Even at a tenuous time nationally for the bond market, a $36-million bond to finance the Eddy Street Commons project sold successfully Wednesday, the City's last major hurdle before the start of a $200-million development that will transform South Bend.

Crowe Chizek and City Securities, representing the City of South Bend, reported that the city will have the full $35 million available for the project after the bond issuance costs, according to Don Inks, director of economic development.

The 25-year bond will cover the cost of constructing a 1,280-car parking garage, development of on-site infrastructure as well as improvements along Eddy Street and the extension of three city streets.

"The quick sale of these bonds highlights both the strength of this project and the City of South Bend's fiscal stability," said Mayor Stephen J. Luecke. "Eddy Street Commons, one of the region's largest single developments in decades, now can move forward on a sound footing."

Indianapolis-based Kite Realty Group, which is developing the project on property owned by the University of Notre Dame, is preparing to begin construction as soon as it officially acquires the property. Because the parking garage is surrounded on all sides by other structures, construction will begin first on that facility along with the utility infrastructure and an extension of Napoleon Street by the City of South Bend.

The $200 million mixed-use development also includes:

• Two hotels - a nine-story, 255-room full-service hotel (with three floors of condominiums) and a six-story, 139-room limited-service hotel.
• More than 20 stores and restaurants among 89,000 square feet of retail space.
• 75,000 square feet of office space.
• Hundreds of town homes, apartments and condominiums.

The for-profit venture is expected to generate more than $52 million in property and sales tax revenue over 10 years for the city, some of which will support the project. An economic impact study shows that Eddy Street Commons will directly create 779 jobs during construction and another 1,132 jobs over 10 years within the development itself. Indirectly, another 1,254 jobs will be created outside the development, increasing local household earnings by a projected $109 million.

The next phase will bring more private investment and development that will stretch from Eddy and Edison to LaSalle and Lafayette, from the edge of the University to the center of the City, from Gown to Downtown."

Long-term planning with neighbors, Notre Dame and other partners began more than a decade ago and set the stage for this transformative development in the Northeast Neighborhood.

On a parallel path, a residential area immediately south of the Eddy Street Commons will experience redevelopment as the neighborhood is re-platted with 60 market-rate and affordable homes. Tax-increment financing supported by the Eddy Street Commons will make the additional $15 million development possible. In addition, to the east, the city and Notre Dame are working with Project Future, an economic-development organization for St. Joseph County, on a 10-acre technology and research park.

 "I believe this development will draw from suburban development more than from downtown," Luecke said. "It will bring more people back to the downtown area. This project will create vitality, energy and enthusiasm to help grow development in South Bend."

Article provided by: City of South Bend website.  See the rest at: http://www.southbendin.gov/news_detail_T13_R330.asp