Board clears two use variances to enable Freight Street District redevelopment, developer cites $50M investment and fall 2026 groundbreaking target
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Summary
The board approved two use variances allowing first‑floor residential in the central business district for linked Freight Street and South Main projects. City staff and developers said the work is part of a larger $50 million redevelopment expected to yield roughly 210–215 units, with a hoped‑for groundbreaking in September 2026 subject to state incentives.
The Elkhart City Board of Zoning Appeals on Nov. 13 approved two use variances (25 UV 13 and 25 UV 14) to allow residential dwelling units on the first floor of mixed‑use buildings in the Central Business District as part of a coordinated redevelopment of parcels on Freight Street and South Main.
Mike Hubert, director of development services for the City of Elkhart, told the board the city assembled multiple parcels along Freight Street and South Main in 2020–2024 and issued an RFP that resulted in respondent Garrison Fraser (with codeveloper Millhouse) proposing a coordinated redevelopment. City and developer representatives said the combined initiative represents about $50 million in planned private investment and would create roughly 210–215 housing units across related projects; one project (the Freight Street District) is described as two buildings with 144 units and over 9,000 sq ft of retail/amenity space.
Jonah Butler, speaking for Garrison Fraser and Millhouse, said the developers intend to activate the street and public realm and noted ground‑floor residential can be appropriate in selected locations to support housing goals. Planning staff recommended approval based on the Benham neighborhood master plan and because the request aligns with anticipated UDO changes. Staff described project specifics including a four‑story building with approximately 3,300 sq ft of leasable retail facing South Main and public features such as Love Plaza honoring the artist Kelby Love.
During the meeting staff and the developer discussed timing and incentives: the city is negotiating incentive agreements with IEDC and anticipates an agreement related to Lilly Endowment initiatives; staff said a contract with the state incentive program is expected to be signed in December and the developer hopes to break ground in September 2026.
The board voted to approve both variances, adopting staff findings. Public comment included support for housing and for commitments to affordability and public art. Staff reported notification letters were mailed to nearby owners (36 and 74 letters for the two cases) with minimal return responses.
Next steps: developers continue to seek state incentive agreements, finalize design and approvals, and prepare for the anticipated 2026 construction start; staff will coordinate additional land‑use approvals and public engagement as designs are finalized.
