The Elkhart City Council took a significant step forward Tuesday, approving a $50 million residential development that will bring 252 units to the east side of County Road 17. The council voted to authorize the issuance of taxable economic development revenue bonds to fund the construction of the multi-family complex, which will feature a mix of market-rate and affordable housing.
The project, spearheaded by Holladay Properties, will be located at the intersection of County Road 17 and US 20, near the Parkway at 17 development. The complex will include seven residential buildings, covering approximately 15 acres of the 21-acre site. It will offer a variety of amenities, including a swimming pool, a 24-hour fitness center, and electric vehicle charging stations.
“We have two EV stations planned for the clubhouse,” said Holladay spokesperson James Randolph, “but we’re future planning for up to eight at this point.”
Randolph expressed excitement over the project’s progress, which he said has been in the works for over a year. He thanked the city and council for their support, noting the collaboration that has helped secure financing for the development.
“We’re seeing a lot of tailwinds in those efforts, and securing financing for this project would not be possible without the TIF that we’ve been able to introduce here in these chambers,” Randolph said. “It’s a $49 million investment for us.”
The complex will feature 252 units spread across seven buildings, with a mix of market-rate and affordable units. Thirty-three of the units will be set aside for low-income renters, fulfilling the city’s goal of providing affordable housing options. The rents for these units will be affordable to those earning between 60% and 80% of the area’s median income.
The development also includes plans for future growth. Randolph mentioned that they are about a month away from finalizing construction documents and that a phase two of the project is already being considered.
“We’re hopeful that there’s going to be a phase two in the future for this one,” Randolph said. “We’ve been pretty thoughtful about where the buildings on the site are concentrated at this point.”
Councilor Dwight Fish, who represents the district where the project is located, expressed his enthusiasm for the development.
“It’s really nice to have this in the fourth district,” Fish said. “It’s really going to enhance the marketability of the east side.”
The project is set to break ground in March 2025, with a completion target of 21 months. Randolph highlighted the TIF mechanism, which allows the city to pledge future tax revenues generated by the project to fund its development.
“The TIF will help us deliver to the east side of 17,” Randolph said. “This is the 252 units, through the seven residential buildings that you see on the site.”
The city’s investment in the project is capped at $6.5 million, which will be repaid through TIF revenues over the next 15 years. While the TIF district will limit revenue for the city, Randolph pointed out that the property is currently undeveloped, and the project will bring new housing and infrastructure to the area.
David Henke, the 3rd District Councilor, expressed concerns about the ordinance.
“It means that the school system, the library, and the trustees can't access those dollars for 15 years,” Henke said. “While we talk about school funding, other funding in our community and the cost of living, I just want to make sure that we understand that this deferment has an impact.”
