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EDC approves recommendation to issue $9M TIF bonds and make $5.8M loan for South Main mixed‑use project
Summary
The commission approved a resolution recommending issuance of $9,000,000 in tax‑increment revenue bonds and a $5,800,000 loan from consolidated South TIF for a $51,000,000 South Main/Freight Street mixed‑use development that would include 210 apartments and 3,000 sq ft of commercial space; the RDC previously committed funding and future TIF revenues to the project.
Mike Huber, director of development services for the City of Elkhart, presented the South Main/Freight Street project and summarized commitments in a previously executed development agreement. He told commissioners the project was submitted to an RDC RFP and involves Garrison Fraser and Millhouse developers to build a multi‑site mixed‑use development in the South Main corridor.
Huber described the proposal as a $51,000,000 total investment, including 210 multifamily apartments and about 3,000 square feet of new commercial space. He said the IEDC identified $6,000,000 in funding described in the packet as the "Lily Blythe initiative of the Ready 2 program." The redevelopment commission had previously committed $5,800,000 from the consolidated South TIF as a forgivable loan and pledged 100% of future TIF revenues generated by the project to assist the developer in repayment of a developer‑purchased bond.
The EDC was asked to formalize those commitments by approving loan and bond documents and a resolution authorizing issuance of $9,000,000 in tax‑increment revenue bonds and making a $5,800,000 loan to the developer. Commissioners opened the floor for public comment and heard none. The commission then moved, seconded and approved the resolution by voice vote; the packet materials and ordinance drafts will be presented to the common council at a special meeting on Feb. 26 for the required public hearing and final approval.
The action taken by the EDC is advisory; issuance of bonds and loan agreements requires council approval, final bond documents and any necessary financing steps by the developer and RDC. The transcript contains multiple spellings of developer names and program references; packet materials should be consulted for final legal names and document text before council action.
