HomeMy WebLinkAboutEDC Minutes 09.18.2025 - Signed
SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION MINUTES
September 18, 2025, at 1 p.m.
Mayor’s Conference Room 14th Floor, County-City Building
https://tinyurl.com/EDCSept2025
Meeting Recording Link: https://tinyurl.com/EDC-Meeting-Recordings
The South Bend Economic Development Commission was called to order at 1:05 pm
1. Roll Call
Members Present: Cecilia Lopez Monterrosa, President
Rafael Morton, Vice-President
Renata Matousova, Secretary
Luis Zapata, Commissioner
Karen White, Commissioner
Members Absent: None
Staff: Danielle Campbell Weiss, Senior Asst. City Attorney
Others Present: Caleb Bauer, Executive Director, DCI
Joseph Molnar, Asst. Dir. of Growth and Opp., DCI
Lewis Kouassi, Dir. of Department Finance – Virtual
Laura Hensley, Board Secretary, DCI
Harrison Gilbride, DCI – Virtual
Tom Everett, Barnes & Thornburg
Adrienne Carvier, Barnes & Thornburg
John Schommer, New Day Intake Center
Brian Connolly, New Day Intake Center
Ed Bradley, New Day Intake Center
Sheila McCarthy, Exec. Director of New Day Intake
Center
September 18, 2025
Matt Hubbard, New Day Intake Center
Margaret Pfeil, New Day Intake Center
Ben Capdevielle, New Day Intake Center
Jessica Velez, South Bend Tribune
Jason Ostenmer – Virtual
Greg Kil, Kil Architecture – Virtual
Richard Nussbaum, Council for New Day Intake
Center – Virtual
2. Approval of Minutes
Renata Matousova motioned to approve February 6, 2025, minutes. Karen
White seconded; motion carried unanimously on September 18, 2025.
3. New Business
A. Presentation of Lower Barrier Emergency Shelter Project (New Day
Intake Center, Inc.) and Overview of Loan Documents for Approval
Sheila McCarthy, Executive Director of the New Day Intake Center,
explained that project is located at the Northern half of 4022 Old
Cleveland Rd. approximately 7.02 Acres. They expect 200 people per
year and 77% of individuals have found stability. The total project is $18.8
million and NDIC is about 75% of the way finished with funding phase one.
Caleb Bauer, Executive Director for Community Investment, presented an
overview of the financing and loan agreement for approval in Resolution
No. 2025-2. This proposal involves a forgivable loan to support the
development of a new facility.
• A development agreement governing the other terms of the project
has already been approved by the Redevelopment Commission. The
loan will be what provides the funding amount set forth in the
Development Agreement.
• Minimum commitments from New Day include:
o At least 110 beds (current design includes 120).
o A $10 million investment from New Day.
• The city’s contribution will be a $4 million forgivable loan, sourced from
three economic development areas:
o River West
o River East
o Southside
• Additionally, there will be a separate operating agreement between
New Day and City administration:
o Funded through the annual budget process.
o Provides an operating subsidy of $500,000 per year for five
September 18, 2025
years.
o This operating agreement is not part of the development
agreement.
Mr. Bauer explained the Timeline & Reporting Overview for the Facility
Project
• Construction & Opening:
New Day will have 36 months from the start of construction to open the
facility.
The loan agreement with the city must be signed before January 1,
2026 — a timeline that is considered achievable.
• Reporting Requirements:
For 10 years after the project is substantially completed, New Day will
need to be reported annually to the Redevelopment Commission.
These reports will include:
o Housing placement data
o Operational updates
o Benchmarks and outcomes related to services provided
• Operating Agreement Status:
The operating agreement is still being finalized with New Day.
It will build on the reporting terms outlined in the development
agreement and include more detailed expectations.
• Funding Breakdown:
The forgivable loan will be funded proportionally from three economic
development areas:
o River West - $2,475,686
o River East - $1,058,937
o South Side - $465,377
Each area's contribution is based on its annual revenue size.
• Forgiveness Terms:
Once the project is completed and all reporting and operational
requirements are met; the loan may be fully forgiven.
Secretary Renata Matousova asked where the remaining funding will be
coming from. Ms. McCarthy stated that for Phase One of the project, the
New Day team has been actively fundraising through a capital campaign.
Several foundations have already committed funding, and additional
conversations are ongoing. There is also support from the State of
Indiana, which adds to the financial backing with a Department of Mental
Health and Addiction (DMHA) grant. With the proposed $4 million
forgivable loan, the project would be 95% funded toward its Phase One
goal of $14.3 million. Commissioner Luis Zapata asked about the timing of
receiving the funding. Ms. McCarthy explained the grant & funding status.
• The DMHA grant of $2.5 million is already being used. It must be
expended by December 2026. This grant operates on a reversion
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basis, meaning unused funds may need to be returned.
• Another foundation grant of $1.5 million will become available once the
construction manager sets a start date, which is expected to happen
this week.
• No risk of losing secured grants: All current grants are contracted and
secure, despite concerns raised in committee discussions about
budget-related funding withdrawals.
There was a follow up question about whether New Day is unable to
secure full funding, and if the project doesn’t move forward, the City can
recover the loan, as it will remain outstanding. Tom Everett, Barnes &
Thornburg explained.
• This is an unsecured loan — meaning there is no collateral tied to it.
• The loan is not eligible for forgiveness until the project is completed,
and all requirements are met. If they are not met, the loan will be
repaid.
• It’s structured as a drawdown loan, meaning:
o New Day will submit draw requests to the city.
o Funds will be released incrementally, based on construction
progress and approval of each request.
Vice President Rafael Morton asked about the completion date of the
project and Ms. McCarthy stated both Phase I and Phase II should be
completed by the end of next year. President Cecilia Lopez Monterrosa
asked about the location and site details and Mr. Bauer displayed a map
and explained that both residential properties located nearby the site have
executed agreements with the City for the acquisition of their respective
properties at fair market value. It was also noted that one of the
neighboring properties to the west is owned by St. Joseph County.
President Cecilia Lopez Monterrosa, Vice President Rafael Morton,
Commissioner Karen White and Richard Nussbaum spoke in favor of the
project and commend all of the work the City and the New Day team has
done to make this happen.
B. Public Hearing Regarding Project and Loan
A notice was published in the South Bend Tribune on September 9, 2025,
regarding the public hearing to consider the approval of the project and
loan.
A Public Hearing regarding the project and loan was opened to the public
for comments and considerations. Jessica Velez, reporter with South
Bend Tribune, asked about what specific resources will be available at the
facility to support people staying there. Also, is there a plan to help them