The Goshen Redevelopment Commission on Oct. 14 voted unanimously to accept a selection-committee recommendation to enter negotiations with Structure Development LLC for the Third and Jefferson redevelopment parcel.

Staff said the selection committee (Commissioners Megan Hessel and Jonathan Graber, staff and Don Schuler) reviewed one proposal from a group described as the same individuals behind the Millrace Townhomes project. Staff and the proposers (represented in the meeting by Shane Dyer and Casey Yerger) described the submission as a conceptual plan for a three-story, 32-unit apartment building with an initial unit mix of 28 two-bedroom and 4 one-bedroom apartments and market rents described in the proposal as roughly $1,300 to $2,200 per month.

The proposal as summarized by staff estimated soft costs (predevelopment and design) at about $800,000 and total development costs near $7.4 million. Staff said the group proposed to purchase the land for $1 and invest nearly $7 million in construction. The plan included one on-site parking space per unit; staff noted that ensuring sufficient city parking will be important to project feasibility.

Staff and committee members flagged several items that would need negotiation in a development agreement, including city-provided public parking, potential vapor-mitigation (radon) systems, and other site-specific infrastructure like stormwater. Staff said an Environmental Restrictive Covenant affecting drinking-water was on the site record but that state closure had been achieved for certain issues; the need for an active vapor mitigation system may still require clarification via environmental review.

Commissioners discussed downtown housing demand and market information. Staff referenced a 2022 housing study indicating substantial additional housing needs through 2030 and local rental market evidence (e.g., Copperleaf Cove) indicating strong demand for one-bedroom units. Casey Yerger of Structure Development said the proposers were reviewing unit mix and market signals and noted plans to work with local contractors.

A motion to accept the committee recommendation to enter negotiations with Structure Development was made, seconded and passed unanimously. Staff will proceed to negotiate a development agreement and bring terms back to the commission for approval.