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HomeMy WebLinkAboutRedevelopment Commission Minutes 12.18.25 - Signed South Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Minutes Regular Meeting December 18, 2025 – 9:30 a.m. City Hall Council Chambers 3rd Floor or via: https://tinyurl.com/RDC2025-2026-Meetings 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. 1. ROLL CALL Members Present: Troy Warner, President Dave Relos, Vice President Eli Wax, Secretary Gillian Shaw, Commissioner Ophelia Gooden-Rodgers, Commissioner Marcus Ellison, Non-Voting Advisor Legal Counsel: Danielle Campbell Weiss, Senior Asst. City Attorney Redevelopment Staff: Caleb Bauer, Executive Director, DCI 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 Tim Corcoran, Chief Planner, DCI Michael Divita, Principal Planner, DCI Chris Dressel, Senior Planner, DCI Zak Tebell, Project Engineer, Engineering Laura Hensley, Board Secretary, DCI Attending: Tom Everett, Barnes & Thornburg LLP Matt Barrett, 110 S. Niles Ave. Peter Isaac, Ancora Tom Sardelli, Ancora Scott Ford, Notre Dame Steve Condrin, Notre Dame CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 18, 2025 Page | 2 Tim Sexton, Notre Dame Erin Blasko, Notre Dame Shannon Culligan, Notre Dame 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, December 11, 2025 Upon a motion by David Relos for approval, second by Gillian Shaw, the motion carried unanimously; the Commission approved the minutes of the regular meeting of December 11, 2025. B. Approval of Minutes of the Executive Session of Thursday, November 13, 2025 Upon a motion by David Relos for approval, second by Gillian Shaw, the motion carried unanimously; the Commission approved the minutes of the executive session meeting of November 13, 2025. 3. Approval of Claims A. None 4. Old Business A. None 5. New Business A. River West Development Area 1. Resolution No. 3661 (Approving Amendments to the Declaratory Resolution and the Development Plan for the River West Development Area for the Purpose of Establishing New Allocation Areas and Related Matters) Caleb Bauer, Executive Director of Community Investment, presented agenda items 5A1 & 2 together. To the south, we’re seeing significant changes that will reshape the landscape of the area. As we move forward, the Innovation Development District (IDD) will help us continue that momentum. This vision comes from the Downtown Plan— a connected, vibrant downtown with an urban feel. In the context of the IDD, that means constructing many fundamental buildings and reducing the amount of surface parking. This map is especially helpful in illustrating that. This is a scalable, market-driven approach in which tax increment generated by a project covers project funding gaps. State increment would cover under 15% of the total project’s costs across the proposed IDD, not exceeding 20% on any individual project. A $1.18 billion of private investment in current economic development negotiations (55 acres) and $1.7 billion in expected private investment, CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 18, 2025 Page | 3 2,420 new FTEs (3,500+total FTEs) possible over 120 total acres. There are 1.8 million square feet of currently vacant space in this area. The agreement would be between the State of Indiana via the IEDC, and the City of South Bend governing local retention of state income and state sales tax in the downtown area. A cap of $15 million of state sales and income tax increment annually over a 30-year term. IEDC coordination required for utilization of funds above $7.5 million per year. With a state maximum contribution of $225 million over term, with the ability to propose an amendment in the future regarding future projects. One requirement for the IDD is that we must have an established TIF allocation area that is current with the state’s expectations. That allocation area must be in place before the IDD is officially established— before March 15. In coordination with the state, they are aware that our intent is to establish new allocation areas and begin a new 25-year property-tax clock as part of setting this new base rate. As increment grows, we’ll be able to pair that property-tax increment with the state’s increment. Based on an analysis from Baker Tilly, the completed scope at Colfax Corner would add more than $1.1 billion to Indiana’s annual GDP and would expect to generate more than $600 million in state and local tax increment. State incentives would not exceed 20% of any single project and add 2,420 new net (3,500 total) jobs in South Bend, with another 1,898 in indirect and 1,432 in induced jobs. This will support the creation of a true innovation hub that enables the University of Notre Dame to continue its transformative applied research expansion. The value of this project will generate more than $45 million annually in state taxes, with only 33% necessary to be captured by IDD for projects to be actualized. You’ll see in the first agreement how that pairing works. The state has made clear that they do not want us to use the state-permitted increment while also directing our property-tax increment toward unrelated purposes. They expect to see genuine partnership, where the city contributes its property-tax increment and then uses state increment only as needed to make an agreement feasible. Item 5A1 is a Resolution establishing new TIF allocation areas. The boundaries remain the same as shown on this color-coded map, though we’ve updated the naming system to be less tied to specific projects. Establishing eight allocation areas allows us to begin eight separate 25-year clocks. These clocks start when we issue financing in a given area. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 18, 2025 Page | 4 Today, we are proposing financing in the blue allocation area. The other seven areas will not begin their 25-year clocks until we issue financing in them, giving us some flexibility over the next few years. This step must be completed before the IDD is officially established, which is why it is before you today. If approved, the process would continue with Plan Commission review on January 19, 2026, followed by Common Council consideration on January 26, and final approval by the Redevelopment Commission on February 12. These allocation areas will continue to exist, but we will be resetting the base rate going forward. We estimate that we will forgo approximately $800,000 currently captured in these parcels. We believe this is a worthwhile trade-off given the new investments expected to generate substantial future increment. Commissioner Gooden-Rodgers asked to further explain the impacted tax revenue. Mr. Bauer stated that “Most of the parcels shown here are already within the former River West Development Area. The allocation area that currently includes these parcels is set to expire in 2037—about 12 years from now. Today, these parcels generate roughly $800,000 per year in tax increment under the existing allocation. For context, the entire River West Development Area generates about $20 million annually. So, the portion affected here is less than 10% of the total increment. President Warner stated that by resetting the base rate, we are giving up the $800,000 in increment that would otherwise be collected for the remaining 12 years. However, resetting the base allows us to capture new increment for a full 25-year period rather than just the remaining 12 years. As long as future development generates at least $800,000 in new annual increment, which our projections indicate is likely—we more than make up for that change. Another way to look at it is this: Twelve years ago, a baseline value was set for these parcels, and everything above that baseline has been captured as TIF revenue— about $800,000 annually. When we reset the baseline today, that baseline rises. As a result, the existing $800,000 is no longer TIF revenue; instead, it flows to the general fund, the schools, and the other taxing units. So, although it is a loss to the TIF district, it is not a loss of tax dollars overall. In fact, it results in an increase to the general fund and other taxing jurisdictions, while giving us the ability to capture new growth for a much longer period. Secretary Wax asked to elaborate on how accounting works for these allocation areas—both individually and for River West as a whole. Is all the revenue deposited into a single fund with internal tracking, or are CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 18, 2025 Page | 5 there separate accounts for the IDD? And within this new structure, will each of the eight allocation areas be tracked separately, or are they combined into one account? Additionally, for the IDD-established revenue, will that be managed in its own dedicated revenue and expense account? Mr. Bauer explained. • Separate Accounts: Each new allocation area will likely have its own expense account, allowing revenues and expenditures to be tracked independently. • IDE Funds Cannot Be Cross-Used: State-authorized IDD (Innovation Development District) revenues must stay within the project or allocation area they are tied to and cannot be shifted between areas. • Local TIF Funds Have Limited Flexibility: Cross-utilization may be allowed only when a project clearly benefits more than one allocation area. • Not a General Pool of Shared Funds: You cannot freely use cash from one allocation area to fund an unrelated project in another. • Future Financing Model: With smaller allocation areas and the creation of the IDD fund, the city will rely more on project-specific financing tied to future revenues, rather than moving existing cash balances between areas. Commissioner Relos asked: We’re establishing a new base value as of January 2025. You mentioned that the 25-year life of each allocation area doesn’t actually begin until a financing or bond is issued. So, in practice, some of these areas could extend beyond 25 years— particularly if it takes time before their first financing occurs. Mr. Bauer responded: Yes. As the structure is essentially dual-tracked. When a bond includes both property-tax increment and state increment, each revenue stream follows a different timeline. Property-tax increment can only be captured for twenty-five years, while the state increment can extend for a longer period—potentially up to 30 years. As a result, the amortization schedule would reflect that shift. After year 25 or 26, the portion of debt service tied to property-tax increment will decrease significantly because that revenue expires, but the state increment will continue for the remaining years. In short, the TIF portion and the IDD portion operate on different timelines within a single financing structure. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 18, 2025 Page | 6 Commissioner Shaw asked, does establishing these new allocation areas remove them from the existing River West allocation area entirely, or does it simply reset the base so that we can capture both sales-tax increment and property-tax increment from these parcels? Mr. Bauer stated that it simply creates the new master allocation area. It does not affect our ability to capture the state sales-tax increment. These boundaries define the Innovation Development District, so anything located within these published allocation areas will be eligible for state reporting and for capturing incoming sales-tax increment. Item 5A2 is an Economic Development Agreement for Colfax Corner ML, LLC. Caleb Bauer covers the project located at the former Tribune building and the Main Street Row site. The project will be anchored by the University of Notre Dame, which acquired the property a few years ago and is partnering with Ancora, a national private developer with experience in northern Indiana, including the Electric Works project. Colfax Corner will bring together university research, industry partners, and private-sector tenants in the heart of downtown. The project is expected to support more than 400 full-time employees in over 200,000 square feet of space. The existing Tribune building will be renovated, and a new multi-story office building will be constructed on the Main Street Row site, connected by an activated courtyard with mid-block pedestrian access. This is a major investment—approximately $154 million—making it the largest downtown development since Memorial Hospital’s patient tower. Over the next decade, it is projected to generate at least $750 million in direct economic impact. About one-third of the space will house university functions, with the remaining two-thirds for industry partners the university is currently working to secure. The development also includes community-focused components, including partnerships with the Boys & Girls Club and South Bend City Church, as well as plans to attract additional tenants to the district and use 90% of our local labor force. Also, we will purchase a developer-backed bond of up to $30.8 million value with a shared solution for planning around stormwater management with a separate timeline as Resolution No. 3661. Peter Isaac and Tom Sardelli, with Ancora spoke on behalf of the project. Commissioners Relos, Gooden-Rodgers and Wax all spoke in favor of the project. President Warner also thanked staff for their work. Mr. Bauer also acknowledged our legislators for their involvement. Upon a motion by Eli Wax for approval, seconded by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved Resolution No. 3661 as presented on December 18, 2025. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 18, 2025 Page | 7 2. Economic Development Agreement (Colfax Corner ML, LLC) Upon a motion by Eli Wax for approval, seconded by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved the Agreement as presented on December 18, 2025. 3. Resolution No. 3662 (To be the Financial Participant in the Northern IN Commuter Transportation District’s Station Relocation in SB) Caleb Bauer, Executive Director of Community Investment, presented this Resolution for the South Shore Line. In 2017, the RDC approved an agreement with St. Joseph Co. to work on Double-tracking and station relocation of the South Shore line, with original commitments of $18 million from St. Joseph Co. to cover double-tracking and $25 million from the City to cover station relocation costs. In 2019, a new MOU was negotiated that superseded the previous one and committed $9.125 million from the City and $9.125 million from the County with an agreement to negotiate in good faith in the future for station relocation. This Resolution authorizes finalization of agreement for relocation of the South Shore Station at South Bend International Airport that would contribute $5 million to $112 million project to match $10 million from the County and $8 million from NICTD, along with other partners including $4 million from private sector entities. This would move the station from the east end of SBN terminal to west end and remove a significant amount of track and at-grade crossings. The current funding breakdown is as follows; Federal Government via competitive grant process $56 million, State of Indiana (including current state budget) $28 million, St. Joseph County $10 million, NICTD $8 million, City of South Bend $5 million, Private sector $4 million, Northern Indiana Regional Development Authority $1 million totaling $112 million. Mr. Bauer also explained the details of the agreement terms. Secretary Wax asked if this would create an economic benefit and Mr. Bauer explained the importance of the safety aspect of the project. Commissioner Shaw asked about the private sector motivation and Mr. Bauer stated the importance of keeping the South Shore running in the future. Mr. Bauer also explained the new route. Commissioner Gooden-Rodgers asked about the benefits of the changes and how this may interact with Amtrak. Mr. Bauer said the goal is to bring more service downtown while maintaining airport service. Amtrak is considering closing a few low-traffic stations and creating a hub where passengers could shuttle to either downtown or the airport. Trains could alternate between the two destinations, giving more flexibility. If ridership increases downtown, more trains could go there. President CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 18, 2025 Page | 8 Warner also clarified that “we” refers to the Northern Indiana Commuter Transportation District, which operates the South Shore Line. Upon a motion by David Relos for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved Resolution No. 3662 as presented on December 18, 2025. B.South Side Development Area 1.Budget Request (Marshall School) Zak Tebell, Project Engineer, presented a budget request for $200,000 to supplement funding for the Marshall Park Tennis and sidewalk replacement project. $315,000 has already been allocated and this is to provide a safe area for the school to pick up and drop off. Upon a motion by Gillian Shaw to table, seconded by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission tabled the Budget Request as presented on December 18, 2025. 6.Progress Reports A.Tax Abatement None B.Common Council None C.Other None 7.Next Commission Meeting Thursday, January 8, 2026, 9:30 a.m., City Hall Council Chambers 3rd Floor 8.Adjournment Thursday, December 18, 2025, 11:17 a.m. ______________________________ ______________________________ Eli Wax, Secretary Troy Warner, President