Elkhart City Redevelopment Commission approves TIF-area amendments, contracts and property offers

Elkhart City Redevelopment Commission on Jan. 28, 2025 approved amendments to the downtown urban renewal and Casopolis Street Corridor plans, authorized the creation of two new tax allocation (TIF) areas, and approved a slate of contracts and property agreements intended to support ongoing downtown and South Main Street redevelopment projects.

The actions set the legal and funding groundwork for projects in the River District and South Main Street corridor and included formal approvals to create Tax Allocation Area No. 7 (225 East Jackson) and Tax Allocation Area No. 8 (parcels on South Main/Freight Street), authorization to pursue offers on multiple parcels along the east side of Main Street, and contracts or use agreements for parking, professional services and reporting. Mike Huber, development service director for the city of Elkhart, told the commission the actions respond to negotiations with developers and the need to amend current plans so proposed projects can be supported by existing and new TIF tools. “As you are all aware, we are continuing to negotiate on a development project, redevelopment project, for Zone 2 of the River District,” Huber said.

Why it matters: the amendments and new allocation areas allow the city to pledge or direct TIF-generated revenues from specific redevelopment parcels to support developer financing, parking and infrastructure tied to private redevelopment. The commission also approved several operational contracts and agreements intended to speed project delivery, including an on-call engineering services contract, an engagement letter for TIF reporting and projections, and short-term use/access agreements for city-owned parking parcels.

Major decisions and context

- TIF plan amendments: The commission voted to approve a 2025 amendment to the downtown urban renewal area plan and the Casopolis Street Corridor economic development area plan to explicitly allow support for parking-lot and parking-garage projects throughout the city that would serve hotels, restaurants and other businesses. One commissioner abstained, citing adjacent property ownership.

- New allocation areas: The commission approved creation of Tax Allocation Area No. 7 (a single-site area at 225 East Jackson) and Tax Allocation Area No. 8 (parcels on South Main Street/Freight Street tied to a developer financing strategy). For Area No. 7 the vote was recorded as 4 ayes and 1 abstention; the record does not list individual member votes by name.

- Property offers and purchases: The commission authorized staff to deliver offers to owners of several parcels on the east side of Main Street at appraisal-based prices listed in the meeting packet, and to negotiate with willing sellers subject to final commission approval of any price beyond those listed.

- Use and access agreements: The commission approved a use and access agreement allowing DJ Construction to use the parking area behind the Chase Building at 121 Franklin for staff, contractors and subcontractors; the company provided proof of insurance. The commission also renewed a side-yard use agreement for a York Street parcel that an adjacent property owner has maintained and may seek to purchase in the future.

- Contracts and professional services: The commission approved the form and content of an on-call professional services agreement with DLZ to provide engineering, planning and landscape-architecture services for downtown projects and streetscape work (funded from the Downtown TIF). The commission also approved the annual engagement letter with Baker Tilly Advisory Group LLP for TIF-neutralization reporting, projections and related financial analyses.

- Administrative approvals and payments: The commission approved the 2024 annual report for issuance to the mayor, common council and the Department of Local Government Finance. The meeting record shows approval of payment for current invoices totaling $37,438.79.

Quotes and notable remarks

Mike Huber, development service director, summarized why plan amendments are needed and tied them to developer negotiations: “One of the things we understand as we start the process of carving out the new TIF area … is that the proposed project is not currently included in either of those plans. So we wanted to take this opportunity to amend both the downtown and Casopolis area plans to reflect the activities related to the project.”

A commissioner who identified themself as an adjacent property owner said, “I will abstain. I'm an adjacent property owner,” in connection with votes to amend the plans and to carve out a new allocation area.

Votes at a glance

- Access/use agreement — 121 Franklin (DJ Construction): motion approved (mover/second not specified; recorded as passed).

- Authorization to deliver offers to purchase multiple parcels on east side of Main Street (appraisal-based prices in packet): motion approved (mover/second not specified; recorded as passed).

- 2025 amendment to the downtown urban renewal area plan and the Casopolis Street Corridor economic development area plan: motion approved; 1 abstention (adjacent property owner).

- Side-yard use agreement (York Street): motion approved.

- 2024 annual report: motion approved.

- On-call professional services agreement with DLZ (engineering/planning/landscape architecture): motion approved.

- Creation of Downtown Tax Allocation Area No. 7 (225 East Jackson): motion approved; vote recorded as 4 ayes, 1 abstention.

- Creation of Downtown Tax Allocation Area No. 8 (South Main/Freight Street parcels): motion approved.

- Baker Tilly engagement letter (01/28/2025): motion approved.

- Payment of invoices totaling $37,438.79: motion approved.

Items reported for later review or contract solicitation

The commission noted received quotes and responses for the Windsor and Casopolis Pedestrian Access and Lighting Project and for appraisal and Phase I/II environmental services. Two quotes cited in the record for environmental work on the pedestrian project were from DHA (Dansch, Hartner & Associates) for $66,800 and from Jones Petrie Ryvinsky (JPR) for $82,500; staff said they plan to review proposals and report back at the next meeting. Appraisal firms that responded included Allied Appraisal Group, Appraisal Services Inc., Iverson Grove and Jay Carnine & Company; environmental-service responses included Patriot Engineering & Environmental, Heron Environmental, JPR, Stantec Consulting Services, Roberts Environmental Services and Caramida Environmental Inc.

Implementation notes and next steps

Staff will place contracts with selected appraisal and environmental firms on a rotating basis for professional services as needed. Offers to purchase the identified South Main Street parcels will be delivered by the city’s real estate representative and any negotiated agreement that exceeds the listed offer price must be returned to the commission for approval at a public meeting. The commission indicated anticipated follow-up agenda items on several downtown projects, including funding/pledging of TIF revenues to support developer financing on South Main.

Ending

There were no substantive public comments recorded on these agenda items at the meeting. The commission adjourned after routine closing procedures.