Elkhart approves conditional $8 million incentive for River District garage and 70-unit development

The Elkhart Redevelopment Commission on Sept. 9 approved an economic development agreement and funding of a Series 2025 note that would make $8,000,000 available to support a private developer’s $38,000,000 River District project, contingent on final legal exhibits and staff sign-off.

Mike Huber, Development Services Director for the City of Elkhart, told commissioners the proposal pairs a public parking structure with mixed-use development in Zone 2 of the River District. “This project would provide an additional 70 units of residential with an additional 12,000 square feet of commercial and restaurant space,” Huber said. He described the project as continuing the River District vision of adding housing, retail and walkable amenities.

Nut graf: The agreement aims to address downtown housing and parking capacity while preserving the development’s mixed-use character. Under the plan the city would provide the incentive as a forgivable loan; the developer would build the parking structure, then dedicate the public portion back to the city. Huber said the developer pledged about $5,700,000 of a $9,000,000 ready allotment toward the project and requested the $8,000,000 incentive to build the parking structure and support related development costs.

Huber outlined parking numbers intended to serve both residents and visitors: the district will retain roughly 180 spaces across the street, has 94 on-street spaces, and the new public parking structure would include about 200 spaces. “The 200 gets us to roughly 500 parking spaces available, which should be more than adequate to can accommodate both the residents and visitors at any given time,” Huber said. The city intends that public parking be free in the district, with overnight parking restricted to residents who register for a resident pass.

The commission’s approval is conditional. Huber said two exhibits remained to be finalized: Exhibit C, a parking easement describing public access and overnight-resident-pass terms; and Exhibit D, a parking facility management and maintenance agreement. The commission approved the economic development agreement and funding of the Series 2025 note in the amount of $8,000,000 from the Cassopolis Area Allocation Area Special Fund, subject to final review of Exhibits C and D and to prior legal review. The commission also authorized the RDC president — or, in her absence, the vice president — to approve necessary, attorney-reviewed revisions consistent with the parties’ intent.

Commissioners asked about schedule and occupancy. Huber said he understood the developer planned a spring 2026 construction start; he did not address tenant relocation timing for existing occupants. Huber said the River District continues to attract residents and businesses and described the aquatic center and River Walk as catalysts for increased assessed value and foot traffic.

The motion to approve the agreement and fund the note passed following a motion and second; the transcript records the vote as “aye” with no roll-call tallies recorded in the meeting minutes.

Ending: The commission asked staff to finalize the exhibits and return any material changes for review; city legal counsel and RDC officers will complete final approvals before loan documents move to the Economic Development Corporation and city council for related approvals.