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HomeMy WebLinkAboutRedevelopment Commission Minutes 05.14.26 - SignedSouth Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Minutes Regular Meeting May 14, 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 Gillian Shaw, Commissioner Ophelia Gooden-Rodgers, Commissioner Marcus Ellison, Non-Voting Advisor Members Absent: Eli Wax, Secretary Legal Counsel: Sandra Kennedy, Corporation Council 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- Virtual Lewis Kouassi, Director of Finance, DCI Erin Michaels, Property Development Manager, DCI Elizabeth Maradik, Director of Neighborhoods Allison Doctor, Project Manager, DCI-Virtual Laura Hensley, Board Secretary, DCI Attending: James Tuesley, Barnes & Thornburg Matt Wetzel, MAW Brokerage, LLC Marco Mariani, South Bend Heritage Foundation Hodge Patel, 904 E. Jefferson Blvd. Kathy Schuth, Near Northwest Neighborhood Inc. Tina Patton, 707 Sherman Ave. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – May 14, 2026 Page | 2 Matt Barrett, 110 S. Niles Ave. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, April 23, 2026 Upon a motion by David Relos for approval, second by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved the minutes of the regular meeting of April 23, 2026. 3. Approval of Claims A. Claims Allowances May 5, 2026 Upon a motion by Ophelia Gooden-Rodgers for approval second by David Relos, the motion carried unanimously; the Commission approved the claims allowances of May 5, 2026. 4. Old Business A. None 5. New Business A. River West Development Area 1. Opening of Bids (821 Portage Ave. & 808 Cushing St.) Erin Michaels, Property Development Manager, stated we received no bids prior to the deadline for the disposition process, and we are in a 30- day waiting period that ends on June 13, 2026 prior to entering into any negotiations. 2. Purchase Agreement (23931-23977 Brick Rd.) Erin Michaels, Property Development Manager, presented the proposed sale of real property located at 23931–23977 Brick Road. These four parcels are situated on the northwestern edge of the city and are currently vacant, consisting of open grassy land. The proposed buyer is MAW Brokerage LLC. Their representative, Matt Wetzel, is present today and available to answer any project-specific questions. The proposed purchase price is $25,000 for all four parcels, with a 120-day due diligence period and a closing deadline of 60 days thereafter. The project includes a minimum total investment of $1.8 million for the development of leasable industrial commercial flex space. The development will occur in two phases. Phase One will consist of a $1 million investment to construct an 8,000-square-foot building on the eastern parcels. Phase Two will include an $800,000 investment for a CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – May 14, 2026 Page | 3 6,000 square-foot building on the western parcel. The concept plans shown here are preliminary and intended to provide a general sense of the proposed layout and design. Regarding the construction timeline, Phase One must begin within 18 months of closing and be completed by 24 months. Phase Two must begin 36 months and be completed 48 months after closing. Upon completion of each phase, and confirmation that all commitments have been met, staff will return to the Commission with a Certificate of Completion for approval. Ms. Michaels also explained that light industrial flex space is a gap in the City’s current real estate portfolio. We frequently receive requests from small businesses and startups seeking to lease smaller-scale industrial space—often just a few thousand square feet. However, most available industrial or warehouse properties in the city are significantly larger, typically ranging from several thousand to over 10,000 square feet, which exceeds their needs. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Purchase Agreement as presented on May 14, 2026. 3. Development Agreement (Tri-Day Development) Joseph Molnar, Deputy Director of Community Investment, presented the first of two agreements with trusted local partners. The first agreement is with South Bend Heritage for the proposed Tri-Day development. The site is located south of the future New Day Intake Center on a larger parcel that was not fully needed for that project. The Commission previously approved a purchase agreement in July 2025, contingent on South Bend Heritage receiving Low-Income Housing Tax Credits (LIHTC), which were awarded in November 2025. The development agreement requires a minimum of 42 units, including 32 income-based units and 10 permanent supportive housing units. South Bend Heritage will invest approximately $13.7 million in private funding. The City will commit up to $4.6 million for infrastructure improvements, including roads, sewer, and water utilities. Current estimates are approximately $3.5 million, with remaining funds providing contingency or returning to the TIF if unused. Construction must begin within 10 months of closing, with closing expected by the end of 2026, and completion anticipated within 30 months. Mr. Molnar noted this is the City’s eighth LIHTC award since 2023— compared to none from 2013–2023—totaling 649 affordable units CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – May 14, 2026 Page | 4 citywide. The Tri-Day project concept is similar in scale and design to the recently completed South Bend Thrive development, with final site layout still under review. Marco Mariani, Executive Director of the South Bend Heritage Foundation, thanked the Commission and City staff for their support, noting the project has been in development for approximately three years with multiple community partners. He provided an overview of financing, including partnerships with National Equity Fund (NEF), 1st Source Bank, and other potential tax credit investors. He noted current challenges with tax credit pricing but expressed confidence in closing financing this summer. Mr. Mariani emphasized the importance of coordinating infrastructure work with construction timelines. The project is expected to begin construction following closing, with an estimated 18-month buildout and completion targeted for mid-2028. Vice President Relos asked for clarification that the project would include 10 permanent supportive housing (PSH) units, with the remaining units serving households at varying AMI levels (40%, 50%, and 60%). Mr. Mariani stated that the development will utilize income averaging, allowing up to 20 units to serve households earning up to 80% AMI, while maintaining a project-wide average of 60% AMI. This approach expands access to a broader range of households while maintaining affordability. Mr. Mariani confirmed anticipated coordination with the New Day Intake Center and service providers, noting alignment with the broader continuum of care to support residents transitioning to permanent housing. Commissioner Shaw had questions regarding project risks and timeline, Mr. Mariani noted ongoing coordination with City staff and identified key variables such as construction bids and tax credit pricing. Bids are expected within 60–90 days, with financing commitments anticipated within approximately 90 days. South Bend Heritage will serve as developer, general contractor, and property manager, prioritizing use of local subcontractors. Staff will be updated regularly as the project advances toward closing by year-end. President Warner thanked staff and Mr. Mariani for their work and spoke in favor of the project. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – May 14, 2026 Page | 5 Upon a motion by David Relos for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Development Agreement as presented on May 14, 2026. 4. Purchase Agreement (Scott St. NNN) Joseph Molnar, Deputy Director of Community Investment, presented the second agreement with a trusted local partner, this time with Near Northwest Neighborhood, Inc. (NNN), for a housing project on Scott St. The proposal includes the sale of City-owned, vacant parcels (acquired in 2024) located near Lincoln Way West, Madison, and Leland Streets. The project complements nearby developments by Advantix and Allen Edwin, which are currently under construction and expected to deliver new affordable and workforce housing units. NNN, a longstanding community development partner, proposes construction of at least 11 income-based housing units with a total investment of approximately $3 million. The purchase price is $1,000, contingent upon NNN securing Federal Home Loan Bank Affordable Housing Program (AHP) funding. If funding is not awarded, the agreement will be terminated, and the City will retain ownership. The closing deadline is the end of 2027 to allow the NNN to apply for multiple AHP funding cycles if needed. Construction must begin within 12 months of closing and be completed within 36 months thereafter. Kathy Schuth, Executive Director of the Near Northwest Neighborhood Inc. expressed appreciation for the City’s partnership and noted the project builds on land strategically assembled by the Redevelopment Commission. She stated the proposal will deliver for-sale, income-based housing, including a mix of detached homes and townhouse-style units designed to reflect neighborhood character while improving affordability through construction efficiencies. Ms. Schuth outlined financing through the Federal Home Loan Bank Affordable Housing Program, in partnership with 1st Source Bank, along with additional local funding support. She noted the City’s land contribution strengthens the project’s competitiveness. NNN plans to apply for funding in June, with award announcements expected in November. If awarded, closing would occur shortly thereafter, with construction anticipated to begin in spring 2027. If unsuccessful, NNN intends to reapply in a subsequent funding cycle. Councilmember Canneth Lee spoke in favor of this project. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – May 14, 2026 Page | 6 Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by David Relos, the motion carried unanimously; the Commission approved the Purchase Agreement as presented on May 14, 2026. 5. Assignment of Indemnity Rights (Oliver Park Site, Lot 7) Sandra Kennedy, Corporation Counsel for the City of South Bend, presented an assignment of environmental indemnity rights related to a former Studebaker site. She provided background on the City’s acquisition and environmental remediation of the Studebaker properties in the 2000s and noted that the City issued indemnities to prior buyers for pre-existing environmental conditions. The site, which includes groundwater monitoring, has been remediated but not yet fully closed. The original transaction closed in 2009 and allowed for assignment of indemnity rights to future owners until site closure. The current request seeks approval to assign those rights in accordance with the original agreement. Legal counsel has reviewed the document, but the parties to the sale have not yet signed off on it. Ms. Kennedy stated that any material changes to the document will be returned to the Commission for approval. Vice President Relos asked which parcel is being referenced and who is the current tenant and what is the status of IDEM closure for the site? James Tuesley, with Barnes & Thornburg explained the parcel is the former Underground Pipe and Valve site, which was sold to Ferguson Enterprises in 2016. Ferguson Enterprises continues to lease the property. President Warner asked what is the status of IDEM closure for the site? Ms. Kennedy stated the IDEM closure is still in progress and is expected to take several more years due to ongoing groundwater monitoring requirements. The City is actively working toward closure. Once closure is achieved, the environmental indemnity will automatically terminate. Vice President Relos raised a concern regarding the condition of entrance signage and landscaping at a nearby site, noting ongoing maintenance issues and recent damage. Mr. Molnar acknowledged the concern, explaining that maintenance responsibility was intended to fall under a business association that was never formally established. While another entity has been providing some upkeep, staff agreed to review the conditions and follow up as needed. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – May 14, 2026 Page | 7 Upon a motion by David Relos for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Assignment of Indemnity Rights as presented on May 14, 2026. B. Administrative 1. Resolution No. 3669 (Appointing Authorized Representatives To Conduct Certain Administrative Acts Relating To Commission Real Property and Security Interests) Joseph Molnar, Deputy Director of Community Investment, presented both Resolution Nos. 3669 and 3670 together authorizing resolutions to streamline management of RDC-owned property. He explained that the resolutions update signing authority for RDC-approved actions by assigning authority to staff positions rather than individual names, reflecting recent staff turnover. The authorized positions include the Executive Director of Community Investment, Deputy Director, Assistant Director of Growth and Opportunity, and Property Development Manager. Mr. Molnar noted one material change from prior versions: the addition to Resolution No. 3669 of authority for staff to execute mortgage lien releases when liens have been fully satisfied. All other provisions, including contract thresholds for services such as appraisals and subdivisions in Resolution No. 3670, remain unchanged. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by David Relos, the motion carried unanimously; the Commission approved Resolution No. 3669 as presented on May 14, 2026. 2. Resolution No. 3670 (Setting Procedures For Contracts For Property Related Services) Upon a motion by Gillian Shaw for approval, seconded by David Relos, the motion carried unanimously; the Commission approved Resolution No. 3670 as presented on May 14, 2026. 6. Progress Reports A. Tax Abatement Joseph Molnar, Deputy Director of Community Investment, noted that tax abatement compliance filing season is underway, with property owners submitting required reports demonstrating fulfillment of their commitments. Erik Glavich, Director of Growth and Opportunity, is currently reviewing all submissions. B. Common Council