08-17-2007 New strategy seeks to expand downtown renaissance

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KeyBank plaza, restore the All American Plaza and create a design for a new Town Square south of the Michigan/Washington intersection. • Begin the first phase of planning for mixed-use development on the East Bank. • Secure former Gates Chevrolet properties for new development in conjunction with planning for a reoriented entrance to Coveleski Regional Stadium. • Acquire and demolish blighted property at a key downtown entrance at the southwest corner of Michigan and Monroe. • Assemble the last piece in a West Washington Street promenade of historically significant buildings, stretching from downtown to the Museums at Washington and Chapin, to make room for a relocated downtown business. "There are several themes that provide a guiding framework for downtown development, including arts and entertainment, banking and industry, historic heritage, government services and health-care services," said Jeff Gibney, interim director of community and economic development, who led the planning effort. "We want to engage the business community, as well as educational institutions, in planning for the downtown's long-term economic growth. We also want to develop the riverfront and open spaces to create exciting public spaces and livable neighborhoods." According to a 2002 survey, nearly 18,000 people work downtown, which already has been the scene of dynamic growth. Office occupancy is on the rise with 9 of every 10 offices occupied. In 2004 Expansion Magazine ranked South Bend for the first time "among the 40 hottest real estate markets for business. The presence of the St. Joseph Valley Metronet brought a Utah developer with plans to invest $14 million to convert the former Studebaker Administration Building into high-tech office space. Several new restaurants have moved downtown, including Trio's jazz club and Rum Runners Dueling Piano Bar along Michigan Street, the latter moving from Mishawaka. Major investment is taking place in the central core—by Baker & Daniels in the KeyBank Building as well as at the All America Plaza. Last month, REI Investments announced its plan to build a 200- room hotel atop a new parking garage at Jefferson Boulevard and St. Joseph Street, across from Century Center. They've set aside up to 50 units for Gameday condominiums —a project that could happen in conjunction with the new convention hotel or at another site. And for those who feared the forthcoming $200-million Eddy Street Commons would take away from downtown, the proposed convention hotel would be operated by White Lodging (which also will operate the two new hotels in the Eddy Street Commons). Based on planning by the city's Community and Economic Development staff in consultation with downtown stakeholders, the city will use a market-based strategy supplemented by a"reasonable" monetary contribution by the city, giving priority to: • Projects developed on city-owned property. • Development contiguous to other efforts that could serve as a catalyst for future development. • Immediate implementation of"slam dunk"projects that can be accomplished quickly. • Key goals for downtown development, including highly desirable retail and market- rate housing. • Addressing immediate conditions of slum and blight. The bulk of the city's resources for investment come from revenue in the downtown TIE (tax increment financing) district. In a TIE district,the increase in tax revenue generated