ELKHART — The Elkhart Redevelopment Commission on Tuesday approved two items that will allow the proposed $29 million luxury apartment development at the former Elkhart foundry site to come closer to being a reality.
The commission approved carving out a special tax increment finance district, that will pay the debt service of the anticipated $5.5 million bond the city is talking about issuing to help cover a portion of the cost of the project. They also approved using TIF funds to repay the bond.
The city has stressed that the development will pay for itself through a tax increment finance district that will surround only the luxury apartment complex.
There has been some friction on the project, with city residents talking about the lack of affordable rentals in the city. Rental prices at the complex would range from $750 a month for a one-bedroom apartment to $1,750 a month for a two-bedroom unit.
A redevelopment agreement still needs to be approved by the commission and the City Council is expected to take up the matter later this month or early August.
The Commission agreed to appropriate over $1 million in an effort to pay back a $1.3 million loan it obtained from the Major Moves Fund in 2013. Funds were used to help fund its share of the Prairie Street Overpass improvements.