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Council requests update on city funds loaned for defunct redevelopment project

Elkhart City Common Council · January 6, 2026

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Summary

A councilmember asked staff for an update on city funds loaned in connection with a gathering center attached to a private project that later went defunct, seeking details on how taxpayer money was recovered; staff said the redevelopment commission handled the transaction and council often approves final actions.

During new business the council discussed a prior loan of city-related funds tied to a gathering center attached to a privately owned property. A councilmember asked city staff for an update on the loan and on how taxpayers’ money was recovered after the project became defunct. The speaker said the project had ties to a philanthropic donor who has since died and pressed for a "full loop" accounting to show recovery and disposition of city funds.

Staff member Alex responded that the matter originated with the Redevelopment Commission (RDC) and that council action often finalizes RDC decisions; he acknowledged the need to review records and provide a fuller update to the council.

The chair also announced that Wes Stefan is stepping off the RDC; potential replacements (Cindy Ostrom) and a prospective BZA appointee (Anne Lindley) were noted for the next meeting.