Council hears community investment update; approves developer‑backed bond for 291‑unit riverfront project

The South Bend Common Council on March 10 received a sweeping update on major real‑estate and neighborhood projects from Caleb Bauer, executive director of the Department of Community Investment, and approved an ordinance authorizing developer‑backed taxable tax‑increment revenue bonds to support a 291‑unit apartment project on the St. Joseph River.

Bauer, who presented the department’s 2024 annual report and a status list of about 40 active projects, told the council “Beacon has reported they’ve expended $90,000,000 of the $232,000,000 amount to date” on a new patient tower at Memorial Hospital and that the tower will “grow the number of acute care beds from 249 to 302.” He described scores of downtown and neighborhood investments, infrastructure grants and loan programs that the department is managing.

The council’s vote to authorize the JC Hart financing was the meeting’s primary formal action. The ordinance permits issuance of taxable economic development tax‑increment revenue bonds in a developer‑backed structure; bond proceeds are intended to support a three‑block, mixed‑use riverfront project with a projected $61,500,000 private investment and roughly $11.9 million in net bond proceeds. The ordinance passed with a recorded favorable recommendation from committee and a 9–0 vote on final passage.

Why it matters: Bauer’s update and the council actions together outline a slate of near‑term construction and infrastructure work that will change multiple parts of South Bend — from hospital expansion and a new parking garage tied to the Madison Lifestyle District to infill affordable housing, streetscaping and riverfront infrastructure tied to private development. The JC Hart bond is notable because it uses a project‑based tax‑increment capture model that the administration described as carrying minimal city risk because the developer (JC Hart) will be contractually responsible if projected incremental taxes fall short.

What the department reported

Caleb Bauer summarized project status, funding sources and timelines for large and mid‑sized projects the department is tracking. Highlights he described include:

- Beacon Health System patient tower and Madison Lifestyle District: Bauer said the hospital expansion is roughly 40% complete and that the project is a 10‑story, 300,000‑square‑foot addition to Memorial Hospital. He gave the $232 million total project figure and confirmed substantial completion is targeted for late 2026 with occupancy at that time.

- JC Hart Riverwalk apartment project: Bauer and bond counsel described a two‑building, E‑shaped riverfront apartment development (291 units) with a $61.5 million private investment. The city’s authorization would permit developer‑backed taxable TIF revenue bonds; Bauer said the bond issuance would generate roughly $11.9 million in net proceeds and be repaid over a 25‑year schedule using incremental property‑tax revenues from the development.

- Affordable housing and infill projects: Projects in active construction or development include Diamond View (60 low‑income tax‑credit units), Stadium Flats (two 45‑unit market‑rate buildings planned), 5 Corners (108 apartments including four condos and six income‑qualified units), Lincoln Park (92 for‑sale homes led by INTEND Indiana), and South Bend Thrive (54 affordable units colocated with the YSB Center for Youth Success). Bauer said forgivable loans and tax abatements have been used as part of several financing stacks.

- Stadium and parks work: The council was briefed on the 4 Winds Field seating expansion (second deck and additional amenities), Link Trail completion, Potawatomi Park Phase 1 work (parking and traffic calming), and demolition/cleanup at the former Drewry’s Brewery site ahead of infrastructure work.

- Grants and loans: Bauer listed a long series of awards and financing including a $2,570,000 residential infrastructure loan from the Indiana Finance Authority for the Drewry site, REDI2 funding (Regional Development Authority) of $5,640,000 for riverwalk infrastructure with JC Hart, approximately $30,000,000 awarded to the University of Notre Dame for the Tech & Talent District work, multiple awards to the Community Foundation of St. Joseph County (including $3.6M and two grants totaling $30M and $10M tied to Western Avenue and regional housing efforts), and almost $100M in cumulative grant awards he attributed to collaborative efforts with nonprofit and institutional partners.

Council action and votes at a glance

- Minutes (02/24/2025): Approved by roll call (unanimous, 9 ayes).

- Bill 8‑25 (ordinance authorizing taxable economic development tax‑increment revenue bonds for the JC Hart development project): Committee of the Whole gave a favorable recommendation; council adopted the ordinance on third reading (final passage recorded as 9 ayes). The ordinance authorizes developer‑backed taxable bonds; net bond proceeds were estimated at about $11.9 million to support the $61.5 million project; the developer (JC Hart) is contractually responsible for debt service shortfalls. (See action entry for provenance.)

- Bill 9‑25 (amend firefighter salary classifications): Given favorable recommendation and adopted on third reading (vote recorded as 9 ayes).

- Bill 10‑25 (position title changes in Innovation & Technology; new digital communications position in Fire): Given favorable recommendation and adopted on third reading (vote recorded as 9 ayes).

- Bill 11‑25 (add full‑time Teamsters maintenance position for new City Hall): Given favorable recommendation and adopted on third reading (vote recorded as 9 ayes).

- Bill 12‑25 (budget transfer substitute): Substitute accepted, given favorable recommendation and adopted on third reading (vote recorded as 9 ayes).

- Bill 13‑25 (appropriations for multiple funds, including potential community park grant and City Hall furnishing): Given favorable recommendation and adopted on third reading (vote recorded as 9 ayes).

- Resolution 25‑17 (confirming economic revitalization area and 7‑year real property abatement for Blueprint LLC at 25471 Cleveland Road): Adopted (vote recorded as 9 ayes).

- Resolutions 25‑18 and 25‑19 (confirming a 2‑year vacant building abatement and a 10‑year mixed‑use real‑property abatement for Penny Hill Homes at 425 S. Michigan Street): Both adopted (votes recorded as 9 ayes).

- Bill 14‑25 (annexation: property north of Edison & Sundown Road): Referred to the Zoning & Annexation Committee; subsequent hearing and readings scheduled.

How the JC Hart measure was pitched and decided

City staff described the JC Hart bond as a project‑based TIF (tax‑increment financing) that creates an allocation area on the parcel and captures only incremental taxes generated by the development. Bauer explained the product as “developer‑backed bonds,” noting that in this structure “the risk is being carried by the private developer, JC Hart Company,” so the city would have no obligation to repay in case of default. Committee and council members asked procedural questions; there were no speakers at the public hearing for that bill. Council then sent the bill forward with a favorable committee recommendation and adopted it on third reading.

Other council and staff notes

- Bauer highlighted the city’s revolving loan and Opportunity Fund activity, reporting more than 60 applications for a new loan product since launch and describing about $16 million in revolving‑loan capital that supports small businesses.

- Bauer said the department issued 13 low‑interest loans from revolving funds in 2024 totaling about $2.5 million, and staff reported more than $1,000,000 in home‑repair funding delivered in the latest program round.

- Multiple councilmembers asked implementation and safety questions tied to Potawatomi Park, Lincoln Park development timing, and how homeownership or rental qualification will be managed for forthcoming housing products.

Ending

Bauer closed by noting the department also oversees many smaller, incremental investments and federal fund administration; he offered to return with additional briefings and said staff would follow up with councilmembers on detailed requests. The meeting then moved through scheduled committee business and a series of ordinance and resolution votes recorded above.

Votes and formal actions summarized here are drawn from the meeting’s roll calls and staff presentations; details such as estimated bond proceeds, private investment, and grant awards were those reported by staff during the meeting.