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IC 36-7-14-11 (3) “The redevelopment commission shall: promote the use of land in the manner that best serves the interests of the unit AND its inhabitants;” (7) “replan and dispose of the areas needing redevelopment in the manner that best serves the social AND economic interest of the unit AND its inhabitants."
IC 36-7-14-2.5. (2022) Sec. 2.5. (a) “The assessment, planning, replanning, remediation, development, and redevelopment of economic development areas:
(2) will:
(A) benefit the public health, safety, morals, and welfare;
(B) increase the economic well-being of the unit AND the state; AND
(C) serve to protect AND increase property values in the unit AND the state;
Dear fellow citizens and those residing in South Bend, a critical examination of the language in the above Indiana Code reveals a pivotal word that perhaps it caught your attention as it did mine. This word, consisting of only three letters, is AND. A-N-D. According to Indiana Code, the directive is clear that the redevelopment commission shall promote the use of land in a manner that simultaneously serves the best interests of the community AND its people. Furthermore, it demands redevelopment that maximizes the social AND economic well-being of the community AND its citizens. Despite these guidelines, our 5-member Redevelopment Commission, composed of President Marcia Jones, Vice President Troy Warner, Secretary Vivian Sallie, Eli Wax, Dave Relos, with Leslie Wesley serving as a Non-Voting advisor, has embarked on a spree of questionable financial decisions. This discussion aims to shed light on two specific transactions by the Redevelopment Commission to underscore their lack of responsibility and to advocate for the appointment of new members.
The first questionable decision involves the acquisition of a 5.16-acre parcel located at 3003 N. Bendix Dr. for the price of $277,750.00. The vote by the RDC was 4-1 in favor of the purchase, with Eli Wax being the lone dissent, demonstrating fiscal prudence. This transaction saw one governmental body, the South Bend Community School Corporation (SBCSC), selling land to another, in what many taxpayers perceive as a questionable exchange of taxpayer money. The question arises: why wasn't this transaction facilitated as a nominal $1.00 transfer from the SBCSC to the South Bend Redevelopment Commission? Any amount significantly above this, particularly the staggering $54,000/acre, is seen as an unnecessary burden on taxpayers who finance both entities. Presently, there has been no official declaration regarding the intended use for this land by the City of South Bend, which purchased the parcel for $277,750.00. It has come to public notice that Commissioners President Marcia Jones, Vice President Troy Warner, Secretary Vivian Sallie, Eli Wax, Dave Relos have expended $277,750.00 of public funds on a piece of property for which there is no disclosed purpose. This action is considered reckless. The acquired parcel, being hemmed in by other properties without direct street access, is not deemed to justify the price paid by the RDC, irrespective of any appraisals. The notion that such a price could have been achieved on the open market has been met with skepticism by local business and property owners, who were astounded by the figure the city was willing to pay.
On the date of February 8th, 2024, as recorded in the minutes of the Redevelopment Meeting, Commissioner Dave Relos stated emphatically,
“today is the purchase agreement of the possible acquisition of five acres that could be developed for any number of uses at the fair market value? We are here to judge this acquisition on its merits and not the merits of anything else.”
His words stood in stark contrast to the concerns vocalized by fifteen local citizens and residents who pleaded for a reconsideration of the property purchase, highlighting the disconnect between Commissioner Dave Relos' obligations and his actions. By sidelining these community voices, who sought exploration of alternative sites, Commissioner Dave Relos conspicuously overlooked his duty to those he swore to represent.
Furthermore, Dave Relos blatantly minimized the understanding that the Commissioners, along with the City of South Bend, had already earmarked the site for a low-barrier homeless shelter. Dave Relos' assertion of the transaction being merely a land purchase fundamentally misrepresented the situation, especially knowing that a consequential rezoning from industrial to residential usage was forthcoming. Such maneuvers by Dave Relos not only questioned the integrity of the acquisition process but flagrantly contravened the industrial park’s established identity. Dave Relos' remarks, shrouded in misdirection, undeniably breached the trust placed in his public role.
In a contentious move in 2012, the South Bend Redevelopment Commission acquired the historic Gates campus downtown for a $1.9 million investment, equating to approximately $2.55 million in today's dollars due to inflation. A fraction of this acquisition, the Gates Service Center, was subsequently sold by the city to Bare Hands Brewery for a nominal sum of $1, under the stringent condition that Bare Hands commit a significant investment of at least $455,828 into the property. The contract contained a clause that mandated Bare Hands Brewery to revert the property ownership back to the city, free from any debts or legal encumbrances, should it fail to meet its financial and developmental obligations. However, an unusual clause introduced while President Marcia Jones was also president in 2012, allowed Bare Hands an escape from these obligations, guaranteeing reimbursement for any proven improvement-related expenses, albeit reduced by any outstanding debts or claims against the property.
This arrangement has sparked considerable debate within the community. Critics question the rationale behind offering Bare Hands Brewery the potential for reimbursement should it not meet its contractual investment obligations, especially given the nominal initial sale price and the brewery's substantial shortfall in meeting its promised investment, spending only $98,000 of the required $455,828 to date. The legal right of the city to reacquire the property for merely $1 raises further questions about the fairness and fiscal responsibility behind potentially repurchasing it for $98,000. The headline capturing this saga, "President Marcia Jones sells Gates Service Center for $1, 12 years later in February of 2024, President Marcia Jones Buys Back Gates Service Center For $98,000.00," underscores a growing discontent among taxpayers, putting a spotlight on President Marcia Jones' decisions and the RDC's implications for the community. These are just two of many examples of why the South Bend community feels the Redevelopment Commissioners need to step down and we need new faces to represent the City of South Bend.