <br />supporting bond, not a general obligation of the City. The developer will <br />bear the risk associated with revenue performance. <br />