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HomeMy WebLinkAboutRedevelopment Commission Minutes 07.10.25 - Signed CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES July 10, 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 9:30 a.m. President Troy Warner presiding. 1. ROLL CALL • Troy Warner, President – (Council) January 2025 to December 2025 • Dave Relos, Vice President – (Mayor) January 2025 to December 2025 • Eli Wax, Secretary – (Mayor) February 2025 to December 2025 • Gillian Shaw, Commissioner – (Mayor) January 2025 to December 2025 • Ophelia Gooden-Rodgers, Commissioner – (Council) February 2025 to December 2025 Members Absent: Marcus Ellison Legal Staff: Sandra Kennedy, Corporation Council Redevelopment Staff: Caleb Bauer, Exec. Director, DCI Sarah Schaefer, Deputy Director, DCI - Virtual Erik Glavich, Director of Growth and Opportunity, DCI Lewis Kouassi, Director of Finance, DCI Joseph Molnar, Asst. Dir. of Growth and Opp., DCI Tim Corcoran, Chief Planner, DCI - Virtual Laura Hensley, Board Secretary, DCI Others Present: Greg Swiercz, South Bend Tribune Matt Barrett, 110 S. Niles Ave. Juan Constantino, La Casa de Amistad Pat Matthews, 1130 South Bend Ave. Tina Patton, 707 Sherman Ave. Zach Hurst, Senior Engineer 2. Approval of Minutes CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 10, 2025 2 A. Approval of Minutes of the Regular Meeting of Thursday, June 26, 2025 Secretary Wax pointed out that Marcus Ellison cannot vote. Minutes were revised that Ophelia Gooden-Rodgers made the second for the meeting minutes of June 26, 2025. Upon a motion by Eli Wax for approval, second by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved the minutes of the regular meeting with the revision of June 26, 2025. 3. Approval of Claims A. Claims Allowances June 24, 2025 Upon a motion by David Relos for approval second by Gillian Shaw, the motion carried unanimously; the Commission approved the claims allowances of June 24, 2025. 4. Old Business A. None 5. New Business A. River West Development Area 1. Staff Recommendation (Main Street Housing RFP) Joseph Molnar, Assistant Director of Growth and Opportunity, presented that on January 9, 2025, the Redevelopment Commission approved a Request for Proposal for a new housing project in downtown South Bend adjacent to the Morris Performing Arts Center. All submissions were opened publicly at the May 8, 2025, RDC meeting. At that meeting, two proposals were submitted, one by Seven Diamonds and one by Flaherty & Collins. Staff have reviewed both proposals and have determined that they both met the criteria for a proper proposal as outlined in the RFP. Today we are making a recommendation on a path forward to the RDC. Mr. Molnar explained that phase one of the improvements focused on the theater itself, including new seating, upgraded equipment, and a comprehensive overhaul of the theater space. Phase two, currently under construction, is the Raclin Murphy Encore Center. An envisioned phase three would include a parking garage connected directly to the Raclin Murphy Encore Center, allowing for CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 10, 2025 3 convenient access and direct parking into the theater. Mr. Molnar gave details of the RFP and an overview of the submissions and ultimately chose Seven Diamonds (a local developer group) with financing through Everwise Credit Union. Seven Diamonds offered a higher private vesting commitment and, we believe, a lower public investment requirement. The proposal features an attractive building design with consistent masonry elements. The RFP emphasized that building materials would be a key evaluation criterion and that the project should reflect both the architectural character of surrounding properties and the broader history of South Bend architecture. That block includes architectural gems like the Palais, the Morris, and the LaSalle buildings. It’s important that any new development fits seamlessly into that context—and we believe this project does a better job of that, particularly through its masonry- forward design. The developer has committed to preserving this traditional aesthetic in a future agreement aligned with the redevelopment vision. Additionally, the site plan includes a fully wrapped parking garage, unlike the alternative proposal where the garage would remain partially exposed, especially visible from the Morris and other buildings when viewed from the Riverside. In this version, the garage would be enclosed to resemble a traditional building, enhancing the overall streetscape. Staff recommend that the Redevelopment Commission ratify the proposal with Seven Diamonds as they best meet the Main Street Housing RFP goals. If approved, staff will begin drafting agreements with them. This doesn’t commit the Commission to a final deal—if terms don’t align later, the Commission can still vote no. We believe it’s the stronger proposal and worth pursuing. Vice President Relos asked about how many levels the parking garage will be, and Mr. Molnar stated five (5). Mr. Relos also asked about the small parking lot owned by Hoffman at the Northwest portion of the area and Mr. Molnar stated that would not be an issue. Secretary Wax added that he agrees with the choice and asked about the viability of the project. Caleb Bauer, Executive Director of Community Investment, stated that at this stage, we haven’t begun financial negotiations with the developer. We haven’t reviewed a full pro forma yet, but we do have pre-qualification letters from their lender and a clear sense of their proposed loan and equity mix. One key strength of the Seven Diamonds proposal is the significantly higher equity contribution compared to the other submission—demonstrating stronger commitment and lower risk for the city. Ideally, we prefer deals where equity outweighs public incentives, as it ensures the developer carries more of the risk and is motivated to deliver a quality project. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 10, 2025 4 While the project is still conceptual, the cost per square foot and per unit appears consistent with similar developments underway. As negotiations progress, we’ll dive deeper into the financial details. Developer Pat Matthews is excited to work with the City and Notre Dame and thanks the City for the opportunity. Vice President Relos asked about the tiny half moon parcel owned by LaSalle Grill and Mr. Bauer stated that they would still have access to that and submitted a letter of support for the project. Mr. Relos inquired about the parking garage capacity for LaSalle Apartments, Main Street Housing and the Morris. Mr. Bauer stated that while the full scope and design of the garage are still being developed, we know it will serve multiple user groups, each with different usage patterns. That presents a unique challenge. A shared smart parking system could help maximize space efficiency, and we believe that’s worth exploring. This garage needs to be both highly efficient and well managed. Commissioner Shaw asked whether the City has recently worked with Seven Diamonds. Mr. Bauer confirmed they’ve partnered on a few smaller projects, including with the City of Mishawaka and the Avalon on the downtown riverwalk, all of which received favorable reviews. Secretary Wax asked if Seven Diamonds would handle property management, and Mr. Matthews said yes, through an affiliate. Commissioner Gooden-Rodgers asked if local contractors would be used, and Mr. Matthews confirmed they would. Upon a motion by Troy Warner for approval, seconded by Ophelia Gooden-Rodgers, the motion carried unanimously; the Commission approved the Recommendation as presented on July 10, 2025. 2.Budget Request (Infrastructure Work at Riverfront West Grant Appropriation) Caleb Bauer, Executive Director of Community Investment, stated that we’re requesting an appropriation of $5.64 million from the River West Development Area to fund infrastructure work at the Riverfront West site. This will support the JC Hart development and potentially future redevelopment of the River Glen site. This funding aligns with a $5.64 million READI 2.0 grant we received a favorable recommendation for last year. We’re finalizing a contract with the Indiana Economic Development Corporation and actively seeking bids, with an award expected by August 12. The appropriation would be fully reimbursed by the grant, with payments typically received within 60–90 days of claim submission. This ensures we have the funds in place to award the contract and move forward. As a reminder, the JC Hart project includes 291 apartment units across two buildings, a 398-space CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 10, 2025 5 parking garage, and represents $61.5 million in private investment. JC Hart recently closed on the land and is preparing for demolition. Mr. Bauer also stated that the bid package has either been released or advertised, with bids expected back soon and an award possible by August 12. As for funding, we originally anticipated the READI funds might not fully cover the broader utility needs outlined in the master plan. That still appears to be the case. Additional support, particularly for stormwater and water infrastructure—may be needed from capital development funds. Upon a motion by David Relos for approval, seconded by Ophelia Gooden-Rodgers, the motion carried unanimously; the Commission approved the Budget Request as presented on July 10, 2025. 3. Budget Request (Appropriation for Residential Infrastructure Fund Loan) Joseph Molnar, Assistant Director of Growth and Opportunity, stated that this item can be tabled as it was approved two (2) months ago. B. Redevelopment General Fund (a.k.a Pokagon Fund) 1. Budget Request (La Casa Commissary Kitchen) Caleb Bauer, Executive Director of Community Investment, presented a proposal to use redevelopment general funds to support the creation of a community commissary kitchen at La Casa de Amistad. The $267,000 project would convert existing commercial kitchen space in La Casa’s community center into a rentable kitchen facility. This commissary kitchen would serve food trucks and vendors needing space for food prep or production—especially timely given the busy summer season with events like Fusion Fest and increased food truck activity on the west side. Partnering with La Casa ensures the space remains affordable, aligning with their nonprofit mission. Executive Director, Juan Constantino of La Casa de Amistad explained La Casa de Amistad has served the community for over 52 years and relocated to the south side of town four years ago, renovating the former Xavier School of Excellence with a $3.25 million capital investment. The building already had a commercial kitchen and hood system in place, which made it ideal for future use. The center supports Latino, Hispanic, immigrant, and broader community members—welcoming over 13,000 in-person visits and 30,000 calls annually. With census data showing that immigrants account for 89% of the city’s population growth over the past five decades, many are CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 10, 2025 6 turning to food-based businesses as a first step toward entrepreneurship. In 2023, La Casa began receiving frequent inquiries from individuals asking where they could legally prepare food, how to navigate health department requirements, and how to launch food trucks or sell baked goods. The idea of a commissary kitchen emerged as a response to this growing need. With due diligence Mr. Constantino stated that we’ve developed a flexible model: long-term partners can pay a monthly fee for storage and access, while others can rent the kitchen hourly—starting as low as $25—for occasional use. To manage increased utility demands, we installed a 106-kW solar panel system that offsets 100% of our electricity use and generates 30% surplus annually. This helps keep operating costs low and supports long-term sustainability, making the kitchen both accessible and efficient for the community. Ideally, based on assessments of the kitchen’s size and layout, we estimate it could support up to 60 unique vendors annually. On a monthly basis, we could see around five different users, with the space accommodating two vendors at a time with a keypad system to accommodate necessary hours for vendors. Caleb Bauer explained that if we were building a new commissary kitchen from scratch, the cost would be significantly higher—likely in the seven figures just for the hood system. Since this is an existing commercial kitchen with a functioning hood already in place, it offers a cost-effective opportunity to create a community-focused commissary kitchen. That’s why we believe it’s a smart investment for the Commission. Matt Barrett asked if this was a donation agreement and if revenue or a percentage was coming back. Mr. Bauer explained that the agreement would include conditions ensuring that revenue from the commissary kitchen is reinvested into its operations, keeping rental rates low and accessible for the community, in line with La Casa’s mission. Additionally, as food businesses and food trucks grow, we expect to see a positive impact on local income tax revenue, though we haven’t formally projected those figures yet. Commissioner Gooden-Rodgers asked if everyone with a food truck can access the kitchen and Mr. Constantino confirmed they would, and he would like to complete the project by mid-September. Commissioner Shaw asked if there will be coaching or mentorship for food entrepreneurs who may be hesitant to get started. Mr. Constantino stated absolutely. That’s part of La Casa’s wraparound support. They offer access to a pro bono attorney for legal help, guidance from the county health department, adult education and financial literacy programs in partnership with two financial institutions, and curriculum resources from the Hatchery in Chicago to help people learn how to run a food business. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 10, 2025 7 Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Budget Request as presented on July 10, 2025. C. Administrative 1. Closings Update Joseph Molnar, Assistant Director of Growth and Opportunity, presented five housing development closings involving Intend Indiana, 466 Works, Allen Edwin, Advantix, and Real America. He also addressed how South Bend’s population trends are influencing housing demand. The five projects, all infill developments on city-owned land, will deliver a combined total of 341 new housing units, of which 179 units (52%) will be income-qualified. The total investment across these projects is $77.5 million, with $63.1 million coming from developers and $14.4 million (18%) contributed by the City. 2. Updates on Development Projects Joseph Molnar, Assistant Director of Growth and Opportunity, presented two development projects: The Ice Box and Momentum. The Ice Box project involves $12 million in upgrades, while the Momentum project includes the rehabilitation of the former Salvation Army building at 510 S. Main Street, representing a $7 million investment. Together, these projects total $19 million, with $16.5 million contributed by developers and $2.5 million invested by the City, including the building itself for the Momentum project. Mr. Molnar also provided an update on the SoMa building restoration, which will introduce 12 new apartments as part of a broader effort to revitalize the entire block. Secretary Wax expressed appreciation for the Community Investment staff, commending their dedication and the significant progress made through strong city partnerships that continue to drive South Bend’s growth. 6. Progress Reports CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 10, 2025 8 A.Tax Abatement None B.Common Council None C.Other None 7.Next Commission Meeting Thursday, July 24, 2025, 9:30 a.m. at BPW Conference Room 13th Floor 8.Adjournment Thursday, July 10, 2025, 10:39 a.m. ______________________________ ______________________________ Eli Wax, Secretary Troy Warner, President