Redevelopment Commission Agenda & Packet 07.24.25

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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – July 10, 2025 3 convenient access and direct parking into the theater. Mr. Molnar gave details of the RFP and an overview of the submissions and ultimately chose Seven Diamonds (a local developer group) with financing through Everwise Credit Union. Seven Diamonds offered a higher private vesting commitment and, we believe, a lower public investment requirement. The proposal features an attractive building design with consistent masonry elements. The RFP emphasized that building materials would be a key evaluation criterion and that the project should reflect both the architectural character of surrounding properties and the broader history of South Bend architecture. That block includes architectural gems like the Palais, the Morris, and the LaSalle buildings. It’s important that any new development fits seamlessly into that context—and we believe this project does a better job of that, particularly through its masonry- forward design. The developer has committed to preserving this traditional aesthetic in a future agreement aligned with the redevelopment vision. Additionally, the site plan includes a fully wrapped parking garage, unlike the alternative proposal where the garage would remain partially exposed, especially visible from the Morris and other buildings when viewed from the Riverside. In this version, the garage would be enclosed to resemble a traditional building, enhancing the overall streetscape. Staff recommend that the Redevelopment Commission ratify the proposal with Seven Diamonds as they best meet the Main Street Housing RFP goals. If approved, staff will begin drafting agreements with them. This doesn’t commit the Commission to a final deal—if terms don’t align later, the Commission can still vote no. We believe it’s the stronger proposal and worth pursuing. Vice President Relos asked about how many levels the parking garage will be, and Mr. Molnar stated five (5). Mr. Relos also asked about the small parking lot owned by Hoffman at the Northwest portion of the area and Mr. Molnar stated that would not be an issue. Secretary Wax added that he agrees with the choice and asked about the viability of the project. Caleb Bauer, Executive Director of Community Investment, stated that at this stage, we haven’t begun financial negotiations with the developer. We haven’t reviewed a full pro forma yet, but we do have pre-qualification letters from their lender and a clear sense of their proposed loan and equity mix. One key strength of the Seven Diamonds proposal is the significantly higher equity contribution compared to the other submission—demonstrating stronger commitment and lower risk for the city. Ideally, we prefer deals where equity outweighs public incentives, as it ensures the developer carries more of the risk and is motivated to deliver a quality project.