Major mixed-use development planned for downtown South Bend
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The city of South Bend has unveiled plans for a more than $100 million downtown mixed-use project. Plans for the Madison Lifestyle District include 240 apartment units, a 100-room hotel, 40,000 square feet of commercial space and more than 900 parking spaces.
Caleb Bauer, executive director of community investment for the city, says the project has been contemplated for several years and will encompass two city blocks that are currently being used for surface parking.
“Historically, there had been buildings there; over time, they had been demolished,” Bauer said. “It served as some important employee parking for Memorial Hospital, our anchor hospital institution here in the north central Indiana region. But it really was not the highest and best use for this property.”
The city had been in conversations with Beacon Health System, which operates the nearby Memorial Hospital, about what to do with the property. Then, South Bend-based real estate and private equity firm Great Lakes Capital made a proposal for the project, which at that time had a $60 million price tag.
The project was approved for more than $11 million in Regional Economic Acceleration and Development Initiative, or READI, funding. The city of South Bend has also approved $24 million in development bonds, which will support the construction of the parking garages being built through the project.
Bauer said the project also complements the $232 million patient tower project currently under construction at Memorial Hospital.
“[It’s] really a transformative combination of projects, with the mixed-use development that’s connecting the hospital back into downtown South Bend, parking that will support both the expansion of full-time employee positions at the hospital, and the residential units that are part of the mixed-use development,” he said.
The project, according to Bauer, will add to the growing vibrancy of downtown South Bend, creating interplay between public amenities and public assets.
“We are in an unprecedented time as far as private investment in our downtown,” said Bauer. “The goal there certainly is to meet the demands of the market, but as well, it’s really to add that vibrancy into our downtown that is so necessary for a downtown’s health and continuity. We think residential certainly helps significantly that vibrancy helps improve retail viability.”
When completed, the development will also bring a boost to the city’s tax rolls. Bauer said the conservative estimate is about $2.2 million in property taxes that will be generated from the project.
The project still requires approval from the South Bend Redevelopment Commission. If approved, Bauer said the city aims to break ground next year, with completion set for late 2027 or early 2028.
Bauer emphasized that collaboration has been key to bring the project to life.
“It takes a lot of partners for a project like this to become a reality; we’re grateful for the development partners, for Beacon Health System, as well as the state of Indiana for their support,” he said. “We couldn’t have moved forward on this project if it weren’t for that contribution from READI, and we look forward to more transformative investments from the READI 2.0 process, but it’s just a testament to that program and what it’s meant for cities around the state.”