Feasible or not, study says luxury apartments could have $60 million impact on Elkhart

According to an economic and fiscal impact study completed by Crowe Horwath, a public accounting and consulting firm, the proposal would also boost city coffers by generating property, sales and income taxes in an area of the city that is currently producing no tax income.

In total, the project is expected have an economic impact of $60.77 million from 2017 through 2021, factoring project construction costs, rental income generated when the complex is complete and local purchases by individuals living in the new complex. The annual economic impact would settle to an estimated $7.34 million by 2021 while annual property, sales and income taxes could generate $600,000 in revenue for government coffers. 

Flaherty & Collins Properties, an Indianapolis-based developer, plans to build the luxury apartment complex on a 6.8-acre city-owned plot. The land is wedged between Elkhart Avenue to the west, the Elkhart River to the south and Junior Achievement Drive to the east. The former Elkhart Foundry occupied the land until it was demolished in 2010.

Projections provided through the Crowe Horwath study have construction completed in 2019. The city of Elkhart paid $22,000 for the 15-page Crowe Horwath study, meant to gauge the potential impact of the project.