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HomeMy WebLinkAboutRedevelopment Commission Minutes 04.23.26 - SignedSouth Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Minutes Regular Meeting April 23, 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 Marcus Ellison, Non-Voting Advisor Legal Counsel: Danielle Campbell Weiss, Senior Asst. 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 Laura Hensley, Board Secretary, DCI Attending: Caitlin Wyant, Project Engineer, Engineering Shawn Sweeney, 703 Portage Ct. Matt Barrett, 110 S. Niles Ave. Tina Patton, 707 Sherman Ave. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, March 26, 2026 Upon a motion by Ophelia Gooden-Rodgers for approval, second by Gillian Shaw, the motion carried unanimously and Commissioner Relos abstained; CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – April 23, 2026 Page | 2 the Commission approved the minutes of the regular meeting of March 26, 2026. B. Approval of Minutes of the Regular Meeting of Thursday, April 9, 2026 Upon a motion by Ophelia Gooden-Rodgers for approval, second by Gillian Shaw, the motion carried unanimously; the Commission approved the minutes of the regular meeting of April 9, 2026. C. Approval of Minutes of the Executive Session of Thursday, April 16, 2026 Upon a motion by Ophelia Gooden-Rodgers for approval, second by Gillian Shaw, the motion carried unanimously; the Commission approved the minutes of the executive session meeting of April 16, 2026. 3. Approval of Claims A. Claims Allowances April 7, 2026 Upon a motion by David Relos for approval second by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved the claims allowances of April 7, 2026. B. Claims Allowances April 14, 2026 Upon a motion by David Relos for approval second by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved the claims allowances of April 14, 2026. 4. Old Business A. None 5. New Business A. River West Development Area 1. Resolution No. 3668 (Establishing the Offering Price, Approving Bid Specifications, and Notice of Intended Disposition of 821 Portage Ave. & 808 Cushing St.) Erin Michaels, Property Development Manager, presented this Resolution No. 3668 for review of the proposed disposition of two RDC- owned parcels located at 821 Portage Ave. and 808 Cushing St. Under Indiana state law, before the RDC can negotiate the sale of real estate, the property must first go through a formal disposition process. This process requires the property to be offered for public bid and establishes a clear, standardized framework for disposition. At a CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – April 23, 2026 Page | 3 minimum, the process requires two independent appraisals, with the offering price set at the average of those appraisals, as well as the publication of a legal notice. If no complying bids are received at the conclusion of the process, RDC staff must wait 30 days before entering into negotiations with any other interested party. After that waiting period, staff may negotiate terms that are more flexible and potentially more responsive to RDC priorities. These may include restrictions on project type or use, reporting requirements, construction start and completion deadlines, and flexibility in the purchase price, among other provisions. The two parcels under consideration are located at the corner of Portage Avenue and Cushing Street, outlined on the presentation in red. This aerial image shows their location in relation to nearby development, including the former Ward Bakery site to the north and the proposed Row at Ward project to the northeast, which is currently in the due diligence process. These parcels are vacant lots totaling approximately 0.27 acres and are zoned Neighborhood Center (NC). They are currently owned by the Redevelopment Commission and were originally acquired through agreements with Near Northwest Neighborhood, Inc. in 2008 and 2013 by the Board of Public Works, then transferred to the RDC through matching Resolutions in March of this year. Given the significant infill development that has occurred in the Near Northwest Neighborhood, this disposition is intended to position these parcels for redevelopment. For this disposition, the minimum bid will be $15,750, which reflects the average of two appraisals completed this year. Notices of intent to dispose will be advertised on May 1 and May 8. Bids will be due by 9:00 a.m. on May 14, and I will read them publicly at the Redevelopment Commission meeting at 9:30 a.m. that same day. In evaluating submissions, staff will place particular emphasis on alignment with the goals and objectives of the River West Development Area Plan and the Near Northwest Neighborhoods Plan. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by David Relos, the motion carried unanimously; the Commission approved Resolution No. 3668 as presented on April 23, 2026. B. South Side Development Area 1. Budget Request (Sidewalk & Storm Sewer for Ireland, Ironwood, Irish Hills) CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – April 23, 2026 Page | 4 Caitlin Wyant, Project Engineer with Public Works, presenting a request from the South Side TIF for the Ireland Road Sidewalk Connector Project located along Ireland Road near the intersection with Ironwood. For reference, the CVS is located at the corner, and the Irish Hills Apartments. The proposed sidewalk and storm sewer improvements would extend the existing sidewalk on the CVS property and connect it to the existing sidewalk near Irish Hills Drive. The project includes new sidewalk, curb, and a storm sewer extension along Ireland Road between the CVS site and the intersection with Irish Hills Drive. Based on estimates provided by our consulting engineer, including a 20 percent contingency, the total construction cost is approximately $525,000. City staff and residents have observed pedestrians walking along the roadway due to excessive vegetation in the public right-of-way. Additionally, prior to annexation into the city when the Irish Hills development was constructed, this area included a roadside ditch along Ireland Road that has since been filled and not well maintained, resulting in drainage issues during rainfall events. As shown in the lower image, runoff from the Irish Hills Apartments outfall has caused erosion and pooling within the right-of-way. Today, Public Works is requesting $400,000 for construction of this project. If approved, we anticipate the project would be awarded in late summer, with construction beginning in early fall and lasting approximately four to six weeks. Secretary Wax asked about who owns the connecting properties and Ms. Wyant stated Drive and Shine owns the plaza and Edward Rose is the property management company for Irish Hills and has made them aware of the project however, there aren’t expectations to require them to help fund the project due to it being in the public right-of-way. Commissioner Gooden-Rodgers asked why the adjacent property owners or developers are not contributing funds to this project and is this the only area in the city in this condition, or was this location specifically selected? First, Ms. Wyant stated that this need was identified by Public Works several years ago and has remained unfunded on our capital needs list. There is no indication of pending development or redevelopment in this area, so a private contribution would not typically be expected. As a result, Public Works is moving forward with constructing the sidewalk. Second, this is one of the few remaining areas without existing sidewalk and is separate from the residential curb and sidewalk program. While it is an exception, it does not preclude similar projects elsewhere in the future. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – April 23, 2026 Page | 5 Joseph Molnar, Deputy Director of Community Investment, explained that the project is funded with South Side TIF revenue, which is generated within the South Side TIF boundary and must be reinvested there in public improvements. The project differs from typical sidewalk projects because it is intended to improve safety and connectivity rather than benefit adjacent property owners. It connects the Irish Hills residential area to nearby commercial uses and installs sidewalk in a public right-of-way where none previously existed. While other areas lack sidewalks, this corridor has been identified as a priority due to documented pedestrian safety concerns, including residents walking in the roadway. The area was developed prior to annexation, so sidewalks were not originally required, and there is no anticipated redevelopment that would prompt private construction. Given the safety risks and daily pedestrian use, staff believes public investment is warranted at this time. Commissioner Gooden-Rodgers asked, is this the only area on the South Side needing this type of sidewalk improvement, or is this a special case? Mr. Molnar responded, this is one of the few remaining long stretches of roadway without sidewalks where pedestrians are actively walking in the street, creating a clear safety concern. While other areas may be addressed in the future, this location has been prioritized due to daily pedestrian use, traffic conditions, and the lack of any planned redevelopment that would trigger private sidewalk construction. Commissioners Warner, Relos and Wax spoke in favor of the project. 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 April 23, 2026. C. Redevelopment General Fund (a.k.a Pokagon-South Bend Fund) 1. Budget Request (Annual MACOG Regional Land Bank Funding) Joseph Molnar, Deputy Director of Community Investment, provided a brief overview of the newly established Interlocal Regional Land Bank and the RDC’s request for startup funding. The need for a Land Bank stems from a significant population loss between 1960 and 2010, which led to widespread vacancy and blight across South Bend, particularly in certain neighborhoods. State legislation adopted in 2021 strengthened land banks by expanding their ability to acquire properties through the tax sale process, improving tools to address blighted properties, and requiring counties to CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – April 23, 2026 Page | 6 share inventories of distressed properties. Prior to this change, land banks had limited authority. Following the legislative update, the City, MACOG, Council members, and community partners studied the creation of a local land bank, resulting in a roadmap report developed with the Center for Community Progress. A land bank is a nonprofit entity created to acquire, hold, manage, and repurpose vacant and abandoned properties. Its role is to stabilize neighborhoods by maintaining properties, clearing title and back taxes, and ultimately returning properties to productive private ownership through disposition or renovation. A land bank is needed because the current process for acquiring vacant and blighted properties is slow, complex, and often ineffective. The City has relied on ad hoc arrangements with the County to acquire these properties, but each transaction requires separate approvals and lengthy negotiations, limiting timely action. A land bank would streamline this process by allowing direct acquisition of certain tax sale properties without repeated approvals from multiple governing bodies. Unlike the City, the land bank is better equipped to stabilize properties, make limited repairs, and evaluate buyers based on long-term neighborhood benefit rather than solely the highest bid. It can also assemble market development-ready lots and enter into agreements requiring buyers to complete improvements within a set timeframe. Overall, the land bank provides a more efficient, strategic, and neighborhood-focused approach to reducing vacancy and blight, relieving the City of long-term maintenance costs, and returning properties to productive use. With support from $4 million in Lilly Endowment funds, an endowment has been created to support long-term Land Bank operations, with future investment earnings expected to offset annual operating costs. The endowment will be managed by the Community Foundation of St. Joseph County. The specific action before the RDC is a $500,000 startup funding request from the RDC General Fund, consistent with previously approved city and county interlocal agreements. These funds would support property acquisition, site maintenance, limited stabilization work, and operational expenses. Funds will not be released until the CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – April 23, 2026 Page | 7 Land Bank Board is fully formed and accounts are established. MACOG will provide staffing. Staff committed to providing periodic updates to the RDC on fund usage and Land Bank activities. Secretary Wax disclosed that he represents the County with tax sales, but his representation doesn’t pose a conflict for this item. Mr. Wax noted that with the RDC, BPW and other city departments have been effective in redeveloping vacant properties in recent years. How would the Land Bank change or complement that work? Would it replace existing efforts, or serve as an additional tool? Mr. Molnar explained that this is intended as a value add, not a replacement for the City’s current work. The Land Bank will focus primarily on smaller-scale single-family renovations and in-fill housing, an area where the City is not well positioned to operate efficiently due to procurement, funding, and disposition constraints. The City has generally avoided acquiring single-family homes because of the complexity of renovation and resale under state bidding requirements. The Land Bank fills this gap while allowing the City to continue leading larger redevelopment efforts, including industrial sites and LIHTC projects. These efforts will still require City involvement, and the Land Bank and City can partner where properties overlap. With City representation on the Land Bank board, this will remain a close, collaborative relationship. Overall, the Land Bank expands capacity and flexibility while complementing—not replacing—existing redevelopment tools. Commissioner Shaw asked what is the current status of its formation, and what will its structure look like? Mr. Molnar explained that the interlocal agreement was fully approved about a month ago, completing the legal steps to establish the Land Bank. Each participating entity is now appointing members to the seven-member board: two by the Mayor, one by the RDC, three by the County, and one by MACOG. Once all appointments are finalized, the board will meet to adopt the by-laws, establish operating standards, and finalize staffing through MACOG. The nonprofit paperwork has already been filed, and staff expect the Land Bank to be fully operational within the next few months. Commissioner Gooden-Rodgers asked, while blighted and abandoned properties remain in the system, who is responsible for maintaining them? Mr. Molnar responded that the City would continue its current enforcement process for poorly maintained properties until ownership changes. Once the Land Bank acquires a property, it will be responsible for maintenance, using startup funds to ensure lots are mowed, cleaned, and stabilized. Over time, as properties are sold, maintenance costs will CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – April 23, 2026 Page | 8 be supported through Land Bank revenues, reducing the City’s direct role in routine upkeep. Also, the startup funding will ensure the Land Bank is funded for this maintenance. Secretary Wax inquired about do we have an estimate of what the City’s annual financial contribution to the Land Bank will be in future years? Mr. Molnar responded that the approved interlocal agreement outlines City contributions of $500,000 initially, followed by $300,000 annually for the next few years. The intent is for the Land Bank to become largely self-sustaining after the first five years, supported by property sales, private fundraising, grant funding, and growth from the Lilly Endowment. Long-term, the Land Bank is expected to generate a return on investment by returning properties to tax-paying status and reducing ongoing City costs. Matt Barrett spoke in support of the Land Bank but stressed that stronger code enforcement is essential to its success, noting that many vacant properties are unregistered and few enforcement fines are collected. President Warner thanked Council members and staff for their work on the Land Bank initiative, noting their involvement in the 2022–2023 task force and study. They stated the Land Bank will improve the efficiency of transferring vacant properties, particularly benefiting small local developers and residents seeking to build in their neighborhoods. After a lengthy approval process at the city and county levels, they expressed excitement that the project is now moving forward with funding and appointments in place. Vice President Relos asked does the Land Bank change the tax sale process, including required advertising and redemption periods? Mr. Molnar responded, No. All state-mandated requirements, including advertising and the property owner’s redemption period, remain in place. The Land Bank does not remove any owner’s rights; it simply allows the Land Bank to acquire tax certificates more efficiently after the initial tax sale. Commissioner Relos also asked does MACOG have experience managing property acquisition and disposition? Mr. Molnar replied, Yes. MACOG staff have property management experience and have worked closely with City staff, incorporating lessons learned over many years. MACOG also brings experience from work in other counties. Also, the County has committed to covering legal costs related to transferring tax certificates and clearing title, including advertising, redemption processing, and title work, ensuring properties are conveyed to the Land Bank with clear title. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – April 23, 2026 Page | 9 Commissioner Shaw spoke in favor of the request and thanked staff. Upon a motion by Troy Warner for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Budget Request as presented on April 23, 2026. D. Administrative 1. RDC Appointee for Land Bank Board Joseph Molnar, Deputy Director of Community Investment, recommended Erin Michaels, Property Development Manager, as the RDC’s appointee to the Land Bank Board. He noted that her experience with the City’s property portfolio and tax sale process would support strong coordination between the City and the Land Bank. He added that her regular interaction with residents and developers seeking property would help connect prospective buyers to the Land Bank when City-owned properties are not available. Secretary Wax stated his support for Erin’s appointment to the Land Bank Board and asked about term length and removal authority. Mr. Molnar clarified that the appointment is not term-limited and that the appointee serves at the pleasure of the Redevelopment Commission, which retains the authority to remove the appointee if necessary. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by Eli Wax, the motion carried unanimously; the Commission approved the Appointee as presented on April 23, 2026. 6. Progress Reports A. Tax Abatement Joseph Molnar, Deputy Director of Community Investment, reported that Cascade Phase Two received its first council approval at the last meeting and is scheduled for second approval of the six-year abatement at the upcoming Council meeting, consistent with the Phase One structure. B. Common Council None C. Other Joseph Molnar, Deputy Director of Community Investment, gave updates on the following. • South Bend Range, demolition complete and ready for next phase of debris cleanup CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – April 23, 2026 Page | 10 •River Glen Demolition, bids to be opened next week •GLC project, fencing is going up •Advantix Project, making progress and townhomes going up •Intend Indiana & 466 Works is drawing down funding as they continue construction •Colfax Corner & Stadium Flats, starting construction •Rabbi Shulman building, demo is complete •Former YMCA Site, applied for READI Blight funding •7 Diamonds Parking Garage Project, in negotiations 7.Next Commission Meeting Thursday, May 14, 2026, 9:30 a.m., City Hall Council Chambers 3rd Floor 8.Adjournment Thursday, April 23, 2026, 10: 36 a.m. ______________________________ ______________________________ David Relos, Vice President Troy Warner, President