Elkhart EDC backs $3.5 million bond, 80% TIF pledge for Boulder Run subdivision

The Elkhart Economic Development Commission voted to forward a resolution and related financing agreements backing Emerald Chase Land Development LLC’s proposed Boulder Run subdivision and to begin the process for a $3.5 million economic development bond that would be supported by an 80% tax-increment finance (TIF) pledge.

Mike Huber, development services director for the City of Elkhart, told commissioners the developer proposes an 86-home single-family subdivision near Jean Wood Drive and Hanke Street. "In your packet, you should have received the EDC report for the Boulder Run project," Huber said. He said estimated infrastructure improvements — streets, sanitary and storm sewer, and municipal water — total about $7,000,000, or roughly $81,000 per lot, and that the full project investment upon completion would exceed $40,000,000.

The commission heard that the city and developer worked with financial advisors Baker Tilly on the financing structure. Huber said the city and developer have agreed to pursue creation of a new residential TIF district and that the redevelopment commission would pledge 80% of tax revenue generated within the district to support an economic development bond for $3,500,000. "This investment will help reduce the per-lot costs for the development by nearly 50%," Huber said.

Huber also said the city's most recent housing study shows market demand across housing types, including market-rate single-family homes, over the next five years. He told the commission the Elkhart Redevelopment Commission approved a declaratory resolution to initiate the TIF creation at its April 8, 2025, meeting, and that the Elkhart Plan Commission affirmed that declaratory resolution and the housing plan at its May 5 meeting. Huber said the City Council is scheduled to take action on the ordinance and resolution at its May 19 meeting, with the bond ordinance planned for second and third readings and action at the June 2 meeting.

No members of the public spoke during the public hearing. Commissioners moved and approved the resolution authorizing the process of issuing EDC bonds and approved the EDC report concerning the proposed financing; motions carried by voice vote.

Transcript language about temporary construction jobs was unclear in the meeting record (the phrase transcribed as "4 15 temporary construction jobs" could not be verified). The transcript also records an estimated payroll related to construction of "over 2,800,000"; the meeting did not specify whether that figure is citywide payroll or payroll tied directly to the Boulder Run infrastructure and lot/home construction.

Next steps identified at the meeting: the commission forwarded the resolution, financing agreement and trust indenture to the City Council for its May 19 meeting; the council would consider first reading then return for second and third readings with anticipated action on June 2. The Elkhart Redevelopment Commission will separately consider formally pledging TIF revenues toward bond payments.