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The Woodland Crossing NeighborhoodOpportunity HubWE THRIVETHRIVE 2040ELKHART'S ECONOMICDEVELOPMENT PLAN2021-2022

CONFIDENTIAL ELKHART 2040 • 2021+SOUTH CENTRALNEIGHBORHOODOPPORTUNITY HUBSince May 2021, the City has been trying to engage the owners of WoodlandCrossing in a discussion to sell the property to the City and/or partners based on itsblighted condition - with no response other than they plan to list it.June 2021, the City proceeded to add the property to the Redevelopment Areaacquisition list to inform the owners of the City's intent.November 12, the owners of Woodland Crossing listed the property. Awareness ofthe LOI deadline of December 9 was known 24 hours in advance.The City and associates submitted LOIs. Overall, 14 LOIs were submitted and theowners have narrowed those meeting their threshold to five. Best and final offers are due December 16. The City and associates intend to placean offer. The final accepted offer will be announced the week of December 20 toenter the due diligence process. The owners have not shared who the developersare other than they are national, credible developers with some potential housing.Two developers have contacted the City about the preference for the property.These developers are strip mall developers with no housing specialization. It isdetermined so far, that outside developers will likely not offer the best use for theproperty that will serve the neighborhood well. Likewise, the owner's processdoesn't fully give the City exposure to know for sure.

“To the extent that there ismobility for neighborhoods,it is often downward.”OUR PRIDE TO THRIVEBrookings: Tackling the legacy of persistent urbaninequality and concentrated poverty.Stuart Butler and Jonathan GrabinskyNovember 2020 (b-1) Credit EIG May 2020 Study CONFIDENTIAL ELKHART 2040 • 2021+Elkhart's EconomicDevelopment Plan for Sustaining Elkhart's Future THE CASE FORWE THRIVE

CONFIDENTIAL ELKHART 2040 • 2021+NEIGHBORHOODS OFPOVERTYECONOMIC TRENDS & IMPACTMetro neighborhoods with 30%+ resident povertyrate doubled 1980-2010.Two-thirds of high poverty neighborhoods in 1980remain 40 years later.Born and raised in poverty strongly influencesfuture economic mobility.Two-thirds Black Americans remain in poorneighborhoods.1980-2018 only 14% of high poverty neighborhoodsturned around.Past 40 Years – urban poverty nationally hassharply increased:

This model, implemented well, becomes a national best practice.The vision is to establish a community gathering place to socialize,engage, and conveniently access economic and social opportunitiesserving the South Central residents and small businesses. WE THRIVECONFIDENTIAL ELKHART 2040 • 2021+NEIGHBORHOODOPPORTUNITY HUBS

CONFIDENTIAL ELKHART 2040 • 2021+NEIGHBORHOODOPPORTUNITY HUB& HOUSINGTHE VISIONThe Roberson administration's Elkhart THRIVE 2040economic development plan has identified 10 specifichousing projects and is pursuing multiple sources offunding to launch these projects in 2022. The Woodland Crossing site ideally should be transitionedfrom a marginal retail income play by out-of-statedevelopers, to a value-added proposition for the SouthCentral neighborhood - building off of recent public realmimprovements and the Tolson Community Centerexpansion. A mixed-use Neighborhood Opportunity Hub site willpositively engergize, educate, employ and engage itsresidents..

CONFIDENTIAL ELKHART 2040 • 2021+FRAMEWORKFOR GROWTHNEIGHBORHOODOPPORTUNITY HUBSIndustry diversification, Revitalization of 21st Century Industrial Parks,Talent optimization for developing a thrivingworkforce, and Connectivity and mobilization of transportationand utility infrastructureThe Elkhart 2040 Plan states that future economicgrowth and stabilization is dependent on:These developments are proposed to be intentionallydesigned within Neighborhood Opportunity Hubslocated throughout the City that provide residentsaccess to quality housing, amentities and servicesthat establish the desired unique character andqualities of each neighborhood .

CONFIDENTIAL ELKHART 2040 • 2021+A Neighborhood Opportunity Hub(often residing within a CompleteNeighborhood model) is acustomized front doorestablishment providing a broadrange of services andopportunities while serving as aninformal gathering place forresidents and local stakeholders. NEIGHBORHOODOPPORTUNITYHUB

CONFIDENTIAL ELKHART 2040 • 2021+WOODLANDCROSSINGREDEVELOPMENTTHE VISIONThis site plan is a conceptualization of the site'sredevelopment. We have engaged partnershipswith the following anchors for the communityredevelopment -- in addition to securing a plan forthe immediate redevelopment of housing andneighborhood revitalization to secure Kroger as along-term tenant and avoid the area becoming afood desert.

CONFIDENTIAL 2040 • 2021+Opportunity HubProgramming to be achieved in fiveyears with assistance ofa contracted masterdeveloperCOMMUNITY IMPACTAPPROX 30 ACRESWorkforce Housing – 100-150 units Community Programming - over 100,000square feet of opportunity providercommunity services:Workforce training and job placementCareer PathwaysEducation optionsWellness servicesFood accessibilityWrap-around servicesBusiness and entrepreneurial servicesFinancial CounsellingGoodwill and Heart City key anchorsEstablish incubator spaces for businessstart-ups Potentially establish Food Hall with localentrepreneursApproximately 120-150,000sq.ft. of spaceKroger and CVS anchorsAdaptive re-use of SearsProperty – key opportunity hubanchor property30,000 sq.ft. of smaller B-shopspace – currently vacantCommercial Center ProgrammingCurrent operations generating$420,000 NOI (not includingcurrent vacancy of Sears)

CONFIDENTIAL 2040 • 2021+GOODWILLSUITE OF SERVICES40,000-45,000 sf including the automotive areaExcel Center Workforce Training Services Career Development Services100-125 parking spacesGoodwill Industries has provided the followingintentions for their space in the prior Searsbuilding -- which will be shared with otherservice providers (100,000 sf total):

CONFIDENTIAL ELKHART 2040 • 2021+25,200 sf Urgent Care suite measures 5,300 sq ft; 9 exam rooms, 3offices, 2 procedure rooms, other lab and storage areas,waiting room, vestibule, and staff lounge.Family Practice measures 10,000 sq ft: 20 exam rooms, 8offices, nursing station, conference room and staff lounge.Pediatrics measures 7,000 sq ft: 11 exam rooms, speechand hearing, procedure room, 2 nursing areas, restrooms,administrative area.Imaging measures at 800 sq ft: 3 separate areas: Xray, MRI,and a vestibule waiting area. Dietetics measure 700 sq ft: features a demonstrationkitchen, cabinetry and seating Pharmacy measures 1,200 sq ft with 2 pickup windows, andan officeHeart City Health has provided the followingintentions for their space in the prior Searsbuilding -- which will be shared with otherservice providers (100,000 sf total):HEART CITYHEALTH SERVICES

CONFIDENTIAL ELKHART 2040 • 2021+The Library is undergoing an expansion with what will still be itssmallest branch (land-locked) - yet with the highest foot traffic. They anticipate future needs in approximately 3-5 years for apotential new location, which they previously sought with owners,preferably on Benham, for up to 15,000 sf."Thank you for sharing the exciting ideas with us regarding Woodland Crossing becoming aNeighborhood Opportunity Hub as part of the City of Elkhart’s THRIVE 2040 initiative. As youknow, the Pierre Moran Branch Library has been a consistent presence and source of supportfor neighborhoods and schools in South Central Elkhart since 1986, when it was first opened asa storefront in the Pierre Moran Mall. In 1989, the current branch was built, and over the last 30+years, its size and location have presented challenges to access, programming, andpartnerships that would allow us to better serve our diverse communities. Consequently, we areenthused about the possibility of a larger Pierre Moran Branch located closer to the street andnear/adjacent to key service organizations whose missions complement that of the Library andthus allow for more meaningful, synergistic, and ongoing collaboration. We would love to continue exploring the possibilities for a bigger and better branch as thisproject moves forward."- Lisa Guedea CarreñoELKHART LIBRARYPIERRE MORAN BRANCH

CONFIDENTIAL ELKHART 2040 • 2021+Building and site improvementsDevelopment program Operations and maintenanceEstablishes capital budget – for WC NOH also operating budget.Establishes financing plan supporting:Oversee construction/renovation/building process.Does not include ownership. Has defined termination point – construction completion andeconomic sustainability (3-4 years).Derives compensation from operating budget and projectrevenues.MASTER DEVELOPERTHE ROLE

CONFIDENTIAL ELKHART 2040 • 2021+FINANCIAL PLANSOCIAL IMPACT LOANTo assemble thepartners anddevelopersneeded over fiveyears, we areseeking a five-year social impactloan at 2.5%.

CONFIDENTIAL ELKHART 2040 • 2021+FINANCIAL PLAN5-YEAR LOAN TAKE-OUT

CONFIDENTIAL ELKHART 2040 • 2021+FINANCIAL ASSUMPTIONSSOCIAL IMPACT LOANLikely acquisition price closer to $6.5mAdditional $4m in investment required – bldg. and site improvements,redevelopment, lease incentives, managementCurrent NOI will support approximately $4m in debtHave identified $4m in likely grants availableNeed to acquire additional $2.5m in financing Goal to structure short-term financing in favorable manner while stabilizing thepropertyUse master development approach – develop private sector lead team toredevelop, lease and operate property to long-term sustainabilityImplement $10.4m project with $8m in favorable debt financing and $2.5m ingrants – “Initial Financing”Over 5 year – reduce $8m debt to $3-$4m via grants, city investmentYear 5 refinance retiring remainder of Initial FinancingProperty currently listed for sale – owners wishing for sales price of $7m·Total redevelopment program estimated $10.5m – due diligence in processRevitalize failing neighborhood centerAddress “opportunity desert” – bring social, economic,wellness and quality of life programming to siteEnsure quality retailers are retained and attracted tothe neighborhoodEstablish mix of uses – retail, housing, quality servicesEnsure self-sustaining using diverse mix of sitegenerated revenuesThis Project Is A Mission-driven Initiative

CONFIDENTIAL ELKHART 2040 • 2021+NEIGHBORHOOD HUB PROCESSENGAGING OPPORTUNTYDefine OpportunityEngage neighborhoodstakeholders & communityleaders identifying needs,aspirations and opportunities Establish PartnershipIdentify and build partnershipsto facilitate opportunityformation at neighborhoodlevelProgramming & LocationsFinalize short-long term programmingand where in neighborhood they will beaccessed by residents and businesses FinanceEstablish sustainablefinancing strategy andscheduleImplementationTimely action taken byassigned teams.