Redevelopment commission approves Woodland Crossing work plan, lease forms and design funds as mall tenant strategy shifts

The Elkhart Redevelopment Commission on Jan. 14 approved multiple measures intended to reposition Woodland Crossing after the departure of its largest tenant, Big Lots.

The commission approved the 2025 common area maintenance (CAM) budget for Woodland Crossing, adopted standardized lease documents including a personal guaranty form and a lease addendum with site rules, authorized a two-person executive committee to negotiate and execute routine tenant leases, and approved contract and procurement steps to reconfigure the vacant 20,000-square-foot former Big Lots space.

Why it matters: Commissioners and staff said shifting the former Big Lots space into smaller units would increase leasing flexibility and revenue potential. The actions create templates and a faster approval process for routine leases, authorize design work and tenant build-outs, and clear an early path for asbestos abatement and interior demolition needed before tenant improvements.

Mary Cask, assistant director of community development, introduced the package and explained the rationale for approving standardized documents and an executive committee. "The budget did take into account some of the changes that have occurred there as far as the revenue side, with losing Big Lots...Snow and salt are our biggest expense," Cask said, describing the CAM cost drivers and vacancy-related "leakage" on revenue.

The commission approved a not-to-exceed $100,000 amendment to the existing WBK Engineering contract to produce bid-ready design work for new tenant spaces and low-cost exterior design concepts for the city-owned portion of the mall. Staff described the amendment as time-and-materials work to develop two to three design concepts and construction documents so the city can solicit competitive bids for build-outs.

Commissioners also approved standard lease documents: a personal guaranty form to be used when an individual guarantees a lease; a lease addendum setting site rules and tenant responsibilities; and a standard form of lease to be used going forward subject to negotiated, nonmaterial market adjustments. An executive committee composed of the serving president or vice president and the secretary was authorized to negotiate and execute leases that conform to the approved templates, provided rent is not less than the prevailing commercial rate (set at $12 per square foot as the baseline) unless the commission specifically approves a lower rate.

Staff asked for authority to issue requests for quotes (RFQs) for two immediate needs: tenant build-out work at 148 West Hively, Suite 5 (the first prospective new tenant adjacent to Heart City Health) and an interior demolition and reconfiguration of the former Big Lots space. Staff reported the city has already completed an asbestos inspection of the Big Lots space and that mastic in floor tiles, some pipe wrap and HVAC insulation contain asbestos; an environmental contractor has provided a quote for abatement. Commissioners authorized issuance of RFQs so abatement and selective demolition can proceed once contracts are awarded.

Commissioners said they expect the executive committee to work with staff on lease particulars and to return to the full commission if material economic concessions are required.

The commission approved the Woodland Crossing package by voice vote; no recorded roll-call tallies were provided in the transcript for each item.

Ending: Staff said construction and abatement activities will be coordinated with design work from WBK and that results will be reported back to the commission at a future meeting.