Elkhart City Council takes a step closer to possible new housing

ELKHART, Ind. -- The City of Elkhart is considering allowing 86 new single-family houses to be built in the Hart city as part of a project called the Boulder Run Economic Development.

At Monday evening’s meeting, the Elkhart City Council made a 9-0 vote, passing a resolution that affirms a recommendation by the Elkhart City Plan Commission to create an economic development zone.

The economic development zone is in the Boulder Run Economic Development Area, just east of Jeanwood Dr. and Henke St., near the Cornerstone Christian Montessori.

The City of Elkhart Development Services Director, Mike Huber, says the Monday meeting vote is one part of a longer process in creating the Boulder Run Tax Increment Finance District, or a T.I.F District.

“The intent of… this Tax Increment Finance district is to provide the T.I.F generated by the project back to the developer to offset some of the costs of construction of the sewer and the streets and the water infrastructure,” said Huber.

The developer, Emerald Chase Land Development, LLC, believes the total cost of the infrastructure improvements will be around 7.1 million dollars. One of the developers, Conway Hershberger, said they hope to get started soon.

“Our plan is to start construction this summer and with current market prices, we expect retail prices of the homes to be 330 to 400 thousand, with some homes probably being above 400 thousand, we expect to have some… custom… semi-custom pre-sold homes,” said Hershberger.

Huber said the city had a housing analysis done that indicated they could absorb an additional 368 single family homes every year for the next five years, so while it doesn’t completely fill that gap, it could help the community move up in the housing market.

“These new homes will allow folks who are currently sitting in homes, maybe looking to move up in the price range, an opportunity to move into that space, and then that’ll free up and reduce pressure on the existing housing market and allow folks from entry level to move up to second level, and create new entry level opportunities for folks who want to move into our community as well,” said Huber.

On June 16, the council should hear the bond ordinance in a second and third reading.

To learn more, or to view the minutes from this meeting, click here.