Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Land Use Development topic
No spam. Unsubscribe anytime.
Council creates Riverwalk TIF district to support 291-unit JC Hart riverfront project
Summary
Council creates a new 25-year Riverwalk tax-increment allocation area to back bonds for a proposed $61.5 million, 291-unit riverfront development by JC Hart; council approved the declaratory resolution 8-0.
South Bend — The South Bend Common Council on Feb. 10 adopted a resolution creating a new 25-year tax-increment financing (TIF) allocation area to support a riverfront development that would include 291 market-rate apartments and a 398-space structured parking garage.
The council voted 8-0 to remove the parcel from the existing River West allocation area and establish a separate "Riverwalk" allocation area. The developer, JC Hart Company, plans a private investment of at least $61.5 million and will build two buildings: a riverfront residential building and an adjoining parking structure wrapped with apartments.
Why it matters: Under the terms presented by Caleb Bauer, executive director of community investment, 90% of the parcel's future incremental property-tax revenues would be pledged to pay debt service on bonds issued for the project's infrastructure and parking. The developer carries the risk: if revenues fall short, the developer would be responsible for the debt service and a property-tax lien would be placed on the parcel.
Project and financing details:
- Scope: 291 apartments and an integrated 398-space garage; demolition of one CROW building is planned to make the site buildable.
- Private investment: Minimum of $61,500,000 reported by administration.
- TIF terms: 90% of incremental property tax increment for a 25-year term pledged to debt service; an additional 6% of increment (up to $1,342,000) negotiated to incorporate a portion of CROW's parking needs into the garage.
- Risk allocation: Bonds would be secured by the future increment from this parcel only; the developer is the primary backstop for any revenue shortfall.
- Timeline: If council and the Redevelopment Commission proceed, the administration expects a bond ordinance on the March 10 council agenda, property closing in mid-2025, and construction and infrastructure work from 2025 into 2028.
JC Hart representatives described themselves as long-term owners with experience building mixed-use projects in Indiana. "We are not a merchant builder ... We want to be a part of the community and grow roots," Todd May, JC Hart, told the council. JC Hart said similar projects in the region used structured parking and public-private partnerships to make construction financially viable.
Council members asked how the Riverwalk parcel fits with neighboring redevelopment parcels and city-owned lots to the south; Caleb Bauer said the parcel is owned by Holiday Properties and is separate from the River Glen Office Park properties acquired earlier by the Redevelopment Commission. Bauer said the city continues to market and coordinate redevelopment across the riverfront and to the south but that this parcel is a distinct, privately led project with an existing contract.
Next steps: The administration will bring bond ordinances for first reading on March 10 if the parties finalize documents. Construction would begin after bond closing and required city approvals.
