Redevelopment Commission approves sale to Garrison Fraser for $675,000; city pledges $11.8M forgivable loan and $2.5M for Love Plaza

ELKHART, Ind. — The Elkhart Redevelopment Commission on July 29 approved the sale of two downtown parcels to developer Garrison Fraser for a not-to-exceed price of $675,000 and authorized a development agreement that ties a package of city incentives to the project's progress.

The agreement covers the Freight Street and South Main Street sites and captures the developer’s commitment to build 210 housing units with a total project cost the commission said is about $51 million. "Effectively, the developer is agreeing to purchase the land from the city for an amount of $675,000," a Redevelopment Commission staff member said during the meeting.

The city is offering incentives in two forms: a pledge of future tax increment financing (TIF) revenues that will be capitalized into an economic development bond purchased by the developer, and a combined $11,800,000 in existing cash TIF funds offered as a forgivable loan. The staff member said the project team also expects an award from a Lilly investment project through the state IEDC that would affect the final financing.

Commissioners were also told the city will invest up to $2,500,000 to build Love Plaza, a public open space tied to the development. "We are investing a maximum of 2.5 in constructing Love Plaza," the staff member said, adding the plaza is intended to serve the broader Benham neighborhood identified in the neighborhood plan.

Project timing and contingencies were described in the agreement. The developer proposed starting construction in May 2026 with completion in April 2028, beginning leasing in November 2027 and stabilization by May 2029. The agreement includes standard developer protections and required deliverables: proof of financing, property closing schedules, approved construction drawings and a construction timeline.

The developer also committed outside the core development agreement to acquire additional lots to support market-rate townhomes behind the project. The commission was told the city would reduce the acquisition cost of the primary parcels by the developer's out-of-pocket spending on those lots up to $300,000.

During online comment, one participant identified as Louis asked about the city's prior acquisition costs and the breakdown of public funding. "They're buying the 2 parcels for $675,000. Correct?" Louis asked. The staff member confirmed the price and said some earlier acquisitions included a $300,000 purchase on Freight Street but said exact prior amounts for the South Main transaction would need verification.

Commissioners were clear that the city will not finalize the agreement if the anticipated state funds are not secured. "If for some reason we're unable to secure all of our commitments, then, obviously, we would not be allowed to go forward," the staff member said.

A motion to approve the sale substantially on the terms presented, authorizing officers to approve revisions consistent with the parties' intent and subject to legal review, was moved and seconded. The commission voted in favor by voice; the chair announced the motion passed.

The agreement authorizes staff to finalize documents and execute the sale if the financing conditions are met and legal counsel approves the final language.