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HomeMy WebLinkAboutRedevelopment Commission Agenda & Packet 09.24.26South Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Agenda Regular Meeting September 24, 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 1. Roll Call • David Relos, President – (Mayor) December 2025 to December 2026 • Karen White, Vice President – (Council) May 2026 to December 2027 • Eli Wax, Secretary – (Mayor) February 2025 to December 2027 • Ophelia Gooden-Rodgers, Commissioner – (Council) February 2025 to December 2027 • Maureen Miller - Commissioner (Mayor) July 2026 to December 2029 • Marcus Ellison, Non-Voting Advisor – (School Board) February 2025 to December 2026 2. Approval of Minutes A. Minutes of the Regular Meeting of September 10, 2026 3. Approval of Claims A. Claims Allowance September 1, 2026 B. Claims Allowance September 8, 2026 4. Old Business A. None 5. New Business A. South Side Development Area 1. Resolution No. 3679 (Authorizing use of TIF to fund Forgivable Loan KCG) 6. Progress Reports A. Tax Abatement B. Common Council C. Other 7. Next Commission Meeting Thursday, October 8, 2026, 9:30 a.m. at Council Chambers, Room 301 8. Adjournment NOTICE FOR HEARING AND SIGHT IMPAIRED PERSONS Auxiliary Aid or Other Services are Available upon Request at No Charge. Please Give Reasonable Advance Request when Possible. South Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Minutes Regular Meeting September 10, 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 Karen White, Vice President Eli Wax, Secretary Ophelia Gooden-Rodgers, Commissioner Maureen Miller, Commissioner Marcus Ellison, Non-Voting Advisor 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 - Virtual April Canahuati, Asst. Dir. of Growth and Opp., DCI Tim Corcoran, Chief Planner, DCI Allison Doctor, Project Manager, DCI - Virtual Laura Hensley, Board Secretary, DCI Attending: Charlotte Brach, Assist. City Engineer, Public Works Rebecca Plantz, Director of Engineering Services, Public Works Emily Longines, Administrative Assistant, Mayor’s Office Eugene Demianczuk, 2401 W. Western Ave. Marco Mariani, Executive Director of South Bend Heritage Foundation Matt Barrett, 110 S. Niles Ave. Tina Patton, 707 Sherman Ave. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 10, 2026 Page | 2 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, August 27, 2026 Upon a motion by Eli Wax for approval, second by Ophelia Gooden- Rodgers, the motion carried unanimously; the Commission approved the minutes of the regular meeting of August 27, 2026. 3. Approval of Claims A. None 4. Old Business A. None 5. New Business A. River West Development Area 1. Development Agreement (Panadería y Supermercado San Miguel Inc., 2401 W. Western Ave.) April Canahuati, Assistant Director of Growth and Opportunity, provided an overview of the business, noting that Mor Mex is a grocery store serving the community with fresh food and culturally relevant products. Located on the west side of South Bend within the River West Development Area, the business also includes a taqueria, bakery, fresh produce section, and fresh meat market. She shared photos showing the transformation of the site from a vacant lot in June 2023, to the completed facility shortly before its opening in June 2025, and its current condition in September 2026. The proposed project includes an approximately 8,000-square-foot expansion and renovations to existing interior space. Improvements will include expanded storage and warehouse capacity, enhanced food preparation operations, new fixtures and equipment, and upgrades to operational and customer service functions. The developer has committed to a minimum private investment of $1.5 million. RDC assistance in the amount of $100,000 is requested to support public infrastructure improvements, including new parking and driving aisles, site paving and striping, fencing, and access gates. The proposed completion date for the project is December 31, 2028. April noted a scrivener's error in the proposed agreement involving duplicate language in Section 9.12. She explained that the expansion is needed due to the business's rapid growth since opening. While initially serving primarily Hispanic and Latino customers, the store has CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 10, 2026 Page | 3 experienced strong demand from a broad and diverse customer base, creating an immediate need for additional space and operational capacity. President Relos asked for clarification of the scrivener's error and Ms. Canahuati explained the section correctly ends on page 10, but the same language appears again on page 11. The duplicate text is not substantive and does not affect the intent of the agreement. Eugene Demianczuk, who has assisted with the project since its inception, spoke in support of the expansion. He noted that the business has experienced stronger-than-anticipated growth and has attracted a diverse customer base beyond its initial target market. Due to the store’s popularity and increasing demand, he emphasized the need to move forward with expansion as soon as possible. Commissioners Gooden-Rodgers and White thanked Mr. Demianczuk for providing a grocery option in an area impacted by recent grocery store closures and asked several questions about the expansion. Mr. Demianczuk explained that the expansion will occur on an adjacent parcel to the west, providing additional parking, warehouse space, and expanded retail area. Inventory sold in the store will be stored in the warehouse. Secretary Wax asked how customers will benefit, the applicant stated that expansion will allow the store to offer a broader selection of grocery products to meet growing demand from a diverse customer base. Mr. Demianczuk also clarified that the expansion site consists of a 60-foot by 425-foot parcel purchased from a neighboring business and that the addition will be attached to the existing building. Upon a motion by Ophelia Gooden-Rodgers for approval, seconded by Maureen Miller, the motion carried unanimously; the Commission approved the Development Agreement as presented on September 10, 2026. B. Redevelopment General Fund (a.k.a Pokagon-South Bend Fund) 1. Budget Request (South Bend Heritage-Washington Taylor Manor House) Joseph Molnar, Deputy Director of Community Investment, presented a budget request of $190,000 to support the construction of a six-unit apartment building at the northwest corner of Washington and Taylor Streets by South Bend Heritage Foundation. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 10, 2026 Page | 4 Mr. Molnar noted that South Bend Heritage, a long-standing nonprofit community development corporation, manages nearly 500 affordable rental units and has partnered with the City on several housing initiatives, including South Bend Thrive, the Tri-Day project, Gemini Apartments, and Turnock Street Homes. The proposed apartment building was selected through a 2023 City RFP process for the vacant lot and was designed to complement the historic character of the West Washington neighborhood. The project will provide a mix of affordable and market-rate housing. The total project cost is approximately $1.5 million. The requested RDC contribution would help complete the project and support the use of high-quality exterior materials, including brick. Funding would come from RDC Pokagon/Four Winds revenue, not TIF funds. If approved, the parties would enter into a donation agreement outlining project and affordability commitments. Marco Mariani, Executive Director of South Bend Heritage Foundation, spoke in support of the project. He noted that the design was refined over an extended period to complement the historic character of the neighborhood while remaining financially feasible. Mr. Mariani explained that the project will include six apartments, consisting of a mix of affordable and market-rate units, including two affordable three-bedroom units and one ADA-accessible unit. He noted that the site was previously home to derelict structures that were demolished years ago and expressed enthusiasm about returning the property to productive use. Mr. Mariani stated that rising construction costs and higher-than- anticipated bids created a funding gap. The requested RDC support is needed to help complete the project and bring it to fruition. Commissioner Miller inquired about South Bend Heritage’s experience with market-rate housing, building design, tenant mix, neighborhood outreach, and operations at Gemini Apartments. Mr. Mariani stated that it has experience managing both affordable and market-rate housing, including units at Robertson’s Apartments and Gemini Apartments. The proposed two-story building will include a mix of affordable and market-rate units, including an ADA-accessible unit. Exterior materials will consist of brick accents and durable siding designed to complement the surrounding neighborhood. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 10, 2026 Page | 5 Mr. Mariani further explained that the project is intended for a variety of households, including families and seniors, and that neighborhood feedback was generally supportive, though some residents expressed concerns regarding the loss of open space. In response to questions regarding Gemini Apartments, South Bend Heritage reported that the property remains stable and that additional rehabilitation work is underway to restore units, increase occupancy, and support the project's long-term financial sustainability. Commissioner Gooden-Rodgers asked about the timeline and Mr. Mariani stated that construction will begin once financing is finalized. The organization hopes to start work this year, with the goal of completing the foundation and enclosing the building before winter. The anticipated construction period is approximately 10 months. Upon a motion by David Relos for approval, seconded by Karen White, the motion carried unanimously; the Commission approved the Budget Request as presented on September 10, 2026. 6. Progress Reports A. Tax Abatement None B. Common Council None C. Other Joseph Molnar, Deputy Director of Community Investment, gave updates on the following. • The Real America-Stadium Flats fire, Mr. Molnar, thanked the South Bend Fire Department for their professionalism and hard work. • Commissioner Gooden-Rodgers requested an updated financial report on all TIF districts, including current balances, committed expenditures, and anticipated obligations. Mr. Molnar indicated that the information would be compiled and provided to the Commission. 7. Next Commission Meeting Thursday, September 24, 2026, 9:30 a.m., City Hall Council Chambers 3rd Floor 8. Adjournment Thursday, September 10, 2026, 9:59 a.m. CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 10, 2026 Page | 6 ______________________________ ______________________________ Eli Wax, Secretary David Relos, President City of South Bend Department of Administration & Finance Claims Allowance Request To:South Bend Redevelopment Commission From:Kyle Willis, City Controller Date:Tuesday, September 1, 2026 Pursuant to Indiana Code 36-4-8-7, I have audited and certified the attached claims and submit them for allowance in the following amounts: GBLN-0143724 $1,602,084.15 GBLN-0144180 $800,959.74 GBLN-0144608 $451,709.90 Total:$2,854,753.79 _______________________________ Kyle Willis The attached claims described above were allowed in the following total amount at a public meeting on the date stated below: South Bend Redevelopment Commission By:_______________________________ Name: Date: Attest:_______________________________ Name: City of South Bend Department of Administration & Finance Claims Allowance Request To:South Bend Redevelopment Commission From:Kyle Willis, City Controller Date:Tuesday, September 8, 2026 Pursuant to Indiana Code 36-4-8-7, I have audited and certified the attached claims and submit them for allowance in the following amounts: GBLN-0144652 $1,250,000.00 GBLN-0144956 $512,294.00 GBLN-0000000 $0.00 Total:$1,762,294.00 _______________________________ Kyle Willis The attached claims described above were allowed in the following total amount at a public meeting on the date stated below: South Bend Redevelopment Commission By:_______________________________ Name: Date: Attest:_______________________________ Name: South Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Redevelopment Commission Agenda Item DATE : 9/21/2026 FROM: Joseph Molnar Deputy Director, Community Investment SUBJECT: Resolution Authorizing Use of South Side TIF Revenues for Heartwood Commons Project Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res. * Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the authorization of the expenditure of such funds shall be void and of no effect. PURPOSE OF REQUEST: Approval of Resolution Authorizing South Side TIF Revenues for Heartwood Commons Project at 2020 S. Main Street SPECIFICS: The Redevelopment Commission approved a Purchase Agreement on June 12, 2025, with KCG Development, LLC for RDC-owned property located at 2018-2020 S. Main Street. KCG subsequently applied for Low-Income Housing Tax Credits (LIHTC) to support the development of a multifamily apartment building containing fifty (50) affordable housing units. In November 2025, KCG was awarded tax credits by the Indiana Housing and Community Development Authority (IHCDA). To maximize the project's competitiveness and increase the likelihood of a successful LIHTC application, the City partnered with KCG in support of the development. As part of that commitment, the RDC approved a Development Agreement on March 12, 2026, appropriating $1.0 million for the project and requiring the Developer to invest approximately $13 million in total project costs. As the project has advanced toward construction, site due diligence has identified conditions that have increased development costs. Among these conditions is the presence of buried building materials and unsuitable soils from previous site improvements that must be remediated prior to construction. The attached resolution represents the first step in establishing a South-Side TIF-funded loan to support the project. The resolution would increase RDC financial participation from $1.0 million to $1.7 million to address the additional costs associated with site remediation and poor soil conditions. If approved by the RDC and subsequently authorized through the required approvals by the South Bend Economic Development Commission and Common Council, staff anticipates returning to the RDC on October 22, 2026, with amendments to the Purchase Agreement and Development Agreement reflecting the expanded project scope. Under the proposed amendments, the Developer would commit to approximately $15 million in total project expenditures, an increase of $2 million from the original ______________ ___________Pres/V-Pres ATTEST: __________ _______ _ Date: _____________ _______ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION South Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Development Agreement, while maintaining its commitment to develop fifty (50) affordable housing units in accordance with the approved IHCDA application. The proposed loan structure is consistent with other LIHTC developments previously supported by the RDC, including Monreaux and Diamond View. Staff recommends approval of the resolution. If approved, the project will proceed through the remaining review and approval processes before returning to the Redevelopment Commission for final consideration of the related agreement amendments. RESOLUTION NO. 3679 A RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION AUTHORIZING THE USE OF SOUTH SIDE TIF REVENUES FOR THE HEARTWOOD COMMONS PROJECT AND OTHER RELATED MATTERS WHEREAS, the South Bend Redevelopment Commission (the “Commission”), the governing body of the South Bend Department of Redevelopment and the Redevelopment District of the City of South Bend, Indiana, exists and operates under the provisions of Indiana Code 36- 7-14, as amended from time to time (the “Act”); and WHEREAS, the Commission is committed to improving the City of South Bend, Indiana (the “City”) by administering and funding projects that support economic development, public infrastructure, and neighborhood revitalization; and WHEREAS, the Commission has negotiated a development agreement (the “Development Agreement”) with KCG Development LLC, a Florida limited liability company (the “Developer”), dated as of March 12, 2026, for the construction of an apartment building with fifty (50) affordable housing units at 2018-2020 S. Main Street in the South Side Development Area (as hereinafter defined) in the City, with an approximate total development cost of Sixteen Million Seven Hundred Thousand Dollars ($16,700,000) including a private investment of no less than Fifteen Million Dollars ($15,000,000) to be expended by the Developer (collectively, the “Project”); and WHEREAS, the Commission is currently negotiating an amendment to the Development Agreement (the “Amendment”) to provide for the Funding Amount (as defined in the Development Agreement) to be provided to the Developer in the form of a loan from the City to the Developer to fund a portion of the cost of the Project; and WHEREAS, the Commission has previously adopted a declaratory resolution, as subsequently confirmed and amended, which (i) declared the South Side Development Area (the “South Side Development Area”) as an economic development area pursuant to Section 41 of the Act, (ii) designated the South Side Development Area as an allocation area pursuant to Section 39 of the Act (the “South Side Allocation Area”), for the purpose of capturing property tax proceeds derived from incremental assessed valuation of real property in such allocation area which is in excess of the “base assessed value” (such property tax proceeds, hereinafter referred to as “South Side TIF Revenues”), (iii) created the South Side Allocation Area Fund (the “South Side Allocation Fund”) into which all South Side TIF Revenues are deposited, all pursuant to and as described in Section 39 of the Act, and (iv) approved an economic development plan for the South Side Development Area (the “Plan”); and WHEREAS, subject to the final terms of the Amendment to be approved by the Commission, the Commission would agree to contribute South Side TIF Revenues in an amount of up to One Million Seven Hundred Thousand Dollars ($1,700,000), subject to appropriation, toward the cost of the Project, subject to the completion of all procedures required by law; and WHEREAS, the Commission has sufficient South Side TIF Revenues on deposit in the South Side Allocation Fund to contribute South Side TIF Revenues toward costs of the Project, 2 which will directly serve and benefit, or be physically located in or connected to, the South Side Allocation Area; and WHEREAS, the Commission now desires to contribute a total amount of not to exceed $1,700,000 of South Side TIF Revenues, subject to appropriation thereof, toward the cost of the Project subject to the approval of the Amendment by the Commission and completion of all procedures required by law, and authorize and approve other actions related thereto, subject to the terms and conditions set forth below; NOW, THEREFORE, BE IT RESOLVED BY THIS SOUTH BEND REDEVELOPMENT COMMISSION AS FOLLOWS: SECTION 1. The Commission hereby finds and determines that the Project, and the use of South Side TIF Revenues to contribute to the Project as described herein, directly serves and benefits the South Side Allocation Area, furthers the purposes for which the South Side Development Area was created, and helps accomplish the Plan. SECTION 2. Subject to the approval of the Amendment by the Commission and the completion of all procedures required by law, the Commission hereby authorizes the contribution of not to exceed $1,700,000 of South Side TIF Revenues, subject to appropriation thereof, toward the cost of the Project. The use of South Side TIF Revenues as described herein shall be junior and subordinate to any currently outstanding or future bonds or lease obligations of the Commission payable from South Side TIF Revenues. SECTION 3. The Commission hereby authorizes a public hearing to be held on the appropriation of an amount of South Side TIF Revenues in an amount not to exceed $1,700,000 to provide funding to reimburse the City for draws on the loan from the City to the Developer and further authorizes the staff of the Department of Community Investment, with assistance from counsel, to cause the notice of such hearing to be published and posted as required by law. SECTION 4. This resolution shall take effect immediately upon adoption by the Commission. ADOPTED at a meeting of the South Bend Redevelopment Commission held on September 24, 2026, in Room 301, 215 Dr. Martin Luther King, Jr. Blvd., South Bend, Indiana, 46601. SOUTH BEND REDEVELOPMENT COMMISSION By: David Relos, President ATTEST: Eli Wax, Secretary DMS 55409627