HomeMy WebLinkAboutRedevelopment Commission Minutes 12.12.24
CITY OF SOUTH BEND
REDEVELOPMENT COMMISSION
SOUTH BEND REDEVELOPMENT COMMISSION MINUTES
December 12, 2024, at 9:30 a.m.
BPW Conference Room, 13th Floor, County-City Building
https://tinyurl.com/RDC-Meeting-2T
The South Bend Redevelopment Commission was called to order at 9:31 a.m.
Vice President David Relos presiding.
1. ROLL CALL
Members Present: David Relos, Vice President
Vivian Sallie, Secretary
Eli Wax, Commissioner
Gillian Shaw, Commissioner
Members Virtually: Leslie Wesley, Commissioner
Members Absent: Troy Warner, President
Legal Staff: Danielle Campbell Weiss, Asst. City Attorney
Redevelopment Staff: Sarah Schaefer, Deputy Director, DCI
Erik Glavich, Director of Growth and Opportunity, DCI
Rosa Tomas, Director of Finance, DCI
Joseph Molnar, Asst. Dir. of Growth and Opp., DCI
Erin Michaels, Property Development Manager, DCI
Tim Corcoran, Chief Planner, DCI
Chris Dressel, Senior Planner, DCI
Laura Hensley, Board Secretary, DCI
Others Present: Denise Riedl, Chief Innovation Officer
Patrick Sherman, Project Manager
Leslie Biek, Assistant City Engineer
Madi Rogers, Director of Civic Innovation
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Lynn Wetzel, Program Manager of Transportation
Philip Darrow, 310 W. Ewing Ave.
Andy Place, 620 Ironwood Dr.
Randal Jennings, 16145 S. Twyckenham Dr.
Thomas Clemans, 1305 Campeau St.
Amanda Shutts, 701 Portage Ave.
Greg Swiercz, SB Tribune
Tom Lindemann, 18488 Kern Rd.
Molly Johnson, 2500 Green Tech Dr.
Justin Young, 2500 Green Tech Dr.
Matt Barrett, 110 S. Niles Ave.
Tina Patton, Cross Community
Randy Jennings, 1614 S. Twyckenham Dr.
Jorge Juarez, 220 W. Eckman St.
2. Approval of Minutes
A. Approval of Minutes of the Regular Meeting of Thursday, November 25,
2025
Upon a motion by Eli Wax for approval, second by Vivian Sallie, the
motion carried unanimously; the Commission approved the minutes of the
regular meeting of November 25, 2025.
3. Approval of Claims
A. Claims Allowances 11.26.2024 & 12.03.2024
Commission Eli Wax asked about the digital storefront item. Joseph
Molnar, Assistant Director of Growth and Opportunity stated that it is a
grant for small businesses assisting with website creation.
Upon a motion by Eli Wax for approval, second by Vivian Sallie, the
motion carried unanimously; the Commission approved the claims
allowances of 11.26.24, and 12.03.24.
4. Old Business
A. None
5. New Business
A. Redevelopment General Fund
1. Budget Request (Commuters Trust Funding)
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Madi Rogers, Director of Civic Innovation, gave a brief introduction to
what Commuters Trust is and about the $200,000 budget request.
$130,000 will cover transportation costs and $70,000 is for project
management and business analytics support. Lynn Wetzel, Program
Manager of Transportation, presented that services provided are,
increased job security for wage workers, reduced turnover and no-
shows for local employers, and broaden access to essential services
for underserved communities for transportation. Ms. Wetzel explained
that the problem is that it costs on average $525 to own a vehicle. Both
on a local and national level, 1 in 4 individuals struggle to access
reliable transportation. Ms. Wetzel explains that there are two
examples of the program, 1 is non-profit program and 2 is a cost-share
employer program and these programs have been running since 2020.
She stated that enrollment takes 5 minutes and benefits can only be
used for eligible rides. The employer partner program (to date) impacts
670 participants, 27,581 Uber/Lyft rides, 71,335 Transpo rides, and
$15.11 average ride costs. She gave an example of employees that
were able to increase their hours by 1.27 shifts per month and that
resulted in an extra $151.00 a month per worker.
Vice President Relos asked to clarify, the program pays 1/3 and the
employers pays 2/3 and Ms. Rogers confirmed, the estimated partner
commitments are $183,000, CT Transportation contribution is
$130,000, Administrative expenses are $70,000 with a total budget of
$383,000 with a City commitment of $200,000. Commissioner Wax
asked to clarify, the program would share up to 67% of the total
transportation costs and Ms. Rogers confirmed. Commissioner Wax
also asked for economic impact and growth for 2025, and Ms. Rogers
stated that they will be doing more studies. Commissioner Sallie asked
if they had looked into other sources of funding, and Ms. Rogers stated
that they have applied for grants but were denied and are waiting to
hear back from another.
Tina Patton asked if this is a program for the entire City of South Bend
and Ms. Wetzel stated that the program only partners with employers
and non-profits and there is a website for details.
Upon a motion by Vivian Sallie for approval, seconded by Eli Wax, the
motion carried however, Commission Gillian Shaw abstained from the
vote; the Commission approved the Budget Request as presented on
December 12, 2024.
B. River West Development Area
1. Opening of Bids (214 W. Wayne St.)
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Erin Michaels, Property Development Manager, stated that no bids
were received, and the staff can now negotiate with interested parties.
2. Budget Request (Studebaker Museum HVAC Project)
Patrick Sherman, Project Manager, presented a budget request for
$15,000 for two (2) failing HVAC units and a very large commercial unit
to finish the project this Spring. Vice President Relos also noted that
the Commission owns the building.
Upon a motion by Gillian Shaw for approval, seconded by Eli Wax, the
motion carried unanimously; the Commission approved the Budget
Request as presented on December 12, 2024.
3. Budget Request (Riverfront West Survey)
Leslie Biek, Assistant City Engineer, presented a budget request for
$150,000 to increase the road network, confirm utilities, and confirm
the land. Ms. Biek displayed a map detailing the location.
Commissioner Wax asked about the cost and Sarah Schaefer, Deputy
Director of DCI explained that we cut out some of the request (LIDAR
imaging) to get to this amount and hope to have the survey completed
by January.
Upon a motion by Eli Wax for approval, seconded by Vivian Sallie, the
motion carried unanimously; the Commission approved the Budget
Request as presented on December 12, 2024.
4. Second Amendment to Purchase Agreement (Advantix)
Joseph Molnar, Assistant Director of Growth and Opportunity,
presented the amendment specifically for land located at the
intersection of Lincolnway West and Marian St. for eight (8) parcels to
build 50 total units of affordable housing with 10 on these parcels and
the rest on parcels from the Board of Public Works with a closing date
of December 31, 2024. The amendment is to extend the closing date
to June 30, 2025 to allow for more time to market LIHTC credits with
the groundbreaking scheduled for the Summer of 2025. Commissioner
Wax asked about the value of pushing the date out and Mr. Molnar
explained that the interest rates change and by waiting the credits will
be worth more. Matt Barrett asked about tax implications and Mr.
Molnar stated that Advantix has two (2) active buyers and are waiting
for interest rates to go up, however, the implication of property tax will
not take effect until the houses are built.
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Upon a motion by Eli Wax for approval, seconded by Vivian Sallie, the
motion carried unanimously; the Commission approved the Second
Amendment to the Purchase Agreement as presented on December
12, 2024.
5. Certificate of Completion (Cultivate Food Rescue)
Joseph Molnar, Assistant Director of Growth and Opportunity,
presented the certificate of completion for the facility and all obligations
were met including, the construction being completed within 26 months
of closing, well within the deadline of 60 months. They intend to spend
a minimum of $3,000,000 on improvements and they've confirmed with
documentation a total of $6.2 million of total improvements on the site
with twenty-two (22) full-time employees.
Jim Conklin, Cultivate Food Rescue, concurred that the project went as
planned. He stated that two years ago, they rescued 1 million pounds
of food and served 700 kids. However, with the opening of this facility,
they’re on track to serve 10 million pounds of food and serve 1500
students in three counties in the community. Mr. Conklin also stated
that they are making $1.8 million in improvements to the 1403 Prairie
property as well, and a considerable investment in this part of town as
well as thirty-two people employed. He thanked the Commission for
their help. Commissioner Wax asked if that was 10 million pounds this
year and Mr. Conklin stated that with the new facility opening, they are
able to fill in short term and long term shows potentially 20 million
pounds of perishable food per year. Commissioner Wax asked about
how many meals per week and Mr. Conklin stated 13,000 meals with
7,500 frozen meals going home each weekend in the backpack
program. Commissioner Wesley thanked Cultivate for their contribution
to the community. Commissioner Wax also praised the efforts and how
these fit in with the Commission.
Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the
motion carried unanimously; the Commission approved the Certificate
of Completion as presented on December 12, 2024.
6. First Amendment to Lease Agreement (South Bend Bike Garage)
Erin Michaels, Property Development Manager, present the
amendment at 119 W. Wayne St. commons to increase to utilize the
entire ground floor retail space, removes access to basement storage
for 5,000 square feet. The small mechanical closet is not included.
Commissioner Wax asked about how long the lease is for and Ms.
Michaels stated 18 months. Commissioner Wax asked to leave options
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open to other opportunities and Attorney Weiss stated that we have 30
days to terminate the agreement.
Upon a motion by David Relos for approval, seconded by Eli Wax, the
motion carried unanimously; the Commission approved the First
Amendment to the Lease Agreement as presented on December 12,
2024.
7. Public Hearing (TIF Area Expansion)
Chris Dressel, Senior Planner, presented all three (3) Public Hearings
and Resolutions together and they were moved to proceed agenda
item 5A1. Mr. Dressel presented the schedule that the process went
through; October 24, RDC Declaratory Resolution approved,
November 18, SB Plan Commission Declaratory Resolution approved,
November 25, Common Council Declaratory Resolution approved,
November 26, Notification letters sent to all property owners,
November 29, a Public Hearings Notice Published, December 10-11,
Public Informational meets held, and December 12 RDC confirming
Resolutions with written remonstrance deadline. Mr. Dressel reviewed,
what is a TIF, how a TIF works, as well as the infrastructure that have
benefited by TIF improvements both public and private. Mr. Dressel
explained why TIF districts are adjusted and also reviewed the
proposed expansion areas including the River West, River East and
South Side districts. He stated that, the City is not actively trying to
acquire the property, however, it enables the City to have greater
flexibility in the negotiation process later. Mr. Dressel stated that the
TIF districts had an overhaul and development plan back in 2019 as
well as a financial impact analysis conducted by Baker Tilly. Mr.
Dressel explained the public engagement summary of 196 mailings
and/or notifications with 81 website visits, 12 calls/emails, 4 meeting
attendees, and no 1 in-person visits.
Commissioner Eli Wax wanted to clarify that this doesn’t increase
residents’ taxes, it captures an increase in taxes and is kept locally to
improved neighborhoods with redevelopment project opportunities and
doesn’t change any owners’ rights. Commissioner Wax also stated that
the City is not planning on developing condos at Rum Village park,
these dollars are for park improvements in the future. Mr. Dressel
stated that potential property acquisition would always be based on a
willing owner and not via eminent domain. Danielle Campbell Weiss,
Assistant City Attorney, stated that the RDC does not have that power.
Vice President Relos explained that expanding the boundaries now
makes efforts later much easier so that we don’t have to go through all
of the steps for one property. Ms. Weiss also stated that the name,
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“acquisition list” comes from the statute. Commissioner Wax asked
about the assessed value timeline and Vice President Relos stated it
would be retroactive back to January 1, 2024, and is also not locked in
forever because every year there's a TIF neutralization that looks if
there's any natural appreciation in property values and that base
assessed value gets adjusted going forward.
Matt Eckerle from Baker Tilly noted the base assessed values for the
existing components of the allocation areas being unaffected. The
same goes for the expiration dates. Of those existing components of
the allocation areas, this action does not affect those. It does not
extend the expiration date.
Andy Place asked the question, does TIF take tax monies away from
the school system? Mr. Eckerle explained that to redirect the
incremental revenues generated by the incremental development and
the resulting assessed value that happens in that geography.
If the TIF area was not in place and that development were to happen
anyway. Because of the maximum levy limitations that the state
imposes on all of the taxing units, including the schools, the growth
and assessed value does not necessarily generate new property tax
money that would go to the overlapping taxing units. What it really
does is, it spreads that limited levy over a larger tax base and thus puts
downward pressure on the property tax rates. So, one way to think
about it is, if a new developer pays $100,000 in property taxes, that’s
really $100,000 less than other taxpayers would have to pay into those
same levies. New development does not beget new property tax
revenue. Mr. Place asked if he could keep his property as is, Vice
President Relos stated that it would depend on the vote and the vote
would be for the entire request.
8. Resolution No. 3622 (Confirming TIF Expansion)
Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the
motion carried unanimously; the Commission approved Resolution No.
3622 as presented on December 12, 2024.
C. River East Development Area
1. Public Hearing (TIF Area Expansion)
Randy Jennings asked if there are projects proposed for this district?
Chris Dressel stated that there is none, and this is just an opportunity
to capture these properties within the redevelopment area at an early
date.
2. Resolution No. 3623 (Confirming TIF Expansion)
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Upon a motion by Vivian Sallie for approval, seconded by Eli Wax, the
motion carried unanimously; the Commission approved Resolution No.
3623 as presented on December 12, 2024.
D. South Side Development Area
1. Public Hearing (TIF Area Expansion)
Tom Lindemann asked for clarification about if Lafayette Falls was
included and Vice President Relos stated it is not in a TIF district and is
not included in this expansion. Mr. Lindemann asked if a homeowner
wanted to make improvements to their home, does the increased
assessed property value add to the TIF and Vice President Relos
explained that residential properties do not capture this increment and
Attorney Weiss stated it will not change. Jorge Juarez asked if there
are plans for the area on West Eckman St. and Mr. Dressel stated
there are none. Philip Darrow stated that their concerns have been
answered regarding future projects that will affect their property.
2. Resolution No. 3624 (Confirming TIF Expansion)
Upon a motion by Eli Wax for approval, seconded by Vivian Sallie, the
motion carried unanimously; the Commission approved Resolution No.
3624 as presented on December 12, 2024.
E. Administrative
1. Resolution No. 3621 (2025 RDC Meeting Schedule)
Danielle Campbell Weiss, Assistant City Attorney, stated that in the
event we move to City Hall, we will update the location of the meetings.
Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the
motion carried unanimously; the Commission approved Resolution No.
3621 as presented on December 12, 2024.
6. Progress Reports
A. Tax Abatement
Joseph Molnar, Assistant Director of Growth and Opportunity, stated the
South Bend Common Council at the last meeting approved a Resolution
for Empower Her LLC, to renovate the former Home Ministry building on
S. Michigan St. Mr. Molnar also stated, there is a closing tomorrow on the
former Gates building, we closed yesterday on the Elwood Shopping
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Plaza on Portage, and we closed last week on the 4022 Old Cleveland
Rd. site. The next step for the Old Cleveland Rd. site is to be rezoned.
B. Common Council
None
C. Other
None
7. Next Commission Meeting
Monday, December 23, 2024, 9:30 a.m. May be cancelled TBD
8. Adjournment
Thursday, December 12, 2024, 11:22 a.m.
______________________________ ______________________________
Vivan G. Sallie, Secretary Troy Warner, President