Loading...
HomeMy WebLinkAboutRedevelopment Commission Minutes 07.24.25 - Signed CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES July 24, 2025, at 9:30 a.m. BPW Conference Room, 13th Floor, County-City Building https://tinyurl.com/RDC-2025-4T Meeting Recording Link: https://tinyurl.com/RDC-Meeting-Recordings The South Bend Redevelopment Commission was called to order at 9:31 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 – Arrived at 9:37 AM • Ophelia Gooden-Rodgers, Commissioner – (Council) February 2025 to December 2025 • Marcus Ellison, Non-Voting Advisor – (School Board) February 2025 to December 2026 Legal Staff: Danielle Campbell Weiss, Senior Asst. City Attorney - Virtual Redevelopment Staff: Sarah Schaefer, Deputy Director, DCI Erik Glavich, Director of Growth and Opportunity, DCI Lewis Kouassi, Director of Finance, DCI Joseph Molnar, Asst. Dir. of Growth and Opp., DCI Erin Michaels, Property Development Manager, DCI Allison Doctor, Project Manager, DCI Laura Hensley, Board Secretary, DCI Others Present: Greg Swiercz, South Bend Tribune Matt Barrett, 110 S. Niles Ave. Marco Mariani, South Bend Heritage Chloe Barz, Legal Intern CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 24, 2025 2 Ben Carson, 828 Kerr St. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, July 10, 2025 Vice President Relos noted a discrepancy in the minutes. He wanted to clarify that for the Main St. proposal the garage that will be servicing the LaSalle Apartments and not the LaSalle Grill. Revisions were made to the minutes. Upon a motion by Eli Wax for approval, second by David Relos, the motion carried unanimously; the Commission approved the minutes of the regular meeting of July 10, 2025. 3. Approval of Claims A. Claims Allowances July 8, 2025 Upon a motion by David Relos for approval second by Eli Wax, the motion carried unanimously; the Commission approved the claims allowances of July 8, 2025. 4. Old Business A. None 5. New Business A. River West Development Area 1. Public Meeting (Adopt Amending Declaratory Resolution for Residential TIF) Joseph Molnar, Assistant Director of Growth and Opportunity, presented both items 5A1 & 5A2 together. On June 12, 2025, the Redevelopment Commission (RDC) authorized a Notice of Public Meeting regarding the proposed Lincoln and Kennedy Park Residential Housing Development Program Allocation Area within the River West Development Area. At the July 24, 2025 RDC meeting, Staff will present the Declaratory Resolution and Plan Amendment. The Commission will vote on whether to adopt these items, which would initiate the expansion process and formally establish the new allocation area. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 24, 2025 3 If adopted, the expansion process will proceed as follows (dates subject to change): • July 24, 2025 – RDC: Adoption of Amending Declaratory Resolution and Plan Amendment • August 18, 2025 – South Bend Plan Commission: Approval of the Amending Declaratory Resolution and Plan Amendment • August 25, 2025 – South Bend Common Council: Resolution to approve the Plan Commission Order • September 11, 2025 – RDC: Public hearing and adoption of the Confirmatory Resolution Following approvals by the Plan Commission and Common Council, public hearing notices will be mailed and published ahead of the September 11 RDC meeting. Mr. Molnar provided a detailed explanation of Tax Increment Financing (TIF) and its role in supporting economic development, infrastructure projects, community assets, and helping subsidize development projects in South Bend. He explained that it doesn’t provide much benefit to having occupied houses within a TIF district. Increased assessments on existing homes doesn’t generate additional TIF revenue. Only new construction contributes to the increment captured by the TIF, which is why it’s most effective in areas targeted for new development. The accompanying map outlines the proposed boundaries for the TIF district, clearly showing these neighborhoods. Vice President Relos asked about two small plots that were not included and Mr. Molnar explained that those were areas that have very little vacancies. A notice was published in the South Bend Tribune on June 13, 2025, regarding the public hearing to consider adopting an amending declaratory Resolution for Residential TIF for the Lincoln/Kennedy park neighborhood. A Public Hearing regarding the further was opened to the public for comments and considerations. Lewis Kouassi, Director of Finance asked why this area was not included when the TIF area was created. Mr. Molnar stated the River West TIF evolved over time, eventually absorbing other districts and becoming a consolidation of multiple TIFs. Also, changes to state law a few years ago made residential TIFs more advantageous. Previously, this tool wasn’t widely used by the city, which is why it hadn’t been applied in this area. Although part of the area was already included in the River West TIF, the recent legislative changes have made it more beneficial to utilize residential CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 24, 2025 4 TIFs here. No other comments were made from the public. The Public Hearing was closed. 2. Resolution No. 3644 and Approve Plan Amendment (Adopt Amending Declaratory Resolution for Residential TIF) Upon a motion by Eli Wax for approval, seconded by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved Resolution No. 3644 as presented on July 24, 2025. 3. Bid Specifications for Disposition of Property (Taylor, Wayne & Western Lots) Erin Michaels, Property Development Manager, presented items 5A3-5 together. The Redevelopment Commission (RDC) currently owns eleven (11) parcels located within the area bound by Taylor Street, Wayne Street, and Western Avenue. These parcels were acquired for the purpose of redevelopment. Attached Documents: • Bid Specifications • Notice of Intended Disposition • Resolution Establishing Offering Price These documents mark the beginning of the disposition process and outline the following conditions for submitting a bid: • Minimum Bid: $370,500 (based on the average of two appraisals) • Bid Deadline: All bids must be submitted by 9:00 AM on August 14, 2025 • Bid Opening: Bids will be publicly opened during the RDC meeting on August 14, 2025 • Evaluation Criteria: Priority will be given to proposals that align with and support the goals of nearby businesses, the surrounding neighborhood, and the Development Plan for the River West Development Area. The accompanying slide highlighted the parts of the Western Avenue Transformation plan that Ms. Michaels feels are replicable to these parcels. Secretary Wax asked about clarification of the structures currently on the site. Ms. Michaels stated that there is a fiber hut, rental home with three (3) apartments, as well as an alley that may need to be vacated in the future. Commissioner Ellison asked how the site was zoned and Mr. Molnar stated that it’s currently zoned for a neighborhood center which allows for mixed uses. Matt Barrett asked why the project has such a short turnaround time. Mr. Molnar CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 24, 2025 5 explained that the timeline is based on Indiana state laws and regulatory guidelines. Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Bid Specifications as presented on July 24, 2025. 4. Notice of Intended Disposition of Property (Taylor, Wayne & Western Lots) Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Notice as presented on July 24, 2025. 5. Resolution No. 3645 for Disposition of Property (Taylor, Wayne & Western Lots) Upon a motion by Eli Wax for approval, seconded by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved Resolution No. 3645 as presented on July 24, 2025. 6. Purchase Agreement TRI-Day (South Bend Heritage) Joseph Molnar, Assistant Director of Growth and Opportunity, presented a purchase agreement with South Bend Heritage Foundation, Inc. for the southern half of the RDC-owned parcel located at 4022 Old Cleveland Road, located on the Southern half of the parcel and is approximately 7.5 acres. This is similar in quality and scale to SB Thrive. Project Details: • South Bend Heritage, the long-standing local non-profit organization plans to construct income-based multi-family housing with a minimum of 42 units, including 10 units designated for Permanent Supportive Housing (PSH). • The project is contingent upon the developer receiving low- income housing tax credits from the Indiana Housing and Community Development Authority. • Tax credit awards are expected to be announced in November 2025. • If awarded, the developer will: • Purchase the property for $1,000 • Commitment to a minimum investment of $13.5 million • Complete the project within 30 months of the construction commencement date CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 24, 2025 6 Community Impact: This development will transform currently vacant land into quality affordable housing, increasing local housing capacity and providing on- site supportive services for residents. Marco Mariani, Executive Director of the South Bend Heritage Foundation, stated we’re incredibly grateful to South Bend Heritage and the Board for supporting this effort. Our work on the Low Barrier Intake Center and this broader project began in 2022–2023, in partnership with Motels4Now. Through the Corporation for Supportive Housing’s Institute, we developed a plan to expand permanent supportive housing. This included forming a team with the City, Oaklawn, the Health Department, and others to create a Gateway Center and more affordable housing. The current plan includes 16 buildings—10 units for permanent supportive housing and the rest for households earning 30–60% of the area median income. South Bend Heritage Foundation will own, develop, and manage the site. He stated they have a letter of intent from National Equity Fund as our equity partner and are working with Merchants Capital on construction financing. While most developers would limit the number of buildings to cut costs, we’re committed to building a full neighborhood—because it’s worth the investment to create a place people truly want to live. Mr. Mariani explained that the state received about 60 applications this year and will likely fund 17–19. We’re in a separate set-aside category, the Housing First Integrated Housing Set-Aside, thanks to our participation in the Institute and strong team collaboration. We may face competition from a few similar projects, but our chances are strong. We have a great track record with IHCDA and a growing portfolio of over 500 rental units—larger than the Housing Authority’s. If awarded in November, we’ll move into construction planning and aim to break ground by early summer 2026. The City is expected to help with infrastructure, estimated at $3–4 million. Secretary Wax asked about the purchase price for the entire parcel and Mr. Molnar stated the total was $800,000. Commissioner Gooden- Rodgers asked if there were plans for a picnic/playground area for families and children. Mr. Mariani responded that we already have something similar on West Washington with playground equipment, it’s costly, but doable. I’m glad you brought it up, because while there’s a park near our South Dry City Park development, there’s currently nothing active or engaging in place there. This could be a great opportunity to change that. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 24, 2025 7 President Warner announced that the City has submitted three LIHTC applications: (1) TRI-Day, (2) KGC located at Main and Donald Streets, and (3) a property near Movie 16 on Chippewa Ave. Commissioner Shaw asked about the competitive advantage and what the Housing First model means for residents. Mr. Mariani explained that because they went through the Housing Institute, they qualify for a special set-aside in the state’s tax credit round—the Housing First Integrated Housing Set-Aside. This gives them extra points in the application that most private developers can’t get, since they typically don’t include permanent supportive housing. As for how it works for residents: while our project and New Day’s are separate, we collaborate closely. New Day shelters people now, and when someone is ready for permanent housing, we work with them and Oaklawn to transition that person into one of our units. This will continue at the new site. Oaklawn will also provide on-site support services, including a peer support specialist, recovery coach, and case manager to help residents access healthcare and other services. Upon a motion by Ophelia Gooden-Rodgers, for approval, seconded by Troy Warner, the motion carried unanimously; the Commission approved the Purchase Agreement as presented on July 24, 2025. 6. Progress Reports A. Tax Abatement Joseph Molnar, Assistant Director of Growth and Opportunity, presented one (1) tax abatement for a confirming Resolution for KCG at Donald and Main St. B. Common Council President Warner stated that the City will be operating under a tight budget in the coming years and maybe using TIF funding to supplement. C. Other None CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 24, 2025 8 7.Next Commission Meeting Thursday, August 14, 2025, 9:30 a.m. at BPW Conference Room 13th Floor 8.Adjournment Thursday, July 24, 2025, 10:24 a.m. ______________________________ ______________________________ Eli Wax, Secretary Troy Warner, President