SOUTH BEND — The Madison Lifestyle District appeared on the Redevelopment Commission agenda for the third and possibly last time May 28 to extend its development agreement’s due diligence period by one month to June 28.
In March 2024, city officials signed off on the $24 million project for a dense residential and commercial district on the two blocks south of Memorial Hospital, calling it the largest redevelopment project in downtown South Bend’s history.
About $11.7 million in Regional Economic Acceleration and Development Initiative (READI) grants were awarded to the project as well, with an additional private investment commitment of $102 million coming from Great Lakes Capital, a real estate firm based in South Bend.
The first amendment made to the project added a small parcel of land and the second extended the project’s due diligence period from its original date of Sept. 28, 2025, to March 28, 2026. The third amendment just recently came before the redevelopment commission two months ago, said Erik Glavich, director of Growth and Opportunity, where Glavich asked for a two-month extension to May 28.
Now, as part of the third amendment, Glavich asked the commission for another month to “wrap up final details.”
“Commissioner [Eli] Wax two months ago asked if two months was going to be enough, and we said yes,” Glavich said. “We’re right about there. We’re waiting on final analysis on IDD Bonds (industrial revenue bonds) for the project from Baker Tilly. We expect that at any time.”
The extension was approved by the commission, and Glavich said within two weeks, the project should have all details finalized. To be sure, Wax asked him nearly the same question he asked two months ago: What’s your degree of confidence that this is the last extension necessary for this phase of the project?
“I would say 95% to 100%,” Glavich said. “We thought about doing two months, but one month was the unanimous [decision].”
What to expect from the Madison Lifestyle District
The Madison Lifestyle District was introduced as an expansion of Memorial Hospital in 2021 to supplement the hospital’s $250 million patient tower, which is expected to be completed next fall and bring 100 nursing positions and 200 new employees to staff the tower.
The original development agreement approved by the city shows the Madison Lifestyle District being constructed in phases.
Phase one includes creating a 625-space parking garage and a second 300-space garage. Demolition of parking lots south of the hospital has already begun to make way for the future parking garages.
Phase two includes building parking structures and other various city work necessary to support the project. Both phases one and two are estimated to be completed 24 months after construction begins, according to Glavich’s presentation during the redevelopment meeting.
Great Lakes Capital aims to finish 150 apartments, 35,000 square feet of office space and 1,400 square feet of retail space on the north lot by 2027. The remaining 91 units and 7,000 square feet of retail space are to be built on the south lot by 2028, The Tribune previously reported.
While the city is working to get the project underway, the Redevelopment Commission has the option to purchase the development parcels if developer commitments are not met.
Email South Bend Tribune business reporter Jessica Velez at jvelez@usatodayco.com.
This article originally appeared on South Bend Tribune: Extension prolongs due diligence on Madison Lifestyle development
Reporting by Jessica Velez, South Bend Tribune / South Bend Tribune
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