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HomeMy WebLinkAbout09-14-2026 Zoning and Annexation Committee Minutes OFFICE OF THE CITY CLERK BIANCA L. TIRADO, CITY CLERK INTEGRITY | SERVICE | ACCESSIBILITY Jasmine Jackson Matthew Neal Veronica Pitt-Payne CHIEF DEPUTY CITY CLERK / CHIEF OF STAFF DEPUTY CITY CLERK / DIRECTOR OF POLICY DIRECTOR OF SPECIAL PROJECTS EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov ZONING AND ANNEXATION SEPTEMBER 14, 2026, 5:00 P.M. Committee Members Present: Dr. Heidi Beidinger, Karen L. White, Kay Farlow, Stacey Odom, Rachel Tomas Morgan, Dr. Oliver Davis Committee Members Absent: None Other Council Present: Canneth Lee, Ophelia Gooden-Rodgers, Sheila Niezgodski, Sherry Bolden-Simpson Others Present: Bianca L. Tirado, Matthew Neal, Jasmine Jackson, Lari’onna Green, Veronica Pitt- Payne, Bob Palmer Presenters: Jenna Throw, Michael Divita, Troy Warner, Tim Staub, Elissa Gunsorek, Terry Lang Agenda: Bill No. 53-26 - Amending Chapter 21 of the South Bend Municipal Code to Implement a Special Exception for Short-Term Rentals Substitute Bill No. 55-26 - Special Exception at 1245 Corby Boulevard Bill No. 56-26 - Special Exception at 1246 Howard Street Bill No. 57-26 - Special Exception at Lot 17 as Shown on the North Sunnyside Second Addition Recorded Plat Members marked with an asterisk (*) are in virtual attendance via Microsoft Teams. Please note the attached link for the meeting recording: https://docs.southbendin.gov/WebLink/Browse.aspx?dbid=0&repo=sbend&mediaid=413625 EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov Committee Chair Oliver Davis called to order the Zoning and Annexation Committee meeting at 5:06 P.M. Bill No. 53-26 - Amending Chapter 21 of the South Bend Municipal Code to Implement a Special Exception for Short-Term Rentals Substitute Committee Chair Dr Daivs moved to accept the substitute version of the bill. The motion was carried via a vote by voice. Jenna Throw, City Attorney, with offices on the sixth (6th) floor of City Hall, South Bend, IN 46601, presented the bill. She explained that Substitute Bill No. 53-26 establishes a special exception in the zoning code for newly established non-owner-occupied short-term rentals (STRs) only. Existing STRs operating at the time of the ordinance's effective date would be considered legal non-conforming and are not required to obtain a special exception, and owner-occupied STRs are excluded from the special exception requirement by state statute. Special exceptions would require a valid permit, and the property must meet four (4) established criteria: that the proposed use will not be injurious to public health, safety, comfort, or general welfare; will not adversely affect the use or property values of adjacent properties; is consistent with the character of the district; and is compatible with the City's comprehensive plan. She noted that these are the same four (4) criteria used for all special exceptions, and state law prohibits using the special exception to prohibit or unreasonably restrict STRs. Committee Chair Dr. Davis asked how long legal non-conforming properties could remain inactive as STRs before losing legal non-conforming status. Attorney Throw confirmed that there is a concept of abandonment, and legal non-conforming properties that do not obtain a permit and are not used as STRs for a long enough period of time could be considered to have abandoned the use. She said this time period is typically one (1) year, and there needs to be demonstrated intent to abandon the use. She said failure to obtain a permit could be considered intent to abandon. Committee Vice Chair Rachel Tomas Morgan asked for a brief summary of the new “hotel” use. Michael Divita, Assistant Director of Planning, with offices on the fifth (5th) floor of City Hall, South Bend, IN 46601, explained that “hotel” and “bed and breakfast” uses currently exist in the zoning ordinance, and the bill introduces STR as a new use. He said the “bed and breakfast” use is basically obsolete, and the proposed changes would reclassify the few existing bed and breakfasts in the City as small-scale hotels under “hotel” use. Committee Chair Dr. Davis opened the public hearing. Matt Barrett, 110 South Niles Avenue, South Bend, IN 46617, noted the changes to the substitute bill and asked what the effective date of the ordinance would be. Attorney Throw replied that the substitute was filed earlier in the day to change the effective date to January 1, 2027. Maggie McShane, Indiana Association of Realtors, 5923 Washington Boulevard, Indianapolis, EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov IN 46220, spoke against the bill. She expressed concern that the uncertainty in the special exception process would deter prospective buyers and result in a de facto ban on STRs. She said the real estate community needs a better understanding of the timeframe and grounds for approval or denial, and they are asking for a thirty (30) day pause for further discussion. John De Souza, President of Cressy & Everett Real Estate, 1234 Oak Ridge Drive, South Bend, IN 46617, spoke against the bill. He expressed concern that the requirement would create a de facto ban and said real estate agents would be required to disclose to buyers that properties within City limits carry a layer of STR-related restriction that does not exist in neighboring communities. Jen Arizmendi, Board President of South Bend Area Realtors, 60866 Whispering Hills Drive, South Bend, IN 46614, spoke against the bill. She asked if the City has considered the potential ripple effect of this regulation on the housing market. She said they are asking for a pause for further conversation about this. Committee Chair Dr. Davis closed the public hearing. Committee Member Dr. Heidi Beidinger acknowledged concerns about the special exception process and asked Attorney Throw to provide clarification. Attorney Throw explained that a property owner would file a special exception application with the Zoning Department, which would review the application against four (4) established criteria: that the proposed use will not be injurious to public health, safety, comfort, or general welfare; will not adversely affect the use or property values of adjacent properties; is consistent with the character of the district; and is compatible with the City's comprehensive plan. The zoning staff would then provide a written recommendation to the Board of Zoning Appeals (BZA). The BZA would then hold a public hearing and issue a recommendation to the Council. She said the bill weaves STRs into the established special exception process as a new type of land use. She asserted that the regulation is not a ban on STRs, since state law prohibits the City from using it as such, and the City may not interpret or enforce zoning regulations in a way that unreasonably restricts STRs. Committee Vice Chair Tomas Morgan noted that state law explicitly authorizes municipalities to use special exceptions for STRs. She asked Attorney Throw to address concerns about turnaround time. Attorney Throw said the City works to ensure the turnaround time for special exceptions is as quick as possible, and they are filed for first (1st) reading as soon as the applications are received. She noted that special exceptions are typically passed by the Council one (1) week after their BZA hearing. She said there are opportunities to expedite the special exception process if the seller approaches the City about land use prior to the sale. Committee Chair Dr. Davis acknowledged the concerns of the real estate community. He asked why the bill should be passed now if the effective date is not until January 1, 2027. Troy Warner, Mayor’s Chief of Staff, with offices on the sixth (6th) floor of City Hall, South Bend, IN 46601, explained that he has been in communication with the real estate community EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov since July 11, and they were sent a presentation on the bill from Attorney Throw and the zoning staff on August 28. He suggested moving the bill forward for further discussion at the 7:00 P.M. meeting, since more residents are planning to come forward to speak at that time. Committee Chair Dr. Davis asked what concerns from the real estate community remain unaddressed. Attorney Throw said she is unaware of any concerns beyond the scope of what has been shared tonight. Committee Chair Dr. Davis asked how quickly the concerns raised tonight can be worked through. He asked if there is a reason why they should not wait another two (2) weeks. Attorney Throw said concerns about the nature of the special exception process itself cannot be resolved through discussion or compromise. She said City staff work to expedite the process as much as possible, but it takes the amount of time that it takes. Committee Chair Dr. Davis asked Maggie McShane to elaborate on the issues she is asking for more time to address. Maggie McShane replied that many of her questions were only answered this morning. She asked if the special exception follows the property or the property owner. She said they did not expect to hash out all of their hypothetical questions before the Committee, and extra time would allow for offline discussions. Committee Chair Dr. Davis said there is a compelling case for additional time. He asked John De Souza to elaborate on his concerns. John De Souza expressed concern that neighbors could speak against special exceptions before the BZA by citing concerns about unrelated STR properties in other communities. Committee Chair Dr. Davis thanked John De Souza for the clarification. Committee Vice Chair Tomas Morgan said this is not any different from Council approving duplexes. She noted that there are established standards, and the Council approves special exceptions, not the BZA. She asked Attorney Throw to address the question about special exceptions running with the property. Attorney Throw confirmed that special exceptions would run with the property. She explained that with other zoning matters, a seller will often request a zoning change in anticipation of a sale, and this helps expedite the process. Committee Vice Chair Tomas Morgan stated that she thinks it is important to move the bill forward to the 7:00 P.M. meeting. Committee Vice Chair Tomas Morgan moved to send Substitute Bill No. 53-26 to the Committee of the Whole with no recommendation, which was seconded by Committee Member Dr. Beidinger and carried by a vote of six (6) ayes. EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov Bill No. 55-26 - Amending the Zoning Ordinance for Property Located at 626 Allen Street and 630 Allen Street Tim Staub, Zoning Specialist, with offices on the fifth (5th) floor of City Hall, South Bend, IN 46601, presented the bill. He said the petitioner is requesting a special exception to allow a two (2)-unit side-by-side dwelling on this parcel. He showed current images of the site and proposed design renderings. He stated that the petition is consistent with the City's comprehensive plan and with the 2022 Northeast Neighborhood plan, which calls for a mixture of densities in the Five (5) Corners area. Committee Chair Dr. Davis held the public hearing, and nobody spoke. Councilmember Ophelia Gooden-Rodgers asked about the location. Tim Staub said the property is located on the eastern fringe of the Five (5) Corners area, directly east of Trader Joe’s, where other duplexes have been built recently. Committee Vice Chair Tomas Morgan asked if there is an existing structure on the parcel. Tim Staub confirmed that is correct. Committee Vice Chair Tomas Morgan asked if that structure would be demolished. Tim Staub confirmed that is correct. Committee Vice Chair Tomas Morgan asked if the petitioner is here to speak. Elissa Gunsorek, Petitioner, 7821 Morse Road, New Albany, OH 43054, addressed the Committee. She said she has done a couple of projects in the area, and this will be of similar build quality. She said she has had a very successful working relationship with the City. Committee Member Dr. Beidinger asked about the development company. Elissa Gunsorek replied that her company does both the development and the building. Committee Member Dr. Beidinger asked the petitioner about her other properties in the City. Elissa Gunsorek said her company has completed other duplexes on Corby of similar style and scale. She added that they acquired the building at the corner of Michigan and Wayne, and they intend to redevelop it into a mixed-use building with retail space on the first (1st) floor and apartments on floors two (2) through four (4). Committee Vice Chair Tomas Morgan asked if there were any comments from neighbors at the BZA hearing. Tim Staub stated that there were not. Committee Chair Dr. Oliver Davis – Aye Committee Vice Chair Rachel Tomas Morgan – Aye Committee Member Karen L. White – Aye Committee Member Dr. Heidi Beidinger – Aye Citizen Member Stacey Odom – Aye Citizen Member Kay Farlow – Aye EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov Committee Vice Chair Tomas Morgan expressed concern about demolishing a home when there is a need for small starter homes in the community. On the other hand, she acknowledged that the duplex would provide an additional housing unit in the lot. Committee Member Dr. Beidinger echoed Committee Member Tomas Morgan’s comments. She said these are not easy decisions to make. Committee Member Dr. Beidinger moved to send Bill No. 55-26 to the Committee of the Whole with a favorable recommendation, which was seconded by Committee Vice Chair Tomas Morgan and carried by a vote of six (6) ayes. Bill No. 56-26 - Special Exception at 1246 Howard Street Tim Staub presented the bill. He said the petitioner is requesting a special exception to allow a two (2)-unit side-by-side dwelling on this lot, which is currently vacant. He stated that the petition is consistent with the City's comprehensive plan and with the 2022 Northeast Neighborhood plan, which calls for a mixture of densities in the Five (5) Corners area. He noted that the petitioner is not present to speak. Council Attorney Bob Palmer advised that when the petitioner is not present, the Committee will hold a public hearing and move the bill forward with no recommendation. Committee Chair Dr. Davis held the public hearing, and nobody spoke. Committee Member Dr. Beidinger moved to send Bill No. 56-26 to the Committee of the Whole with no recommendation, which was seconded by Committee Member Karen L. White and carried by a vote of six (6) ayes. Bill No. 57-26 - Special Exception at Lot 17 as Shown on the North Sunnyside Second Addition Recorded Plat Tim Staub presented the bill. He stated that the petitioner is seeking a special exception to allow a two (2)-unit dwelling on a vacant lot located behind an existing parcel on Bissell Street. He explained that the property was formerly used as part of the adjacent owner's backyard and has been legally split into a developable lot. He stated that the petition is consistent with the City's comprehensive plan and the 2022 Northeast Neighborhood plan. He noted that it would diversify the housing stock while maintaining low density in the area. Terry Lang, Project Manager at Wightman, 1402 Mishawaka Avenue, South Bend, IN 46615, spoke on behalf of the petitioner. He stated that the original lot owner no longer wished to Committee Chair Dr. Oliver Davis – Aye Committee Vice Chair Rachel Tomas Morgan – Aye Committee Member Karen L. White – Aye Committee Member Dr. Heidi Beidinger – Aye Citizen Member Stacey Odom – Aye Citizen Member Kay Farlow – Aye Committee Chair Dr. Oliver Davis – Aye Committee Vice Chair Rachel Tomas Morgan – Aye Committee Member Karen L. White – Aye Committee Member Dr. Heidi Beidinger – Aye Citizen Member Stacey Odom – Aye Citizen Member Kay Farlow – Aye EXCELLENCE | ACCOUNTABILITY | INNOVATION | INCLUSION | EMPOWERMENT 300 City Hall | 215 S. Dr. Martin Luther King Jr. Blvd. | South Bend, Indiana 46601 | p. 574.235.9221 | f. 574.235.9173 | www.southbendin.gov maintain the double lot and sold the parcel to a buyer who intends to build a duplex. He said the proposed duplex will comply with all City standards. Committee Chair Dr. Davis held the public hearing, and nobody spoke. Committee Vice Chair Tomas Morgan moved to send Bill No. 57-26 to the Committee of the Whole with a favorable recommendation, which was seconded by Committee Member Dr. Beidinger and carried by a vote of six (6) ayes. With no further business, Committee Chair Dr. Davis adjourned the Zoning and Annexation Committee meeting at 6:21 P.M. Respectfully Submitted, Dr. Oliver Davis, Committee Chair Committee Chair Dr. Oliver Davis – Aye Committee Vice Chair Rachel Tomas Morgan – Aye Committee Member Karen L. White – Aye Committee Member Dr. Heidi Beidinger – Aye Citizen Member Stacey Odom – Aye Citizen Member Kay Farlow – Aye