HomeMy WebLinkAboutRedevelopment Commission Minutes 05.22.25 - Signed
CITY OF SOUTH BEND
REDEVELOPMENT COMMISSION
SOUTH BEND REDEVELOPMENT COMMISSION MINUTES
May 22, 2025, at 9:30 a.m.
Council Chambers 4th Floor, County-City Building
https://tinyurl.com/RDC-2025-4T
The South Bend Redevelopment Commission was called to order at 9:31 a.m.
President Troy Warner presiding.
1. ROLL CALL
Members Present: Troy Warner, President
David Relos, Vice President
Eli Wax, Secretary
Gillian Shaw, Commissioner
Ophelia Gooden-Rodgers, Commissioner
Members Absent: Marcus Ellison, Non-Voting Advisor
Legal Staff: Danielle Campbell Weiss, Senior Asst. City Attorney
Redevelopment Staff: Caleb Bauer, Exec. Director, DCI
Erik Glavich, Director of Growth and Opportunity, DCI
Rosa Tomas, Director of Finance, DCI - Virtual
Joseph Molnar, Asst. Dir. of Growth and Opp., DCI
Erin Michaels, Property Development Manager, DCI
Laura Hensley, Board Secretary, DCI
Others Present: Greg Swiercz, South Bend Tribune
Regina Emberton, 130 S. Main St.
Chloe Bartz, Intern in Legal Department
David Sieradzki, Century Builders
Jim Sieradzki, Century Builders
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2. Approval of Minutes
A. Approval of Minutes of the Regular Meeting of Thursday, May 8, 2025
Upon a motion by David Relos for approval, second by Ophelia Gooden-
Rodgers, the motion carried unanimously; the Commission approved the
minutes of the regular meeting of May 8, 2025.
3. Approval of Claims
A. Claims Allowances April 29, 2025
Upon a motion by Ophelia Gooden-Rodgers for approval second by Troy
Warner, the motion carried unanimously; the Commission approved the
claims allowances of April 29, 2025.
B. Claims Allowances May 8, 2025
Upon a motion by Ophelia Gooden-Rodgers for approval second by Troy
Warner, the motion carried unanimously; the Commission approved the
claims allowances of May 8, 2025.
4. Old Business
A. None
5. New Business
A. River West Development Area
1. Purchase Agreement for 802-812 S. Lafayette Blvd. (ChoiceLight, Inc.)
Erin Michaels, Property Development Manager, presented a purchase
agreement of three (3) parcels located at 802-812 S Lafayette Blvd
that were put through disposition on July 14, 2016 and received no
bids on August 11, 2016. The proposed purchase agreement would be
between RDC and ChoiceLight, Inc. with these terms.
• Purchase price of $15,750.00
• Due Diligence Period: Sixty (60) days following approval of
Agreement
• Closing Period: Twenty (20) days after the end of the Due
Diligence Period
• Development of a telecommunications shelter
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Secretary Wax inquired about whether there have been any new
appraisals lately and Ms. Michaels stated that the purchase price was
the average of two appraisals from 2021 and not much has changed
since. Commissioner Relos recommended as part of the developer’s
due diligence; that she should contact Hamilton Towing regarding
environmental studies done in the past.
Upon a motion by David Relos for approval, seconded by Eli Wax, the
motion carried unanimously; the Commission approved the Purchase
Agreement as presented on May 22, 2025.
2. License Agreement for Temporary Use for 332 W. Jefferson Blvd.
(Historic Hearthstone LLC)
Erin Michaels, Property Development Manager, proposed a license
agreement for temporary use of 332 W. Jefferson by the adjacent
property owner and would permit the adjacent property owner, Historic
Hearthstone LLC, to store one commercial-sized dumpster on the
parcel located at 332 W Jefferson that is currently owned by the
Redevelopment Commission. The Redevelopment Commission
previously approved a Development Agreement for Historic
Hearthstone LLC for the renovation of the neighboring property at 321
W. Wayne. The proposed License Agreement will further aid in the
redevelopment of a long-underutilized structure for a minimum
investment of $1.5 million with a RDC commitment of $70,000.
The term for the proposed license agreement is for five (5) years
commencing from the effective date of this agreement and can be
terminated by either party with thirty (30) days’ notice for one (1)
commercial-sized dumpster.
Regina Emberton with Historic Hearthstone LLC stated that the new
tenant leasing the building is called Ivy Alley Social House, a family-
friendly restaurant with duckpin bowling. Commissioner Shaw asked
about the timeline for the project and Ms. Emberton stated it should
start in November, 2025 and go for the full 5 years.
Upon a motion by Eli Wax for approval, seconded by Ophelia Gooden-
Rodgers, the motion carried unanimously; the Commission approved
the License Agreement as presented on May 22, 2025.
3. Resolution No. 3639 Authorizing Use of Increased TIF Revenues and
Amending Development Agreement (Monreaux)
Erik Glavich, Director of Growth and Opportunity, presented Resolution
No. 3639 which would amend the development agreement and final
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form to $3,300,000 which is a $1 million increase from the original
request. Costs have increased significantly since the original
agreement was approved on July 14, 2022. Through value
engineering, the building’s square footage has been slightly reduced—
from 65,000 to 56,000 square feet. These changes, along with a
reduction in the number of units from 60 to 57, are part of the
commitments outlined in both the original development agreement and
the proposed amendment. The original agreement also required Ms.
Devereaux Peters, managing member of The Monreaux L.L.C., and
her team to incorporate certain historical elements into the project.
Also, there are 3 less units including only 1 less affordable housing.
The Resolution also includes a clause for RDC officers to sign the
amendment on behalf of the Commissioners.
Secretary Wax inquired whether the Commission would be expected to
cover any cost increases should the project budget rise. Caleb Bauer,
Executive Director of Community Investment, responded that the
current funding level is anticipated to be sufficient and should support
full project completion, even accounting for the partial READI 2.0
funding gap. Commissioner Shaw asked if there are any other
measures to mitigate cost increases in the future. Mr. Bauer stated that
the back deck of the building for the covered parking and amenity
space will be removed and possibly materials on the exterior of the
building. Commissioner Gooden-Rodgers asked if the tax abatement
would need to be extended. Mr. Bauer stated that we would not need
to extend the designation period.
President Warner asked about the original design provided a retail
space with a maker’s apartment unit. Mr. Bauer stated that there still
could be live/work units, and they are being rescoped. Vice President
Relos encouraged Ms. Peters to consider using the terracotta
materials in the interior or exterior of the building. President Warner
spoke in favor of the project.
Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by
David Relos, the motion carried unanimously; the Commission
approved Resolution No. 3639 as presented on May 22, 2025.
4. Sublease Agreement 103 W. Colfax (Haunt of Hounds)
Joseph Molnar, Assistant Director of Growth and Opportunity,
proposed a renewal of lease with Haunt of Hounds LLC (Fatbird). In
January of 2022, the Commission transferred the Palais Royale to the
South Bend Redevelopment Authority (“RDA”) to effectuate a certain
lease rental revenue bond transaction that would finance a portion of
improvements to the Property. As part of this transaction, RDA leased
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back to Commission through a certain lease agreement dated as of
December 1, 2021 all of its rights, title, and interests in the property
and expressly provided the authority to Commission to enter into
agreements with other parties for the operation of the property.
The Redevelopment Commission approved a lease with Haunt of
Hounds, LLC for the restaurant Fatbird on July 1, 2020 located in the
Palais Royale at 103 W Colfax Ave. Haunt of Hounds, LLC then
provided notice to the Commission that they wished to exercise the
renewal option in the lease to extend the term to June 30, 2025.
The proposed lease between the RDC and Haunt of Hounds, LLC,
would continue this partnership with the following terms:
Lease Term: July 1, 2025 – June 30, 2028
Rent increase of 3% annually from base rent of $2,971.00/month
• July 1, 2025 – June 30, 2026 Rent: $3,060.13/month
• July 1, 2026 – June 30, 2027 Rent: $3,151.93/month
• July 1, 2027 – June 30, 2028 Rent: $3,246.50/month
• Common Expenses increased to $1,000/month
• Prior lease was $975/month
• First month’s rent waived due to HVAC issues that occurred
in December of 2024
Renewal of the Fatbird Lease will continue the activation of the Palais
Royale storefront, which adds a significant amount of vitality to
downtown South Bend while also providing appropriate rental revenue
for the space.
Secretary Wax asked if there have been evaluations done to determine
the market rate for rental tenants. Mr. Molnar stated that the RDC staff
have conducted informal investigations of what other restaurants are
paying, and this is slightly under the market rate, and this is due to
property improvements can take longer being property owned by the
city government.
Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by
Eli Wax, the motion carried unanimously; the Commission approved
the Sublease Agreement as presented on May 22, 2025.
5. Bid Specifications for Disposition of Property (4022 Old Cleveland Rd.)
Joseph Molnar, Assistant Director of Growth and Opportunity,
presented items 5A5-7 together to begin the disposition process of
4022 Old Cleveland Rd. RDC acquired property located at 4022 Old
Cleveland Road through a certain Real Estate Purchase Agreement
executed on October 10, 2024. This purchase was made with the
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understanding that the land would be used for a low barrier intake
homeless shelter. The property has been rezoned by the Common
Council of South Bend to allow for a low barrier intake center to be built
upon the property.
The attached three documents - Bid Specifications, Noticed of
Intended Disposition, and Resolution establishing offering price – are
the beginning of the process for the property to be redeveloped and set
the following conditions for a bid on the Property:
• $825,000.00 minimum bid (average of two appraisals)
• All bids will be due by 9:00am on June 12, 2025 and opened
publicly at the RDC meeting on June 12, 2025
• During the review process, emphasis will be placed on
compatibility with and support of the goals and objectives of the
surrounding businesses and neighborhood and the
Development Plan for the River East Development Area.
• The proposed project must include a 120-bed homeless shelter
Upon a motion by David Relos for approval, seconded by Ophelia
Gooden-Rodgers, the motion carried unanimously; the Commission
approved the Bid Specifications as presented on May 22, 2025.
6. Notice of Intended Disposition of Property (4022 Old Cleveland Rd.)
Upon a motion by David Relos for approval, seconded by Ophelia
Gooden-Rodgers, the motion carried unanimously; the Commission
approved the Notice of Intended Disposition of Property as presented
on May 22, 2025.
7. Resolution No. 3640 for Disposition of Property (4022 Old Cleveland
Rd.)
Upon a motion by David Relos for approval, seconded by Ophelia
Gooden-Rodgers, the motion carried unanimously; the Commission
approved Resolution No. 3640 as presented on May 22, 2025.
B. River East Development Area
1. Opening of Bids (Former Oaklawn Property)
Joseph Molnar, Assistant Director of Growth and Opportunity, stated
we received no bid proposals prior to the deadline. Mr. Molnar asked if
staff could bring forward a broader request for proposals at the June
26, 2025 RDC meeting.
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Secretary Wax asked if we received any potential inquiries and Mr.
Molnar stated yes, and we think there will be significant interest at the
RFP phase.
2. Opening of Bids (Former YMCA)
Joseph Molnar, Assistant Director of Growth and Opportunity, stated
we received no bid proposals prior to the deadline. Mr. Molnar asked if
staff could bring forward a broader request for proposals at the June
26, 2025 RDC meeting.
3. Amendment to Development Agreement (River Walk LLC)
Erik Glavich, Director of Growth and Opportunity, presented an
amendment to the development agreement in the amount of up to
$1,250,000 for The Pointe (River Walk L.L.C.) at the old Transpo site
with environmental and elevation issues. The request is to alleviate
some of the costs due to preparing the site for development. The
private investment commitment was established to be $10 million and
the funding support provided by the Commission would be $500,000.
The commitment to construct 13 housing units and the developer
would commit to having the project completed by the end of 2027.
David Sieradzki with Century Builders stated that the whole foundation
has to be re-engineered well past a normal standard residential
foundation. Secretary Wax asked if the market would sustain the price
per unit of roughly $1,173,000. Mr. Sieradzki stated that some are
varying in price and have done studies and have committed $14 million
to the project and feel confident they will be able to sell the
townhomes. Caleb Bauer also stated that the Kinder Institute report
from 2022 stated that the city needs inventory in this price bracket.
Upon a motion by David Relos for approval, seconded by Eli Wax, the
motion carried unanimously; the Commission approved the
Amendment as presented on May 22, 2025.
6. Progress Reports
A. Tax Abatement
Erik Glavich, Director of Growth and Opportunity, noted the deadline
for the annual compliance reports for the CF1’s was May 15th, 2025
and recipients have been notified. Caleb Bauer also notes that there
may be a small percentage that have failed to comply with no reflection
on staff’s efforts.
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B.Common Council
None
C.Other
Joseph Molnar, Assistant Director of Growth and Opportunity, gave an
update on that the RDC did close on the State Theater and have acted
on roof repairs. Commissioner Gooden-Rodgers thanked the Growth &
Opportunity staff for their efforts to assist residents with their questions.
7.Next Commission Meeting
Thursday, June 12, 2025, 9:30 a.m. at BPW Conference Room 13th Floor
8.Adjournment
Thursday, May 22, 2025, 10:40 a.m.
______________________________ ______________________________
Eli Wax, Secretary Troy Warner, President