Loading...
HomeMy WebLinkAboutRedevelopment Commission Minutes 09.25.25 - Signed CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION MINUTES September 25, 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 9:34 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 • Marcus Ellison, Non-Voting Advisor – (School Board) February 2025 to December 2026 Members Absent: Marcus Ellison 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 - Virtual Allison Doctor, Project Manager, DCI - Virtual Laura Hensley, Board Secretary, DCI Others Present: Tina Patton, Cross Community Linda Brotherson, Great Lakes Capital Tom Everett, Barnes & Thornburg CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 25, 2025 2 Ginger Reilly, SB Tribune Nick Dybas, enFocus Matt Barrett, 110 S. Niles Ave. Richard Nussbaum, Sopko, Nussbaum, Inabnit & Kaczmarek 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, September 11, 2025 Upon a motion by David Relos for approval, second by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved the minutes of the regular meeting of September 11, 2025. 3. Approval of Claims A. Claims Allowances September 9, 2025 Upon a motion by David Relos for approval second by Gillian Shaw, the motion carried unanimously; the Commission approved the claims allowances of September 9, 2025. 4. Old Business A. None 5. New Business A. River West Development Area 1. Public Hearing on Additional Appropriations (New Day Intake Center Forgivable Loan) Caleb Bauer, Executive Director of Community Investment, presented items 5A1 & 5A2 together. This presentation revisits the proposal previously shared with the Commission, marking the final step in a multi-year effort to establish a low-barrier emergency shelter in South Bend. Project Overview • Location: 4022 Old Cleveland Road, part of a parcel acquired by the Redevelopment Commission. • Scope: The northern half of the parcel (approx. 7 acres) will be sold to New Day Intake Center for $1,000. • Facility: A 110-bed minimum (currently scoped at 120 beds) low- CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 25, 2025 3 barrier shelter. • Timeline: Construction must begin within 12 months and be completed within 36 months of closing. Financial Structure • Total Investment: $10 million. • City Contribution: $4 million in forgivable loan funds sourced from three TIF districts—River West, River East, and Southside. • Loan Conditions: o Forgiveness contingent on meeting construction, operational, and reporting benchmarks. o Includes a 5-year operating agreement with the City outlining service standards and annual reporting obligations. Development Agreements • Purchase Agreement: Covers Lot 1 on the north side of the site. • Option to Purchase: The City retains the right to acquire the Knights Inn site on Lincolnway West for $1 post-completion, with plans to demolish and redevelop the motel property. • Development Agreement: Previously approved, governs the terms of the forgivable loan and operational commitments. Community and Governance • The proposal has received approval from: o Economic Development Commission (EDC) o Common Council o Redevelopment Commission (RDC) Impact and Intent • The shelter will serve as the only low-barrier intake center in the municipality, benefiting all economic development areas. • The project aims to reduce homelessness, improve housing stability, and lower public costs through coordinated services. Acknowledgments This initiative spans eight years, beginning under the prior mayoral administration. The team expresses gratitude to all involved— Commissioners, Council members, EDC, and neighboring property owners—for their patience and collaboration. A notice was published in the South Bend Tribune on September 9, 2025, regarding the public hearing on additional appropriations for the New Day Intake Center Forgivable Loan. A Public Hearing on Additional Appropriations (New Day Intake Center Forgivable Loan) was opened to the public for comments and CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 25, 2025 4 considerations. No individuals in attendance, in person or online indicating a desire to speak, and the Public Hearing was closed. President Warner wanted to say a special thanks were extended to Caleb Bauer and staff for their dedication and leadership throughout the process. Secretary Wax expressed support for the project, referencing reasons shared in a previous meeting. However, he also voiced hesitation, emphasizing the need for: • Proper implementation that aligns with the community’s goals. • Strict adherence to requirements from the New Day Intake Center and related agreements. • Transparency and communication, asking the city administration to: o Keep the Redevelopment Commission informed. o Ensure updates don’t stop at the administration level but are shared with the Commission to monitor the investment’s impact. Mr. Wax also acknowledged the staff’s efforts and stressed the importance of handling the entire redevelopment site cohesively. Caleb Bauer thanked Dani Campbell Weiss and Tom Everett, our legal counsel. These forgivable loan agreements are incredibly document- intensive, and this particular one is layered with additional agreements that make the process even more complex. They’ve done outstanding work so far. While there’s still a lot ahead, I want to recognize their efforts—because pulling all of this together takes a tremendous amount of time and dedication. 2. Resolution No. 3652 Adopting Additional Appropriations (New Day Intake Center Forgivable Loan) Upon a motion by David Relos for approval, seconded by Ophelia Gooden-Rodgers, the motion carried unanimously; the Commission approved Resolution No. 3652 as presented on September 25, 2025. 3. Disposition of 1408 Elwood Ave. (Drewrys) Joseph Molnar, Assistant Director of Growth and Opportunity, presented items 5A3-5A5 together for the disposition process for one development opportunity. We’re evaluating all three properties together. Most of the buildings on these sites date back to the 1960s. The City acquired the former Drewrys site in 2022 through the county’s tax sale certificate process. The Redevelopment Commission purchased the Portage-Elwood Shopping Center last year and just CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 25, 2025 5 closed on the Sunoco building two days ago. So now, the RDC officially owns all three sites. The minimum bid amounts—based on the average of two appraisals— are: • Drewry site: $295,000. It’s the largest but still has some foundations to remove, so it’s not a fully cleared Greenfield site. • Shopping Center: $907,000. • Sunoco building: $100,850, which matches the RDC’s purchase price. Bids for these properties are due by October 23, 2025. The City has invested significant time and resources into acquiring these 24 acres. While we’ve made progress, challenges remain—like demolition and environmental cleanup. But we’re moving quickly and shifting focus from remediation to redevelopment. We’ve received strong interest from developers, especially since the Drewrys Brewery came down and RDC acquired the shopping center. However, none of the sites have gone through the formal disposition process yet, which makes it hard to engage developers meaningfully. Each bid packet will be posted online and will state that the City prefers proposals that include all three sites together. Our long-term goal is full redevelopment of the entire 24-acre area. We’re not looking for piecemeal interest in just one parcel like the Sunoco or shopping center. Today, we’re voting on the bid specifications, the Notice of Intended Disposition (which will be published twice in the South Bend Tribune as required by law), and the resolution for disposition of each property, which includes the minimum bid amounts. President Warner reviewed the City’s process prior to establishing a development agreement. Tina Patton asked for clarification of the demolition of the Elwood Shopping Plaza. Mr. Bauer stated that we plan to demolish the grocery store located in the shopping center. To confirm, yes—approval for the demolition has already been granted. However, I don’t believe the bid specifications have been advertised yet. We’re currently in the process, and this will be presented to the Board of Public Works soon. The funding for the demolition has already been appropriated. As you may recall, this project is supported by multiple grants and loans from the State of Indiana. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 25, 2025 6 One source is the Revolving Residential Infrastructure Loan from the Indiana Finance Authority, which has already been closed. These loan proceeds can be used to support the demolition. Additionally, there is a $3.5 million READI Blight and Redevelopment grant, awarded through a separate funding round from the READI 2.0 process. While the contract is still being finalized, this grant will likely be structured as a reimbursement and used primarily for further site preparation and infrastructure. President Warner stated, to summarize: no additional budget appropriation will be needed for the demolition. Ms. Patton, to further address your question—there are still some administrative steps to take. Our ultimate goal is to bring the entire area to Greenfield state by spring or early summer. This would allow us to issue an RFP in the spring and begin serious discussions around full site development. Yes, we do intend to bring all property to a shovel-ready Greenfield condition. Commissioner Shaw asked if we were communicating that we would like this project to be all one package. Mr. Molnar stated that so far, most of the interest we've received has come from developers who want to be involved in the project. This is likely because we've previously shared conceptual renderings that show single-family homes on the site. Many of the developers reaching out are builders of single-family homes. They're excited about the potential—both for affordable housing and market-rate options. We expect the final development to include a mix of both. There’s been less interest from developers wanting to take on the entire site themselves. I’d be surprised if we get a bid for all three parcels together, though anything is possible. Most of the interest has been from people saying, “I’d like to help build 20 homes,” or “I want to be part of improving the neighborhood.” Upon a motion by Eli Wax for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Bid Specifications, Notice of Intended Disposition and Resolution No. 3649 as presented on September 25, 2025. 4. Disposition of 1335 Portage Ave. (Portage Sunoco) Upon a motion by Eli Wax for approval, seconded by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved the Bid Specifications, Notice of Intended Disposition and Resolution No. 3650 as presented on September 25, 2025. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 25, 2025 7 5. Disposition of 1302 Elwood Ave. (Elwood Shopping Center) Upon a motion by Eli Wax for approval, seconded by Troy Warner, the motion carried unanimously; the Commission approved the Bid Specifications, Notice of Intended Disposition and Resolution No. 3651 as presented on September 25, 2025. 6. Second Amendment to Development Agreement (Great Lakes Capital Development, LLC) Erik Glavich, Director of Growth and Opportunity, presented this second amendment to the development agreement to extend the due diligence period by 6 months. The Madison Lifestyle Development Agreement was approved in March 2024. The Redevelopment Commission committed $24 million to support this major project just south of Memorial Hospital. Public Improvements The City agreed to build two parking garages (Phase 1 and Phase 2) and handle other necessary infrastructure work. Private Investment Great Lakes Capital committed $102 million in private investment. Their due diligence period ends this month, but this proposed amendment would extend it by 6 months until March 28, 2026. Timeline Each phase must be completed within two years after the City finishes its part of the work. Safeguard Clause If Great Lakes Capital doesn’t meet its obligations, the Redevelopment Commission has the option to buy back the land and find a new developer. Project Details • Phase 1: 150-unit apartment building, 105-bed hotel, and 35,000+ sq ft of retail space. • Phase 2: 91-unit apartment building and 7,000+ sq ft of retail space. • Both phases will include wrapped parking garages built by the City. Past Amendments • August 2024: First amendment approved to include a small parcel that was missing. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 25, 2025 8 • November 2024: Two agreements approved: o Assignment Agreement: Allows the City to be reimbursed directly for work funded by the READI grant. o Confirmation Agreement: Clarifies that the City remains responsible for building the garages, even if READI funds are used for other parts of the project. Linda Brotherson with Great Lakes Capital explained that the main reason for extending the due diligence period is to give us more time to finalize several items outlined in the development agreement between the City and Great Lakes Capital (GLC). One key item is the INDOT right-of-way approval—we haven’t finalized the exact specifications yet, but we’re comfortable with the direction things are heading, and the project is still moving forward. Other items include tax abatement details, which GLC is still working through. There are also smaller issues, like the ongoing work on the parking lot, which will provide access to Phase 1 of the site. That work has been slightly delayed, so we’re not yet ready to finalize the parking license agreement. This extension gives us time to properly document everything and avoid rushing into a notice to commence or similar agreement prematurely. Upon a motion by Gillian Shaw for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the Second Amendment as presented on September 25, 2025. 7. Two Parking Lease Agreements (Leighton Garage) and Property Transfer Agreement (Madison Lifestyle District) Erik Glavich, Director of Growth and Opportunity, presented these three (3) interrelated agreements as a package. As part of the Madison Lifestyle District project, there was one key parcel needed for Phase 2 that wasn’t owned by Beacon when the development and purchase agreements were signed. It’s located at the northeast corner of Madison and Dr. Martin Luther King Jr. Blvd and is currently a parking lot with 27 spaces. The owner also owns the Jefferson Centre building downtown. This parcel is essential for Phase 2 to move forward. Negotiations with the owner began about a year ago. He expressed concern about the lack of dedicated parking for Jefferson Centre tenants, which has made it difficult to lease the building, it’s only about 50% occupied. Previously, tenants used a parking garage that was demolished in the early 2000s to make way for the Courtyard by Marriott. To address this, we propose using Leighton Garage, which is directly across the street from Jefferson Centre. The three agreements are: CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 25, 2025 9 1. 75-Year Parking Lease – Transfers the 27 existing parking spaces to Leighton Garage for Jefferson Centre tenants at standard reserved rates. 2. 30-Year Parking Lease – Adds 53 more spaces under similar terms. 3. Property Transfer Agreement – In exchange for the parking leases, the owner will transfer ownership of the parcel at 333 N. Dr. Martin Luther King Jr. Blvd. to Great Lakes Capital, completing the land acquisition for the Madison Lifestyle District project. Together, these agreements support the development while helping the Jefferson Centre offer parking to its tenants. The Leighton Garage has enough capacity to handle this—currently less than 50% full during peak hours, and Beacon’s lease for 90 spaces will expire in 2026, freeing up even more room. Importantly, the parking spaces must be tied to actual leases to ensure they’re used appropriately. Mr. Glavich reviewed the economic estimates, and the break-even year would be year 17. Caleb Bauer, Executive Director of Community Investment, reiterated that in the original development agreement with Great Lakes Capital, if neither party issued a notice to proceed on this block, there was an option for the Redevelopment Commission to purchase all properties owned by Great Lakes Capital for $1.00. This property would fall under the same option and be subject to equivalent terms—essentially absorbed into that original agreement structure. Danielle Campbell Weiss, Senior Asst. City Attorney noted, one small change needed in both Parking Lease Agreements: there’s an incorrect reference in the assignment clause. The last sentence currently reads: “The Developer shall not assign its rights.” However, it should say: “The Tenant shall not assign its rights.” The rest of the paragraph consistently refers to the Tenant, and this was just an oversight. President Warner asked that at this time, I would request a motion to amend the agreements as proposed by legal counsel. Upon a motion by Eli Wax to amend the agreements as proposed by legal counsel, seconded by Troy Warner, the motion carried unanimously; the Commission approved the amended language as presented on September 25, 2025. Secretary Wax expressed reservations with the terms of the 30-Year Parking Lease. Caleb Bauer responded that the City has a strong long- term interest in developing these two blocks, which are located near other major downtown investments. These blocks are key to the overall CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 25, 2025 10 redevelopment of the area and are currently almost entirely vacant, except for one small operating business. This project represents a unique public-private partnership between Great Lakes Capital and Beacon Health System. The City has made commitments to Beacon that helped unlock these parcels, and certain aspects of the deal—like structured parking—could only be provided by the City. As with any negotiated deal, some elements were discussed, and others were not. Cash consideration was part of the conversation at one point, but the current structure protects the City’s interest in redeveloping these blocks—regardless of Great Lakes Capital’s ability to deliver Phase 2, which we remain confident they will. Still, in the broader picture, we can’t risk these blocks remaining undeveloped if economic conditions change. With this structure, the City now holds title interest in the property, ensuring redevelopment can move forward no matter what happens. Ms. Campbell Weiss also stated that with the original development agreement, one of the due diligence items agreed to be the Commission’s commitment to acquire this property, which would be at the Commission’s sole cost and expense. The need to still acquire this final parcel was also a key reason for the prior agenda item regarding the Second Amendment to Development Agreement. Richard Nussbaun spoke in favor of the project and thanked the Commission as well as City staff. Matt Barrett and Tina Patton asked to table the request due to concerns with the overall transaction. Vice President Relos also expressed concerns with the figures presented however, he asked the other Commissioners to look at the bigger picture and trust staff’s judgement and spoke in favor of the agreements. Commissioner Shaw stated that this creates a win-win situation: we can move forward with Phase 2 of the Madison Lifestyle District while also supporting the Jefferson Centre, which has lost access to parking over the past 25 years. Given the City’s ongoing downtown development efforts, which sometimes reduce available parking, this series of interrelated agreements helps balance both priorities. It supports the growth of the Madison Lifestyle District and gives the Jefferson Centre a better chance to increase occupancy. She also asked what does the Jefferson Centre predict an increase of occupancy; Mr. Glavich stated an estimate of 30 tenants at capacity but is currently only half rented with 15 tenants. Joe Molnar, Assistant Director of Growth and Opportunity, commented that Leighton Garage is currently underutilized so providing parking at CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 25, 2025 11 no charge to tenants of Jefferson Centre would not lower revenues. President Warner commented that he agreed with that point. Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved 75-Year Parking Lease as presented on September 25, 2025. Upon a motion by Gillian Shaw for approval, seconded by Troy Warner, the motion carried via voice vote; however, Eli Wax voted no; the Commission approved 30-Year Parking Lease as presented on September 25, 2025. Upon a motion by Eli Wax for approval, seconded by Troy Warner, the motion carried unanimously; the Commission approved Property Transfer Agreement as presented on September 25, 2025. 8. Fifth Amendment to Purchase Agreement (The Monreaux) Joseph Molnar, Assistant Director of Growth and Opportunity, presented this amendment to extend the contingency date until November 30, 2025 and gave background of the project. Devereaux Peters explained that we’re moving full steam ahead toward closing, but with so many funding sources involved, the paperwork and terms can get complicated. Unfortunately, we’ve faced some unexpected delays with our Freddie Mac loan. Our original underwriter resigned, which set us back about three weeks while we waited for a replacement. Then, the new underwriter also resigned just two weeks after starting. These hurdles were beyond our control, but despite the setbacks, we’re making fast progress toward closing and beginning construction. Tina Patton, President Warner and other Commissioners spoke in favor of the project. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Fifth Amendment as presented on September 25, 2025. 6. Progress Reports A. Tax Abatement None B. Common Council CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 25, 2025 12 President Warner Council stated they are wrapping up budget discussions. This was a tough first budget cycle, where we had to make some reductions. Part of that is due to the extra $60 million we received from the American Recovery Plan in 2021–2023. As those funds wind down, some programs are naturally shrinking, and we’re also preparing for possible future cuts—especially if Senate Bill 1 isn’t amended, particularly regarding income tax reductions. I expect we’ll see additional requests to the Redevelopment Commission (RDC) for street and infrastructure funding in the coming year, continuing the work we've done through the Rebuilding Our Streets initiative. We’re also exploring other ways RDC can support residents and city services using TIF resources. He also thanked all of the staff and Commissioners for their dedication and support. C.Other None 7.Next Commission Meeting Thursday, October 9, 2025, 9:30 a.m. at Council Chambers 4th. Floor County-City Building 8.Adjournment Thursday, September 25, 2025, 10:58 a.m. ______________________________ ______________________________ Eli Wax, Secretary Troy Warner, President