Impact Investing – READI 2.0

I attended the introductory meeting on READI 2.0 presented by South Bend – Elkhart Regional Partnership (SEBERP) at the Rees Theater yesterday. Honestly, attendance was pretty poor, but there was some good information. READI 2.0 is a refined repeat of the original READI (1.0) program which was a refined repeat of the Regional Cities Initiative. In various forms, these programs have been designed to incentivize municipal and private investment in statewide goals. As with the past programs, READI 2.0 offers the carrot of up to 20% project investment matched by 20% local government investment and 60% private investment. Whether the entire 20% is granted depends on the quality of the project, its merit for meeting goals and its ranking among other submissions.

Sand Hill Farm Apartments

Sand Hill Farm Apartments was awarded Regional Cities Initiative (RCI) dollars. Those funds, though only 7% of the project cost, provided some incentive to move the project forward when Culver‘s first Stellar application was unsuccessful. The project was initially to be the LIHTC portion of Culver’s Stellar application. When that wasn’t successful, the RCI funds helped make the project viable as market rate housing. Moving this project forward has been noted as instrumental in Culver’s success with their second Stellar application. Unfortunately, Culver did not follow through on their commitment, so some of those funds never were disbursed by RCI and those that were got redirected to reimbursements in lieu of benefiting the project.

Water Street Townhomes

Culver Sand Hill Farm was awarded READI 1.0 dollars for Water Street Townhomes. This is a mixed use building with 11 two-bedroom townhouses, 2 one-bedroom apartments and a corner commercial space. We are still working with the City of Plymouth to create the structure to put those dollars to work. SEBERP awarded less than the initial request, but Plymouth is following through with their entire match in order to make this project possible.

Culver Sand Hill Farm also submitted a townhouse project for Culver, Spirit Townhomes, which was named in the READI 1.0 Strategic Investment Plan. Unfortunately, after the fact, Culver chose to partner with a different developer on the much larger and more controversial project, The Dunes. (Discussed here.) C’est la vie! Sometimes you reap what you sow.

SBERP will be putting in an application for READI 2.0 funds for our region after the first of the year. Yesterday’s meeting was one of several where they are soliciting input on what goals of the SEBERP region fit within the stated READI 2.0 goals. This will help them refine their application. They feel confident that their track record managing the Regional Cities Initiative and READI 1.0 funds put them in a good position to receive the maximum award from READI 2.0. The handout to the right was provided at the meeting, showing some of the impact these investments have had. $878 Million in project investment through those two programs, which is 9.5 times the investment from the State. (See the backside of the flyer here.)

There is a rural component to READI 2.0, directing that 25% should go to rural areas. Of the three counties in SBERP (St. Joseph, Elkhart and Marshall), only Marshall County is designated at rural. That doesn’t mean that Marshall County doesn’t have to have competitive projects, but it gives a 25% set-aside leg up. L:ast time, READI 1.0 projects were rewarded on population, which put Marshall County at a disadvantage.

One of the interesting changes in the program is the option for receiving a loan in lieu of a grant from the program. The funds could be loaned out at a reduced interest rate, with the funds paid back to SBERP for future reinvestment in the region. While the concept is a good one, the implementation appears to be flawed, from my perspective. As it currently stands, the loan would be capped at the same 20% level as the grants. While both a grant and a loan could be awarded, they cannot total more than 20% of the project. I will need to hear more about this, but my initial impression is that there is not much incentive to take the loan in lieu of the grant, but I may be missing nuances here. It would make some sense to see loan amounts allowed to be larger percentages since the money will be recirculated. Then there would be more incentive to take that option.

Roger Umbaugh

An interesting sidebar – not only did I sit with Linda Yoder, Executive Director of the Marshall County Community Foundation (MCCF), at the READI 2.0 meeting, I also followed that up with an MCCF meeting at her office to hear from MCCF’s financial advisor on impact investing options for the newly formed Roger Umbaugh Local Impact Investing fund. (More on this in a future post.)

Impact Investing seems to be a great way to influence desired outcomes. Great projects that are good for the community often flounder because the investor ROI isn’t there. If Impact Investing can influence that through grants, loans and other creative means, then it benefits everyone.

I don’t yet know if or how Easterday Construction Co., Inc. (ECC) or Culver Sand Hill Farm LLC (SHF) will participate in READI 2.0. The experience with READI 1.0 hasn’t been bad, but there have been a lot of strings attached to it after the award that weren’t factored into the original project. I’ve been approached about several projects that would fit under the READI 2.0 umbrella. I’ll continue to monitor this and continue to be part of the discussion. Whether ECC or SHF participate or not, it seems that it’s another great opportunity for Marshall County and Marshall County communities.

Biannual End DST Rant

Admittedly, “Fall Back” is the least objectionable of the annual DST time changes, but it still messing with my system and is less than desirable. This time <pun intended> I’ll late the CATO Institute do the heavy lifting and explain why DST leads to “Dead Children” in their #EndDST article here. And again, Indiana is the poster child for why the energy savings justification is debunked. When Indiana adopted DST in 2006, energy use went up…

There is still active legislation trying to eliminate DST on the Federal level. Contact your Senator and Congressman and ask them to push this! Marco Rubio has been pushing this for several years.

As usual, the CATO Institute has a great article here with lots of great charts, facts and quotes, but John Oliver still wins the award for the funniest take… “If it doesn’t benefit our energy bill, our health or even our stupid, stupid cows… Daylight Savings Time: How is this still a thing?” Enjoy!

Culver Building Permit Fees

Sometimes it takes an outside voice to change things… Rob Hurford with Culver Storage Unit Solutions came before Culver Plan Commission on October 17th to request relief from permit fees on their project. They are building mini storage units on the property west of The Paddocks.

Around 2017/2018, Jonathan Leist, then Culver Town Manager, spearheaded increased building permit fees. The increases were based on what was being charged in larger surrounding areas rather than the cost of services rendered. I protested this at the time, saying they were punitive, unreasonable and comparable fees had been cherry-picked to justify high fees… I was mostly ignored with the argument being presented that the building permit fee was still such a small part of the overall project cost for lake houses and commercial structures that it would not stop construction. I argued that wasn’t the point! The money collected does not go to the plan commission, but to the town’s general fund, i.e. it was a money maker, not a service fee.

The permit fees for the storage unit project were over $17,000. That was partially because the County was requiring each building to be permitted separately, rather than looking at the project as a whole, but also because Culver piled on. These are simple. single story, pole building construction with no water or sewer hook-ups. There will be minimal electrical for lighting. That means that Marshall County’s Building Inspector will have very little to look at and Culver’s Building Commissioner can almost do his job looking at setbacks with a drive-by…

Bass Lake Storage

Mr. Hurford is the Building Inspector for Warsaw, IN. He said in Warsaw, the permit fees would amount to 6% of the Culver fee. They have completed these projects in Winamac and Bass Lake and fees there were less than 15% of the Culver fee.

Culver’s Building Commissioner, Steve Gorski, did a review of permit fees based on costs and has provided the plan commission with revised numbers. These changes were passed on first read and were used to lower the fee for the project to $9k. Still high (and still inflated by the County in my opinion), but much better than the original $17k.

The forlorn fire hydrant that was removed from Sand Hill Farm Apartments

I’m pleased to see that the Plan Commission is taking steps to correct this one. It ultimately falls on the Town Council to make the Ordinance change. Hopefully they follow through. There are other, regressive, junk fees the town charges that don’t reflect services rendered, i.e. private fire hydrants, private fire sprinkler systems, etc. Hopefully this will prompt a review of some of these fees as well.

Culver Redevelopment Commission & The Dunes

CRC meeting October 16, 2023

The October 16th meeting of the Culver Redevelopment Commission had a pretty full house and the majority of the meeting was taken up with a Public Meeting (not Public Hearing) on The Dunes. I was pretty proud of Culver as the majority of the questions were well thought out and asked respectfully. There were only a few questions I thought were irrational and even those were asked succinctly and calmly. I was also pleased to see that all of the Town Council members and a few of the candidates for Town Council were in attendance to listen.

Burke Richeson spoke for the Developer and did a nice job. Only getting a little vex’d when another attorney representing opposition spoke. Kevin Danti, Culver Town Manager, did a good job of keeping things moving and controlling the conversation. (I was going to link to Kevin’s page on the town’s website, but it hasn’t been updated.)

USGS Map

There were questions about environmental concerns, but these seemed to center on the effect on Lake Maxinkuckee. It was stated by Karen Shuman, who is on the Lake Maxinkuckee Environmental Council (LMEC), that LMEC had determined that the property is not within the Lake Maxinkuckee Watershed. I’m not sure that’s 100% correct, but it is at least mostly correct. Lake Maxinkuckee’s watershed is not large, but since the lake is mostly sustained by springs, the quality and quantity of ground water is important. That said, besides the lake, there are other environmental concerns, one the bigger ones being the surface runoff flow to the wetlands at the north side of the property and the town well fields just north of the property. Protection of those are critical.

Nearly Full House at the October Redevelopment Commission Meeting

Most of the conversation was well presented and questions were mostly answered with the exception of questions regarding the bond structure. Those got rather deep and ended with an offer from the town to provide a visual chart and breakdown to make the flow of funds more understandable. At this time, an agreement between the Town and Developer has not been reached, so the final numbers remain in flux. Progress is being documented on the Town’s Website in a link to Dunes. They stated a plan to document the questions heard at this meeting as well as others under a Frequently Asked Questions (FAQ) section.

Aside from the bonding, which was confusing to all involved, I was a little confused about the Tax Incremental Financing District (TIF) discussion. This was presented by Marty Oosterbaan, Commission Chairman, and I think most people in attendance didn’t know the right questions to ask. A couple of the things that left me puzzled were: 1) was the new land area for The Dunes being taken into the existing downtown TIF as discussed or would it stand alone; 2) was there one new TIF area or two? There was discussion of a 20yr TIF (residential) and a 25yr TIF (commercial) to cover the areas with rental apartments. How do these fit? There was also a discussion about how this would affect local residents and again, the discussion of taxes were muddy. It was stated that there would be no effect for the life of the TIF, but I don’t believe that to be correct, since there will be a reassessment and taxes levied on the new development which could affect neighboring property.

Another positive I heard last night was the future involvement of Michiana Area Council of Governments (MACOG). Culver is already working with them on the new Comprehensive Plan and have engaged them for help on The Dunes as well. They will be conducting traffic studies, apparently including boat traffic studies. Hopefully they will also step in to fill the Urban Planner role I suggested here before. It would be interesting to see if they address the issue of suburban sprawl and disconnection of subdivisions in Culver I discussed in this post. Would this development be more acceptable if it followed the streets and alleys development grid found on the east side of South Main Street rather than as a controlled access, separate neighborhood? An interesting question…

Though there weren’t pitchforks and torches at this meeting, the tenor of the conversation made it clear that the community is not embracing this project yet. There were comments about screening it so it’s not seen and changing the entrance to face S.R. 17 in lieu of South Main Street, as discussed here before. These ideas treat it as if they expect an eyesore or having nothing to contribute to Culver. While there may be reasonable concerns, the Town government seems to be on a path to address them the best they can. There is good reason to be cautious, but there should also be efforts to take advantage of the positives that could come from this.

Urban Planner

Riffing off my last post, here are a few things that I think an Urban Planner or similar professional can bring to the table… In the vein of my post, “Culver Needs an Infrastructure Czar”, an Urban Planner could step back and take a holistic approach on how this affects Culver now and into the future making sure we aren’t making another two steps forward, one step back mistake. I’ve broken these things up into major headings for some organization:

Infrastructure

in-fra-struc-ture – /ˈinfrəˌstrək(t)SHər/ – the basic physical and organizational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or enterprise.

USGS Map
  1. Existing Streets and Right of Ways – Are we planning for the additional traffic on South Main Street? I understand that this ROW will be expanded to 50′, so that’s a great first step!
  2. Existing Streets and Right of Ways – Are we addressing street alignment with existing streets that T into South Main Street? (Provisions for future street alignment was made when Garden Court was built, so Tampa Street should work.)
  3. Existing Streets and Right of Ways – Are we going to address the intersection of South Main Street and Davis Street? This is currently a dangerous intersection, which will only get works with more traffic.
  4. Existing Streets and Right of Ways – What changes in traffic patterns will result and how will they affect Davis Street, Ohio Street, Prado Street, South Main Street, Tampa Street, Tamarack Road, Wabash Street, West Shore Drive, etc.
  5. New Streets – Will they/should they align with existing streets as they meet South Main Street?
  6. New Streets – Will they/should they comply with the Complete Streets Ordinance?
  7. New Streets – Will they/should they allow for future connections to future developments, i.e. a stub street to the south in anticipation of future development on adjacent properties?
  8. New Streets – Will anything we’re planning today affect the future extension of West Shore Drive to S.R. 17 as shown in the Comprehensive Plan? Does The Dunes make this more or less appropriate.
  9. Water – Do we have sufficient water for fire sprinklers for the new apartments?
  10. Water & Sewer – It has been determined that we have capacity to add this facility, but at least with the sewer, we will be using up all of our excess capacity. Are there plans to create additional capacity for the future, i.e. What if something new is proposed that is desirable and can’t wait for a multi-year sewer plant upgrade or what if the Beste property (which is annexed, so we are required to serve it and is current for sale) initiates a new development plan?
  11. Water & Sewer – While the town and developer have determined (rightly in my opinion) that a direct street connection to S.R. 17 is not desirable, are we planning easements to extend water and sewer through The Dunes for future development to the west? That area is currently zoned Industrial and is and the area on the opposite side of S.R. 17 is slated as future industrial in the comp plan revisions. Sizing and locating those lines and that easement connection are important, though they remain best guesses.
  12. Water & Sewer – It appears to be the plan to extend water and sewer south through the new development rather than in the South Main Street Right of Way (a mistake in my opinion), so what arrangements are being made for future development to the south? Not just to the next adjacent property, but to future development on Tamarack Road and potentially down to Lost Lake? With this development and the “Toy” storage facility south of the cemetery, this is currently the edge of town seeing the most development. Are we planning appropriately to support more?
  13. Storm Water – There has not been a drainage plan shared, so all I can go by is the USGS map (above) which show this site mostly draining to the wetlands and Davis Street to the North. I would anticipate minimal issues if they use standard stormwater detention.
  14. Storm Water – The storm sewer line on Davis Street is shallow and has very low slope. Care will need to be exercised to avoid overloading this line.
  15. Storm Water – Garden Court has a detention pond that exits into a dissipation trench on the south side of the property. This was sufficient to prevent erosion and protect the farm field at the time. Provisions will be required to accommodate this if this solution is no longer appropriate. Unlike the dispute between The Riggings and Maple Ridge, this installation was approved during construction. Nevertheless, this should be accounted for in the drainage plan for The Dunes. (In my opinion, the same applied to Maple Ridge as The Riggings drainage was an existing condition.)
  16. Storm Water – There are not storm sewer inlets on the south end of South Main Street and the ones that existing on South Main Street now, drain to the line in Davis Street. Long range planning would suggest this needs to be addressed. Again, just going by the USGS, best guess is that this would drain to Lost Lake unless more extreme measures are taken. Area for some municipal detention may need to be planned.

Aesthetics

aes-thet-ics – /esˈTHediks/ – a set of principles concerned with the nature and appreciation of beauty, especially in art.

  1. There have been many discussions regarding how this project will look. Garden Court cleared some of the area along the street line, but took pains to save the best of the mature trees along South Main Street. Would including a street tree plan that enhances South Main Street help with some of the concerns?
  2. There have been complaints that these will probably be (we have not seen examples) cookie cutter style houses with a minimal variety of style. This is very subjective, since some people appreciate neighborhood conformity and others do not. But including some minimal public input and input from a paid outsider (Urban Planner) may help make this more palatable.
  3. A Boulevard entrance could enhance the public face of this development and reduce the fears of existing residents. Using the easement set aside by Garden Court, there is sufficient space for this.
  4. The charrette that was completed for Culver years ago identified themes that should be considered in new developments such as the continued use of field stone. (Look at the townhouses at The Paddocks.) Has this been suggested and promoted? We literally have a Bungalow District in Culver. Has there been any suggestion that some of that theme should be continued?
  5. The landscaping will make a huge difference in how this development appears. Has there been any discussion of tree species? Sustainable Landscaping? Street Trees?

Culture

cul-ture – /ˈkəlCHər/ – the customs, arts, social institutions, and achievements of a particular social group.

  1. What steps can be taken to see a rotation and integration of existing residents into this new facility? One benefit would be to free up larger homes currently occupied by empty-nesters for new families in town.
  2. What steps can be taken to integrate the new residents into the fabric of Culver? Much like Job Fairs, a Club Fair might be appropriate, introducing new residents to existing groups such as Kiwanis, Lions Club, the various Churches, etc. All of them are hungry for new members.
  3. When the two developments at Sand Hill Farm were starting out, the Visitor’s Center created baskets with things to introduce new residents to Culver. Much like the old Welcome Wagon, this was a good first step. There’s no good way to judge how successful this was, but the residents were grateful and probably found out about the offerings of local businesses that they otherwise might not have know about.
  4. One obstacle to integration is the general design of subdivisions like this. They tend to create enclaves and turn their backs to the surrounding communities. This design works and sells, but it changes things. As proposed, the new homes will have backyards facing South Main Street. The backs of these houses will be facing the fronts of their neighbors on the east side of the street. This is far from welcoming. What can be done to help with this?
  5. Are there other communities going through this kind of change that are comparable? What can we do to emulate their successes and avoid their mistakes. Carmel and Fishers have subdivisions like this going in right and left, but we’re feeling the difference of this in Culver, a rural community. How do we make this better?

I feel that an outside eye is needed here. I’m sure I’ve only scratched the surface of things that should be considered. Someone (or firm) that has worked with communities like ours and has experience in this type of change to smaller towns. Just like the funds being expended on outside legal advice and outside financial advice, this is place where we could benefit from planning advice. I think it could go a long way to making things better.