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HomeMy WebLinkAboutRedevelopment Commission Minutes 06.11.26 - Signed}rr 1F South Bend �,,�- Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Minutes Regular Meeting June 11, 2026 - 9:30 a.m. City Hall Council Chambers 3rd Floor or via: https:lltinvurl.comIRDC2025-2026-Meetings Meeting Recording Link: https://tinyuri.com/RDC-Meeting-Recordings The South Bend Redevelopment Commission was called to order at 9:34 a.m. President David Relos presiding. 1. ROLL CALL Members Present: David Relos, President Karen White, Vice President Eli Wax, Secretary Gillian Shaw, Commissioner Marcus Ellison, Non -Voting Advisor Members Absent: Ophelia Gooden-Rodgers, Commissioner Legal Counsel: Danielle Campbell Weiss, Senior Asst. City Attorney Redevelopment Staff: Darryl Scott, Executive Director, DCI Joseph Molnar, Deputy Director, DCI Erik Glavich, Director of Growth and Opportunity, DCI Lewis Kouassi, Director of Finance, DCI -Virtual Erin Michaels, Property Development Manager, DCI Tim Corcoran, Chief Planner, DCI Laura Hensley, Board Secretary, DCI Attending: Abigail Magas, City Engineer, Engineering Leslie Biek, Assist. City Engineer, Engineering Charlotte Brach, Assist. City Engineer, Engineering Tony Ruiz, Inner City Development Taylor Ruiz, Property Bros. LLC Jordan Richardson, ID2 LLC Abrahm Gordillo, Inner City Development Sophie Cohen, L+M Development Partners Matt Barrett,110 S. Niles Ave. CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING - June 11, 2026 Tom Bard Nolan Klingdirst Chris Godlewski, Abonmarche Consultants Steve Smith, Irish Realty LLC Sam Centellis, 5429 Raleigh Dr. Alyson Herzig, SBRC Ethan Rendell, SBRC Riley Ellingsen, Greater Lowell Holdings LLC Tina Patton, 707 Sherman Ave. Hodge Patel, 315 W. Jefferson Blvd. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, May 28, 2026 Upon a motion by Eli Wax for approval, second by Gillian Shaw, the motion carried unanimously; the Commission approved the minutes of the regular meeting of May 28, 2026. 3. Approval of Claims A. None 4. Old Business A. None 5. New Business A. River West Development Area 1. Resolution No. 3673 (Authorizing DCI Staff for Certain Acts - Lafayette Building) Joseph Molnar, Deputy Director of Community Investment, noted that while the department typically brings forward positive projects, the first resolution today addresses a difficult situation. He expressed strong appreciation for the historic Lafayette Building, a rare late-1800s structure with a significant atrium and deep community and civil rights significance. On the day of the fire, the South Bend Fire Department responded quickly and professionally, with multiple trucks and 75-90 firefighters on site. RDC staff are grateful for their efforts, as crews worked in heavy smoke and brought the fire under control within hours. No injuries or fatalities were reported. However, the fire caused significant damage, destroying much of the fifth floor and leading to a collapse of the roof. The top floor and western portion of the building are now the primary structural concerns. Page 12 CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING - June 11, 2026 Following the catastrophic fire on June 8, the cause remains unknown, and the building was vacant with no active development agreement. The resolution prioritizes preservation but authorizes staff to act quickly to address any immediate safety risks, including using previously allocated funds. Actions taken will be ratified at a future RDC meeting. Secretary Wax stated typically, the RDC appropriates funds before use. Does this resolution provide pre -approval, with spending brought back later for approval? Danielle Campbell Weiss, Senior Asst. City Attorney, responded that the Resolution allows staff to act immediately using pre - approved funds, with expenditures later ratified by the RDC—typically through the claims process. Existing appropriated funds will be used first, and additional spending will follow the same ratification process. Staff will also provide updated details as the project progresses. Vice President White asked, do we have sufficient funds to address the building's needs, given the current uncertainties? Mr. Molnar responded that it's too early to determine total costs. Approximately $750,000 was previously set aside under the former development agreement, and most of those funds remain available and will be used first. A small portion was spent on prior structural analysis. Staff will continue to update the Commission as assessments progress. Commissioner Shaw inquired, "Can the Commission receive regular updates on spending while the resolution is active"? Mr. Molnar stated, "yes, staff will provide updates at upcoming RDC meetings, including findings from inspections and ongoing costs". Commissioner Ellison asked, "Will insurance cover some of the costs, and how does that process work"? Mr. Molnar explained, the property is insured, but specific details, including coverage and deductible —are managed by the administration and finance team. President Relos asked, "How is site safety being addressed, and who determines if demolition is necessary"? Mr. Molar stated that the initial cleanup and perimeter safety measures are underway, including debris removal. Ongoing safety and structural decisions will be guided by the fire marshal, structural engineers, and building department, with assessments beginning immediately. Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved Resolution No. 3673 as presented on June 11, 2026. Page 13 CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING - June 11, 2026 2. Resolution No. 3672 (Authorizing Use ofTIF to Fund Forgivable Loan Beacon Heights) Joseph Molnar, Deputy Director of Community Investment, presented a Resolution to use River West TIF funds to establish an EDC loan for the renovation of Beacon Heights Apartments, a 174-unit affordable housing complex on the City's West side dating to the 1940s and in need of significant upgrades. The City is partnering with L+M Development Partners, an experienced national developer, which plans a $47 million renovation while keeping residents in place through a phased approach. The Resolution initiates a $1.25 million forgivable loan, contingent on full project completion, with additional approvals required from the RDC, EDC, and Common Council. Sophie Cohen, Senior Associate with L+M Development Partners expressed enthusiasm for investing in South Bend and the Beacon Heights project. The team will use a phased renovation approach to minimize disruption, starting with vacant units and relocating residents as work progresses. A dedicated relocation team will support residents with moving, daily needs, and on -site assistance. Units will typically be completed in about 10 days (longer for ADA units), and residents will return to fully renovated spaces. The plan also includes enhanced security measures. L+M emphasized its experience with similar projects and commitment to meeting resident needs. Vice President White asked about the extent of renovations and the unit mix. Ms. Cohen responded that only about 25% of units have received limited interior updates, with no major structural improvements. The complex consists of 174 units, including 24 three -bedroom units, primarily two -bedroom units, and the remainder one -bedroom. Commissioner White also asked, "Are there safety concerns or site improvements to consider"? Ms. Cohen explained that traffic safety near the library remains a concern, including the need for signage or pedestrian access. A community garden is also proposed, in addition to the nearby Unity Gardens site. Commissioner Ellison asked what the current occupancy is, and how renovations will be managed? Ms. Cohen responded, the occupancy is approximately 93%. Renovations will begin with vacant units, then transition residents in phases, allowing most to remain on -site during upgrades. Commissioner Shaw inquired about is this occupancy level typical, and is relocating residents into completed vacant units a common approach? How has the daytime (9-5) temporary relocation strategy worked? Ms. Cohen responded, yes, this is a standard approach. L+M has used it Page 14 CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING - June 11, 2026 successfully across most of its Midwest portfolio, with only rare exceptions requiring full relocation. The phased model —renovating units in about 10 days while providing temporary accommodations and support —has generally worked well, with strong communication and resident services helping minimize disruption. Tina Patton asked, "will rent increase for current residents"? Ms. Cohen stated, no. Rents will not increase. The property will remain under the tax credit program and an existing Section 8 contract, requiring residents to pay 30% of their income. This structure, along with state and federal regulations, ensures affordability continues. Matt Barrett noted that the Beacon Heights property has been challenging in the past but emphasized the city's strong need for affordable housing. With a roughly $1.25 million investment —about $7,200 per unit —the deal appears highly favorable, and they expressed hope it could be replicated if successful. Sam Centellis and Hodge Patel spoke in favor of the project. Council President Canneth Lee thanked the team for their investment, noting his experience working in the Beacon Heights area, and asked what drew them to the project and to South Bend. Sophie with L+M responded that their recent project in Hammond, Indiana, and growing presence in the Midwest led them to seek similar affordable housing opportunities, making South Bend a natural next step. President Relos inquired, "Will the Low -Income Housing Tax Credit (LIHTC) award be confirmed before the development agreement, and what is the timeline"? Mr. Molnar stated the project is expected to receive the 4% tax credit award before the development agreement is finalized. If not, the agreement will be contingent upon receiving the award. The project is anticipated to return to the RDC in about a month for further approval steps. Upon a motion by Gillian Shaw for approval, seconded by Karen White, the motion carried however, Commissioner Wax abstained from the vote due to a conflict; the Commission approved Resolution No. 3672 as presented on June 11, 2026. 3. First Amendment Purchase Agreement (The Row) Erik Glavich, Director of Growth and Opportunity, presented items 5A3 & 5A4 together. This minor amendment to a previously approved purchase agreement and a new development agreement for the "Row at Ward" project on Portage Avenue. Page 15 CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING - June 11, 2026 The project involves a partnership with a local development team to build 15 mixed -income housing on 10 lots to be sold as properties, including units at 100%AMI, 3 units at 120%AM I, and market rate, phased to respond to market demand. The City's role focuses on supporting infrastructure improvements to prepare the vacant site for redevelopment. Community engagement is underway, with construction anticipated to begin in late 2026. Mr. Glavich highlighted the development team's prior work on the Northwest side, including new duplexes on Sherman, and their commitment to delivering quality affordable housing in historically underinvested neighborhoods. He outlined the proposed site plan and requested $950,000 in City support for this phase to fund critical construction and infrastructure needs. The developer will invest $2.1 million, with unit mix, income targets, and timelines aligned with the purchase agreement. Jordan Richardson, ID2 LLC representing the development team, expressed appreciation for the opportunity and highlighted the group's collaborative effort. The project includes 15 total units across 10 homeownership lots, some of which will feature accessory dwelling units (ADUs). These ADUs—typically located above garages —provide homeowners with an opportunity to generate additional income and offset housing costs. The development will include a mix of townhomes and one owner - occupied duplex, contributing to a diverse housing offering. —and will be developed in phases to gauge market response. The City's support will focus on essential infrastructure improvements. The team emphasized thoughtful design aligned with the neighborhood and ongoing community engagement, with input sessions underway and groundbreaking anticipated in late 2026. Mr. Richardson invited all to attend the Community BBQ & Neighborhood meeting on June 17tn Vice President White spoke in favor of the project and in Mr. Richardson in particular. Secretary Wax asked, "Was the development partnership presented at the time of the purchase agreement approval"? Mr. Molnar stated that the partnership was referenced during due diligence, but a development agreement was not brought forward at that time. Staff proceeded with the purchase agreement first to allow the developer to complete necessary design and cost analysis. This approach avoided premature terms and the need for later amendments, though staff acknowledged the value of presenting the full project scope earlier when possible. Page 16 CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING - June 11, 2026 Commissioner Shaw asked to explain the strategy behind including ADUs and how they will function for homeowners? Mr. Richardson explained that the ADUs are included to maximize land use and provide homeowners with an option to generate rental income or house family members. Typically located above garages, they help offset housing costs and improve affordability. While not suited for every buyer, they offer flexibility and will be supported through resident education and market guidance. Steve Smith, with Irish Realty LLC emphasized that ADUs are a key tool for improving housing affordability. By adding rental units, homeowners can generate income —often $800-$950 per month —helping offset mortgage costs and expand purchasing power. He noted that this approach supports a mix of price points (roughly $230K-$300K), increases housing access, and makes more efficient use of infrastructure, positioning ADUs as an important solution for "missing middle" housing. Sam Centellis, Chris Godlewski, Claudia Mendez -Perkins, Council President Canneth Lee, and Mike Keen all spoke in favor of the project. Secretary Wax commended the team in this project as well. Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Amendment as presented on June 11, 2026. 4. Development Agreement (The Row) Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Development Agreement as presented on June 11, 2026. B. South Side Development Area 1. Budget Request (Rebuilding Our Streets, Arterial Roads) Leslie Biek, Assistant City Engineer of Public Works, presented both 5131 and 5C1 together. Ms. Biek is requested funding to pave arterial streets as part of the City's street improvement plan. While the City typically balances arterial and residential needs, available contractor capacity allows for additional work focused on major roads. The request includes $1 million from River East and $1.3 million from South Side TI F, with existing funds covering River West. Projects are expected to be bid this month, awarded by late July or early August, and completed this season with milling and pavingwork. Page 17 CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING - June 11, 2026 Commissioner Shaw asked about the timeline for the completion of the paving project and Ms. Biek stated September or October of 2026. Upon a motion by Eli Wax for approval, seconded by Karen White, the motion carried unanimously; the Commission approved the Budget Request as presented on June 11, 2026. C. River East Development Area 1. Budget Request (Rebuilding Our Streets, Arterial Roads) Upon a motion by Eli Wax for approval, seconded by Karen White, the motion carried unanimously; the Commission approved the Budget Request as presented on June 11, 2026. 2. Purchase Agreement (Sale of Former VPA East Race Building) Joseph Molnar, Deputy Director of Community Investment, presented a purchase agreement for the sale of 126 N. Niles, a former parks building in the East Bank area that has been largely unused for over a decade. The property, approximately 0.25 acres with a 1,900-square-foot building, will be sold to Greater Lowell Holdings LLC for $83,000 based on a recent appraisal. The developer plans to rehabilitate the buildingfor active use and complete necessary repairs. The agreement requires roof and HVAC repairs, one year of active occupancy after completion, a 90- day due diligence period, and construction completion within 24 months of closing. Riley Ellingsen, with Greater Lowell Holdings LLC explained that the immediate plan is to activate the buildingwith a small e-commerce tenant needing space for administrative and fulfillment operations, along with temporary storage for nearby restaurant operations. Long term, the goal is to transition the property to a service -oriented retail use and potentially integrate it with adjacent parcels for broader redevelopment. President Relos questioned, "Do you expect the renovation timeline to take the full two years"? Mr. Ellingsen stated no. While the agreement allows up to two years, we expect repairs and occupancy to occur much sooner, as we are already familiar with the building and have an immediate need to activate the space. Upon a motion by Eli Wax for approval, seconded by Gillian Shaw, the motion carried unanimously; the Commission approved the Purchase Agreement as presented on June 11, 2026. D. River East Residential Development Area Page 18 CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING - June 11, 2026 1. Budget Request (Colfax Ave. Bridge) Leslie Biek, Assistant City Engineer of Public Works, requested $3,500,000 in funding for enhancements to the Colfax Bridge project in coordination with planned County repairs. While the County will complete maintenance work, the City proposes additional improvements aligningwith the Colfax and MLK streetscape projects. These include wider pedestrian and multi -use paths, separated railings for safety, improved bike access, decorative lighting, and architectural features to better connect the bridge to downtown. The City will fund only its enhancements. Construction is expected to begin in August and be completed by November. Secretary Wax asked what the impact the project will have on traffic flow is. Ms. Biek responded that the travel lanes will narrow slightly from 12 to 11 feet, which may slow speeds modestly, but overall traffic flow and lane configuration will remain largely unchanged. Commissioner Wax also inquired, will the intersection changes affect efficiency? Ms. Biek confirmed that minor changes include bump -outs, removal of one northbound right -turn lane at MLK, and improved signalization with additional poles and turn phases. These updates are expected to maintain overall flow while improving safety and visibility. Vice President White asked to confirm that emergency vehicles can navigate the changes? Ms. Biek confirmed that they have adjusted the plan to accommodate emergency vehicles. Commissioner Shaw asked if the $3.5 million parts of the full project bid, and does it include a contingency? Ms. Biek stated yes. The $3.5 million represents the City's portion of the overall project and includes a contingency. The County will manage the contract and bill the City only for its share of costs, with itemized breakdowns. Commissioner Shaw also asked, is the City contracting directly with the construction team? Ms. Biek stated no. The County will handle bidding and contracting under an interlocal agreement, with the City reimbursing its portion. Ms. Biek also confirmed that this will make the downtown pedestrian loop more accessible. Upon a motion by Gillian Shaw for approval, seconded by Karen White, the motion carried unanimously; the Commission approved the Budget Request as presented on June 11, 2026. 6. Progress Reports A. Tax Abatement Page 19 CITY OF SOUTH BEND I REDEVELOPMENT COMMISSION REGULAR MEETING - June 11, 2026 None B. Common Council The Council has completed the budget process. Details are posted on the City website. C. Other Joseph Molnar, Deputy Director of Community Investment, gave updates on the following. ■ Qualex Building Demolition Project is almost complete. • Rum Village Neighborhood Community Center Meeting on June 15tn • Drewry's Site, wrapping up final phases and City staff will conduct a meeting to update the public on June 23-24tn 7. Next Commission Meeting Thursday, June 25, 2026, 9:30 a.m., City Hall Council Chambers 3rd Floor 8. Adjournment Thursday, June 11, 2026,11: 22 a.m. r Gilli' n Shaw, Commissioner Page 110 r avid Relos, Pr sident