Loading...
HomeMy WebLinkAboutRedevelopment Commission Minutes 03.26.26 - Signed South Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Minutes Regular Meeting March 26, 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 Eli Wax, Secretary Gillian Shaw, Commissioner Ophelia Gooden-Rodgers, Commissioner Marcus Ellison, Non-Voting Advisor Members Absent: Dave Relos, Vice President Legal Counsel: Jenna Throw, City Attorney Redevelopment Staff: Darryl Scott, Chief of Staff, Mayor’s Office Joseph Molnar, Deputy Director, DCI Erik Glavich, Director of Growth and Opportunity, DCI Lewis Kouassi, Director of Finance, DCI Erin Michaels, Property Development Manager, DCI - Virtual Chris Dressel, Senior Planner, 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 Charlotte Brach, Assist. City Engineer, Engineering Rebecca Plantz, Director of Engineering Services, Engineering Patrick Sherman, Project Manager, Public Works CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 26, 2026 Page | 2 Lidya Abreha, Project Engineer, Engineering Murray Miller, 1201 Priscilla Dr. Matt Barrett, 110 S. Niles Ave. Linda Brothersen, Great Lakes Capital Riley Ellingsen, Wharf Partners, LLC Thomas Panzica, Wharf Partners, LLC Andrea Crawford, Near West Side Neighborhood Megyn Edmonson, Near West Side Neighborhood 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, March 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 March 12, 2026. 3. Approval of Claims A. None 4. Old Business A. None 5. New Business A. West Washington Development Area 1. Budget Request (West Washington Mid-Block Crossing) Joseph Molnar, Deputy Director of Community Investment presented this budget request for $90,000 to build a permanent mid-block crossing on Washington St. The Near West Side Neighborhood Plan, approved several years ago, specifically identified the need for an enhanced mid- block crossing at this location, as shown on the map included in the plan. As a result of that directive from the neighborhood planning process, site design services for the project were completed in July of last year. In 2024, the City installed a temporary crosswalk and asphalt art treatment to evaluate functionality and neighborhood response. The installation received positive feedback from residents and was later decommissioned after the evaluation period. This project site would further advance the broader Near West Side Greenway initiative, enhancing the overall corridor running from Colfax Avenue southward. It serves as an integral connection between the areas north and south of Washington Street, improving continuity within the neighborhood. The proposed crossing will facilitate safer pedestrian and bicycle movement, improve regional connectivity, and create a more accessible environment, while still maintaining smooth vehicular traffic flow through the neighborhood. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 26, 2026 Page | 3 The project scope includes the design and construction of one permanent mid-block pedestrian crossing directly in front of the Civil Rights Heritage Center. Improvements would include curb bump-outs to reduce crossing distance, along with seeding, native landscaping, and other pedestrian-oriented amenities. Current construction cost estimates are approximately $106,000. The budget request seeks $90,000 from the West Washington TIF district, in which the project site is located. The City has identified additional funding from other sources to cover the remaining cost. Megyn Edmonson and Andrea Crawford, Near West Side residents, spoke in support of the project, noting that the mid-block crossing was identified through the neighborhood planning process. They emphasized its central location, proximity to historic and cultural sites, and its importance for traffic calming and improved walkability. President Warner asked about the remaining funds in the West Washington TIF. Mr. Molnar confirmed that although the West Washington TIF expired in 2025, one final payment will be received in 2026 due to the one-year lag in tax collections. Because the TIF was still active during the 2025 tax year, additional revenue is expected this year that has not yet been allocated. City staff intend to work with the Neighborhood Association and area residents to prioritize remaining funds for projects identified in the neighborhood plan. While an exact balance is still being finalized, it is estimated that approximately $500,000—or potentially more—remains available as discretionary funding. Upon a motion by Gillian Shaw for approval, seconded by Ophelia Gooden-Rodgers, the motion carried unanimously; the Commission approved the Budget Request as presented on March 26, 2026. B. River West Development Area 1. Budget Request (Kennedy Park Improvements) Patrick Sherman, Director of Project Management, presented this budget request for $1.5 million for the renovation and improvement of Kennedy Park. Mr. Sherman explained that the existing Kennedy Park water playground has experienced significant operational issues, offers limited depth, does not allow swimming, and is now permanently closed. The play features are outdated and primarily serve toddlers. More broadly, the park is large but disconnected, with an aging playground, poor parking lot layout and circulation, limited sidewalks, unplayable tennis courts, and a large, underutilized area on the northeast side of the park. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 26, 2026 Page | 4 The Venues, Parks and Arts Department successfully applied for and received a competitive Outdoor Recreation Legacy Partnership (ORLP) grant through the Indiana Department of Natural Resources (DNR). While initial project costs came in higher than anticipated, the DNR has agreed to increase its matching funds due to the importance of the project and its alignment with program goals. Mr. Sherman outlined the proposed scope of improvements, which includes a new pool and pool building, a new playground, pavilions, an expanded parking lot, new athletic courts, a walking trail loop around the park, and native landscaping in areas currently maintained as mowed grass. The new pool will feature a water playground area, transitional play elements, pool basketball, a deeper swimming area with lap lanes, a plunge slide, and a climbing wall, allowing users to progress as their swimming skills develop. The new pool building will include restrooms, showers, a meeting room, staff space, and a concession area. The funding request includes $1.5 million from the River West TIF district to leverage the full DNR match. The project was initially supported by a $5 million neighborhood bond, followed by a $2.5 million City Council appropriation to secure the original $7.5 million ORLP grant. With the DNR increasing its contribution to $9 million, the TIF request would allow the City to complete an $18 million project using $9 million in City funds. Commissioner Gooden-Rodgers inquired about the project timeline and Mr. Sherman explained that within the next month or so it will start and we are currently working through the bidding process. He also clarified that there will be two pickle ball courts and a basketball court near the pool building. The project includes a pathway running through the site, with native landscaping throughout the area. This space will function as a natural area that can be used by the school and for VPA programming. Secretary Wax inquired about the project completion timeline, and Mr. Sherman indicated that completion is anticipated in July 2027. President Warner also commented that this project has been under discussion for several years, dating back to the neighborhood bond approved in early 2023. Early planning showed that while many nearby residents use the water park, it also serves families citywide and draws visitors from LaPorte County. It’s a significant community asset, and he is glad to see construction finally moving forward. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 26, 2026 Page | 5 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 26, 2026. 2. 3rd Amendment to Development Agreement (GLC, Madison Lifestyle District) Erik Glavich, Director of Growth & Opportunity, presented a proposed amendment to the GLC Madison Lifestyle District Development Agreement. The request is for a two-month extension of the due diligence period for this multi-phase, transformative redevelopment project south of Beacon Memorial Hospital. The project, previously approved by the Commission with $5.78 million in funding, is part of a broader agreement involving the City, GLC, and Beacon, including land contributions and parking improvements. The extension follows a six-month extension approved last September and is needed to finalize remaining financial and project details. Mr. Glavich noted that the project is progressing, with bids issued, fencing scheduled, and construction expected to begin soon. The extension will not delay construction and is intended to ensure all funding mechanisms and commitments are fully aligned. Linda Brothersen, with Great Lakes Capital noted that the next step following the due diligence period will be issuance of a notice to commence, outlining project elements contemplated in the development agreement. Due to the project’s complexity, particularly related to funding sources and mechanisms—a two-month extension is requested to allow staff to present all details clearly and comprehensively. In response to a question from President Warner regarding whether the extension will delay the project, staff confirmed that the extension will not delay construction or the overall project timeline. Design and preparatory work are ongoing, required state funding deadlines are being met, and the extension is intended to ensure all City funding tools, including abatements and district mechanisms, are fully aligned and documented for the Commission’s review. Commissioner Gooden-Rodgers asked if two months would be enough of an extension, Ms. Brothersen noted that the City’s commitments, including potential tax abatement, were reaffirmed through the confirmation agreement. The project’s support through the IDD is in place and aligns with those commitments. The IDD is in a good position, and written IDC approvals allow staff to prepare responses for the CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 26, 2026 Page | 6 Commission. No issues from due diligence are expected to impact the project completion date. Commissioner Shaw asked whether any issues identified during the due diligence period were contributing to the project’s complexity and whether there was any potential impact on the project completion date. Ms. Brothersen indicated that no due diligence issues are expected to affect the project completion date, which has continued to move forward. The November 2024 confirmation agreement reaffirmed key items that allowed both the City and GLC to proceed with design and related expenditures. The project’s complexity primarily relates to the financial structure, including funding flow, return on cost, and tax abatements, rather than construction. Ms. Brothersen noted that upcoming discussions will focus on clearly defining these financial mechanisms. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the Amendment as presented on March 26, 2026. C. River East Development Area and Residential Development Area 1. Budget Request (Riverwalk Improvements Seitz to Howard Phase 2) Patrick Sherman, Director of Project Management, presented this budget request for $5.6 million for renovation and improvement of the Riverwalk from newly developed Seitz Park to Howard Park. This heavily used section of the Riverwalk is currently in poor condition and is experiencing settlement issues. It is supported by aging gabion baskets that are deteriorating, with a wooden surface that creates an uneven and uncomfortable experience for pedestrians and cyclists. As a result, this segment provides a poor connection between two of our signature downtown parks. This area also includes The East Race, another key attraction for the City. The existing dock was replaced with a temporary structure due to deterioration; however, it is not ADA accessible and does not adequately support East Race operations. In addition, the East Race Bridge is narrow and surfaced with composite decking over deteriorating wood, creating safety concerns. The section near the Emporium Building and under the Jefferson Bridge is particularly challenging, with sharp turns and limited clearance that make it uncomfortable for users. The proposed improvements would create a continuous, cohesive Riverwalk design between Seitz Park and Howard Park using consistent materials and finishes. The new Riverwalk would be pile-supported, similar to a bridge, and constructed of 14-foot-wide concrete with CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 26, 2026 Page | 7 lighting. The East Race Bridge would be widened to 14 feet, reconstructed in concrete, and designed to match Seitz Park. A new, wider, ADA-accessible dock would be constructed to support East Race operations and serve as a portage location upriver of the dam. Improvements near the Jefferson Bridge would include widening the Riverwalk, removing an existing planter, and adding a new stairway to provide access from the bridge. On the Howard Park side, the existing narrow concrete stairway would be removed and replaced to meet current safety and accessibility standards. The total funding request is $4.0 million from River East Residential and $1.6 million from River East. Bids were received on March 10, and project costs are now known. This funding would fully support the project. Secretary Wax stated the river is one of South Bend’s greatest assets, and it’s encouraging to see continued investment in making it more accessible and safer. He especially appreciates the improvements under the bridge to address visibility and safety concerns. His question is about the broader vision for the downtown Riverwalk. Is this project part of a larger, cohesive plan to ensure future Riverwalk improvements connect well and function as an integrated loop, rather than appearing piecemeal, as additional sections are completed over time? Mr. Sherman explained that the City has completed multiple Riverwalk improvements over time, including projects at Joe Kernan Park, Howard Park, Seitz Park, and Pinhook Park. Additional planning for future Riverwalk enhancements is ongoing, with the Planning Department leading broader efforts. Mr. Sherman noted that concepts have been explored for the West side of the river, including the West Trail from Seitz Park toward the Century Center. While prior funding and bidding challenges delayed that work, the plan remains in place for future consideration. Joseph Molnar also added that the City’s goal is to ensure Riverwalk improvements function as part of a cohesive, connected system rather than isolated segments. The recently approved Downtown 2045 Plan emphasizes river activation, safety, accessibility, and creation of a continuous downtown loop similar to peer communities. The current project is one component of that long-term vision. Commissioner Gooden-Rodgers asked whether the project, which is funded with TIF and taxpayer dollars, would involve local contractors and labor, including local trades such as ironworkers, laborers, and electricians. Mr. Sherman responded that the project was publicly bid CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 26, 2026 Page | 8 and awarded to a contractor that is relatively local and utilizes a significant amount of local labor. Staff indicated that the majority of the work is expected to be completed by local workers. Commissioner Shaw asked about the consequences of not proceeding with the project, including safety concerns and whether the Riverwalk would eventually need to be closed. Mr. Sherman explained that the Riverwalk is currently experiencing settlement issues but is not considered unsafe at this time. Venues, Parks, and Arts would continue to monitor conditions and would close the area if it became unsafe. Mr. Sherman noted that the improvements are necessary long-term, as the new design will use deep pier support rather than resting on the riverbed, preventing future settlement issues. The existing East Race dock is also in deteriorating condition and would eventually need to be closed if not replaced. Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Budget Request as presented on March 26, 2026. D. River East Development Area 1. 3rd Amendment to the Wharf Development Agreement Joseph Molnar, Deputy Director of Community Investment, presented this 3rd Amendment to the Development Agreement with Wharf Partners, LLC for completion of the Cascade development. The Third Amendment relates to the northern parcel of the Wharf site, located just north of the recently discussed Riverwalk improvements. The southern portion, known as Cascade Phase One, was completed and opened in 2019. This amendment addresses Phase Two, which is planned for the adjacent northern parcel next to the expanded Riverwalk. The original development agreement between the Redevelopment Commission and Wharf Partners was approved in 2018 and envisioned a two-phase redevelopment of a vacant riverfront property across from Seitz Park in the East Bank neighborhood. Phase One included a seven-story tower and the Cascade restaurant, which opened in August 2024. While the building was completed in late 2019, the restaurant was delayed due to the COVID-19 pandemic and its impact on the hospitality industry. Phase One exceeded expectations. The developer invested $5.25 million more than originally committed and restaurant employment more than doubled to approximately 65 employees. Prior to redevelopment, the site generated roughly $3,000 annually in property taxes. Today, the project generates approximately $210,000 per year, representing an increase of more than 6,800 percent, with an estimated payback period of 13 years. This does not include additional income tax revenue CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 26, 2026 Page | 9 generated by employees. In addition, although not required by the agreement, the developer donated land that allowed the City to significantly widen and improve the Riverwalk adjacent to the site. Progress on Phase Two was delayed due to the extended construction timeline of Seitz Park, which required use of the Phase Two parcel as a laydown area at no cost to the City. Seitz Park officially opened in Summer 2025. No RDC funding has yet been expended for Phase Two. In August 2025, the Second Amendment updated project budgets and timelines to account for pandemic-related cost increases and construction delays. It also expanded the scope of Phase Two to include an eight-story tower, 20–24 residential units, and at least 10,000 square feet of Class A commercial space. The Third Amendment before you today propose several additional updates. It increases the RDC’s total commitment by $1 million and increases the developer’s total investment to $65 million across both phases, reflecting continued cost escalation outside the control of either party. Since approval of the Second Amendment, the developer has completed design work, advanced cost estimates, and entered City plan review, where higher-than-anticipated costs were confirmed. The amendment also addresses coordination with the Colfax Avenue streetscape project. Because Phase Two construction will require temporary use of the sidewalk and tree lawn area adjacent to the site, the City will be unable to complete streetscape improvements in that segment during construction. Under this amendment, the developer will complete the Colfax Avenue streetscape improvements adjacent to their property at the conclusion of Phase Two, using the City’s approved design. Additionally, the amendment updates local public improvements to allow installation of necessary water and sewer infrastructure during the streetscape work, avoiding future disruptions to newly completed road and sidewalk improvements. Overall, this amendment reflects increased investment by both the City and the developer and reinforces the original vision of the Wharf as a cohesive, river-oriented redevelopment that complements Seitz Park and the Riverwalk. Thomas Panzika with Wharf Partners, LLC addressed the Commission along with Riley Ellingsen, a partner in Phase Two. He stated that the project’s goal has always been to attract downtown residents who are owners and long-term stakeholders. Phase One successfully achieved this; however, rising construction costs and market conditions have created affordability challenges for Phase Two. City assistance remains essential to keep condominium pricing competitive with lower-cost, low- CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 26, 2026 Page | 10 rise developments. Mr. Panzika noted that while ongoing construction has been challenging, it represents progress, and he believes the completed project will be a major asset for downtown and the East Bank. He thanked the Commission for its support and requested approval of the amendment. Commissioner Warner asked whether the increased costs reflected both higher construction bids and the developer assuming responsibility for streetscape work, and whether this would result in savings to the City. Erik Horvath, Director of Public Works, explained that the streetscape work will be completed by the developer using the same bid unit prices, resulting in a net offset. Leslie Biek, Assistant City Engineer, stated that a change order will be issued once final amounts are confirmed. Secretary Wax asked about changes in the timeline and Mr. Molnar stated that there is no amended timeline and construction should start the end of April with completion in 2029. Commissioner Shaw commended the Wharf Partners for their investment and partnership. President Warner also spoke in favor of the project. Upon a motion by Troy Warner for approval, seconded by Ophelia Gooden-Rodgers, the motion carried unanimously; the Commission approved the Amendment as presented on March 26, 2026. E. Administrative 1. 2025 Fiscal Report Erik Glavich, Director of Growth and Opportunity, explained that higher costs in 2024 were driven by several major projects funded through TIF, while 2025 expenditures were significantly lower. Key 2025 investments included the Dream Center, City Hall improvements, and approximately $2.5 million in support for affordable housing developed by 466 Works. Despite relatively flat revenues, expenditure declined, resulting in a stronger year-end fund balance. Debt service remained stable with no significant changes. Mr. Glavich clarified that the report presented reflects a snapshot of fund balances as of January 1, 2026, and serves as preparation for the State-required TIF Management Report due April 15, as well as the annual spending plan later in the year. In response to questions regarding cash on hand versus existing commitments, staff reported that approximately $56.5 million was encumbered as of January 1, representing about two-thirds of the total fund balance. These commitments relate to long-term, multi-year projects, and staff emphasized that the Commission maintains a healthy balance and CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 26, 2026 Page | 11 continues to reinvest TIF funds consistent with their intended purpose of supporting redevelopment and neighborhoods. President Warner asked, in addition to our current cash on hand, we also have funds committed to projects that have not yet started or are scheduled several years out, such as the Monroe project. What is the total amount currently committed to those future projects? Mr. Glavich responded that he reviewed encumbered funds as of January 1, noting that approximately $56.5 million was committed to existing projects, representing about 67% of the $83.86 million fund balance. These commitments include long-term, multi-year projects such as The Monreaux and the GLC project. Staff emphasized that the Commission maintains a healthy fund balance and continues to responsibly reinvest TIF funds in residential and neighborhood redevelopment. President Warner requested a breakdown of encumbered funds by TIF district for future reference and potential inclusion in reporting. Upon a motion by Eli Wax to accept, seconded by Gillian Shaw, the motion carried unanimously; the Commission accepted the 2025 Fiscal Report as presented on March 26, 2026. 6. Progress Reports A. Tax Abatement None B. Common Council None C. Other Joseph Molnar, Deputy Director of Community Investment, gave updates on the following. • Former Elwood Shopping Center, demolition has started. • READI Blight Grant Application was submitted for the former YMCA. • Qualex Building Demolition, bids were approved and will begin soon. • Diamond View Project started leasing space 1/3 filled. • Stoic Beverages Project, utilities hooked up and in plan review stage. President Warner spoke of the positive improvements to the Four Winds Field project. 7. Next Commission Meeting Thursday, April 9, 2026, 9:30 a.m., City Hall Council Chambers 3rd Floor CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 26, 2026 Page | 12 8.Adjournment Thursday, March 26, 2026, 10:41 a.m. ______________________________ Eli Wax, Secretary ______________________________ Troy Warner, President