HomeMy WebLinkAboutRedevelopment Commission Agenda & Packet 10.08.26South Bend
Redevelopment Commission
215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana
Agenda
Regular Meeting
October 8, 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 Executive Session of September 23, 2026
B. Minutes of the Regular Meeting of September 24, 2026
3. Approval of Claims
A. Claims Allowance September 22, 2026
B. Claims Allowance September 29, 2026
4. Old Business
A. None
5. New Business
A. River East Development Area
1. Budget Request (Potawatomi Conservatory)
B. River West Development Area
1. Lafayette Building Update
6. Progress Reports
A. Tax Abatement
B. Common Council
C. Other
South Bend
Redevelopment Commission
215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana
Page | 2
7. Next Commission Meeting
Thursday, October 22, 2026, 9:30 a.m. at Council Chambers, Room 301
8. Adjournment
NOTICE
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South Bend
Redevelopment Commission
215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana
Executive Session Meeting Minutes: September 23, 2026
The Redevelopment Commission met in Executive Session on Wednesday, September
23, 2026, at 1:00 p.m. to discuss strategy with respect to initiation of litigation or
litigation that is either pending or has been threatened specifically in writing and I.C. 5-
14-1.5-6.1(b)(19) to have communications with an attorney that are subject to the
attorney client privilege.
Commissioners Dave Relos, Karen White, Eli Wax (virtual), Ophelia Gooden-Rodgers ,
Maureen Miller, and Marcus Ellison appeared in person. Also in attendance were
Executive Director of Community Investment, Darryl Scott; Corporation Counsel Sandra
Kennedy; Commission Attorney Danielle Campbell Weiss; Deputy Director of Community
Investment Joseph Molnar; Director of Growth & Opportunity Erik Glavich; and Board
Secretary Laura Hensley. Jay Lewis of THK Law, LLP, and Katherine Everett Iskin of May,
Oberfell, Lorber, LLP also appeared in person.
The meeting was held on the 6th Floor, Conference Room (Sycamore), City Hall Building,
215 S. Dr. Martin Luther King, Jr. Boulevard, South Bend, Indiana 46601. Those in
attendance did not discuss any subject matter other than that specified in the public
notice. No final action was taken. The meeting was adjourned at 2:05 p.m.
SOUTH BEND REDEVELOPMENT COMMISSION
David Relos, President
Attest:
Eli Wax, Secretary
South Bend
Redevelopment Commission
215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana
Minutes
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
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
Members Absent: 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
April Canahuati, Asst. Dir. of Growth and Opp., DCI
Erin Michaels, Property Development Manager, DCI
Allison Doctor, Project Manager, DCI - Virtual
Laura Hensley, Board Secretary, DCI
Attending: Charlotte Brach, Assist. City Engineer, Public Works
Megan Shuetz, KCG Indianapolis
Matt Barrett, 110 S. Niles Ave.
Tina Patton, 707 Sherman Ave.
Rebecca Ford, 120 W. Donald St.
2. Approval of Minutes
A. Approval of Minutes of the Regular Meeting of Thursday, September 10,
2026
CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 24, 2026
Page | 2
Upon a motion by Ophelia Gooden-Rodgers for approval, second by Eli
Wax, the motion carried unanimously; the Commission approved the
minutes of the regular meeting of September 10, 2026.
3. Approval of Claims
A. Claims Allowances September 1, 2026
Upon a motion by Eli Wax for approval second by Karen White, the motion
carried unanimously; the Commission approved the claims allowances of
September 1, 2026.
B. Claims Allowances September 8, 2026
Upon a motion by Eli Wax for approval second by Karen White, the motion
carried unanimously; the Commission approved the claims allowances of
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)
Joseph Molnar, Deputy Director of Community Investment, presented
proposed affordable housing development located at the vacant parcels
near Donald St. and Main St. The project site currently consists of three
parcels that will be combined through a lot line adjustment.
Mr. Molnar provided an overview of the City's rationale for investing in
affordable housing projects, noting the significant challenges associated
with developing affordable housing both locally and nationally. The
presentation emphasized that public investment helps bridge financing
gaps and supports the development of safe, quality housing for
residents.
Mr. Molnar provided a brief history of the project, noting that the
Resolution before the Board would amend a previously approved
agreement by updating the entity that will receive the development
subsidy. In June 2025, the Redevelopment Commission entered into a
purchase agreement with KCG Development for the property at 2020
S. Main Street, contingent upon the developer securing Low-Income
Housing Tax Credits (LIHTC) for a 50-unit affordable housing project.
KCG received the LIHTC award in November 2025, and the City
subsequently approved a $1 million local match commitment as
CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 24, 2026
Page | 3
required by the program. During project due diligence, site analysis and
geotechnical studies identified challenging soil conditions and increased
construction costs. In response, the developer increased its minimum
private investment commitment from $13 million to $15 million to keep
the project moving forward.
Mr. Molnar explained that the proposed Resolution would increase the
City's TIF-funded loan commitment from $1 million to $1.7 million. No
previously approved funds have been expended. The additional funding
would help address site preparation costs and other cost increases
while supporting the construction of 50 affordable housing units. If all
development, affordability, and management requirements are met, the
loan may be eligible for forgiveness under the terms of the agreement.
Plans for the development include a quality multifamily residential
building with off-street parking and design features intended to
complement the surrounding neighborhood.
Megan Shuetz, with KCG Development LLC, remains committed to
completing the project despite rising costs. Since last year, the project
budget has increased by approximately $2 million, driven by higher
construction costs, market conditions, and site-related challenges
identified through the bidding and due diligence processes. Ground-
penetrating radar revealed buried foundations and demolition debris
across the site, requiring an estimated $700,000 in remediation to
prepare the property for construction. The project team has worked
throughout the year to address these cost increases, secure permits,
and finalize financing. Efforts to utilize the City's bidding process
resulted in a 90 to 120-day delay but yielded no bids. The developer
expressed appreciation for the City's willingness to provide funding
through a loan, allowing the project to move forward. Additional site
investigations confirmed that while buried debris and foundations must
be removed and soils reconditioned, no environmental contamination
was identified.
Secretary Wax asked about the project's financing structure and the
use of a single-purpose ownership entity for the development. Danielle
Campbell Weiss, Senior Asst. City Attorney explained that the
resolution is the first step in the process of converting the City's
support to an Economic Development Commission forgivable loan.
State requirements require the Resolution to be approved before
proceeding through the Economic Development Commission, Common
Council, and Plan Commission, after which the matter will return to the
Redevelopment Commission for final consideration.
CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 24, 2026
Page | 4
An amended Development Agreement, and potentially an amended
Purchase Agreement, will be presented to the Redevelopment
Commission at a future meeting once negotiations are complete. Ms.
Weiss clarified that these actions do not represent additional funding
but are multiple procedural steps to restructure the existing assistance
into a forgivable loan model. The change is intended to better align with
low-income housing tax credit financing requirements and support the
development of affordable housing.
Ms. Shuetz discussed recent updates to the project, including
commitments from the Housing Authority of South Bend for Section 8
vouchers serving the lowest-income households and the award of
Section 811 vouchers designated for individuals with disabilities. The
project has also partnered with Housing Opportunities to provide
supportive services to qualifying residents. These additions were
described as enhancements since the project's previous presentation to
the Board.
President Relos asked whether the use of a new entity to receive the
loan was common practice and whether similar structures had been
used for other tax credit projects. Mr. Relos also sought assurance that
the new entity remained affiliated with the developer and that
adequate protection was in place for the City.
Ms. Shuetz explained that affordable housing tax credit developments
are typically structured through single-purpose entities created solely
to own and operate a specific project. Similar structures have been
used in other housing developments. The ownership entity includes
both the developer and the tax credit investor, who remains involved
throughout the compliance period and long-term operation of the
project. Staff confirmed that the new entity is affiliated with the
developer and exists as part of the project's financing and ownership
structure, ensuring ongoing responsibility and accountability for the
development.
Mr. Molnar noted that similar tax credit developments in South Bend,
including Diamond View Apartments and South Bend Thrive, have been
successfully completed and provide quality affordable housing for
residents. The project was presented as part of the City's ongoing effort
to address housing needs and expand affordable housing opportunities
throughout the community.
Commissioner Gooden-Rodgers asked whether local contractors would be
utilized for the project. Ms. Shuetz stated that bid opportunities were
distributed to hundreds of contractors, including local firms. While
CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 24, 2026
Page | 5
construction contracts have not yet been awarded, the project team
has actively conducted local outreach and worked with the City's
Engineering Department to identify and engage local contractors
throughout the procurement process.
Commissioner Gooden-Rodgers emphasized the importance of
ensuring the long-term maintenance and quality of affordable housing
developments, noting that residents deserve safe, well-maintained
homes and that developments receiving City support should be
properly managed over time. Ms. Shuetz affirmed its commitment to
long-term ownership and maintenance of the property. She noted that
the development will be subject to regular inspections and compliance
requirements through the Low-Income Housing Tax Credit program,
providing additional oversight beyond local standards. Mr. Molnar also
highlighted that quality management is essential to maintaining
occupancy and serving residents. The City further noted that long-term
ownership, regulatory oversight, and available enforcement
mechanisms help ensure the property remains well maintained and
provides quality affordable housing for residents.
Rebecca Ford, a nearby resident, shared concerns about the site's
former industrial use, stating that demolition of debris and potentially
hazardous materials may have been buried on the property. The
resident questioned whether soil testing had been sufficient, expressed
concerns about transparency regarding site conditions, and urged
additional investigation to ensure the safety of neighboring residents
and children who use nearby properties.
Joseph Molnar stated that extensive environmental due diligence has
been completed, including Phase I and Phase II environmental
assessments, geotechnical investigations, and soil testing conducted by
both the City and the developer. Testing performed in 2026 found no
contamination above residential standards, and the results will be made
publicly available. While buried rubble has been identified and will be
removed, no hazardous soil conditions were detected. He emphasized
that all required environmental reviews have been completed and that
the project site will be remediated and prepared in accordance with
applicable standards before development proceeds.
Commission members emphasized the importance of ongoing
environmental oversight and public transparency, particularly given the
site's industrial history. Ms. Shuetz with KCG noted that environmental
testing and review are standard requirements for redevelopment
projects and expressed a commitment to sharing the reports with the
public.
CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 24, 2026
Page | 6
Secretary Wax asked whether construction would stop if unexpected
environmental contamination was discovered during excavation. Mr.
Molnar confirmed that if any signs of contamination are uncovered
during construction, work would immediately stop and the appropriate
environmental authorities would be notified for further investigation
and remediation. Based on all testing completed to date, no
environmental concerns have been identified; however, any future
discoveries would be addressed before work resumes.
Upon a motion by Eli Wax for approval, seconded by Maureen Miller,
the motion carried unanimously; the Commission approved Resolution
No. 3679 as presented on September 24, 2026.
6. Progress Reports
A. Tax Abatement
None
B. Common Council
Vice President White asked for a report regarding how many vacant lots
the City currently has. Mr. Molnar and staff have agreed to pull the
numbers. Commissioner Gooden-Rodges encouraged residents to attend
Fusion Fest this weekend.
C. Other
Joseph Molnar, Deputy Director of Community Investment, gave updates
on the following.
• The Department of Community Investment presented its 2027
budget to the Common Council. The proposed budget includes a
reduction of more than 5% and the elimination of three currently
vacant positions. He also discussed Redevelopment Commission
TIF-funded activities and noted that budget discussions are ongoing.
• Stadium Flats construction is proceeding despite the fire.
• Diamond View ribbon cutting ceremony has been rescheduled.
• The Allen Edwin northern project is scheduled to be occupied by
the end of 2026.
• The Advantix project is progressing and should be leased soon.
7. Next Commission Meeting
Thursday, October 8, 2026, 9:30 a.m., City Hall Council Chambers 3rd Floor
8. Adjournment
Thursday, September 24, 2026, 10:28 a.m.
CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – September 24, 2026
Page | 7
______________________________ ______________________________
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 22, 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-0145992 $183,683.47
GBLN-0145995 $500,158.33
GBLN-0146273 $2,596,477.08
Total:$3,280,318.88
_______________________________
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 29, 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-0146752 $39,020.78
GBLN-0147513 $130,100.00
GBLN-0000000 $0.00
Total:$169,120.78
_______________________________
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:
Expenditure approval
RDC Payments-9/29/26 Pymt Run
GBLN-0146752
Payment method:
Voucher:
Payment date:
Vendor#
V-00000019
Payment method:
Voucher:
Payment date:
Vendor#
V-00000472
V-00000472
Payment method:
Voucher:
Payment date:
Vendor#
V-00000918
Payment method:
Voucher:
Payment date:
Vendor#
ACH-Total
RDCP-00052615
9/29/2026
Name
ABONMARCHE
CONSULTANTS
OF IN
CHK-Total
RDCP-00052616
9/29/2026
Name
DLZ IN DIANA
LLC
DLZ IN DIANA
LLC
CHK-Total
RDCP-00052617
9/29/2026
Name
JONES PETRIE
RAFINSKI
ACH-Total
RDCP-00052618
9/29/2026
Name
Invoice# Line description
165770 Potawatomi Ph 2 Design
Invoice# Line description
611047 Change order -R/W Acquisition Services
611441 Change order - R/W Acquisition Services
Invoice# Line description
53620 Intersection design
Invoice# Line description
Due date
9/25/2026
Due date
8/30/2026
9/26/2026
Due date
9/30/2026
Due date
Invoice amount Financial dimensions
429-10-102-121-431002--
$4,000.00 PROJ00000683
Invoice amount Financial dimensions
324-10-102-121-442001--
$9,469.70
$9,274.28
PROJ00000338
324-10-102-121-442001-
PROJ00000338
Invoice amount Financial dimensions
324-10-102-121-442001--
$2,565.00 PROJ00000769
Invoice amount Financial dimensions
Purchase order
PO-0041079
Purchase order
PO-0015848
PO-0015848
Purchase order
PO-0044605
Purchase order
South Bend
Redevelopment Commission
215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana
Redevelopment Commission Agenda Item
DATE : October 8th, 2026
FROM: Patrick Sherman
Director of Project Management
SUBJECT: Budget Request- Potawatomi Conservatory
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:
This budget request is for a total of $200K for design services at the Potawatomi Conservatory. The design
services are for studying and renovating the inadequate mechanical and other systems in the building, so
that it can continue to support the specialized programming enabled by the Conservatory.
SPECIFICS:
The Potawatomi Conservatory was originally constructed in 1963, with additions completed in 1967 and
1973. Designed by the renowned conservatory firm Lord & Burnham and supported by local philanthropist
Ella Morris, the Conservatory remains a unique community asset and specialty facility.
As the building continues to age, significant investment is needed to restore and modernize the critical
systems that support its operation. The City, in partnership with a local engineering firm and a Lord &
Burnham specialist, will develop design plans for improvements to the facility's mechanical, plumbing,
electrical, and glazing systems, while also evaluating and addressing long-term structural needs. These
improvements will help preserve the Conservatory's historic character and ensure it can continue to
support educational, recreational, and community programming for years to come.
It is requested that the Redevelopment Commission approve an allocation of $200,000 from the River
East Development Area to fund the design services necessary to advance these improvements.
Thank you for your consideration of this request.
______________ ___________Pres/V-Pres
ATTEST: __________ ________Secretary
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
Redevelopment Commission Agenda Item
DATE: 10/5/2026
FROM: Joseph Molnar,
Deputy Director
Department of Community Investment
SUBJECT: Lafayette Building Update
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: Update regarding the Lafayette Building and consideration of next steps should
redevelopment efforts not result in a viable project
SPECIFICS: Below are multiple updates to the RDC regarding the Lafayette Building.
BUILDING CONDITION
On June 8, 2026, a catastrophic fire occurred at the Lafayette Building in downtown South Bend. Prior to
the fire, the RDC and a private developer had entered into a purchase agreement and development
agreement for the property. In late 2024 and early 2025, engineers conducted a detailed assessment of
the Lafayette Building's structure as part of the previous development agreement. By opening walls and
floors, they determined how the building's load -bearing elements were constructed and connected. The
investigation found that key structural components were either inadequate under current building codes,
had been removed during past renovations, or were damaged in the 1940 fire and never properly
replaced.
As a result, the project would have required rebuilding much of the building floor by floor. This would
have necessarily included strengthening the foundation, reconstructing the ground floor, and then
rebuilding each upper floor through the fifth floor. Because of these extensive structural needs, the
project cost estimate increased from approximately $8-10 million to $12-15 million,. The developer
ultimately elected not to proceed with the project, the purchase of the property did not close, and the
development agreement was terminated.
The fire this past June consumed the majority of the roof structure, causing the skylight to collapse to
the ground floor. The roof helps brace the exterior masonry walls, which otherwise lack adequate
support. As a result, parts of the fifth-floor masonry are at risk of collapsing. The fire, along with the
approximately one million gallons of water used to extinguish it, caused additional damage to the fifth-
______________ ___________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
floor masonry and exposed lower-floor wood structural members to moisture. Winter freeze-thaw
cycles are expected to accelerate the deterioration of the masonry and further weaken the building.
The effects of the fire significantly complicate any effort to rehabilitate the building in advance of new
occupancy. A third-party engineering consultant estimates the cost of a ‘bare bones’ rehabilitation to be
approximately $11M. Beyond that, the building would still need mechanical, electrical, and plumbing
systems, fire protection, an elevator, architectural buildout, and interior finishing which would then likely
drive the total rehabilitation cost over $20M.
INSURANCE
The cause of the June 8, 2026 fire remains under investigation by the State Fire Marshal. Nevertheless,
the Lafayette Building was covered under a property insurance policy maintained by the City at the time
of the fire, and City staff immediately filed an insurance claim following the loss. The insurer investigated
the claim, including the condition, maintenance, and security of the building prior to the fire, and
ultimately determined that coverage applied and issued a total payment of $3,596,650 to the City. Those
proceeds have been deposited into the Redevelopment Commission’s general fund as the building’s
owner.
REDEVELOPMENT EFFORTS & NEXT STEPS
Staff will continue to actively pursue redevelopment opportunities for the Lafayette Building and remain
engaged in discussions with potential local development partners regarding the property's future.
However, given the building's deteriorating condition, the documented structural concerns, and the
increased risk of further damage during the upcoming winter months, staff is requesting authority to
proceed with demolition if a feasible redevelopment plan cannot be secured within an appropriate
timeframe. This authority would allow the City to respond promptly should redevelopment efforts prove
unsuccessful, while also protecting public safety, limiting additional deterioration, and avoiding costs
associated with continued stabilization and emergency maintenance of the structure.
Staff would use funds already appropriated by the RDC for the property and approved in Resolution No.
3673. If those funds were insufficient, staff requests authority to utilize funds in the RDC General Fund,
including insurance proceeds received in connection with the fire, for demolition and related costs.
In the event staff determines that demolition is warranted, RDC staff will provide timely notice to the
Commission and ensure that Commissioners are kept informed of the status of redevelopment efforts,
the basis for the demolition decision, and the anticipated next steps. If staff identifies a viable
redevelopment opportunity, any proposed acquisition, development, or related agreements will be
presented to the Commission for approval.
Staff requests authority to proceed with demolition of the Lafayette Building if ongoing redevelopment
efforts do not result in a viable redevelopment opportunity and to utilize insurance proceeds received in
connection with the fire, if necessary, to fund demolition and related costs.