GOSHEN — Approximately $17 million in future redevelopment plans for the city took center stage Tuesday during a meeting of the Goshen City Council.

During the meeting, council members approved a resolution affirming a call by the Goshen Plan Commission to amend the city’s Economic Development Plan for the Consolidated River Race/U.S. 33 Economic Development Area to include a number of new projects and proposals. In addition, the resolution also affirms that the commission’s plan is in line with the city’s comprehensive plan for growth and redevelopment.

According to the resolution, the plan is intended to be a single, consolidated plan for the development and/or redevelopment of the Consolidated River Race/U.S. 33 Economic Development Area. It includes new projects and all projects that have not yet been completed from previously approved plans.

The overall goal of the plan is to enhance the economic health and diversity of the city by addressing the underutilization of land and the barriers to its development.

In particular, the plan’s goal is to facilitate and encourage economic development and new private investment and development in the area. With this new development, the plan is designed to attract new or expand existing private business enterprises in the city, increase and enhance job opportunities for the gainful employment of the citizens of Goshen and Elkhart County, and increase the city’s property tax base.

Targeted projects

Of the nearly 40 projects identified as priorities in the plan, six were new additions included as part of the approved amendment. An additional five already existing projects also received updates and/or expansions of scope as a result of the amendment. A sampling of some of those additions and changes include:

• Renovation or rehabilitation of the Goshen Theater building;

• Construction of a community center and/or amphitheater;

• Demolition of structures and construction of any public infrastructure improvement necessary or desirable to promote development of the former Goshen Inn and Conference center and former Bread and Chocolate site at 1375 Lincolway East;

• Construction of a Northwest Bike Trail generally located from the existing trail on Bashor Road and north to the commercial area along U.S. 33; and

• Construction of sidewalk improvements along Bashor Road at U.S. 33.

According to the resolution, the primary source of funding for the plan will be tax increment proceeds resulting from the increase in assessed valuation of new private development with the Consolidated River Race/U.S. 33 Economic Development Area. Other funding sources may be utilized if necessary to complete the projects, including issuance of bonds, lease financing and grants. Tax increment proceeds may also be used to reimburse any other initial funding sources.

Total cost of all identified projects and real estate acquisition proposed within the plan has been estimated at $17 million.

Area of contention

In addition to the ranking of projects, the plan also identifies a number of city properties that could potentially be targeted for acquisition by the city in order to accommodate certain projects identified in the plan.

Of those listed properties, one area in particular, identified in Section 6 of the plan, drew criticism from several members of the council. Their objections were due primarily to concerns that the owners of the identified properties may not have been given proper notice of their property’s inclusion in the plan. Also raised as a concern was the potential negative impact the listings could have on property owners’ ability to sell their properties down the line, given the city’s potential interest in the properties.

The Section 6 area includes properties generally located north of Lincoln Avenue, east of the Elkhart River, south of Pike Street, west of Second Street, south of Clinton Street and west of Third Street, including the site of the former Elkhart County Jail.

According to Goshen Community Development Director Mark Brinson, the area was included in the plan due to the potential for redevelopment opportunities in the neighborhood that could result from the planned widening of Pike Street and discussions about the possible demolition of the old Elkhart County Jail.

However, some in the neighborhood have raised concerns that the properties’ listing on the plan creates economic uncertainty given that while the city has shown interest in a significant number of properties within the area, there is no clear plan outlined for exactly what the city would like to do with the area. According to the plan, more than 30 properties within the designated Section 6 area have been listed as properties of interest for the city.

Given the concerns raised regarding Section 6, a motion was passed five to one to approve the resolution and forward it on to the Goshen Redevelopment Commission, which has final say on the plan, with the stipulation that the plan can only be approved if Section 6 is removed from consideration.

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