City of South Bend eyes new site for homeless shelter

SOUTH BEND, Ind. -- The City of South Bend is closing in on the purchase of a new site for a long-planned homeless shelter. 

ABC57 has learned the City is in negotiations to buy a nearly 15-acre property on Old Cleveland Road. If purchased, it's expected to be the final location of the New Day Intake Center; a low-barrier shelter for the homeless operated by Our Lady of the Road. 

New Day Intake Center Executive Director Sheila McCarthy hadn't heard about the possibility of the Cleveland Rd. property when ABC57 reached out for comment, Thursday. 

"[The City] does not yet have a signed purchase agreement and would need approval from appropriate bodies to move forward with a purchase," South Bend's Executive Director of Community Investment Caleb Bauer told ABC57 in a statement. 

In February, the South Bend Redevelopment Commission (RDC) approved the $277,750 purchase of a 5-acre lot from the South Bend Community School Corporation for the shelter. That site, 3003 N. Bendix Dr., is vacant other than a parking lot used as the bus depot for South Bend Schools. But McCarthy tells ABC57 the property is less than ideal, in part, because it doesn't have space to develop a mixed-income apartment complex next to the shelter in the future. 

While city leaders and McCarthy had signaled intentions to move forward with plans on Bendix Dr., McCarthy told ABC57 the project still hasn't set a final deadline to start construction. 

"The City has been willing to consider alternatives to the previously proposed site on Bendix Road and has been receptive to neighbor concerns about that site’s proximity to a park and retail businesses," Bauer said. "We look forward to sharing more in the near future while seeking public approvals for a purchase."

Our Lady of the Road also created the Motels4Now low-barrier housing program, which would close once the NDIC is established. According to its website, Motels4Now has served 746 guests since 2020 and helped 233 find permanent housing. Initial plans for the New Day Intake Center include 80-100 beds along with a full-service kitchen, laundry facilities, and on-site spaces for wraparound services including medical and mental health professionals. 

But the Intake Center has seen heavy opposition on multiple fronts.

St. Joseph County leaders and neighbors of the Bendix Dr. site raised concerns over sex predators, which South Bend Mayor James Mueller later said would not be allowed in the shelter. 15 people spoke in opposition of the Bendix purchase at a February RDC meeting. Then, county leaders launched a task force to find alternate sites. 

Despite their opposition to the Bendix property, St. Joseph County Commissioners declined to sell a county-owned property to the City for the shelter. This newly-proposed location, at 4022 Old Cleveland Rd, is currently a private residential home. If the seller accepts the City's offer, the RDC could vote on a purchase agreement before the end of the month. 

Delays to the project have also delayed fundraising. The New Day Intake Center has already raised $11.8 million of its $16.2 million goal, according to McCarthy. Following ABC57's reporting on the Old Cleveland Road site, the Center announced it's launching a new campaign to raise the final $4.4 million. 

"We who are part of New Day Intake Center are grateful for the City of South Bend’s efforts to secure a location for our permanent, purpose-built facility," NDIC Board President Margaret Pfeil said in a press release. 

The City published a legal notice of its intent to request federal dollars though HUD's HOME Investment Partnerships Program (HOME) to build a shelter at 4022 Old Cleveland Rd. HOME is a $5 billion program through the American Rescue Plan, "to assist individuals or households who are homeless, at risk of homelessness, and other vulnerable populations".

It's unclear how much money the City could receive through HOME. 

**Public comment on the HOME request can be sent to the City of South Bend Department of Community Investment or [email protected]. All comments received prior to September 19 will be considered by the City of South Bend prior to authorizing submission of a request for release of funds.**