Elkhart’s River District is getting more parking, thanks to an $8 million forgivable loan from the city.
Elkhart Director of Development Services Mike Huber says 80 percent of the area’s parking spaces are in use on a typical day, and special events pose bigger challenges. “The aquatic center has mentioned to us multiple times that, as they get feedback on events from the participants and attendees, they’re number one complaint is always mentioning the parking,” Huber told the city council Monday.
Now, the city has reached an agreement to include a 200-space parking garage in the next phase of the development. The developer will build the garage inside a mixed-use residential and commercial building planned at 225 East Jackson. In exchange, the city will provide an $8 million forgivable loan from its TIF revenues.
Huber said the goal is to create a district-wide parking plan that preserves the walkable nature of the development. “It is density of the development that drives that per-acre value of [assessed value] growth," Huber told council members. "An oversupply of off-street surface parking is the enemy of increasing density.”
The city council approved the loan Monday, with Aaron Mishler casting the lone opposing vote. He said he liked the project but not the timing, as the city comes to terms with the state’s property tax reform. "We know the potential cuts that are going to be impacting our budget," Mishler said. "We also know that, due to a change in the law in 2023, we can utilize TIF funds to provide funding for public safety, and that’s what comes first to my mind."
But council member David Henke was hopeful that the investment now will lead to more revenue in the future. “The dollars left in the coffers of the city have a greater value today than yesterday and the day before and six months ago because there’s less of it and there’s less coming down the pike," Henke said.
Once the garage is finished, it would be turned over to the city but may continue to be managed by the developer. It’s expected that the parking spaces will be free and open to the public but limited to local residents overnight.
