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HomeMy WebLinkAboutRedevelopment Commission Minutes 06.25.26 - SignedSouth Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Minutes Regular Meeting June 25, 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 David Relos presiding. 1. ROLL CALL Members Present: David Relos, President Gillian Shaw, Commissioner Ophelia Gooden-Rodgers, Commissioner Marcus Ellison, Non-Voting Advisor Members Absent: Eli Wax, Secretary Members Virtually: Karen White, Vice President 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 Erin Michaels, Property Development Manager, DCI Allison Doctor, Project Manager, DCI - Virtual Laura Hensley, Board Secretary, DCI Attending: Abigail Magas, City Engineer, Engineering Leslie Biek, Assist. City Engineer, Engineering Patrick Sherman, Project Manager, Public Works Zach Hurst, Senior Engineer, Engineering Nifemi Oluwatomini, Senior Engineer, Engineering Murray Miller, 1201 Priscilla Dr. Thomas Everett, Barnes & Thornburg Matt Barrett, 110 S. Niles Ave. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 Page | 2 Linda Brotherson, Great Lakes Capital Rich Dealh, Great Lakes Capital Alyson Herzig, S.B.R. Chamber Ethan Rendell, S.B.R. Chamber Hodge Patel, Abonmarche 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, June 11, 2026 Motion was made by Ophelia Gooden-Rodgers to approve the Minutes of the regular meeting of June 11, 2026, second by Gillian Shaw. On the motion: • David Relos, President: YEA • Karen White, Vice President: YEA • Gillian Shaw, Commissioner: YEA • Ophelia Gooden-Rodgers, Commissioner: YEA The motion carried; the Commission approved the Meeting Minutes on June 25, 2026. 3. Approval of Claims A. Claims Allowances June 9, 2026 Motion was made by Gillian Shaw to approve the Claims Allowances of June 9, 2026, second by Ophelia Gooden-Rodgers. On the motion: • David Relos, President: YEA • Karen White, Vice President: YEA • Gillian Shaw, Commissioner: YEA • Ophelia Gooden-Rodgers, Commissioner: YEA The motion carried; the Commission approved the Claims Allowances on June 25, 2026. 4. Old Business A. None 5. New Business A. River West Development Area 1. Resolution No. 3674 and Lease Agreement (Beginning New River West Bond Process) CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 Page | 3 Joseph Molnar, Deputy Director of Community Investment, presented a resolution to initiate a new bond process for the River West TIF District. Tom Everett (Barnes & Thornburg) provided an overview of the process, noting it has been approximately four years since the last bond issuance. The Commission considered a resolution initiating proposed lease financing to fund projects within the River West Development Area. The resolution approves the form of a lease between the Redevelopment Commission and Redevelopment Authority. Under the structure, the Commission would lease portions of city roadways (including Chapin Street, Sample Street, and Colfax Avenue) and make lease rental payments from River West TIF. The Authority would use these payments to service bond debt. The proposed lease has a maximum term of 19 years and a maximum annual payment of $5 million, to be reduced to the amount necessary to cover bond principal and interest once issued. A property tax backup is included but is intended only as secondary security. Next steps include publication of notices and a public hearing at the July 9 Commission meeting, followed by approvals from the Redevelopment Authority and Common Council. Bond closing is anticipated in early October. President Relos asked what is the total bond amount? Mr. Everett stated that the project is currently contemplating a maximum issuance of $33 million. While this amount is not specified in the lease, it will be included in future approvals brought before the Redevelopment Commission. Mr. Molnar explained that previous bonds have supported the following projects: Kennedy Park improvements are currently under construction and expected to be completed next year, including expansion of the pool and playground and other upgrades. Additional bond-funded projects are complete, including improvements to the MLK Dream Center (playground, splash pad, and basketball courts), Linden Ave. streetscape enhancements, and Southeast Park splash pad and playground upgrades. The Southeast Park splash pad and playground improvements are complete. The River Bridge Connector project is set to begin construction this year, with completion anticipated in 2027. Walker Field Park improvements and the enhanced connection from Rum Village are complete. The Madison Lifestyle District parking garage is under construction and expected to be completed next year. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 Page | 4 The Portage/Elwood sidewalk project is currently on hold due to the City’s recent acquisition of the adjacent shopping center. Funding remains reserved, and the project will be revisited as part of a broader redevelopment plan. Overall, the previous River West neighborhood bond has advanced significantly, with most projects completed or underway, including the Four Winds Field expansion (completed in 2024). The proposed bond also includes funding to support a future West Side neighborhood park, primarily for land acquisition, in response to strong community demand identified in the 2022 neighborhood plan. Additionally, funds will support initial infrastructure for redevelopment of the Drewry’s and Portage/ Elwood sites. Community feedback has emphasized restoring the Portage/Elwood commercial area, expanding housing (including affordable options), and revitalizing the site. While bond funding will not cover full buildout, it will support initial phase improvements alongside other secured funding sources. Mr. Molnar reviewed projects proposed for bond funding: • Coal Line Trail – Phase III: Extends the completed Phase I (2022) and Phase II (2024) from Lincoln Way West to the Dream Center along College Street. The project leverages 80% federal funding, with the bond supporting the local match. • College Street Improvements: Streetscape upgrades aligned with the Coal Line extension, consistent with the Kennedy Park Neighborhood Plan. • Rum Village Neighborhood Center: Renovation of the former William Penn building (1024 W. Indiana Ave.) into a community center with Boys & Girls Club programming and additional community space, informed by ongoing engagement. • Near West Side Neighborhood Park: Funding primarily for land acquisition and limited initial improvements; site selection is ongoing, addressing the neighborhood’s lack of a city park. • Drewry’s/Portage/Elwood Redevelopment Infrastructure: Initial infrastructure to support redevelopment of the site following City acquisition. Community feedback emphasizes restoring the Portage/Elwood commercial area, adding housing (including affordable options), and neighborhood-serving retail. The concept plan remains preliminary and will evolve as design continues. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 Page | 5 Mr. Molnar explained that the bond would support several priority projects: • Muessel Grove Park improvements: Enhancing connectivity, expanding access, removing barriers (including fencing), and activating the space as a neighborhood hub. While bond funds will not fully achieve the long-term vision, they will enable key improvements. • Infrastructure for affordable housing (Tri-Day/New Day): Funding sewer, water, and road extensions to support 42 new low-income homes at Tri-Day and access improvements tied to the New Day project. • Morris Performing Arts Center parking garage: Supporting Phase III of the Morris 100 initiative by constructing an attached garage to improve accessibility, address parking demand, and leverage existing campaign funds. Mr. Molnar emphasized that bond funding is critical to advancing these projects. The process will include multiple public approvals (RDA, RDC, Common Council) and opportunities for community input. He invited questions, alongside Mr. Everett for process-related inquiries. Commissioner Gooden-Rodgers raised the question regarding soil testing at the site. Mr. Molnar indicated that environmental testing has largely been completed, with only minor, manageable remediation needed. However, additional geotechnical testing is still underway to determine soil stability and suitability for construction, particularly given historical site conditions, including a former ice pond and fill materials. This analysis will guide future decisions on building locations, road placement, and potential park expansion. The Sonoco site will be remediated as well. Commissioner Shaw raised a question regarding whether leasing the streets would make the Redevelopment Commission responsible for maintenance. Mr. Everett clarified that the City retains full responsibility for street maintenance, including repairs and upkeep, despite the lease structure. In response to a follow-up question, Mr. Molnar noted that the City typically remains financially responsible for these costs. However, the Redevelopment Commission has historically supported street improvements within the River West area through TIF-funded paving and is expected to continue doing so through future requests. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 Page | 6 Commissioner Shaw asked for clarification on the approval process. Mr. Molnar confirmed that the current action approves the initial lease structure, with final approval anticipated in July following required steps. Individual projects and associated funding allocations will return to the Redevelopment Commission for separate approval. In response to a follow-up question, Mr. Molnar noted that specific dollar amounts are not yet assigned. Project budgets will be developed and presented as designs advance and funding needs are finalized. Motion was made by Ophelia Gooden-Rodgers to approve Resolution No. 3674 and the Lease Agreement, second by Gillian Shaw. On the motion: • David Relos, President: YEA • Karen White, Vice President: YEA • Gillian Shaw, Commissioner: YEA • Ophelia Gooden-Rodgers, Commissioner: YEA The motion carried; the Commission approved Resolution No. 3674 and Agreement on June 25, 2026. 2. Notice to Commence Agreement (Madison Lifestyle, Great Lakes Capital) Erik Glavich, Director of Growth & Opportunity, presented the next milestone for the Madison Lifestyle District project: approval of a Notice to Commence with Great Lakes Capital. Following prior extensions of the due diligence period, Mr. Glavich reported the project is ready to proceed. The Notice to Commence, required under the development agreement, authorizes the developer to begin construction and confirms that key conditions have been met. Mr. Glavich described the project’s scale and complexity are significant, with substantial City investment already underway, including site preparation, demolition, and utility work. The agreement also clarifies and reconfirms the City’s local public improvements, including expanded infrastructure commitments. The Notice to Commence applies to Phase I only. Phase II remains in a due diligence stage, with a deadline of October 2027 to issue a second Notice to Commence. If not issued, the City may re-acquire ownership of Phase II parcels. Mr. Glavich concluded by noting the project will introduce a new hotel and mixed-use development, serving as a major CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 Page | 7 investment in the north downtown area. INDOT is also developing a roundabout for traffic and safety concerns. Mr. Glavich stated that the development agreement was approved in March 2024, when the project was still in its early stages. Since then, the project has evolved to improve feasibility, including increasing residential units from 150 to 190 and expanding the hotel from 105 to 119 rooms. The developer has identified an upscale national hotel brand (Tempo by Hilton) for the project. The commercial component has also been refined to include a French café-style restaurant and other public- facing amenities. The Notice to Commence updates the original project plan to reflect these changes and aligns the agreement with the project’s current scope as well as local public improvements. Rich Dealh with Great Lakes Capital introduced himself and Linda Brotherson as in-house counsel and members of the development team. He thanked City staff and the Commission for extending the due diligence period and noted strong collaboration with City staff to refine a transformative project aligned with broader downtown and Beacon Health priorities. Mr. Dealh highlighted ongoing coordination efforts related to site planning, infrastructure, garage construction, and project scheduling to ensure the development is financially viable with a pledge of tax revenues. He expressed appreciation for progress on Phase I and continued interest in advancing Phase II in alignment with surrounding downtown investments. Deal concluded by noting the team’s focus on delivering a project that supports the area’s long-term vision. Commissioner Gooden-Rodgers asked about projected tax revenues from the project. Mr. Dealh reported that estimated annual property tax revenue from Phase I (hotel and multifamily) is approximately $950,000 to $1,000,000. Mr. Dealh noted that about 90% of these revenues, along with certain state-related revenues (including employment and sales taxes), would be pledged to support bond financing. Based on this analysis, financial advisors estimated these revenues could support a bond of approximately $17.9 million for Phase I. President Relos asked whether the revenue projections applied to Phase I or both phases. Linda Brotherson with Great Lakes Capital clarified that the estimates reflect Phase I only and are based on analyses developed with Baker Tilly during the extended due diligence period. It was further noted that the proposed financing is a self- supporting bond, not a general obligation of the City. The developer will bear the risk associated with revenue performance. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 Page | 8 Commissioner Gooden-Rodgers had additional questions, Ms. Brotherson indicated the residential component (approximately 190– 195 units) is planned at around 100% AMI, intended to serve workforce housing needs without income restrictions. Finally, Ms. Brotherson noted that while the City is leading certain infrastructure work, the developer’s contractors are expected to utilize local subcontractors and labor where feasible. Commissioners Shaw confirmed that the 90% revenue pledge applies to Phase I and asked whether the City would cover any shortfall if revenues do not meet projections. Ms. Brotherson clarified that the bonds are not a general obligation of the City and that the developer assumes the revenue risk once issued. In response to a follow-up question, Mr. Glavich noted that if revenues exceed bond debt service requirements, the surplus would be retained by the City. President Relos asked whether this financing approach was anticipated from the outset. Ms. Brotherson clarified that the original development agreement (March 2024) contemplated a tax abatement; however, the IDD financing tool did not exist at that time. Once it became available approximately a year and a half ago, the City shifted to this approach, which replaced the need for a tax abatement. Commissioner Gooden-Rodgers asked about the timeline. Mr. Dealh reported that construction of the multifamily and hotel components is expected to begin in December 2026, with financing and site readiness aligned for project completion by the end of 2028 with the garage completed in 2027. Commissioner Marcus Ellison asked about how many full-time jobs will be associated with Phase I? Mr. Dealh indicated that the multifamily component will generate limited jobs (approximately 4–5 positions for property management and maintenance), while the hotel is expected to create 50–60 jobs, including hotel and restaurant staff. The parking garage will be City-owned and operated, with staffing consistent with other City garages. Mr. Glavich also noted that, consistent with prior agreements, the City will work toward a parking arrangement with Beacon Health System to allow use of the garage by employees and visitors. Matt Barrett asked about the projected 7.5% return and whether the City is obligated to ensure that return. Mr. Glavich clarified that the return is not guaranteed by the City. The developer agreed to a 7.5% return threshold (reduced from 8%) and assumes the associated CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 Page | 9 financial risk. Once the bonds are issued, there is no obligation for the City to cover any shortfall. Mr. Barrett asked whether there is a cap on the City’s financial commitment. Mr. Glavich explained that support is limited to the pledged revenue streams, including 90% of TIF revenues and certain eligible taxes, as structured through the bond issuance. The bond amount establishes the City’s effective financial cap. Mr. Dealh further clarified that any revenues exceeding debt service requirements would be retained by the City, and once the bonds are paid off, all TIF revenues are reverted to the City. The developer assumes the risk of achieving the projected 7.5% return, and the City has no additional obligation beyond the agreed structure. He also mentioned that the room rates are in line with other average daily rooms with competitive hotels in the downtown area. Murray Miller asked whether property tax projections accounted for SB1-related impacts. Mr. Glavich explained that initial estimates did not fully incorporate certain changes, but updated analyses by Baker Tilly include the effects of applicable deductions and caps. Mr. Glavich further clarified that recent SB1 changes, including expanded deductions for non-homestead residential properties, were incorporated into the projections, resulting in lower assessed values and corresponding tax revenues for multifamily components. Kendra Martin raised concerns about potential impacts on utilities, including water and power capacity, and asked whether the project would incorporate sustainability features such as rooftop solar or graywater reuse. Ms. Brotherson responded that solar is not currently planned for the site. However, the City and developer have been coordinating on drainage and infrastructure planning to ensure adequate capacity and system performance. Motion was made by Gillian Shaw to approve the Notice to Commence Agreement, second by David Relos. On the motion: • David Relos, President: YEA • Karen White, Vice President: YEA • Gillian Shaw, Commissioner: YEA • Ophelia Gooden-Rodgers, Commissioner: YEA The motion carried; the Commission approved the Agreement on June 25, 2026. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 Page | 10 B. South Side Development Area 1. Budget Request (Rum Village Park Improvements, Phase I) Patrick Sherman, Project Manager, Public Works, presented a request for Rum Village Park improvements and provided background on the project. He noted the Rum Village Neighborhood Plan, completed in 2021 and adopted in 2022, identified the park as a priority. Since then, related efforts include Walker Field improvements (underway and bidding) and completed connectivity enhancements. Venues Parks & Arts recently completed a park master plan in partnership with Site Design, supported by extensive community engagement. Phase I improvements will focus on core infrastructure and widely supported enhancements, including roadway repaving, entrance upgrades, signage and wayfinding, improved connectivity (Wi-Fi and security), and potential new amenities such as a pavilion. Mr. Sherman requested $2.0 million in South Side TIF funding to begin Phase I improvements. Commissioner Gooden-Rodgers asked whether the improvements represent a complete project or a phased approach. Mr. Sherman clarified that the request is for Phase I only, with additional phases outlined in the master plan to be implemented as funding becomes available. Mr. Sherman noted the intent is to address the most critical needs first and pursue future funding for subsequent phases. Commissioner Shaw asked for clarification on the $2.0 million budget, Mr. Sherman indicated that over half is allocated to roadway paving, approximately one-quarter to signage, wayfinding, and connectivity improvements, and the remainder to utilities and smaller upgrades, including a potential pavilion replacement. A contingency of approximately 10% is included. Mr. Sherman also confirmed that the Ewing Street entrance will be removed for safety reasons, with primary access shifted to the Gertrude Street entrance. Motion was made by Gillian Shaw to approve the Budget Request, second by Karen White. On the motion: • David Relos, President: YEA • Karen White, Vice President: YEA • Gillian Shaw, Commissioner: YEA • Ophelia Gooden-Rodgers, Commissioner: YEA CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 Page | 11 The motion carried; the Commission approved the Budget Request on June 25, 2026. 2. Budget Request (Ewing Trail Design) Nifemi Oluwatomini, Senior Engineer, Engineering presented a request for funding to support design of the Ewing Trail. The proposed project includes a 10-foot multi-use path along the South Side of Ewing Avenue, connecting existing trail segments from Gertrude Street to Olive Street. The project will utilize primarily existing right-of-way, with some temporary easements anticipated during construction. The design phase will be funded through an 80/20 INDOT program, with construction anticipated in 2030. The current request is for $200,000 in South Side TIF funds to support preliminary engineering through 30% design, as well as evaluation of the Ewing/Prairie intersection for safety improvements. Leslie Biek, Assistant City Engineer, noted that the project will primarily use existing right-of-way, with some temporary easements needed during construction. Ewing Ave. will be slightly narrowed to accommodate the 10-foot multi-use path. The current request is limited to design only; right-of-way acquisition will occur in later phases. Mr. Oluwatomini also confirmed that outreach to adjacent residents has not yet begun but will be included as part of the design process. Motion was made by Ophelia Gooden-Rodgers to approve the Budget Request, second by Karen White. On the motion: • David Relos, President: YEA • Karen White, Vice President: YEA • Gillian Shaw, Commissioner: YEA • Ophelia Gooden-Rodgers, Commissioner: YEA The motion carried; the Commission approved the Budget Request on June 25, 2026. 6. Progress Reports A. Tax Abatement None B. Common Council Ophelia Gooden-Rodgers stated that the Council accepted the report from repertory justice. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – June 25, 2026 Page | 12 C.Other Joseph Molnar, Deputy Director of Community Investment, gave updates on the following. •The Lafayette Building, awaiting the full structural report. •St. Margarets House, groundbreaking today, June 25th. D.President Relos announced that this is Commissioner Gillian Shaw’s last meeting. The Commission thanked her for her service and wishes her the very best. 7.Next Commission Meeting Thursday, July 9, 2026, 9:30 a.m., City Hall Council Chambers 3rd Floor 8.Adjournment Thursday, June 25, 2026, 11: 25 a.m. ______________________________ ______________________________ Eli Wax, Secretary David Relos, President