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HomeMy WebLinkAbout2A Redevelopment Commission Minutes 02.12.26 - Signed South Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Minutes Regular Meeting February 12, 2026 – 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 9:31 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: John Dorbin, City Attorney Redevelopment Staff: Caleb Bauer, Executive 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- Virtual Chris Dressel, Senior Planner, DCI - Virtual Allison Doctor, Project Manager, DCI Attending: Patrick Slebonick, 201 Chapin St. Matt Barrett, 110 S. Niles Ave. Juliane Balog, SB Tribune S Fro, Notre Dame Ave. Regina Emberton, 130 S. Main St. Tina Patton, 707 Sherman Ave. Nicolas Munsen, Legal Department CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 12, 2026 Page | 2 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, January 22, 2026 Upon a motion by Ophelia Gooden-Rodgers for approval, second by Eli Wax, the motion carried unanimously; the Commission approved the minutes of the regular meeting of January 22, 2026. 3. Approval of Claims A. Claims Allowances January 3, 2026 Upon a motion by David Relos for approval second by Gillian Shaw, the motion carried unanimously; the Commission approved the claims allowances of January 22, 2026. 4. Old Business A. None 5. New Business A. River West Development Area 1. Public Hearing and Adopt Confirming Resolution No. 3664 (River West Economic Development Area, New Allocation Areas for IDD) Caleb Bauer, Executive Director of Community Investment, presented both 5A1 and 5A2 together. These items represent the final steps in the approval process for establishing the Innovation Development District (IDD) and issuing the related economic development bonds for the Colfax Corner ML LLC project. Item 5A1 requires a public hearing and adoption of Resolution 3664, previously approved by the Common Council with a favorable recommendation from the Plan Commission. This resolution establishes new TIF allocation areas that align with the boundaries of the Innovation Development District. Item 5A2 Resolution 3665 pledges tax increment revenues toward taxable economic development revenue bonds supporting the Colfax Corner project, a partnership between Ancora Real Estate and the University of Notre Dame. The project includes redevelopment of the former South Bend Tribune building and construction of a new office building, totaling more than 200,000 square feet, a $154 million investment, and over 400 full-time equivalent jobs. The University will occupy approximately 35% of the space, and construction is expected to use 90% local labor. Eighty-eight percent of the property tax increment will be applied to bond debt service, with the remaining 12% retained by the Commission. One hundred percent of state income and sales tax CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 12, 2026 Page | 3 generated by the project will also support the bonds. There is no financial obligation or backup tax levy from the City; all risk is borne by the developer, who will purchase the bonds. The project also coordinates with broader downtown stormwater management planning serving the northern downtown area. Representatives from Ancora, the University of Notre Dame, legal counsel, and municipal finance advisors are available for questions. Vice President Relos asked about the anticipated base assessed value date and Mr. Bauer stated January 1, 2026. Secretary Wax inquired about when the tax revenue will be sufficient to cover the bond. Mr. Bauer stated that typically, we use capitalized interest—three years in this case, which covers interest through issuance. After that period, debt service begins, starting at a lower level and gradually increasing over time and will be paid out of the bond proceeds. A notice was published in the South Bend Tribune on January 30, 2026, regarding the public hearing to consider the Economic Development Area, New Allocation Areas for IDD. A Public Hearing regarding the Economic Development Area, New Allocation Areas for IDD was opened to the public for comments and considerations. There were no questions or comments. The Public Hearing was closed. Commissioners Warner, Relos, Wax and Shaw thanked staff for their hard work with all of the details in this process. Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved Resolution No. 3664 as presented on February 12, 2026. 2. Resolution No. 3665 (Pledging Certain Tax Increment Revenues To The Payment Of Certain Taxable Economic Development Revenue Bonds Of The City Of South Bend For The Colfax Corner ML, LLC Project) Statement Upon a motion by Eli Wax for approval, seconded by Troy Warner, the motion carried unanimously; the Commission approved Resolution No. 3665 as presented on February 12, 2026. 3. Opening of Bids (1818 W. Sample St.) Joseph Molnar, Assistant Director of Growth and Opportunity, stated we received no bids prior to the deadline for the disposition process, and CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 12, 2026 Page | 4 the City will proceed with next steps for this property after the 30 day waiting period required by state law during which City staff cannot negotiate a purchase of the property. 4. Budget Request (Western Ave. Transformation, Phase I) Joseph Molnar, Assistant Director of Growth and Opportunity, is requesting $200,000 from the River West TIF for design and engineering work for the Western Avenue Transformation District. This project redevelops the former Rabbi Shulman public housing site and adjacent parcels to the northeast into approximately 208 mixed-income housing units. The developer selected is The Michaels Organization. Because of the project’s scale, funding is coming from multiple sources, including the Community Foundation of St. Joseph County, READI 2.0 funds, a HUD Section 108 loan, and both 4% and 9% Low-Income Housing Tax Credits. Demolition of the Rabbi Shulman site is underway and nearing completion. Design and engineering work is currently being led by the local firm JPR, which has completed approximately 30% design for infrastructure and utility improvements for the southern phase of the project (Phase 1A). The developer has submitted a 4% non-competitive LIHTC application and is awaiting state approval, which is expected. A 9% competitive application is also in progress and due in July, with RDC staff assisting on required documentation. The $200,000 request will support continued design and engineering for the southern portion of the site. These costs will ultimately be reimbursed through the HUD Section 108 loan, with River West TIF funding allowing the work to continue without delay. This funding will help ensure the project stays on track as it replaces substandard housing with a high-quality, mixed-income neighborhood in the downtown area. Vice President Relos inquired about the 4% and 9% references; Joe Molnar explained that those percentages do not reflect portions of the overall project cost. They refer to different types of Low-Income Housing Tax Credits (LIHTC) that the developer, The Michaels Organization, has applied for. The 4% and 9% credits apply to different phases of the project. The southern portion of the site—formerly the Rabbi Shulman Housing Authority property—is being developed as Phase 1A and is associated with the 4% non-competitive tax credit application. The northern portion will be developed in a later subphase using 9% competitive tax credits. President Warner inquired about the breakdown of the funding. Caleb Bauer explained, the Section 108 loan is considered a local public match. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 12, 2026 Page | 5 While it is a federal loan, it is secured by the City’s annual Community Development Block Grant (CDBG) allocation, with a portion of those funds committed over 15 years for debt service. Because those revenues flow through the City, the Indiana Economic Development Corporation recognizes them as an eligible local match. As a general rule of thumb, the 4% tax credit program is typically used for larger developments. The equity generated from selling those credits usually covers about 30 to 40 percent of total project costs, which is why these deals tend to be larger in scale. In contrast, the 9% tax credit is more lucrative, often covering 60 to 70 percent of project costs, but it is highly competitive and more restrictive. As a result, 9% projects are typically smaller, often in the range of 50 to 70 units, with an optimal size around 60 units. For this project, the full scope of Phase 1B includes approximately 208 units. To maximize available funding, the project has been divided into subphases. Phase 1A will deliver roughly 152 units using the non- competitive 4% credits, while a smaller portion will rely on the competitive 9% credits, which are expected to be awarded later this year. The developer has a strong track record of success with competitive tax credit applications, and confidence is high that this application will score well. Secretary Wax requested a more holistic presentation of the overall redevelopment plan once the non-competitive tax credits are officially awarded. Staff indicated that once Phase 1A agreements are finalized, a comprehensive overview of Phase 1A—and later Phase 1B—will be presented, including how the subphases fit together and satisfy grant requirements. While the subphases do not need to move forward simultaneously, both must advance to meet the conditions of various funding sources. Staff confirmed that a broader presentation can be given to the Commission and that any existing presentation materials previously shared with Council could also be provided. Commissioner Gooden-Rodgers asked if the total of the housing units will be the same as the current building. Mr. Bauer stated that once Phase 2 is complete, there will be more units to finish off the block. Tina Patton asked for clarification regarding the displaced residents and how the City is addressing this. Mr. Bauer stated that about two-thirds of the new units in this phase will be income-qualified. This is not the final phase of development. Once all phases are complete, there will be more income-qualified units on the block than existed previously, though that will take time. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 12, 2026 Page | 6 Separately, the City has partnered with the Housing Authority to bring vacant public housing units back into service, particularly within the scattered-site portfolio. Many of these units have been offline due to maintenance issues but are now renovated and occupied. This has been a multi-year effort made possible through a funding partnership approved by the Common Council two years ago. So, when looking only at this block, it’s important to keep in mind the broader set of partnerships and investments that are expanding South Bend’s public housing stock from where it was a few years ago, when it was at its lowest point. Upon a motion by Gillian Shaw for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Budget Request as presented on February 12, 2026. 5. Donation Agreement (528 Euclid Ave.) Joseph Molnar, Assistant Director of Growth and Opportunity, presented a donation agreement for a property located at 528 Euclid Avenue in the City of South Bend. The parcel, shown in red, is located between LaPorte Avenue and Lincoln Way West, just north of City Cemetery. The surrounding parcels shown in blue are City-owned properties, held by either the Board of Public Works and the Redevelopment Commission. The property proposed to be donated to the RDC is a standard City lot, just over one-tenth of an acre. It has been vacant for several years and previously contained a single-family home that was demolished between 2017 and 2019. The current owner has no further use for the property and has offered to donate it to the City for redevelopment purposes. All property taxes are current. The agreement includes a 60-day due diligence period, allowing the Redevelopment Commission time to review the property and withdraw if any issues arise, followed by a 60-day closing period. Acquiring this parcel supports ongoing redevelopment in the neighborhood, where the City already owns multiple vacant lots and has seen significant new construction over the past year, particularly along Blaine St. Additional housing development is expected through existing agreements with housing developer partners. City ownership of vacant lots allows for proper maintenance and positioning of these properties for future redevelopment, making this donation a beneficial step for the neighborhood. Commissioner Gooden-Rodgers asked how we can fix the issue of vacant lots in this neighborhood. Mr. Molnar stated that the City has a partnership in this area with Intend Indiana, where new housing CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 12, 2026 Page | 7 development is underway. We want to see housing continue to return to the neighborhood. This issue developed over decades, resulting in many vacant lots, and it will take time to rebuild and restore the area. As previously mentioned, there are already nine to ten new homes built on Blaine Street nearby, so this progress is not far off. Assuming everything goes well, we expect housing development to begin on these lots within the next few years. The vast majority of the lots in this neighborhood are already owned by the City, having been acquired through the tax sale process, which is how the City came into possession of them in the first place. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the Donation Agreement as presented on February 12, 2026. 6. Amendment to Development Agreement (321 West Wayne) Joseph Molnar, Assistant Director of Growth and Opportunity, noted an error in the agreement, a date discrepancy of February 12, 2025 should be 2026. This item relates to an existing development agreement that the Redevelopment Commission approved at the end of 2024. What is before you today are the First Amendment to that overall development agreement. The property is located at 321 W. Wayne Street, on the western edge of downtown South Bend. The original development agreement contemplated the renovation of a formerly blighted industrial building, including construction of a new brewery, a family-oriented entertainment component, and renovated office space. The agreement included a minimum private investment commitment of $1.5 million, along with a $70,000 contribution from the Redevelopment Commission, and required project completion by the end of 2027. That agreement was approved in November 2024. These images show the condition of the property prior to renovation, including the interior. The building needed significant work, both inside and out. Portions of the exterior had been covered with unattractive sheet metal siding, much of it with visibly flaking paint. Work has been ongoing since 2024, and the developers can speak in more detail about the specifics. Improvements have included a new roof and a fully renovated interior. The restaurant component is now open, the brewery is operational, and the office spaces are in their final stages of completion. During the renovation process, the project encountered unexpected expenses related to water utility improvements needed to support the brewery. As you would expect, breweries require substantial water capacity, and the necessary upgrades exceeded initial expectations. This CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 12, 2026 Page | 8 First Amendment clarifies those changes and increases the Redevelopment Commission’s commitment from $70,000 to $80,000 to help complete the required utility infrastructure improvements. It also increases the developer’s investment commitment to more accurately reflect both the work already completed and the remaining scope of work—from $1.5 million to over $2.9 million, representing nearly a 100 percent increase. These photos show the renovation progress. Ivy Alley Social House, the restaurant component, is now open. The project includes all new windows and significant exterior improvements. You can see images of the restaurant space on the left and office space on the right, which represent a dramatic change from the earlier conditions. Also included is the duckpin bowling area, which was a key component of the original development agreement to ensure the site included a family- oriented activation, rather than functioning solely as a brewery. As shown here, that portion of the project has been completed. Overall, this project represents a high-quality renovation of a historic downtown building, adding new life and vitality to this part of the city. It brings new jobs, economic activity, office space, and family-friendly destination addressing a key priority we have consistently heard during planning processes: the need for more spaces downtown that families can enjoy. Regina Emberton, representing the developer Historic Hearthstone, commented that we’re extremely excited about this project and the partnership behind it. What was once a 17,000-square-foot vacant industrial building is now a vibrant community hub. Indiana Landmarks has opened its Northern Indiana office here and is already hosting community and educational events. Ivy Alley Social House, the anchor tenant, opened in December with duckpin bowling, a brewery, and a pizza kitchen, and has been very well received. Their first brewery release launches tonight. The project also supports South Bend Trade Works by providing basement storage space at no cost. Overall, we’re proud of how this turned out and grateful for the City, Redevelopment Commission, Council, and staff support. Commissioners Wax and Relos, Tina Patton all spoke in favor of the project. Upon a motion by David Relos for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Amendment as presented on February 12, 2026. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 12, 2026 Page | 9 7. Budget Request (Studebaker Museum HVAC Repairs) Nifemi Oluwatomini, Senior Engineer, presented a budget request for the Studebaker National Museum HVAC renovation. The initial scope includes replacing two rooftop HVAC units and upgrading the building control system. The existing control system is outdated, limited in accessibility, and no longer reliable. The proposed upgrade would create a more modern, user-friendly, and dependable system for museum staff. The City is responsible for this work because it owns the building and the historic vehicle collection housed within it and maintains a lease and management agreement with the museum. Under that agreement, the City is responsible for replacement of all HVAC system components. These improvements will enhance system reliability, allow for better temperature control for both visitors and the collection, and ensure the long-term preservation of museum assets. The total request is $350,000, covering both design and construction of the rooftop units and the new building control system. Funding is requested from River West TIF. The goal is to replace obsolete equipment, align with recent museum modernization efforts, and improve the experience for guests, staff, and the collection. Patrick Slebonick, Executive Director of the Studebaker National Museum, wanted to emphasize how critical this project is. The City owns the core collection, including highly sensitive historic vehicles, and a reliable HVAC system is essential to preserving them. These are the final two units to be replaced, and the existing controls are obsolete, creating real risk to the collection. We appreciate the City and Commission’s continued partnership and support. Vice President Relos asked for clarification on how many HVAC units total and Mr. Slebonick explained, this is the final phase of the museum’s HVAC modernization. Earlier units were replaced due to hail damage and age, and this request covers the last two rooftop units, along with design, installation, and a new control system. The upgrades address real failures and obsolete controls and complete the City’s long-term responsibility under the management agreement. Secretary Wax asked if this request would complete the HVAC project. Mr. Slebonick stated that this is responsible future planning, but it also addresses real issues. One of the units being replaced failed last summer after 20 years when a copper pipe ruptured and released all of its refrigerant, resulting in a $6,000 repair that the museum covered from operating funds. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 12, 2026 Page | 10 On the controls side, several components and sensors have failed and are now obsolete, with no available updates. These limitations also prevent the museum from fully benefiting from recent efficiency upgrades, such as VFDs installed on air handler units that are incompatible with the current control system. Upon a motion by David Relos for approval, seconded by Troy Warner, the motion carried unanimously; the Commission approved the Budget Request as presented on February 12, 2026. 8. Resolution No. 3666 (Caleb Bauer for Extraordinary Service to the City of South Bend) President Troy Warner presented Resolution No. 3666, an honorary resolution recognizing Caleb Bauer for his outstanding service to the City of South Bend, the community, and the Redevelopment Commission. Caleb has served the City for six years, four as Executive Director of the Department of Community Investment and two as Director of Communications, working closely with the Commission throughout that time. His leadership helped establish a strong culture of professionalism, accountability, and customer service. Under Caleb’s leadership, the City supported significant job creation, private investment, housing development, neighborhood revitalization, park improvements, and major civic and infrastructure projects across South Bend. Therefore, it must be resolved that the South Bend Redevelopment Commission honors Caleb Bauer for his extraordinary commitment and distinguished service, thanks him for his lasting contributions to our community, and expresses sincere appreciation for his work. All of the Commissioners spoke highly of Caleb’s contributions and look forward to working with him in the future to improve the City of South Bend. The motion carried unanimously; the Commission approved Resolution No. 3666 as presented on February 12, 2026. 6. Progress Reports A. Tax Abatement Joseph Molnar, Assistant Director of Growth and Opportunity, presented updates today, one related to tax abatement and one to economic development. The Common Council approved a designated Resolution for a new Burton’s Laundry on Main Street along the South Corridor. The project will be similar in style to Burton’s Laundry location near Portage and will be built on currently vacant land near Bob Miller’s Appliances. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – February 12, 2026 Page | 11 B.Common Council None C.Other None 7.Next Commission Meeting Thursday, February 26, 2026, 9:30 a.m., City Hall Council Chambers 3rd Floor 8.Adjournment Thursday, February 12, 2026, 10:43 a.m. ______________________________ Eli Wax, Secretary ______________________________ Troy Warner, President