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Elkhart approves River District development agreement: city to own parking garage, pledges $8 million
Summary
The City of Elkhart approved a complex public‑private development agreement with River District Development Company for a 1.25‑acre South‑Side Jackson Street site that includes a city‑owned parking structure wrapped by roughly 70 apartments and about 14,000 sq ft of commercial space; the city’s investment is $8 million of an estimated $38 million total project, with completion targets through Dec. 2028.
The City of Elkhart’s Board of Works on Nov. 4 approved an economic development agreement with River District Development Company and the redevelopment commission to support a mixed‑use project at 225 Jackson Street.
Mike Huber, development services director, described the project as a unique public‑private partnership in which the city will own a parking garage wrapped by residential and commercial uses. Huber said the full project is estimated at $38 million, of which the city’s investment is $8 million and the developer intends to invest about $30 million. The agreement includes management provisions for the garage during the first five years; the city will own the structure and grant easements to residential tenants for overnight parking tags, while the developer will manage the garage under a not‑to‑exceed management payment (the agreement reserves up to $100,000 per year for management but staff said expected operating costs are likely in the $50,000–$70,000 range).
The agreement sets time limits for relocating current tenants, starting construction, and completing the project by December 2028. The site is about 1.25 acres and will contain approximately 70 wrapped apartments and about 14,000 square feet of commercial/office space. The garage is estimated to provide roughly 200 spaces, with approximately 110–112 spaces allocated to residents overnight (the board negotiated an approach leaving daytime spaces open to the public to maximize utilization and support nearby businesses and events).
The funding plan uses existing TIF cash balances (Casopolis Street TIF was amended to allow funding of parking improvements in other parts of the city) and city redevelopment funds; the city will not pledge future TIF increments from this single‑site project. Huber and the board’s attorney said legal review involved multiple counsel and the agreement was finalized after extensive negotiation.
Board members asked about commercial versus residential balance, public access hours, maintenance funding after five years, and contingencies if future council appropriations are not approved. Staff answered that maintenance is city responsibility, the agreement contains no future appropriation guarantees, and overnight parking for residents is restricted until units are occupied.
What’s next: the board approved the agreement and staff will proceed with execution and coordination; construction and management details will be implemented per the agreement timeline with regular reporting back to the board and council as required.
