The city of South Bend is suing Portage Township over the value of land next to where a developer plans to build luxury riverfront apartments downtown.
The dispute concerns the price of riverfront land along Jefferson Boulevard on the St. Joseph River’s west bank. Last year the Portage Township Trustee bought a building near the site for a larger, more modern space and possibly a community center. The township says it told the city of its plans in March but heard little to nothing back from the city so it closed on the property six months later.
Flash forward to January of this year when the city’s redevelopment commission approved incentives for a Carmel developer to build two high-rises near the site, with plans calling for 900-square-foot apartments renting at $2,000 a month. Court records say the city wants the township trustee’s land to create parking.
The city has offered the township $1.9 million for its land, free rent for three years, plus $500,000 to help them find a new location. The township countered, asking for the $2.15 million it paid for the property, the three years of free rent and $500,000 to help find a new place, plus $900,000 reimbursement for its costs related to planning for the new building’s renovations, and legal costs to defend against the condemnation suit.
City officials declined WVPE’s interview request. In a statement, city spokeswoman Allison Zeithammer said it needs the township's property to create a street and public parking, as called for in long-range planning the township was aware of.
“Portage Township offices could be anywhere," Zeithammer's statement said. "We do not understand why Portage Township is fighting so hard to get in the way of transformational investments by paying significantly above the market rate for this property ... The township's legal actions are misguided and an additional waste of taxpayer dollars beyond their purchase above market rate.”
The case has been transferred to a Marshall County judge to avoid conflicts of interest. Marshall Circuit Judge Janette Surrisi has set a July 24 hearing in the case.
