HomeMy WebLinkAbout07-09-10 Erskine Commons succeeds 15 years ahead of scheduleOffice of the Mayor
NEWS RELEASE
July 9, 2010
3:00 PM
Erskine Commons succeeds 15 years ahead of schedule
Contact:
Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-
1564, Don Inks, Director of Economic Development, 235-9371, or Bill Schalliol, Economic
Development Planner, 235-9371
Six years ago, a 50-acre site near Michigan Street and Ireland Road featured a former
landfill in need of environmental remediation and a variety of underused properties at
what was believed to be a highly viable commercial location near U.S. 31 and U.S. 20.
The Redevelopment Commission and the administration of Mayor Stephen J. Luecke
envisioned a development site featuring 330,000 to 400,000 square feet of retail to anchor
the western end of an Erskine Hills Shopping District, stretching along Ireland Road to
Ironwood Drive. The development was jump started by public investment from the sale
of two bonds totaling nearly $6 million to be repaid by anticipated increases in property
tax revenue resulting from the growth in the assessed value of that site.
Since then, the creation of Erskine Commons has led to the development of more than
476,000 square feet of new commercial space. More than $56.5 million in private and
public investment has included commercial outlets like Wal-Mart, Lowe’s and Gates
Toyota, and led to the creation of 740 new jobs. Each of these targets surpassed original
estimates of what could be accomplished in 20 years.
Today, the South Bend Redevelopment Commission unanimously approved a plan to
next month pay off one of the two remaining bonds that funded the public improvements.
Pay off of the final bond is anticipated early in 2011.
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“Erskine Commons has succeeded by every measure at a faster pace than we projected,
despite its development during the nation’s most troubled economic time since the Great
Depression,” said Mayor Stephen J. Luecke. “Not only did the private sector meet its
targets, but we are generating more than four times the tax revenue that originally was
projected. That enables us to pay off these bonds 15 years ahead of schedule.
“This project epitomizes the success of our Redevelopment Commission,” Luecke added.
The Redevelopment Commission’s 2004 development agreement with Anchor Properties
Ltd. of Covington, Ky., anticipated two types of bonds being issued for public
improvements to support Erskine Commons:
1 Tax Increment Finance Revenue bonds issued in 2006 for $2.44 million for
improvements to Ireland Road and its intersection with Michigan Street.
2 An Economic Development Commission bond issued in 2005 for $3.5 million to
fund site improvements, including capping an old landfill, demolishing small
structures on site and relocating utilities.
Both bond issues have maturity dates in 2025.
The plan approved by the Redevelopment Commission today will pay off the $2.3-
million balance on TIF Revenue bonds in August. With the remaining cash balance plus
anticipated TIF revenue by the end of the year, staff anticipate seeking approval for
payoff of a $3.3-million balance on the EDC bond in the first quarter of 2011.
The TIF district for Erskine Commons is generating $3.1 million annually in TIF revenue,
compared with the original projection of $750,000 annually. And there’s the potential for
additional development on at least four lots within the site.
“Erskine Commons continues our development success on the south side, which is
enhancing the growth of residential subdivisions within the city,” Luecke said. “As we’ve
done with Frederickson Park and Eddy Street Commons, we have at Erskine Commons
returned abandoned land back to productive and positive use for the community.”
The larger southside Erskine Hills Shopping District has seen more than $156 million in
investment since the Redevelopment Commission declared the South Side Development
Area in 2002 as Scottsdale Mall was in its waning days. In addition to Erskine Commons,
Erskine Village on the former mall site has seen more than $75 million in private
investment and the development of more than 510,000 square feet of retail on 52 acres.
Additional investment, nearly $25 million, occurred with the expansion of Broadmoor
Shopping Center, Erskine Plaza and surrounding businesses.
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