HomeMy WebLinkAbout03-06-08 With bond sale, Eddy Street Commons moves forwardOffice of the Mayor
NEWS RELEASE
March 6, 2008
5:30pm
With bond sale, Eddy Street Commons moves forward
Contact: Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564
or Don Inks, Director of Economic Development, 235-9371
Even at a tenuous time nationally for the bond market, a $36-million bond to finance the
Eddy Street Commons project sold successfully Wednesday, the City's last major hurdle
before the start of a $200-million development that will transform South Bend.
Crowe Chizek and City Securities, representing the City of South Bend, reported that the
city will have the full $35 million available for the project after the bond issuance costs,
according to Don Inks, director of economic development.
The 25-year bond will cover the cost of constructing a 1,280-car parking garage,
development of on-site infrastructure as well as improvements along Eddy Street and the
extension of three city streets.
"The quick sale of these bonds highlights both the strength of this project and the City of
South Bend's fiscal stability," said Mayor Stephen J. Luecke. "Eddy Street Commons,
one of the region's largest single developments in decades, now can move forward on a
sound footing."
Indianapolis-based Kite Realty Group, which is developing the project on property
owned by the University of Notre Dame, is preparing to begin construction as soon as it
officially acquires the property. Because the parking garage is surrounded on all sides by
other structures, construction will begin first on that facility along with the utility
infrastructure and an extension of Napoleon Street by the City of South Bend.
The $200 million mixed-use development also includes:
~ Two hotels - anine-story, 255-room full-service hotel (with three floors of
condominiums) and asix-story, 139-room limited-service hotel.
More than 20 stores and restaurants among 89,000 square feet of retail space.
75,000 square feet of office space.
Hundreds of town homes, apartments and condominiums.
The for-profit venture is expected to generate more than $52 million in property and sales
tax revenue over 10 years for the city, some of which will support the project. An
economic impact study shows that Eddy Street Commons will directly create 779 jobs
during construction and another 1,132 jobs over 10 years within the development itself.
Indirectly, another 1,254 jobs will be created outside the development, increasing local
household earnings by a projected $109 million.
The next phase will bring more private investment and development that will stretch from
Eddy and Edison to LaSalle and Lafayette, from the edge of the University to the center
of the City, from Gown to Downtown."
Long-term planning with neighbors, Notre Dame and other partners began more than a
decade ago and set the stage for this transformative development in the Northeast
Neighborhood.
On a parallel path, a residential area immediately south of the Eddy Street Commons will
experience redevelopment as the neighborhood is re-platted with 60 market-rate and
affordable homes. Tax-increment financing supported by the Eddy Street Commons will
make the additional $15 million development possible. In addition, to the east, the city
and Notre Dame are working with Project Future, an economic-development organization
for St. Joseph County, on a 10-acre technology and research park.
"I believe this development will draw from suburban development more than from
downtown," Luecke said. "It will bring more people back to the downtown area. This
project will create vitality, energy and enthusiasm to help grow development in South
Bend."
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