Redevelopment Commission backs term sheet to support 7th & Wabash mixed‑use project, offers developer‑backed bond access

The Michigan City Redevelopment Commission voted unanimously Nov. 17 to accept a term sheet that will allow developer Julian Walters to pursue access to a developer‑backed bond of up to $3,000,000 to support a proposed five‑story, mixed‑use development at 7th and Wabash.

Julian Walters, president of Eminent Development Corporation, told the commission the project envisions about 60 residential units and 6,000–8,000 square feet of commercial space, with about 40–60% of units reserved as workforce housing. "We're looking at about 60 units with about 6,000 to 8,000 square feet of commercial space," Walters said in his presentation. The developer said financing includes debt and equity already lined up and that the $3,000,000 request would be made available through a developer‑backed bond mechanism that uses the city's bond capacity rather than direct cash outlays.

Staff explained how the developer‑backed bond works: it provides access to the city's bond rating while keeping principal repayment responsibility with the developer. Skyler said the mechanism "does not have an effect upon our bond rating" and described it as a low‑risk structure because the developer bears the repayment obligation.

Why it matters: the project is pitched as missing‑middle housing close to downtown transit and could add workforce housing and ground‑floor commercial activity as infill development. Walters estimated a closing in spring–early summer 2026, with substantial completion by 2027 if timelines hold.

Board action and next steps: the commission's approval of the term sheet allows the developer to proceed with entitlement and bonding steps, subject to subsequent redevelopment agreements and council approvals. Staff will work with Walters and legal counsel on the formal redevelopment agreement and bond access process.