Elkhart approves $51 million South Main-Freight redevelopment
Elkhart City Council approved three ordinances on Feb. 26 supporting a proposed $51 million mixed-use redevelopment at South Main Street and Freight Street, bringing city-backed financing to a project planned for housing, commercial space and a new public plaza.
The city authorized a $5.8 million loan using tax-increment financing allocations and committed another $5 million through the Residential Housing Infrastructure Assistance Program. Together, the commitments total $10.8 million in authorized public support for the redevelopment.
The project is planned for the Benham neighborhood and is expected to add 210 housing units, according to the City of Elkhart. The development would also include commercial space and Kelby Love Plaza at Prairie Street and Main Street.
What the project includes
Kelby Love Plaza is planned as a public gathering space featuring a sculptural recreation of Love’s mural. The plaza is named for Kelby Love, whose mural is the basis for the planned public artwork.
The housing component is one of the project’s largest local effects. ABC57 reported that the housing would serve residents earning at or below 80% of the area median income. The report gave a rent range of $500 to $1,600.
Those figures describe the income and rent parameters reported for the housing component; the approved information does not establish that every unit in the project will be affordable or carry the same rent.
Milhaus is identified as the developer, and Garrison Frazier is among the people connected with the project in the city’s announcement. The redevelopment would expand the city’s downtown development footprint into an area south of the railroad tracks, adding homes, business space and public-realm improvements in the Benham neighborhood.
Public financing and local stakes
The city’s $5.8 million loan is backed by TIF allocations. TIF, or tax-increment financing, uses designated future increases in property-tax revenue to support eligible development or infrastructure costs. The packet identifies the financing as a loan, not a grant.
The additional $5 million RIF commitment comes through the Residential Housing Infrastructure Assistance Program. The city’s action therefore combines a loan authorization with a separate housing-infrastructure commitment while the project remains in the development stage.
For Elkhart, the scale matters because the proposal would add more than 200 homes in one redevelopment area while also creating commercial space and a new public amenity. The planned housing could affect the city’s supply of residences at a range of reported incomes and rents, while the plaza would add a public space at a prominent Main Street intersection.
Construction timing remains a milestone
ABC57 reported on March 11 that construction was anticipated to begin in summer 2026. That is a reported project milestone, not confirmation that construction has started.
The approved source packet does not include a later developer or city construction update, a final construction schedule or a confirmed site-work date. The next useful check for residents will be whether the city or Milhaus confirms that summer start and provides an updated schedule for construction, housing delivery, commercial space and Kelby Love Plaza.
For now, the confirmed action is the City Council’s approval of the three supporting ordinances and the associated public financing commitments. The $51 million redevelopment remains a planned project with a reported summer 2026 construction target.
Sources
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