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HomeMy WebLinkAboutRedevelopment Commission Minutes 08.14.25 - Signed CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES August 14, 2025, at 9:30 a.m. BPW Conference Room, 13th Floor, County-City Building https://tinyurl.com/RDC-2025-2T 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 • Ophelia Gooden-Rodgers, Commissioner – (Council) February 2025 to December 2025 • Marcus Ellison, Non-Voting Advisor – (School Board) February 2025 to December 2026 Members Absent: Gillian Shaw, Commissioner Legal Staff: Danielle Campbell Weiss, Senior Asst. City Attorney Redevelopment Staff: Caleb Bauer, Exec. Director, DCI Joseph Molnar, Asst. Dir. of Growth and Opp., DCI Erin Michaels, Property Development Manager, DCI - Virtual Tim Corcoran, Chief Planner, DCI - Virtual Lidya Abreha, Project Manager, Engineering Tamina Ewing, Neighborhood Program Specialist, DCI Laura Hensley, Board Secretary, DCI Others Present: Marlene & Thomas Nowak, 1709 Wayne St. Brian Connolly, 1523 Sunnymede Ave. Joe Weber, 1112 Sunnymede Ave. Margaret Neil, 511 St. Joseph St. Becky Czarnecki, 805 Arch Ave. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 2 Ben Capdevielle, 511 Margaret Ave. Eddie Bradley, 17815 Woodthrush Matt Barrett, 110 S. Niles Ave. Anna Johnson, 630 Cushing St. Sam Linn, 528 River Ave. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, July 24, 2025 Upon a motion by Ophelia Gooden-Rodgers for approval, second by David Relos, the motion carried unanimously; the Commission approved the minutes of the regular meeting of July 24, 2025. 3. Approval of Claims A. Claims Allowances July 29, 2025 Upon a motion by David Relos for approval second by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved the claims allowances of July, 29, 2025. 4. Old Business A. None 5. New Business A. River West Development Area 1. Purchase Agreement (New Day Intake Center) Caleb Bauer, Executive Director of Community Investment, presented agenda items 541-4 together. The site at 4022 Old Cleveland Rd, which is about 14.5 acres in total. Staff are working to divide the land, and the purchase agreement being discussed today covers 7 acres on the north side. a) The purchase agreement for that land. b) An option to buy land at the Knights Inn site on Lincoln Way West. c) A development agreement to help fund the New Day Intake Center. d) A resolution to start the process for a forgivable loan, which needs approval from several groups. This step begins the process but doesn’t finalize it today. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 3 All of this supports the creation of a 110-bed low-barrier intake center called the New Day Intake Center. The purchase agreement covers Lot 1, which is on the north side of the property located on Old Cleveland Rd. The proposed sale price is $1,000. The buyer agrees to: • Start construction within 12 months after the sale closes. • Invest $10 million in private funds. • Finish construction within 36 months of closing. The agreement also includes a 15-year operational commitment. During this time, the project must follow rules from the HOME ARP federal program, which is managed locally by the Department of Community Investment for the St. Joseph County Housing Consortium. If these conditions aren’t met during the 15 years, the City (RDC) has the right to take back the property through a reversion clause. The option agreement is to buy the Knights Inn property on Lincoln Way West. A few years ago, the City of South Bend helped acquire this site to temporarily continue operations for the Motels4Now program. Under this option: • The Commission can purchase the property for $1 after the New Day Intake Center is built. • There will be a 6-month window after construction is complete to allow time for moving operations from the Knights Inn to the new facility. • The option to purchase remains valid for five years after the New Day Intake Center is finished. The development agreement outlines what the New Day Intake Center team (a nonprofit 501(c)(3)) is committing to: • They will build a low-barrier emergency shelter with at least 110 beds. The current plan is for around 120 beds, but that number could change slightly depending on final designs and construction costs. • The shelter must be fully built and open by December 31, 2027, subject to all applicable permitting and regulatory approvals. • The team will also sign a 5-year operating agreement with the City of South Bend, which includes specific commitments for how the shelter will run. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 4 • The city plans to provide $500,000 per year for five years to help cover operating costs. This funding comes from the annual budget approved by the sub-income council. • While the operating agreement isn’t finalized yet, a summary of its terms is included in the development agreement for reference. Financial Commitments: • The New Day team will invest at least $10 million privately. • The Redevelopment Commission will contribute $4 million through a forgivable loan using tax increment financing (TIF) funds. This loan will work like a regular loan with interest. Once the project is completed and meets its goals, the loan can be forgiven, effectively turning it into a grant. The timeline for the New Day Intake Center must be: • Completed within 36 months after construction begins. • Fully open and ready to receive guests by December 31, 2027. The loan agreement with the City is expected to be finalized before January 1, 2026, assuming all necessary approvals are received from other decision-making bodies. These approvals are still pending, so this timeline could change. Once the project is substantially complete, the New Day Intake Center team will be required to: • Submit an annual report to the Commission for 10 years, showing that they are following all required codes and post-completion standards. • These reporting requirements are included as an exhibit in the development agreement. There will also be separate reporting requirements tied to the operating agreement, which will be finalized closer to the time the facility opens. The New Day Intake Center must: • Run the low-barrier emergency shelter year-round. • Be accessible to everyone, regardless of sobriety, income, ID status, or whether they participate in services. • Create individual housing plans to help guests move into permanent housing as quickly as possible. • However, due to limited housing options, some guests may need to stay longer until suitable housing becomes available. • Work closely with community partners to provide on-site support services, including: • Physical and mental health care CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 5 • Substance use treatment • Legal assistance • Employment support There are 16 more requirements listed in the agreement exhibit, which the Commission can review. Reporting Requirements: After the center is completed, the New Day team must submit an annual report to the Commission for 10 years, showing they’re meeting all post-construction standards. These requirements are outlined in Exhibit E of the development agreement. Funding Resolution No. 3646: The final item is a resolution to begin the forgivable loan process, using Tax Increment Financing (TIF) funds. • Funds will come from three commercial TIF districts: • River West: $2.4 million • River East: $1 million • Southside: just under $500,000 Although the project isn’t located in all three districts, the city believes it benefits the entire community, which is why funding is being drawn proportionally from each. Vice President Relos asked about details of the phases. Sheila McCarthy, Executive Director of the New Day Intake Center, explained that the project is being built in two phases: Phase One: • Includes the administration building (called the Blue Center). • Builds half of the shelter units—think of it as one side of the full layout. • This phase is 94% funded, with support from HOME ARP funds. Phase Two: • Covers the remaining shelter units—the top section of the layout. • The goal is to start Phase Two right after Phase One, to keep momentum and simplify funding and planning. Sheila emphasized that this phased approach helps the team manage such a large project and build on the success they’ve already had at the Lincoln Way West location. For example, this summer alone, they’ve helped place a dozen people into housing. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 6 She concluded by saying that providing safe shelters with support services is key to ending homelessness and helping people transition into permanent housing. Secretary Wax asked about an estimate of the demolition costs for the Lincolnway West site and Mr. Bauer stated an estimate of $200-250. Mr. Wax also asked about site security and Mr. Bauer stated that New Day is working in coordination with the South Bend Police Department and will have fencing and gates to the facility. Ms. McCarthy stated that since 2020 they have had over 800 guests and 600 are no longer homeless. They also meet monthly with SBPD and Chief Ruszkowski is in support of this project, and the new facility will have a better intake process that should reduce security issues. Commissioner Gooden-Rodgers asked about the intake process of becoming a guest at the facility. Ms. McCarthy explained that at Our Lady of the Road, where many people already go for breakfast, laundry, and showers three days a week, they are able to get more information on the intake process for shelter which begins on Friday mornings. Here’s how it works: • Staff will add you to the waitlist and ask about 20 questions to understand your situation. • They’ll check if there’s another shelter or program that might help you right away. • You’ll check in regularly during breakfast, and when a spot opens up, they’ll invite you to join them at the motel. • Once accepted, you’ll go through a 30-minute orientation, get your room key, towels, and toiletries, and settle into your space. Ms. McCarthy also explained that transportation will be provided. Deb Adams asked if the gardens will be run by Unity gardens and Ms. McCarthy stated no, they are run by New Day. Both President Warner and Vice President Relos commended the staff for the hard work on this project and should be a model for other cities. Secretary Wax expressed reservations and concerns for the surrounding neighborhood, however, also spoke in favor of the project and would like updates regarding the operating and development agreements. Upon a motion by David Relos for approval, seconded by Ophelia Gooden-Rodgers, the motion carried unanimously; the Commission approved the Purchase Agreement as presented on August 14, 2025. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 7 2. Option to Purchase Agreement & Memorandum of Option (Current Motels4Now, Our Lady of the Road) Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Option to Purchase Agreement and Memorandum of Option as presented on August 14, 2025. 3. Development Agreement (New Day Intake Center) Upon a motion by David Relos for approval, seconded by Troy Warner, the motion carried unanimously; the Commission approved the Development Agreement as presented on August 14, 2025. 4. Resolution No. 3646 Pledging TIF to Fund Forgivable Loans (New Day Intake Center) – RWDA, REDA, SSDA TIF Districts Upon a motion by David Relos for approval, seconded by Ophelia Gooden-Rodgers, the motion carried unanimously; the Commission approved Resolution No. 3646 as presented on August 14, 2025. 5. Resolution No. 3641 (Accepting Transfer of 1636 LWW from County Commissioners) Joseph Molnar, Assistant Director of Growth and Opportunity, presented a Resolution for the property at 1636 Lincoln Way West is located just off the main corridor, west of the Internet neighborhood, and south of the far-left neighborhood near Holy Cross School and the new Coal Line. In 2022, the city demolished the old South Bend Brewing Association building on this site due to safety concerns—parts of the structure were falling into the street and sidewalks. After demolition, a lien was placed on the property to cover the costs, but the owner didn’t pay it. Because of the unpaid lien, the property went through the tax sale process last fall. When properties aren’t purchased at the initial tax sale, the Redevelopment Commission (RDC) can request the tax certificate from the county commissioners before it goes to the next sale. This spring, RDC staff requested the county to begin that process. The county commissioners approved Resolution R-14-C-2025, transferring the tax certificate to the RDC on July 29, 2025. Now, Resolution 3641 allows the RDC to officially accept the certificate and authorizes the City’s Department of Law to secure the title and necessary documents to fully acquire the property. RDC staff believe this site is a strong candidate for future redevelopment. The property is near, the Coal Line trail (Phase 1) and the planned Coal Line trail CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 8 (Phase 3) of the project, the new infill housing by Intend Indiana and partners, the newly opened Dream Center, and Kennedy Park, which is also set for improvements. This resolution is just the first step—accepting the tax certificate. It will take a few months for the city’s legal team and RDC staff to complete the process of taking full control of the property. Vice President Relos asked if there were any environmental issues with the demolition of the property and Mr. Molnar stated no. Upon a motion by David Relos for approval with the amended date, seconded by Eli Wax, the motion carried unanimously; the Commission approved Resolution No. 3641 with the amended date of July 29, 2025 for the date the Commissioner’s approved R-14-C-2025 in the seventh paragraph of the recitals as presented on August 14, 2025. 6.Budget Request (Leighton Building Renovations) Lidya Abreha, Project Manager, Engineering, presented this budget request for $100,000 to cover consulting fees for the next stage of renovations for the Leighton building for conceptual and schematic design. Secretary Wax asked to give a progress update and if there have been previous appropriations for this project. Caleb Bauer stated that he didn’t have the exact amount with me right now, but we’ll get that information to you. I believe the funding was part of a combined appropriation for several properties the Commission recently acquired, including the garage and the Leighton building. One reason for this additional request is that the layout of the building has changed since we first looked at it. The YMCA received funding through the READI program to create a pre-K center within the building. We’ve been working with them to finalize the square footage needed for their space, which will be located on the first floor. A formal agreement for that is coming soon. These updates have shifted the design from what we originally envisioned a year ago. Also, part of this funding will allow a third-party review of issues related to the ballast tank for the pool. The YMCA has already made significant upgrades to the pool and its mechanical systems. The first floor of the building is planned to house a pre-K facility operated by the YMCA. We're currently in negotiations, and the agreement may include a limited number of pre-K service benefits for city employees. The second floor will include some city office space, CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 9 primarily for departments that are overflowing from City Hall. These will be non-public-facing offices. Part of this floor also contains mechanical systems for the pool. The third and fourth floors will remain YMCA facilities, and we hope to finalize a long-term agreement to formalize that arrangement soon. Upon a motion by Eli Wax for approval, seconded by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved the Budget Request as presented on August 14, 2025. 7. Open Bids for Disposition of Property (Taylor, Wayne & Western Lots) Joseph Molnar, Assistant Director of Growth and Opportunity, stated that no bids were submitted and we will proceed with next steps for this property. 8. First Amendment to Network Operating Center Lease (Union Station) Joseph Molnar, Assistant Director of Growth and Opportunity, stated that last year, the Redevelopment Commission (RDC) acquired Union Station as part of a broader agreement involving several properties. Along with the property, RDC also took over an existing lease agreement with 1547 CSR, dating from last year. 1547 CSR owns the adjacent data center, which currently uses Union Station as its main public entrance. Although they’re working on building separate entrances and expanding their data center, they still rely on Union Station for access and operations. Under the lease, 1547 occupies a small 1,000 sq. ft. space in Union Station for offices used by their security and staff. In exchange, they provide 24/7 security and monitoring for the entire building, including the parking lot—at no cost to the city. This includes gated access, check-ins, and on-site personnel. If the city were to hire a private firm for similar services, it would likely cost $10,000–$15,000 per month. The current lease ends on August 19, 2025, but the proposed amendment would extend it by one year, giving 1547 more time to complete their separate entrance. During this extension, they’ll continue providing full security services. Once 1547 finishes their entrance and fully transitions out of Union Station, the city will take over responsibility for securing the building. The goal is to fully separate the two properties, which have shared ownership for decades. Secretary Wax asked about an early termination provision and future plans for the building. Danielle Campbell Weiss, Senior Assistant City Attorney, will confirm that there is. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 10 As for the future of Union Station, the City is exploring the possibility of reactivating it as a full-time Amtrak station. Discussions are ongoing, and while there’s no official update yet, the City believes Union Station would be a better location than the current Amtrak station, which is about two miles west. Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Amendment as presented on August 14, 2025. 9. Second Amendment to Development Agreement (The Monreaux) President Warner asked for a motion to table this agenda item. Upon a motion by Eli Wax to Table, seconded by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved to table the Amendment as presented on August 14, 2025. B. Redevelopment General Fund 1. Home Repair Program Mortgage Release (722 E. Ewing) Tamina Ewing, Neighborhood Program Specialist, presented the mortgage release. President Warner explained that this issue comes up every 18–24 months. Years ago, the city ran a home repair program for qualifying residents—typically seniors or low-income households. Instead of paying upfront, a lien was placed on the property to be repaid later, usually when the home was sold or transferred. Now, about 20 years later, we’re seeing requests to release those liens as homes are being sold or passed on through estates. The lien covers the cost of repairs and must be cleared before the sale. Secretary Wax asked for a total count and Ms. Ewing stated she would work on that. We don’t currently have a full count of how many liens are still active, but that information can be found with a few hours of research through the office of the recorder. To clarify: the lien is being released, not the home itself. It’s typically released to the owner or their heirs. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the Mortgage Release as presented on August 14, 2025. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 14, 2025 11 6.Progress Reports A.Tax Abatement B.Common Council C.Other 7.Next Commission Meeting Thursday, August 28, 2025, 9:30 a.m. at BPW Conference Room 13th Floor 8.Adjournment Thursday, August 14, 2025, 10:32 a.m. ______________________________ ______________________________ Eli Wax, Secretary Troy Warner, President