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Prepared byShelley Moore Mike HigbeeReviewed byMayor Rod RobersonDayna BennettTHE CITY OF ELKHARTJANUARY 2022ELKHART 2040THRIVECOMMUNITYINVESTMENTSPROJECTS OVERVIEWE | THRIVE

Housing$198MConcord$160MWoodland$38.4MSouth Main$21.4MDowntown$20.3MEMC2$12MSouth Central CDC$3.6MTotal THRIVE Projected InvestmentsAttainable Housing Bond Initiative ($198M)South Main Street NeighborhoodReinforcement ($21.4M)Woodland Crossing Opportunity Hub andRevitalization ($38.4M)Career Crosswalks WorkforceOpportunity Program ($85K)South Central Community DevelopmentCorporation ($3.6M)Emerging Manufacturing CollaborationCenter (EMC2) ($12M)Industry Diversification Maker's District(TBD)Downtown Revitalization Initiative ($20M)including: Downtown CDC development Implementation of the downtownmaster planConcord Mall Redevelopment ($160M)The Elkhart 2040 THRIVE is aneconomic development plan inimplementation. The following projects are set for investmentengagement in 2022 and comprise of over$453,700,000 of potential investment forElkhart. This does not include additional privateinvestments in the downtown area which willexceed $100,000,000.1.2.3.a.4.5.a.6.a.b.7.$453.7MPublic $78.7Private $375 Leverage 1:5

SourceInvestmentProject Cost$198,000,000City Start-up$100,000City Project Support$30,000,000Other Public Funds$10,000,000Private $157,900,000Private $ / $1 Public4Elkhart is in a housing crisis. Two newapartment complexes have been built in 20years and available housing in market rateand affordable categories are not enough tomeet the demand of the thriving RV andrelated industries. As Amazon comes onlinewithin the next three years, additional regionaldemand will grow to attract workforce of agrowing Midwest supply chain network.There has not been a comprehensive programdeveloped to meet this challenge, until now.THRIVE proposes a $30,000,000 housing bondissue. 75% would be loaned out at favorablerates and 25% provided as grants. Paybackwould be over 20 years having revolved theloan dollars two to three times. This isprojected to produce 2,500 to 3,000 housingunits. Concord Mall RedevelopmentWoodland Crossing RevitalizationSouth Main Multi-familySouth Main Infill HousingElkhart TruthArmory SiteRiver District Zone 2-3EMC2 Makers District1101 BeardsleyNorthside Amazon HousingStiverBent OakHively and 17thInitial projects such as the following have beenidentified. These alone represent over 1,600housing units.2022 Action Steps andInvestment MixAttainable Housing Bond Initiative Identify housing prioritiesComplete plan and programming for bondIdentify bond administrator / financialinstitution and vetting processObtain council and public approvalCommunity educationSelect developers for initial projects

SourceInvestmentProject Cost21,435,500City Start-up$800,000City Project Support$1,500,000Other Public Funds$2,250,000Private $16,885,500Private $ / $1 PublicMixed Use - 6Infill - 3The City of Elkhart owns a number of lots onthe west side of South Main St. Additional lotsfor potential acquisition have been identifiedto assemble a multi-family housing projectand additional infill housing. The project cost includes 40+ multi-familyhousing units along South Main with 3,500square feet of commercial space. A budget of$400,000 for land aquisition for the multi-family project and infill has been approved bythe City. The project cost includes a 15%contingency. The City has a workplan, timeline andacquisition strategy and list in hand tocarefully execute as soon as possible. 2022 Action Steps andInvestment MixSouth Main Street Neighborhood Reinforcement Set housing standard types and developerporfolio requirementsComplete acquisitionsEstablish development design for mixeduse project and infill projectComplete marketing plan for infill projectEstablish financing program for infillSite prep for mixed use programSolicit developers for mixed use projectImplement infill housing projectAspects of the project may be managed bythe South Central CDC longer termRedevelop 1000 S. Main (west side) mixed usedevelopmentImplement residential infill programIntiate a community-defined complete neighborhoodprogramEnhance property values and create a neighborhood ofchoice Identify public improvements Reinforce complete neighborhood principlesOutcomes:

SourceInvestmentProject Cost$38,441,000City Start-up$2,585,000City Project Support$2,000,000Other Public Funds$5,306,000Private $28,550,000Private $ / $1 PublicHousing - 6Commercial - 5Since May 2021, the City has been trying toengage the owners of Woodland Crossing in adiscussion to sell the property to the Cityand/or partners based on its blightedcondition - with low response and no decisionon their listing.The Woodland Crossing site ideally should betransitioned from a marginal retail incomeplay by out-of-state developers, to a value-added proposition for the South Centralneighborhood - building off of recent publicrealm improvements and the TolsonCommunity Center expansion. A mixed-use Neighborhood Opportunity Hubsite will positively engergize, educate, employand engage its residents. Partnerships withGoodwill and Heart City Health have beensecured as long as we can deliver in shortorder. 2022 Action Steps andInvestment MixWoodland Crossing Opportunity Hub Revitalization Assertively secure property ownershipSelect master developer to run the projectFinalize site plan and partnershipagreementsFinalize short-term financing agreement (5 years)Master developer will select developersand be responsible to meet deadlines perthe partnership and financing agreementwith the CityAspects of the project may be managed bythe South Central CDC longer termThis site plan is a conceptualization of the site'sredevelopment. We have engaged partnerships with thefollowing anchors for the community redevelopment -- inaddition to securing a plan for the immediate redevelopmentof housing and neighborhood revitalization to secure Krogeras a long-term tenant and avoid the area becoming a fooddesert.

SourceInvestmentProject Cost$3,600,000City Start-up$100,000City Project Support$2,500,000Other Public Funds$0Private $1,000,000Private $ / $1 Public.38Acquire and/or rehabilitate rental housingConstruct rental housingAcquire and/or rehabilitate homebuyerpropertiesConstruct home homebuyer propertiesProvide direct financial assistance topurchasers of homebuyer propertiesExecution of a Neighborhood Opportunity Hubwithin the Complete Neighborhood framework.This CDC is responsible for block by blockneighborhood revitalization in the most denselypopulated, diverse, and lower-income part of thecity. Once thriving with Pierre Moran mall in thecenter of the densely populated neighborhoods tothe east, and developed industrial park space tothe west, this approximately 2,500 acres is nowtired and underutilized. Indicators of low-performing schools, poverty, media incomes areevident. The primary objectives of this CDC to be thefollowing:2022 Action Steps andInvestment MixSouth Central Community Development Corporation Select initial five board members, to beexpanded as projects are identifiedComplete incorporation and requiredmeetingsDevelop three-year workplan and budgetprojections based on project revenuesPublic dollars to be paid over five years,CDC to be self-sustaining by year sixImplement immediate workforce housingprojects as defined in the project plansDetermine programming task forcesThe potential redevelopment of the WoodlandCrossing site. This is about 30 acres whichincludes a Kroger store and we haveestablished partnerships with Goodwill, HeartCity Health, the library, and developers forworkforce housing. This would be a mixed usesite focused on quality of life developmentaround the Neighborhood Opportunity Hubframework within a Complete Neighborhood.Main drivers will be career/workforcedevelopment, entrepreneurship, training andeducation, and workforce housing.Other potential workforce housing and infillhousing focus areas have been identified.As these projects are established, the CDC willprovide neighborhood reinforcementprogramming. The primary projects for the first three years of thisCDC's work are:

SourceInvestmentProject Cost$12,000,000City Start-up$100,000City Project Support$250,000Other Public Funds$3,500,000Private $8,150,000Private $ / $1 Public2The City of Elkhart, along with the South Bend -Elkhart Regional Partnership, in cooperation withNineTwelve Institute as the EMC2 operatingmanager, wants to leverage its manufacturinglegacy and assets by building on this emergingstate-wide smart logistics and technologyinnovation infrastructure. The Elkhart EMC2 campus will join a small networkof similar high-capacity facilities, designed to“establish industry leading facility capabilities, coretraining outreach, and on-site industry resourcesthat offer ‘THE’ place for success -- benefittingmany of our legacy manufacturers as well as newfirms and entrepreneurs. Elkhart’s EMC2 campuspotentially includes a new Maker’s District whichcomprises of providing space for advancingexisting and new small manufacturing andentrepreneurial endeavors. This collective campuswill be the place to collaborate -- regionally, state-wide, nationally and internationally.2022 Action Steps andInvestment MixEmerging Manufacturing Collaboration Center EMC2 Complete local technology surveySecure private sector manufacturingparticipationSelect location with Nine TwelveComplete business and launch planComplete required fundraising androundtables for startupSupport NineTwelve as needed for launchThe Elkhart EMC2 proposes to focus on the region’smanufacturing strengths, metal fabrication,electronics, goods and labor movement, andsupply chain innovation.Areas such as advancedmanufacturing, emerging technologies, trustedmicroelectronics, and safe encrypted accessible 5Gdata solutions (with its 5G lab) are intended todrive private and public smart logistic applications.Regional businesses will be engaged to determineEMC2’s focus in supporting manufacturing andtechnology innovation within the South Bend-Elkhart region and the partnerships that willexpand economic opportunity.

SourceInvestmentProject Cost$20,325,000City Start-up$75,000City Project Support$2,625,000Other Public Funds$0Private $17,625,000Private $ / $1 Public1Elkhart's Downtown continues to have missingteeth, vacated buildings, and challenges withachieving a walkable, urban destination forresidents and businesses. A newly established downtown-focused CDC, ledand primarily funded by the private sector, will becharged to develop a downtown master plan andimplement the development and programmingrequired to specifically targeted downtown spaces.With the City participation in supporting andfunding streets and infrastructure changes neededfor development projects, the CDC will assure thecoordination between developers, residents andbusinesses is managed to achieve mutual growthobjectives for the designated downtown area. This CDC is responsible for the mixed use anddiverse real estate development, event and culturalprogramming, and beautification of the designateddowntown area. 2022 Action Steps andInvestment MixDowntown Revitalization Initiative Select initial five board members, to beexpanded as projects are identifiedComplete incorporation and requiredmeetingsDevelop three-year workplan and budgetprojections based on project revenuesSecure private fund - every $10M shouldleverage $100M in projectsPublic dollars to be paid over five years,CDC to be self-sustaining by year fiveDevelop downtown master plan within sixmonthsDetermine programming task forcesCreate and manage great civic spacesCreate high density/mixed-use developmentPreserve historic structures and improvestreetscapesCreate diverse, mixed-income neighborhoodssupported by local businessDevelop and communicate the DowntownMaster PlanCreate a fund with the private sectorparticipation to leverage development projectsPartner with developers to identify andimplement signature projectsCentralize event calendar and resources toactivate and coordinate downtownThe primary objectives are: Selected projects will be centered on implementinga newly developed master plan for the downtown -which developing this would be the first project inits formation. This master plan would be followingthe lead of the recent ULI report and other studies. Doesn't include over $100M in private downtown investments.

SourceInvestmentProject Cost$160,000,000City Start-up$75,000City Project Support$10,000,000Other Public Funds$5,000,000Private $144,925,000Private $ / $1 Public10January 2022, a Concord Mall trade area marketanalysis and site development recomendationreport has been completed including: a propertyassessment, ownership analysis, market scan, andre-use options.The Concord Mall, as a former functioning regionalshopping destination, has experienced adeteriorating market capture the past decade. Thesteady exodus of stores (current occupancy <30%),ownership’s inability and/or unwillingness tomaintain mall amenities and other factors haveresulted in significantly reduced shopping trips tothe mall. Many malls face this challenge. This property is for sale and is in default with itscurrent buyer. The report's recommendations statethat it is in the City's best interest to be engagedand ensure that the property is fully developed toits potential as a successful mixed use regionalattraction.2022 Action Steps andInvestment MixConcord Mall Redevelopment Select master developer to run the projectto complete the following along withdetermining the City's role - which mayincluding establishing the area as a CREED. Determine best partner for initial siteownershipFinalize site plan, partnershipagreements, short-term financingagreement (5 years)Master developer will select developersand be responsible to meet deadlinesper the partnership and financingagreementsRetail Reinforcement Strategy (15-20 acres)Redevelopment Strategy including:Multi-family Residential (20-35 acres)Active Recreation (20-30 acres)Business and Technology Accelerator (5acres-existing space)Entertainment and Hospitality (5-10 acres)Explore Land-use Options & ViabilityEstablish Redevelopment StrategyDetermine Public Sector’s RoleThe retail reinforcement and redevelopmentstrategy includes facilitating the redevelopment ofthe following uses:Recommended next steps include:The recommendation is to engage a masterdeveloper to complete these steps and help todetermine the City's role to fulfull partneringdevelopers with achieving their objectives.