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HomeMy WebLinkAboutRedevelopment Commission Minutes 03.12.26 - Signed South Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Minutes Regular Meeting March 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 9:30 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 Member Absent: Marcus Ellison, Non-Voting Advisor Legal Counsel: Jenna Throw, City Attorney Redevelopment Staff: Darryl Scott, Chief of Staff, Mayor’s Office 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 Laura Hensley, Board Secretary, DCI Attending: Eric Horvath, Director of Public Works Jitin Kain, Deputy Director of Public Works Abigail Magas, City Engineer, Engineering Leslie Biek, Assist. City Engineer, Engineering Zach Hurst, Senior Project Engineer, Engineering Patrick Sherman, Project Manager, Public Works Leslie Biek, Assist. City Engineer, Engineering Lidya Abreha, Project Engineer, Engineering Megan Schuetz, KCG Development, LLC - Virtual Matt Barrett, 110 S. Niles Ave. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 12, 2026 Page | 2 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, February 12, 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 February 12, 2026. B. Approval of Minutes of the Regular Meeting of Thursday, February 26, 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 February 26, 2026. 3. Approval of Claims A. Claims Allowances March 9, 2026 Upon a motion by David Relos for approval second by Gillian Shaw, the motion carried unanimously; the Commission approved the claims allowances of March 9, 2026. 4. Old Business A. None 5. New Business A. South Side Development Area 1. Development Agreement (KCG Development LLC) Joseph Molnar, Assistant Director of Growth and Opportunity, stated before you today is a development agreement with KCG Development LLC for a City-owned vacant lot at South Main and Donald Streets. The property has been owned by the Redevelopment Commission for over a decade and has remained vacant since the former building was demolished. KCG is a multifamily housing developer out of Indianapolis. In June 2025, the RDC approved a purchase agreement with KCG with the intent to pursue Low-Income Housing Tax Credits (7th in 3 years). That award was successfully announced in November 2025, allowing the City to leverage federal and state resources. This is one of seven such awards the City has secured in the past three years, after having none in the prior decade. The development agreement requires the construction of a multifamily housing project with a minimum of 50 affordable rental units at varying AMI levels. The RDC is committing $1 million from the South Side Development Area TIF, alongside a minimum $13 million private CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 12, 2026 Page | 3 investment from the developer. This local commitment was essential to the project’s competitiveness for tax credit scoring. The proposed project is a four-story, all-residential building with brick accents. If approved, KCG plans to close on the property this Spring, begin construction later this year, and complete the project by the end of 2027. Commissioner Gooden-Rodgers asked, what assurances do we have that developers will address issues that arise in these buildings? We already have properties experiencing ongoing problems. What commitments are in place to ensure residents’ needs are properly managed? Megan Schuetz with KCG responded, we use a national third-party property management company and are long-term owners of these projects, typically at least 15 years, with affordability maintained for 30 years. Each property will have on-site management and maintenance staff, and we partner with service organizations to support residents with disabilities. Because we are invested long term, we are committed to keeping both the residents and the property successful. Vice President Relos asked about parking. Ms. Schuetz explained that resident access will be from Donald Street, with a curb cut located there. There will also be secondary emergency access off the alley. Parking will be accessed from the alley and will be gated. Matt Barrett expressed concerns about code enforcement. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Development Agreement as presented on March 12, 2026. B. River West Development Area 1. Budget Request (Morris Garage Design) Joseph Molnar, Assistant Director of Growth and Opportunity, presented a budget request for design and site preparation related to the proposed Morris Parking Garage serving the Morris Performing Arts Center. This project represents the third and final phase of the Encore initiative, a multi-year effort to renovate and modernize the Morris for its next century. Phase one was a $10 million renovation to the theater itself, including seating and HVAC improvements. Phase two was the recently completed Raclin Murphy Encore Center expansion. Phase three envisions a parking garage attached to the west side of the Encore Center, which was designed with this future connection in mind. The proposed 473-space garage would provide dedicated, ADA-accessible parking for Morris patrons, eliminating the need to park CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 12, 2026 Page | 4 several blocks away or go outside to access the theater. It would also support additional downtown development. The Redevelopment Commission is currently in active discussions with 7 Diamonds regarding a residential component integrated with the garage, following an RFP issued in 2025. Those discussions are progressing well, and staff anticipate bringing a development agreement to the RDC later this Summer. Today’s request is for $2 million from River West TIF to fund full design, demolition, and site preparation work, including removal of the former South Bend Water Works building and necessary grading and remediation. This funding keeps the project on track for a 2027 construction start. This final phase would complete the Morris modernization while adding much-needed parking to support both the theater and downtown more broadly. Secretary Wax stated, I remember that when we reviewed the RFP responses, there was a general understanding of what portion of the project would be covered by the City or other public investment versus the developer. Is this request consistent with what we initially agreed to when we accepted the proposal and began negotiations? Mr. Molnar responded yes. Under the proposal— which we are still finalizing the agreement for—the City would be responsible for providing the parking garage and potentially a one-story podium for the residential building, with the developer constructing the housing above it. While the finer terms are still being negotiated, this funding request is consistent with that original framework. The request is primarily for the design and site work for the garage, which would be required regardless of the final development partner. Vice President Relos asked about how many parking spaces will be available to the public. Mr. Molnar stated the only parking commitments that are finalized are those covered by signed agreements. Any additional commitments related to 7 Diamonds or another housing developer would be addressed later through a development agreement. The Morris has identified a need for at least 250 parking spaces on show nights, and we are confident the proposed garage can accommodate that. The garage is being designed with flexibility in mind—allowing spaces to be used by office or other users during the day and then made available for Morris events during evenings and weekends. The spaces dedicated to the Morris would otherwise be available to the public year-round, similar to other downtown parking facilities. We have been working closely with Morris staff and Public Works on loading, staging, and staff parking spaces. Patrick Sherman, Project Manager, responded that the design preserves access to existing loading docks for semi-trucks and box trucks and maintains access behind the CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 12, 2026 Page | 5 Morris and the former LaSalle Grill site. We recognize this is a complex area, especially on show nights when buses and trucks are present, and coordination will continue to ensure operations function smoothly. Across the street, the Colfax Corner project is expected to bring approximately 400 jobs. That developer has expressed interest in a future parking arrangement once the garage is built. While the garage will not be available for another 18 to 24 months, we are confident that shared-use parking—such as daytime office use with evening availability—can be managed through a smart parking approach. Commissioner Shaw inquired about the age and condition of the Water Works building and whether there are any anticipated challenges, such as abatement issues or foundation concerns? Mr. Molnar explained that, we’ve completed a walkthrough of the Water Works building and are fairly confident in what to expect. The building does have a basement, and we are already planning for that as part of the demolition. While you never fully know what’s underground until work begins, we’ve accounted for potential variables and included contingencies. We’ve also been receiving strong demolition bids recently, which helps us manage those uncertainties. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the Budget Request as presented on March 12, 2026. 2. Budget Request (Demo and Design River Glenn) Darryl Scott, Chief of Staff, with the Mayor’s Office, presented this budget request for $1,700,000 for demolition and site design related to the former Press Ganey River Glen office property. The goal of this request is straightforward: to prepare the site for the next phase of investment by removing barriers to redevelopment and positioning the property so the market can respond with viable proposals. We are requesting RDC consideration for funding to demolish the existing structures and complete site design work. The Redevelopment Commission acquired the property in late 2024 and issued an RFP allowing for either reuse of the existing buildings or full redevelopment. Staff have since engaged with multiple development teams, and the feedback has been consistent—there is no market interest in reusing the existing buildings or their current footprint. As a result, staff recommends a strategy focused on demolition to reduce barriers and improve marketability. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 12, 2026 Page | 6 The site is approximately five acres and includes buildings dating back to the 1970s that have been vacant for more than five years. Their layout and systems do not align with modern office standards, residential conversion, ground-floor activation, or riverfront-oriented development. Maintaining these structures does not preserve value and instead creates physical and financial constraints. In addition, the RDC continues to incur carrying costs for these vacant buildings, including insurance, security, utilities, and property management. Demolition would eliminate these recurring costs and allow for flexible site planning consistent with the Downtown 2045 Plan and the broader River Glen vision. Site design is included in this request because demolition alone is not sufficient. Completing design work now will establish buildable site configurations, coordinate utilities and access, and reduce delays once a developer is selected. Market feedback has shown that uncertainty around site readiness has limited interest, and this approach directly addresses those concerns. Today’s request is to approve funding for demolition and site design to unlock redevelopment potential, support downtown growth, expand housing opportunities, and activate the riverfront. Vice President Relos asked during the site preparation work for the JC Hart project, did the engineering identify utilities that run through this area—specifically from Jefferson down to Monroe or toward Lincoln Way? He wonders whether that work helped clarify what exists underground farther south. Eric Horvath, Director of Public Works, responded, yes. We conducted a survey of the entire area and completed a master utilities plan covering Jefferson to Monroe and from Michigan Street to the river. Because Lincoln Way previously ran through this site, many older utilities were left in place when the street was relocated, creating a complex network underground. While it’s somewhat of a “spaghetti” situation, we now have a good understanding of what utilities are present, and that information will directly inform the site design moving forward. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Budget Request as presented on March 12, 2026. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 12, 2026 Page | 7 3. Resolution No. 3667 (Accepting Transfer of Real Property at 821 Portage Ave & 808 Cushing St. from BPW) Erin Michaels, Property Development Manager, presented this Resolution No. 3667 which accepts the transfer of two parcels—821 Portage Avenue and 808 Cushing Street—from the Board of Public Works to the Redevelopment Commission. These two vacant parcels are located at the corner of Portage and Cushing and sit directly across the street from a larger stretch of property already owned by the RDC. The parcels were originally acquired by the Board of Public Works through agreements with Near Northwest Neighborhood, Inc. in 2008 and 2013. Given the amount of infill development that has occurred in the Near Northwest Neighborhood, staff believe the RDC is the more appropriate entity to own and manage these parcels in anticipation of future redevelopment. Transferring these properties allows the RDC to proactively assemble a larger potential redevelopment site that could incorporate parcels on both sides of the street. The Board of Public Works approved its corresponding Resolution at its March 10 meeting. Commissioner Gooden-Rodgers asked if there are any plans for redevelopment of this area currently. Ms. Michaels responded that while there are no concrete plans in place, we have received interest from developers, so this is the first step in readying the site for redevelopment. Commissioner Shaw asked if Public Works will still be assisting in the maintenance of these sites and Ms. Michaels stated yes. Upon a motion by Gillian Shaw for approval, seconded by Ophelia Gooden-Rodgers, the motion carried unanimously; the Commission approved Resolution No. 3667 as presented on March 12, 2026. 4. Lease Agreement for Temporary Parking (Parking Lots at Wayne St. & Lafayette Blvd and South of Lafayette Building) Erin Michaels, Property Development Manager, presented a lease agreement with the St. Joseph County Board of Commissioners for temporary use of two RDC-owned parking lots. The aerial shows the two parking lots included in the lease, highlighted in red, and the nearby County building, shown in blue, where the employees who would use these lots currently work. These lots are located close to that facility and were historically used for City employee parking. Since City staff have relocated to City Hall, the lots are no longer needed for City use. St. Joseph County has requested to lease the lots from the RDC. If approved, the lease would become effective immediately and could be CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 12, 2026 Page | 8 terminated by either party with 90 days’ written notice. This ensures flexibility should a redevelopment opportunity arise for the surrounding properties. The monthly rent would be $2,000, but that amount may be abated in exchange for the County completing approved repairs to the lots, such as seal coating, striping, or pothole repairs. Any abatement would require invoices to be submitted to RDC staff for review. In addition, the County would be responsible for routine maintenance of the lots, including snow and ice removal, landscaping, and mowing where applicable. Routine maintenance would not count toward rent abatement. Vice President Relos asked how many total spaces and Ms. Michaels stated the lot to the North has 20-30 spots and the lot to the South has 30-40 spots. Commissioner Gooden-Rodgers spoke in favor of the agreement. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by Eli Wax, the motion carried unanimously; President Warner abstained from the vote. The Commission approved the Lease Agreement as presented on March 12, 2026. C. River East Development Area 1. Budget Request (Demo of Former Qualex Building at 921 Louise St.) Joseph Molnar, Assistant Director of Growth and Opportunity, presented this budget request for $500,000 to demolish the former Qualex building in the River East development area. This property is located in what is now being branded as the Market District on the Southeast side of the city, immediately adjacent to Mishawaka Avenue. The building is a former industrial structure dating back to the 1930s. On the map, the Qualex building is outlined in red. Just to the South is the former Northside YMCA, which the City is actively working to redevelop. The City has applied for a READI Blight grant to help cover infrastructure costs at that site, and we are optimistic about a favorable decision. If awarded, we expect to bring additional agreements to the Redevelopment Commission soon. There is real momentum and activity happening in this area. To the North, at the intersection of Longfellow and Mishawaka Avenue, is the centerpiece of the Mishawaka Avenue streetscape project. Improvements along Mishawaka Avenue extend from Bambers Westward all the way toward Adams High School. In addition, new CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 12, 2026 Page | 9 businesses such as Cloud Walking Coffee have opened nearby, showing continued growth and investment in the district. The Qualex building has been a long-standing eyesore and has a negative impact on this area. The structure has significant damage, including a failing roof and collapsing walls, and has not been properly maintained. It has been vacant for decades and is under a court order for demolition due to its severe condition. This building represents an active public health and safety hazard. The City has made repeated efforts over the years to work with various property owners to bring the site into compliance. Unfortunately, the property has been caught in a recurring tax sale cycle. The current owner has stopped responding to the City, has not paid property taxes, and has taken no action to address the building’s condition. If the Redevelopment Commission approves this demolition, the City would place the cost of demolition as a lien on the property. If unpaid, that lien could eventually allow the City or the RDC to acquire property. The City is also exploring other legal avenues to gain control of the site. This demolition would remove serious safety concerns, protect recent public investments in the Mishawaka Avenue Market District, and support redevelopment opportunities adjacent to the former YMCA site. For the demolition itself, bids have already been opened by the Board of Public Works. The requested $500,000 budget includes a contingency, and we do not anticipate needing additional funding. If approved, bids are expected to be awarded on March 24, with demolition beginning in mid-April. The contract completion date is July 3. Commissioner Shaw asked how quickly the demolition could take place. Zach Hurst, Senior Project Engineer from the Department of Public Works stated that bids were opened on Tuesday at the Board of Public Works meeting. We anticipate awarding the bid at the next meeting on March 24. Assuming approval, we expect the contractor to mobilize and begin demolition in mid-April and expected completion by July 3, 2026. Vice President Relos asked are there any environmental concerns? Has a Phase I or Phase II environmental assessment been completed, and do we know what the demolition contractor may encounter, particularly related to contamination? The site previously housed photo processing operations, so there may be concerns about contaminated soil. Mr. Hurst responded, there is potential for environmental issues, particularly related to soil contamination, which is the largest unknown at this point. A contingency is built into the demolition contract to address any environmental conditions that may be discovered during demolition. An CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 12, 2026 Page | 10 asbestos survey was completed and came back fairly favorable, identifying only some mastic and limited transite in former office areas. Because this is an industrial building, it contains fewer office partitions and more open space than other demolitions, which reduces asbestos concerns. Much of the building material can be crushed and sent to a recycling facility rather than a landfill, contributing to more favorable pricing. Overall, we have a good understanding of existing conditions, with the primary uncertainty potentially contaminated soil in the basement once excavation begins. Matt Barrett commented that he supports this request. This is a code enforcement issue that should have been addressed years ago. While he understands there have been challenges, the City needs to invest more resources in code enforcement to prevent situations like this from occurring in the future. Upon a motion by David Relos for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Budget Request as presented on March 12, 2026. 2. Budget Request (Howard Park Bandshell Design) Joseph Molnar, Assistant Director of Growth and Opportunity, presented this budget request for $250,000 for a portion of the design services for Howard Park Bandshell. This project would help transform Howard Park into a premier, four-season destination by adding a high- quality, covered outdoor performance stage. Since the park’s major overhaul in 2019, Howard Park has been highly active year-round, with features such as the ice trail and pond in winter and the playground and open spaces in warmer months. A permanent bandshell would add another major active use and further establish Howard Park as the City’s primary location for programmed activities. The bandshell would provide a dedicated, mid-sized venue for touring acts, local festivals, and community events. It would also serve as a regional cultural attraction, encouraging visitors to spend time downtown at nearby restaurants and shops. The performance stage has been part of the Howard Park vision since the 2019 redesign. Infrastructure was intentionally put in place at that time to support this future project, including reinforced paths for truck access, installed electrical capacity, and a park layout designed to accommodate performances in the central loop area. The proposed bandshell would include a covered stage, performer restrooms, a green room, AV control space, electrical and storage rooms, janitorial space, CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 12, 2026 Page | 11 and related site improvements to ensure a positive experience for both performers and visitors. The request before you today is for $250,000 in initial design funding. The City is actively pursuing multiple grant and funding opportunities through the State and local partners to support eventual construction. Advancing the design now strengthens those grant applications and allows for more accurate cost estimates by reducing current uncertainties. If funding comes together as anticipated, construction could begin as early as 2027. President Warner asked about potential funding sources. Could this project be supported by the hotel-motel tax? He also knows there have been early discussions about expanding the sports development area. Mr. Molnar responded, the hotel-motel tax is one potential funding source the City is exploring. In addition, the City is planning to apply for a READI Arts and Culture grant for this project. President Warner noted that the bandshell was included in the original 2019 plan but was deferred at that time as a cost-saving measure. Secretary Wax asked if we have a rough estimate of construction costs. Additionally, beyond grants and other funding sources, will rentals or event revenue cover the ongoing operational costs, or will this require continued financial support? Mr. Molnar explained that, current construction estimates are around $5 million, with the potential to increase slightly once full design and related costs are included. Questions related to operations and long-term costs would be best addressed by VPA. I’m happy to connect you with their programming team to discuss how the space would be operated and funded. The intent is for the venue to be accessible to the community while also generating some revenue through paid events. It is expected that existing VPA staff and programming resources could support operations, as Howard Park already has a strong and active programming structure. Commissioner Wax responded that he appreciates that these types of projects bring broader economic benefits to the city and downtown businesses. That said, when making a significant investment that carries ongoing operational costs, it’s important to ensure those costs are clearly understood and planned for in advance. Vice President Relos asked about the positioning of the bandshell and Jitin Kain, Deputy Director of Public Works explained the bandshell is proposed for the existing concrete stage area. Flooding typically occurs in the lower grassy areas below the stage. As the design moves forward, CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 12, 2026 Page | 12 any potential flooding concerns will be evaluated, including whether the stage would need to be elevated. In the graphic, the location is the concrete area in the center of the circle—specifically the small concrete half-oval between the central circle and the river. 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 March 12, 2026. D. River East Residential Development Area 1. Budget Request (Riverwalk Improvements Seitz to Howard Phase 2) Joseph Molnar, Assistant Director of Growth and Opportunity, stated We are requesting that this budget item be tabled. The bids came in slightly higher than anticipated, so we are reassessing the project and identifying additional funding sources. This item may be returned for consideration in approximately two weeks. Upon a motion by Troy Warner to be tabled, seconded by David Relosthe motion carried unanimously; the Commission tabled the Budget Request on March 12, 2026. 6. Progress Reports A. Tax Abatement None B. Common Council None C. Other Joseph Molnar, Assistant Director of Growth and Opportunity, updated Commissioners on the upcoming groundbreaking for the Monreaux project with a completion date by the end of the year. Mr. Molnar gave an update on the Diamond View project, and it should be completed by July 2, 2028. Commissioner Gooden-Rodgers spoke in favor of the Rabbi Shulman demolition. President Warner also spoke in favor of the seven (7) LIHTC projects. 7. Next Commission Meeting Thursday, March 26, 2026, 9:30 a.m., City Hall Council Chambers 3rd Floor CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 12, 2026 Page | 13 8.Adjournment Thursday, March 12, 2026, 10:35 a.m. ______________________________ ______________________________ Eli Wax, Secretary Troy Warner, President