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HomeMy WebLinkAboutRedevelopment Commission Minutes 06.12.25 - Signed CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES June 12, 2025, at 9:30 a.m. BPW Conference Room, 13th Floor, County-City Building https://tinyurl.com/RDC-2025-2T 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 Marcus Ellison, Non-Voting Advisor Members Absent: Ophelia Gooden-Rodgers, Commissioner Legal Staff: Sandra Kennedy, Corporation Council - Virtual Danielle Campbell Weiss, Senior Asst. City Attorney Redevelopment Staff: 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 Chris Dressel, Senior Planner, DCI Laura Hensley, Board Secretary, DCI Others Present: Greg Swiercz, South Bend Tribune Eric Horvath, Director of Public Works Caitlin Wyant, Engineering CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING –June 12, 2025 2 Gemma Stanton, Engineering Sarah Barber, Engineering Lidya Abreha, Engineering Allison Doctor, Project Manager, DCI Tania Barreto, Planning, DCI Hannah Sherinian, Planning, DCI, Mark Peterson, WNDU Chloe Bartz, Legal Dept. Matt Barrett, 110 S. Niles Ave. Reilly Sexton, TRC Patrick McGuire, TRC James Lewis, THK Law LLP Tom Everett, Barnes & Thornburg LLP Brandon Shields, Advantix Corp. – Virtual Megan Schuetz, KCG Companies – Virtual Alex Olsen, Veritas Group 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, May 22, 2025 Upon a motion by Gillian Shaw for approval, second by Eli Wax, the motion carried unanimously; the Commission approved the minutes of the regular meeting of May 22, 2025. 3. Approval of Claims A. Claims Allowances May 20, 2025 Secretary Wax asked about an update on Seitz Park. Joseph Molnar stated that we will have a follow up at a future meeting. Upon a motion by Eli Wax for approval second by Troy Warrner, the motion carried unanimously; the Commission approved the claims allowances of May 20, 2025. B. Claims Allowances May 27, 2025 Upon a motion by Eli Wax for approval second by Troy Warner, the motion carried unanimously; the Commission approved the claims allowances of May 27, 2025. 4. Old Business A. None CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING –June 12, 2025 3 5. New Business A. River West Development Area 1. Resolution No. 3643 (Regarding the Establishment of a Residential Housing Development Program) Joseph Molnar, Assistant Director of Growth and Opportunity, introduced a Resolution outlining the necessary steps to establish a Residential Housing Development Program. This includes issuing public notice and initiating a three-month process. The Resolution serves as the first formal step and authorizes RDC staff to begin implementation. Mr. Molnar also gave a brief overview about how Residential TIF’s function. The Lincoln and Kennedy Park Neighborhoods currently have a high vacancy rate, with approximately 50% of unoccupied lots. In response, Intend Indiana plans to construct at least 92 new housing units in the area over the next five years. Additionally, the newly opened MLK Dream Center is located within the neighborhood. These major investments are expected to catalyze further residential infill development, helping to stabilize the community and activate underutilized land. To support this momentum, staff propose the creation of a Residential Housing Development Program targeting specific parcels in the Lincoln and Kennedy Park neighborhoods. The program would facilitate the construction of new homes and the renovation of existing ones. It would also enable the capture of tax increment from new developments, allowing those funds to be reinvested directly into the neighborhood. This initiative would form a new residential-focused subset within the broader River West Economic Development Area. Functioning as a distinct residential TIF district, it would complement the existing commercial-oriented River West TIF by concentrating solely on single- family housing development. Mr. Molnar also shared the schedule of the steps in this process of establishing a Residential TIF. Tom Everett, with Barnes & Thornburg LLP explained that in 2019, the Indiana state legislature amended the Statute to authorize the creation of residential Tax Increment Financing (TIF) areas, aiming to stimulate new housing development across the state. As the city recognizes this need, it is proposing to do exactly what the legislature intended— establish a residential TIF area to capture the incremental assessed value generated by new development. Vice President Relos asked if CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING –June 12, 2025 4 this would be an expansion of the River West district and Mr. Molnar confirmed and also stated it would not change the zoning of the properties. Secretary Wax asked if there is a separate tracking of the tax increment for that area to ensure the funding is used to support those neighborhoods and Mr. Molnar agreed. Alex Olsen, with the Veritas Group, asked if Intend Indiana will collect any TIF revenue to help with other projects and Mr. Molnar stated no. Upon a motion by David Relos for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved Resolution No. 3643 as presented on June 12, 2025. 2. Access Agreement (Stoic Beverages) Erin Michaels, Property Development Manager, presented a proposed License Agreement for Temporary Use to allow ingress and egress access for Stoic Beverages, LLC. This agreement supports the development of a distillery and tasting room at 410 W Wayne St, a project approved by the Redevelopment Commission on November 25, 2024. As part of the purchase agreement, Stoic Beverages has committed to investing a minimum of $300,000 in site improvements and completing construction by December 13, 2027. The License Agreement would permit patrons of Stoic Beverages to use an adjacent parcel—owned by the Redevelopment Commission— for access to the site. Stoic Beverages will be responsible for maintaining the parcel throughout the term of the agreement. Key terms of the agreement include: • Initial Term: 10 years from the date of approval • Renewal: Automatically renewed for one-year periods thereafter • Termination: Either party may terminate with 120 days’ notice This agreement is expected to enhance traffic flow to the site and support the broader redevelopment goals for the area. Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Access Agreement as presented on June 12, 2025. 3. Purchase Agreement for 2018-2020 S. Main St. (KCG Development LLC) CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING –June 12, 2025 5 Erin Michaels, Property Development Manager, presented a proposed Purchase Agreement for RDC-owned parcels located at 2018–2020 S Main St. The agreement is with KCG Development LLC, which plans to apply for low-income housing tax credits to support the construction of a multi-family housing development. The project will include a minimum of fifty (50) affordable, income-restricted units. The sale of the property is contingent upon KCG Development being awarded the Low-Income Housing Tax Credits (LIHTC), which are expected to be announced in November of 2025 and 2026. The agreement includes a purchase price of $1,000 and requires a minimum investment of $14 million. Project completion is expected within thirty (30) months of the Construction Commencement Date. Megan Schuetz, with KCG Companies stated they're looking forward to an opportunity to bring additional affordable housing into that neighborhood and it would be the first affordable housing in that census tract. Ms. Schuetz states KCG covers ten (10) states, and this is their first affordable housing project in Indiana. Secretary Wax inquired about a development agreement for this project and Mr. Molnar stated that yes in the future one will be brought to the Commission for their review, but this would occur after LIHTC credits were awarded for the project. The development of a new apartment building on currently vacant land will bring renewed vitality to the Main Street corridor and provide much- needed quality affordable housing. Staff recommend approval of the agreement. Also noted at the meeting, the funding will be from the South Side TIF not River West development area. Vice President Relos asked if the property would need to be re-zoned and Mr. Molnar stated that yes and it would need to go back to Council for approval. Upon a motion by David Relos for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Purchase Agreement as presented on June 12, 2025. 4. Opening of Bids (4022 Old Cleveland Rd.) Joseph Molnar, Assistant Director of Growth and Opportunity, stated we received no bids prior to the deadline. Mr. Molnar stated that staff have a 30-day waiting period before the Commission could enter into any purchase agreement 5. Budget Request (Dylan Dr. Lighting Improvements) CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING –June 12, 2025 6 Caitlin Wyant, Engineering, presented a budget request for additional funding for lighting improvements on Dylan Drive (between Brick Road and Adams Road), Carbonmill Drive, Parkland Drive, and Chet Waggoner Drive. The consultant, JPR, has estimated the total cost of the project at $478,660, which includes 15% contingency. After accounting for funds already allocated in the DFO and combining available 2024 and 2025 Light Up South Bend funding, an additional $140,500 is required to move the project forward to the bidding phase. Secretary Wax inquired about the current lighting setup, how it differs from the projected plan, and how the budget is being utilized. Ms. Wyant explained that the project involves replacing nineteen (19) energy-inefficient fixtures, five (5) poles, four (4) foundations, and installing thirty-eight (38) upgraded high-efficiency fixtures. Gemma Stanton from Engineering added that some poles will need to be relocated due to their placement in high-traffic areas where they are frequently damaged. She also confirmed that this project will not exhaust the budget allocated for other lighting initiatives. Commissioner Ellison requested clarification regarding the contingency percentage—10% as shown on the presentation slide versus the 15% being requested. Ms. Wyant clarified that while JPR initially proposed a 10% contingency, Engineering is recommending 15% to account for cost fluctuations and to avoid the need for additional funding later. Upon a motion by David Relos for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Budget Request as presented on June 12, 2025. B. River East Development Area 1. Budget Request (Leeper Park Tennis Reconstruction Project) Lidya Abreha, Engineering, presented a budget request for $500,000 to supplement the $600,000 raised by the South Bend Community Tennis Association (SBCTA) and the $500,000.00 grant awarded by Visit South Bend Mishawaka for the Leeper Park Tennis Courts Reconstruction Project. Fundraising has also been inspired by the legacy of A. David Filer V. This project will expand recreational opportunities for South Bend residents and provide inclusive access for youth from diverse backgrounds to experience the joys and benefits of tennis. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING –June 12, 2025 7 President Warner asked about the TCIF grant and Ms. Abreha stated that is the Hotel/Motel grant. Secretary Wax asked if VPA has the funds to support maintenance and operations and Ms. Abreha confirmed yes. Vice President Relos inquired about which TIF district the funding is coming from and Mr. Molnar stated that since the park is centered between the two TIF’s it will be in River East due to the proximity to the park and that the park serves both River West and River East TIF districts. Upon a motion by Troy Warner for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Budget Request as presented on June 12, 2025. C. Redevelopment General Fund (a.k.a Pokagon Fund) 1. Budget Request for System Development Charges (Boys and Girls Clubs) Sarah Barber, Director of Engineering Services, presented a budget request for $8,019 from RDC for the system development charges (SDC) required to cover the water and sewer change fees for the development of the Boys and Girls Clubs at 250 E. Sample Street. The Boys and Girls Clubs is acquiring the property for an off-school suspension program during the day and additional adolescent programming. The Boys and Girls Clubs is a non-profit organization whose growth has a positive impact on the community. Public Works are not able to waive SDCs per the ordinance language. This is a unique case that Public Works is requesting the $8,019 funding from RDC for these SDCs with a 10% discount applied following the Ordinance Section 17-79 & 17-80 if paid in full. President Warner asked for an explanation of the Pokagon fund and Joseph Molnar, Assistant Director of Growth and Opportunity, stated that this fund is used for educational purposes as well as other community growing initiatives. Vice President Relos asked about specifics of the need and Eric Horvath, Director of Public Works explained that they need a larger 2” meter due to increased water needs and a fire suppression system. Commissioner Shaw asked the balance of the Pokagon fund and Rosa Tomas, Director of Finance, stated that we have $1.5-$1.8 million in the account. Upon a motion by David Relos for approval, seconded by Eli Wax, the motion carried unanimously, and Troy Warner abstained from the vote; the Commission approved the Budget Request as presented on June 12, 2025. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING –June 12, 2025 8 2. Budget Request (Advantix Development Corp.) Joseph Molnar, Assistant Director of Growth and Opportunity, presented a budget request for $250,000 to support the Advantix Development Project. On July 11, 2023, the Board of Public Works approved a Purchase Agreement with Advantix Development Corporation for the sale of 35 City-owned parcels. Two days later, on July 13, 2023, the Redevelopment Commission approved a separate Purchase Agreement with Advantix for an additional 8 parcels. These approvals supported Advantix’s application for Low-Income Housing Tax Credits (LIHTC) through the State of Indiana. In November 2023, Advantix was awarded the LIHTC credits, enabling the project to move forward. The development will consist of 50 affordable housing units scattered across northwest and westside neighborhoods in South Bend split between 30%, 50%, and 80% AMI. The homes will follow a lease-to-own model, with a total construction investment exceeding $14 million. Advantix has collaborated with the City’s planning staff to ensure the homes reflect the character of the surrounding neighborhoods. To that end, the developer is utilizing the City of South Bend’s Pre-Approved Housing Plans. A funding request of $250,000 is proposed to support Advantix in maintaining high construction quality for the housing units. Construction is expected to begin later this summer. This project will activate long-vacant properties, deliver quality affordable housing, and bring substantial investment to South Bend’s near west and westside communities. Brandon Shields, with Advantix Corp. explained that this has been a two-year journey and with the rising cost and especially the investor uncertainty because of the tariffs, this request will assist in keeping in line with the City’s exact plans. Secretary Wax asked if there is a blueprint for the funds and Mr. Molnar explained the funds will go to the construction of the houses and will have a donation agreement in the future. Upon a motion by David Relos for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Budget Request as presented on June 12, 2025. D. Administrative 1. Resolution No. 3642 (Determining Tax Increment to be Collected in Year 2026) CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING –June 12, 2025 9 Erik Glavich, Director of Growth and Opportunity, presented this Resolution determining that the tax increment which may be collected in the year 2026 is needed to satisfy obligations of the commission and that no excess assessed value may be allocated to the respective taxing units and other related matters. In accordance with the provisions of Indiana Code Section 36-7-14-39, the South Bend Redevelopment Commission has determined by Resolution No. 3642, passed June 12, 2025, that there is no excess assessed value that may be allocated to the respective taxing units in the manner prescribed in Indiana Code Section 36-7-14-39(b)(1). The Allocation Areas of the City of South Bend are as follows: • River West Development Area • Riverwalk Allocation Area • West Washington Chapin Development Area • River East Development Area Allocation Area #1 • River East Development Area Allocation Area #2 • South Side General Development Area #1 • Douglas Road Economic Development Area Secretary Wax asked if there are guidelines for cash reserves and Danielle Campbell Weiss, Senior Assistant City Attorney, stated that it’s a simple statute and self-assessment. She stated that we intend to use all of the increment. Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved Resolution No. 3642 as presented on June 12, 2025. 6. Progress Reports A. Tax Abatement None B. Common Council None C. Other President Warner acknowledged the award for the City’s Housing Pre- Approved Plans and Mark Peterson for his 40 years in the media industry and his service to this community. President Warner wishes him success in his retirement.