EDC recommends $500,000 forgivable loan for Sterling Avenue affordable housing

Mike Huber, director of development services for the City of Elkhart, told the Economic Development Commission that Advantix Development Corporation was awarded LITEC credits by IHCDA in 2023 to support a 42‑unit affordable housing project on Sterling Avenue and that the development represents a roughly $14,000,000 investment.

Huber said an electric utility easement affected the rear 30 feet of the parcel and required a redesign that replaced two above‑ground retention ponds with an underground detention system. "Advantage resubmitted with an underground detention system that would eliminate the need for the above ground retention ponds, but at an additional cost of $500,000 to the project," he said.

The EDC considered a resolution recommending a $500,000 forgivable loan from the consolidated South TIF to Advantix to fund that cost. The resolution, packet materials and a draft loan and funding agreement were provided to commissioners; Huber told the board the loan would be forgiven at the completion of the project, defined in the materials as issuance of certificate of occupancy. He also noted the common council will hold a public hearing and consider related ordinances at a special meeting on Feb. 26.

Commissioners opened the floor for public comment on the Sterling Avenue project and received none. The commission then voted to adopt the resolution recommending the $500,000 forgivable loan; the motion was moved and seconded and carried by voice vote. The packet included a report setting out how the proposed loan meets the economic development project definition.

The EDC's action is advisory: the common council must conduct the public hearing and approve the loan, loan ordinance and any bond or funding documents before funds would be released. The project team will need to complete permitting and obtain a certificate of occupancy for the loan forgiveness to become effective.