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Home My WebLink AboutEDC Minutes 6.18.26 - Signed South Bend Economic Development Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Minutes Scheduled Meeting June 18, 2026 – 1:00 p.m. City Hall Council Chambers 3rd Floor or via: https://tinyurl.com/EDC-June2026 Meeting Recording Link: https://tinyurl.com/EDC-Meeting-Recordings The South Bend Economic Development Commission was called to order at 1:08 p.m. 1. Roll Call Members Present: Cecilia Lopez Monterrosa, President Rafael Morton, Vice-President – Arrived at 1:11 PM Renata Matousova, Secretary Luis Zapata, Commissioner Members Virtually: Karen White, Commissioner Legal Counsel: Danielle Campbell Weiss, Senior Asst. City Attorney Staff Present: Darryl Scott, Executive Director, DCI Joseph Molnar, Deputy Director, DCI Erik Glavich, Director, Growth & Opportunity, DCI Laura Hensley, Board Secretary, DCI Attending: Tom Everett, Barnes & Thornburg Sophie Cohen, L+M Development Partners Murray Miller, 23698 Western Ave. 2. Approval of Minutes A. Approval of the Minutes of February 5, 2026 The motion was made by Renata Matousova and seconded by Luis Zapata. On the motion to approve the Minutes of the Meeting of February 5, 2026: • Cecilia Lopez Monterrosa, President: YEA • Rafael Morton, Vice-President: ABSENT • Renata Matousova, Secretary: YEA • Luis Zapata, Commissioner: YEA • Karen White, Commissioner: YEA CITY OF SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION MEETING – June 18, 2025 Page | 2 Following a roll-call vote, the motion carried with 4 YEAs and the Commission approved the Minutes of the Meeting unanimously on February 5, 2026. 3. New Business A. Beacon Heights Project (Beacon Apartments Preservation LLC) a. Overview of Documents for Approval i. Project Report ii. Form of Financing and Loan Agreement iii. Form of Funding and Reimbursement Agreement iv. Form of Common Council Loan Ordinance Joseph Molnar, Deputy Director of Community Investment, introduced the Beacon Heights renovation project announced last week. He noted the City is pursuing a forgivable loan to support the project, with the EDC involved as part of a multi-step approval process. The Beacon Heights site, located on Ardmore Street just south of St. John the Baptist Catholic School and near Lincoln Way West, consists of a townhome-style apartment community with multiple buildings, shared spaces, roads, and parking areas. Originally constructed in the mid-1940s, the complex includes approximately 174 affordable housing units and is one of the largest such developments in South Bend. While minor improvements have been made over time, the property has not undergone a comprehensive renovation and now requires significant upgrades due to deterioration. The proposed project includes $47 million in total investment, covering both unit rehabilitation and site improvements such as new roofs and siding, road and parking lot resurfacing, expanded community space, and new amenities including a gym and playground. The project also aims to enhance on-site services and overall living conditions. The City is working with L+M Development Partners, a national affordable housing developer with extensive experience in preservation projects. L+M has applied for 4% Low-Income Housing Tax Credits and will maintain existing rent protection under both LIHTC and HUD programs. The City’s role includes a $1.25 million forgivable loan, funded through River West TIF. Funds will be disbursed only after closing and confirmation that all financing is secured. Loan forgiveness is contingent upon completion of the project and verification of improvements. This request represents one step in a broader approval process, including prior authorization by the Redevelopment Commission, a public hearing, Common Council approval, and final Redevelopment Commission action CITY OF SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION MEETING – June 18, 2025 Page | 3 anticipated in early July. Sophie Cohen with L+M Development Partners explained that the project has been approved by IHCDA, with the tax credit award letter expected next week. The bond resolution and TEFRA hearing are also scheduled for next week. Financing with Freddie Mac is secured, and closing is on track for July 31. Commissioner Luis Zapata asked where your company is based, and what experience do you have in the region? Ms. Cohen stated L&M is based in New York but works primarily outside the state. They recently completed a 450-unit Section 8 senior and family project in Hammond, Indiana. Their Midwest portfolio includes ~800 units in Chicago, 500 in Indiana, and over 1,000 in Michigan, with additional projects in Ohio. They have completed over 15,000 major rehabilitation projects nationwide. Secretary Renata Matousova asked how many units are occupied, and how will residents be affected? Will they be able to stay? Ms. Cohen explained that the property is currently 93% occupied. Renovations will begin with vacant units, then proceed to occupied units using a phased approach. Residents will be temporarily relocated during construction (about 10 days per unit, 9 a.m.–5 p.m.) and then return to fully renovated units. A relocation coordinator will assist residents throughout the process, providing support such as moving assistance, food, Wi-Fi, and access to a temporary community space. This approach has been used successfully on similar projects. President Cecilia Lopez Monterrosa asked what upgrades are planned for the community building? Ms. Cohen explained that the existing space will be expanded to include a gym, computer lab, resident services office, community lounge, and library. This will better accommodate resident needs and enhance resident services. President Lopez Monterrosa also asked what security improvements are planned? Ms. Cohen stated that the project will expand the existing camera system (with continued South Bend PD access) and may include part-time private security patrols. Additional improvements, such as site visibility and landscaping, will be evaluated upon acquisition. President Lopez Monterrosa asked will security include private personnel? Ms. Cohen responded Yes, private security officers are expected alongside coordination with South Bend PD. President Lopez Monterrosa inquired about where will security measures be focused? Ms. Cohen responded that security would cover common areas, including the community center and exterior spaces, supported by cameras and patrols. CITY OF SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION MEETING – June 18, 2025 Page | 4 Vice President Rafael Morton expressed support for the project and asked how the partnership was formed. Ms. Cohen explained that the property was listed for sale, and L+M pursued the opportunity based on its experience in Indiana and the Midwest. Vice President Morton shared that the project is personally meaningful, noting his ties to the area with it being located within his District as St. Joseph County Commissioner and familiarity with Beacon Heights residents through his work with the South Bend Rotary Club, including the Thanksgiving basket program. He commended the property manager’s efforts and expressed appreciation to the City and all partners involved. Joseph Molnar noted that L&M first engaged with the City in October 2025, and the agreement has been under negotiation since then. The collaboration reflects the need for experienced owners with sufficient resources to support long-term housing improvements. Vice President Morton expressed appreciation for the City, L&M, and all partners involved, noting strong support following the recent announcement. Commissioner Zapata asked what is the source of the City’s forgivable loan? Mr. Molnar stated that the $1.25 million loan is funded through River West TIF and authorized by the Redevelopment Commission; it does not use General Fund dollars. Secretary Matousova inquired about the terms for loan forgiveness? Mr. Molnar explained that the loan will be forgiven only after verification that all financial commitments are met and the planned unit renovations are completed. Secretary Matousova also asked, are there long-term affordability requirements? Ms. Cohen stated Yes. Affordability is governed by LIHTC and HUD requirements, including a 15-year compliance period and an additional 15-year regulatory period (30 years total). Vice President Morton asked what is the anticipated project timeline? Ms. Cohen responded that the project completion is expected by late 2027. B. Public Hearing Regarding Project and Loan A notice was published in the South Bend Tribune on June 8, 2026, regarding the public hearing to consider the Project and Loan. A public hearing on the Project and Loan was opened for public comment. Murray Miller inquired whether local contractors and workforce would be