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HomeMy WebLinkAboutRedevelopment Commission Minutes 09.11.25 - Signed CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES September 11, 2025, at 9:30 a.m. Council Chambers 4th 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 9:32 a.m. President Troy Warner presiding and started the meeting with a moment of silence in honor of September 11, 2001 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 • Marcus Ellison, Non-Voting Advisor – (School Board) February 2025 to December 2026 Members Absent: Gillian Shaw Legal Staff: Sandra Kennedy, Corporation Council - Virtual Danielle Campbell Weiss, Senior Asst. City Attorney Redevelopment Staff: Caleb Bauer, Exec. 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 Chris Dressel, Senior Planner, DCI - Virtual Allison Doctor, Project Manager, DCI Laura Hensley, Board Secretary, DCI Zak Tebell, Project Manager, Engineering Sarah Barber, Asst. City Engineer, Engineering CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 11, 2025 2 Others Present: Gregory Broadnux, 2011 Linden Ave. Hernando Swanson, 115 W. Oak St. Beverly Conley, 2610 River Ave. Janeth White, 2314 Roger St. Doris Wilson, 414 LaPorte Ave. Earl Logan, 212 N. Johnson St. Jose Nunez, 333 N. Walnut Frank Rozum, 1634 Florence Alice Pickens, 234 N. Albert Shirley & Lois Sanders, 2529 W. Bertrand Linda Johnson, 1113 W. Oak Andriana Dominguez, 525 Studebaker St. Carmen Valentin, 2126 Kenwood Ave. Pabian Crespi, 2126 Kenwood Ave. Jeanine Rozum, 1634 Florence Gloria Amayn, 1609 Sibley Ave. Marvin Thompson Earl Walker, Jr., 639 Diamond Ave. M. Williams, 246 Studebaker A. Williams, Johnson St. Jason Douglas, 213 N. Brookfield St. Sandy Harvey, 213 N. Brookfield St. Barbara Reese, 247 N. Walnut St. Alfredo Plata, 2125 Harrison Ramadan Salamch, 12801 Palazzo Blvd. Tanya Roberson, Fidelis Properties, LLC Matt Barrett, 110 S. Niles Ave. JoAnne Haithcox, 1824 Sibley Ginger Reilly, SB Tribune Tina Patton, 707 Sherman Ave. Amon Frison, 914 N. Brookfield St. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, August 28, 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 of August 28, 2025. 3. Approval of Claims A. Claims Allowances August 26, 2025 CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 11, 2025 3 Upon a motion by Ophelia Gooden-Rodgers for approval second by David Relos, the motion carried unanimously; the Commission approved the claims allowances of August 26, 2025. 4. Old Business A. None 5. New Business A. River West Development Area 1. Public Hearing regarding (RWDA Expansion Establishing a New Allocation Area at Lincoln/Kennedy Park) Joseph Molnar, Assistant Director of Growth and Opportunity, presented 5A1 & 2 together. Resolution No. 3648 is confirming a declaratory Resolution approving amendments to the declaratory resolution and the development plan for the River West development area for the purpose of establishing a residential housing development program and related matters. Mr. Molnar reviewed the approval schedule per state law and confirmed that all steps have been completed thus far. Mr. Molnar also reviewed the definition of TIF (Tax Increment Financing) as well as how it works and presented graphics. He explained the difference between a residential TIF versus a commercial TIF and how commercial does not capture new single- family houses, but a residential TIF can. Mr. Molnar stated that these funds can be used for infrastructure, community assets, development projects and showed a map of the area. Intend Indiana is an Indianapolis based non-profit housing developer that the City is partnering with to build 92 new homes over the next 5 years. This new TIF will allow the City to reinvest back into this neighborhood. Commissioner Ellison asked about park improvements and boundaries and if Kennedy Park is included in this area and Mr. Molnar stated yes, it's included. Vice President Relos advised that we revisit the FAQ slide for reference. A notice was published in the South Bend Tribune on August 29, 2025, regarding the public hearing to consider further the final residential TIF approvals for Lincoln/Kennedy Park. A Public Hearing regarding the adoption of an Amending Declaratory Resolution was opened to the public for comments and considerations. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 11, 2025 4 • Amon Frison spoke in favor however, asking if the City would provide a program to assist with siding, new windows and doors to improve the entire neighborhood. • Alice Pickens asked if vacant lots owned by residents can be added to the redevelopment plan. • Linda Johnson asked if taxpayers would have to pay the TIF back. • Rhonda Works asked about the process of blighted houses that need demolition. • Jose Nunez asked if the City has a program to assist retired residents to freeze their taxes at the current rate. • Heather Thomas asked if in the future, could the City provide advanced notice of properties being added to the acquisition list. Caleb Bauer, Executive Director of Community Investment, addressed all of the questions at the same time. Regarding property improvements for current homeowners: these could potentially qualify under single-family residential TIF, but a specific program would need to be created. What we’re doing today is setting up the tool—not allocating future funds for any particular use just yet. It’s helpful to hear this feedback from neighbors, which aligns with what we’ve heard from the Linden Legacy Neighborhood Association. I also want to mention that the City’s Home Repair Program will reopen later this year, likely with applications available between November and December. While the program has a narrower focus, it does cover roof and furnace replacements. This upcoming round will be citywide, meaning residents from this neighborhood and others within city limits may be eligible. Eligibility is based on income—specifically, households earning up to 80% of the area median income, which is the same threshold used for the utility assistance program. I’ve advised neighbors to apply for the utility assistance program now if they qualify. That way, they’ll be ready to submit a pre-application when the home repair program opens. Plus, being enrolled in the utility assistance program provides a monthly utility bill discount. We’ve aligned the eligibility for both programs to ensure residents benefit from both if they qualify. Sidewalk improvements were also mentioned, and those could theoretically be eligible under the single-family residential TIF. However, it’s important to note that it will take time to collect the necessary funds. For example, a newly built home won’t contribute incremental property taxes until the year after it’s first assessed. Since the Intend Indiana development spans five years, with new homes built each year, there will be a 1–2-year lag before we start seeing usable revenue. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 11, 2025 5 To clarify, this initiative does not change the property tax percentage rate for any properties. While neighborhood improvements can increase property values, Indiana’s new property tax law—Senate Bill 1 (SB1)—places limits on how much property taxes can rise over multiple years. Previously, property assessments were based on what a home could sell for in the market. SB1 changes that by decoupling assessments from market value, helping to slow down increases in assessed value over time. Additionally, SB1 may renew tax credit programs for seniors. If you're over 55 and on a fixed income, you might qualify for credits that reduce your property tax bill. We're still reviewing the full impact of this new law, but we’re happy to help answer questions or connect you with county officials who can provide more details. So again, we’re establishing the tool now, but it will take time before we have enough funds to support various projects. Lastly, regarding property tax rates: this initiative does not change the percentage rate for any properties. While neighborhood improvements can affect property values, Indiana’s SB1 property tax bill limits how much property taxes can increase over multiple years. There was a question about property owners who already have vacant lots and may be interested in building on them or getting support through a program like TIF. Yes, that is an eligible use of TIF funds— they can be used as incentives to support new development. For owners interested in exploring this, there are a few options: • Our team is available to discuss possibilities. • We can also connect you with Intend Indiana, the nonprofit currently doing new construction in the neighborhood. They offer different partnership models for property owners. To clarify, we did not include any properties in this area on the acquisition list. In other commercial TIF districts, properties are sometimes listed for potential purchase by the Commission. But in this case, we wanted to avoid confusion or concern—especially for single- family residential properties—so no properties were added to that list. If, in the future, there’s interest in purchasing property in this area, we would need to revise the acquisition list and formally add those properties. However, when improvements happen in a neighborhood, property values can go up. That can be a good thing—homeowners may gain more equity, which could help if they want to sell or use their home to access financing. But it could also lead to higher property assessments, which might increase property taxes. That’s where SB1 comes in. This new state law sets a limit on how much property taxes CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 11, 2025 6 can increase each year, helping to prevent large jumps in tax bills over time. It creates a cap on annual increases over multiple years. And finally, if the city ever decides to add property to the acquisition list, the owners of those properties will be notified by first-class mail— they’ll receive a letter explaining that their property has been added. In this case, because most of the properties in the area are single-family homes, we are not planning to add existing residences to the acquisition list. In the future, we might consider adding vacant lots if there are interested sellers, but we do not expect to include any occupied homes. And again, if any property is added to the list, the owner will receive a direct notification. The Public Hearing was closed. Commissioner Gooden-Rodgers asked again if residents’ taxes will go up and Mr. Bauer stated that property taxes across South Bend will continue to increase annually, but this TIF district’s establishment does not change the tax rate or directly affect assessed property values. However, as new development and improvements happen in a neighborhood, they can influence property values. When property values rise, it can lead to higher assessments, which may affect the amount of property tax owed. Also, to address a previous question about demolitions, Mr. Bauer stated these are handled by Neighborhood Services and Enforcement, and we currently conduct them at least once a year, with plans to increase to twice annually. Properties with demolition orders are placed on a priority list, and we focus first on the most severely blighted or unsafe buildings. If you know of vacant property that may need attention, please call 311. They can connect you with our team and let you know if there’s already a case open for that property. If a property is vacant and unsafe, it will likely go through the citation process and eventually be added to the demolition list. Vice President Relos spoke in favor of the TIF district. His experience with the West Washington district, property values have increased, and many improvements have been made 20 years since it was established, and the neighborhood will mourn the loss soon when that TIF district expires. Commissioner Ellison, Secretary Wax, and President Warner all spoke in favor as well. 2. Resolution No. 3648 (Residential TIF Amendments to RWDA) CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 11, 2025 7 Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved Resolution No. 3648 as presented on September 11, 2025. 3. Second Amendment to Development Agreement (The Monreaux) Erik Glavich, Director of Growth and Opportunity, presented this Second Amendment to the development agreement and pointed out that the draft that was provided in the packet has a change in language at the top of page 2, Proposed 1.2 in the draft included in the packet which reads; “Subject to annual appropriation by the Commission to simultaneously reimburse the city for its costs incurred or to be incurred through the loan agreement”. The final version for consideration and presented to the Commission changes the words “for its costs incurred, or to be incurred” was changed to “for advances the city has made, or will make, through the loan agreement”. The amendment is for $303,000 for siding upgrades. The First Amendment to the Development Agreement only included the forgivable loan portion and did not contain the standard language typically used in agreements for local public improvement projects. Through negotiations with the developer, we’ve now added back in that standard language. We also clarified the developer’s commitments and how we’ll verify when those commitments are met. For example, you’ll see a reference to an affidavit of completion in the updated agreement. With the amendments, the developer’s private investment commitment for the project has increased by $4 million, going from $13.7 million to $17.7 million. Both Commissioner Wax and Relos stated they had reservations; however, they want the project to succeed and approve of the value engineering and design upgrades. Mr. Glavich stated that while working with Ms. Peters, the goal was to restore some of the building’s aesthetic features to better match the neighborhood’s character. He then showed an image with a proposed design showing more defined architectural elements—like changing the upper siding from gray to red and using darker brick on the lower portion. These updates are considered more visually appealing for this part of downtown. The quote for these changes from her contractor came to $303,000 which is the amount of the proposed increase in the Funding Amount. It’s important to note that the amendment being considered does not commit the city to purchasing the siding alone, it’s part of a broader discussion. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 11, 2025 8 Vice President Relos asked if the change would delay the project further and Mr. Glavich stated that it’s been through plan review, and we are working closely with Engineering to stay on track. Secretary Wax asked if this was necessary to move the project forward. Mr. Glavich reiterated that during the value engineering process, we realized that some of the building’s unique architectural and façade features were being lost. These elements are important because they help the building stand out and reflect the character of the neighborhood. This project is more than just construction—it’s a meaningful investment in the community. It provides affordable housing, with most units priced for households earning 80% or 50% of the Area Median Income (AMI) or less. Caleb Bauer added that we’ve spent a lot of time internally thinking about how to raise our expectations for future development projects and make sure those expectations are clearly communicated early in the negotiation process. This is something we’re actively working on so that we’re not in a position where changes or adjustments need to happen late in the game. Instead, we want to be upfront about our design standards from the very beginning. Mr. Bauer also confirmed that this will be the last amendment for any additional funding requests for this project however, there will be amendment to the purchase agreement for the timelines related to the property closing to align with the new financing closing timeline. Upon a motion by Troy Warner for approval, seconded by Ophelia Gooden-Rodgers, the motion carried unanimously; the Commission approved the Second Amendment as presented on September 11, 2025. 4. Budget Request (Potawatomi Conservatory Roof Replacement) Zak Tebell, Project Manager, Engineering, presented this budget request for $40,000 to cover construction fees for the Potawatomi Conservatory Roof Replacement to prevent further damage of the structure and cancellation/denial of event space. Secretary Wax asked if this will just replace the roof or will the funds also fix the damage to the interior. Mr. Tebell clarified that this will also repair the interior, as well as a complete roof replacement, and repair the flashing and gutter system. Commissioner Gooden-Rodges asked what the total for the project would be and Mr. Tebell stated $151,812. 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 September 11, 2025. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 11, 2025 9 5. Amendment to Lease Agreement (East Bank Learning Center) Erin Michaels, Property Development Manager, presented this First Amendment to the Commercial Lease between the Redevelopment Commission (RDC) and East Bank Learning Center. The East Bank Learning Center and RDC staff wish to amend the Commercial Lease to add or revise the following terms: • Clarify the leased space for the East Bank Learning Center (425 E. Madison St.) • Floorplan to accurately reflect storage areas • Either party may terminate this Commercial Lease with eighteen (18) months with written notice • Clarify the Maintenance and Repairs responsibilities of the Lessor and Lessee • Update the annual rent increases to 2.5% • Update renewal terms to allow Lessee to renew lease for a twenty- four (24) month term provided they notify Lessor eighteen (18) months prior to the expiration of the Lease. o Rent during the renewal period to increase at a rate of 2.5% for the first twelve (12) months period of the renewal term and 2% for the second twelve (12) month period of the renewal term. Vice President Relos asked about the extension of the 18-month termination period and Ms. Michaels explained that to keep their Level 4 accreditation, they would need that time to find an acceptable property if they were to relocate. She also noted that she has heard from multiple developers interested in the building that having East Bank Learning Center as a tenant in the building is a positive to the property. Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Amendment as presented on September 11, 2025. 6. Opening of Proposals (Former YMCA Northside RFP) Erin Michaels, Property Development Manager, stated we received one (1) proposal prior to the deadline. Ms. Michaels asked staff to review and make recommendations at the next RDC meeting on November 13, 2025. I. Century Custom Builders 230 W. Catalpa, Suite A Mishawaka, IN 46545 Phone 574-277-4171 CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 11, 2025 10 Upon a motion by Troy Warner for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the Proposal Opening as presented on September 11, 2025. 6.Progress Reports A.Tax Abatement None B.Common Council Councilman Warner noted, they are in the budget season and are hopeful the budget will pass by mid-October. Caleb Bauer explained that while he’s optimistic and hopeful about what’s ahead, he also wanted to give the Commission a heads-up that: due to budget constraints, we’ll be proposing revisions to the staff operating agreement later this year. These changes are in response to the growing volume and complexity of development agreements. Looking ahead to 2026, we plan to request pre-development appropriations to help supplement our annual budget. This funding would support our due diligence efforts before bringing development agreements to the Commission. While we already have RDC General Fund support for things like appraisals and surveys, we’re hoping to add flexible funding for urban design, architectural feedback, and even some light underwriting to better evaluate developer assumptions. These adjustments won’t be dramatic, but they will help strengthen our operations moving forward. C.Other None 7.Next Commission Meeting Thursday, September 25, 2025, 9:30 a.m. at BPW Conference Room 13th Floor 8.Adjournment Thursday, September 11, 2025, 11:11 a.m. ______________________________ ______________________________ Eli Wax, Secretary Troy Warner, President