WARSAW — Warsaw officials have been lobbying for years for a specific site for construction of a VA clinic, and on Monday, one official said they’re eyeing a location on CR 200N near Parkview Kosciusko Hospital.

Efforts to bring a VA clinic to Warsw have been underway for several years, and Jeremy Skinner, director of community & economic development, said Monday they found an entity that agreed to place it adjacent to other recently constructed medical offices along CR 200N.

The US Department of Veterans Affairs has increasingly relied on the use of third-party entities for construction projects.

Skinnner said they've been lobbying for that property because of its proximity to Parkview, Lutheran Kosciusko Hospital and US 30.

Skinner brought up the issue Monday at a city redevelopment commission meeting and said they are working on a memo of understanding that would be part of a sale of the land from Parkview Health to an unidentified LLC.

The clinic is expected to be about 16,000 square feet, and Skinner said they hope construction could begin this year or next.

The project is expected to cost roughly seven to eight million dollars, and Skinner said the city is ready to provide $1 million to cover some of the development costs.

Neither the MOU nor the financial transaction has been approved by the city, but Skinner addressed the rationale on Monday.

"When you think about the benefit that this will offer all of the veterans in Kosciusko County, people who have served our country, giving them easy access to the health care that they need in a shorter distance, a shorter travel ... that's definitely worth the city's participation," Skinner said.

He was also asked if the plan would come together if not for the city's financial support.

"They' ve been trying to put on (in Warsaw) for the last five years," Skinner said. "Does this help get it done? I think so, yes."

Money for the project would come from one of several tax increment finance funds controlled by the city.

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WARSAW — What might be viewed by some as a million-dollar gamble by the city of Warsaw to revive the old Marsh property began to show promise last week as two purchase agreements started to take shape.

The city bought the land at the corner of South Buffalo and Winona Avenue several years ago in hopes of finding a grocery store or at least reversing what had become a deteriorating property.

Efforts to attract a grocery store of some kind did not materialize, and some on social media questioned the city's investment.

Last week, the city redevelopment commission reviewed contracts that will set the stage for the sale of the old Marsh building to an unnamed buyer for $1 million.

[caption id="attachment_120787" align="alignright" width="300"] Website photo from the Scooter’s Coffee website.[/caption]

At the same time, another contract is being prepared to sell the southeast corner of the parking lot to a company that plans to construct a Scooter’s Coffee drive-through shop near the corner of South Buffalo and Prairie streets. That sale price will be $225,000.

The transaction would provide a break-even situation for the city and result in coming months in a revitalized commercial area.

Jeremy Skinner, the city’s director of community and economic development, who is leading the discussions for the city in the sale, was asked if he was pleased with the new developments, which drew a chuckle: "Yes, absolutely!"

"It's been a challenge, but at the end of the day, hopefully, this will be a good spot for some retail shopping on that south side," Skinner said.

Contracts could be expected to be finalized in the next few weeks.

While the buyer of the main property has not been identified, many suspect the property will be turned into a large antique mall. The building also includes two adjoining storefronts on the north end that could be leased.

Skinner said he believes renovations to the main building probably won't be ready for nearly a year.

Major work, he said, will include the heating and cooling system. The roof, the floor, and the parking lot, plus aesthetic improvements to the interior.

“Without a doubt, it will be a substantial investment on their end,” Skinner said.

The city acquired the property less than three years ago during Mayor Joe Thallemer's tenure.

Thallmer now sits on the city redevelopment commission, which is overseeing the transaction.

“We all know how difficult retail has been, and the fact that there’s folks willing to step forward, and that this Redevelopment Commission is willing to work with them, it’s fantastic,” Thallemer said. 

“We’re basically getting back what we paid for the property at the end of the day. I feel good with where we are. Would it have been great to have a Safeway grocery store in there? Sure, but retail doesn’t seem to work like that anymore.”

Mayor Jeff Grose reflected on efforts to revive the property.

The city had worked to find a grocery store for the property, but with no luck.

"For well over a year, we spent a lot of dollars seeking a retail like that, and we were just unable to get it," Grose said. "So you pivot, move in a different direction, and wish for the good."

"At the same time, I wanna tell you that I appreciate our side of the net, trying to figure something out for the good of that building," Grose added.

The drive-thru coffee business will be yet another company specializing in coffee near the downtown.

Scooter's Coffee has stores in Mishawaka, Nappanee, Kendallville and Wabash.

Skinner said officials with the coffee shop are eager to begin construction.

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WARSAW — You don’t construct a $70 million manufacturing facility in another state without a sense of confidence, and Autocam Medical — the Grand Rapids, Mich., company that announced plans to do so in the Warsaw Tech Park — is feeling pretty good about its future in Kosciusko County.

That was apparent Monday as the city redevelopment commission took a few more steps to secure the initial deal and then talked at length about the orthopedic company’s long-term desire to potentially expand further.

Autocam officials have said they are impressed with the local workforce connected to Warsaw's orthopedic industry.

Autocam originally wanted to acquire 30 acres of land in the park, but the city opted to provide 15 acres — enough to accommodate a 100,000 square foot building designed for some 300 workers. 

On Monday, the city began working on an agreement to provide the company with an option to acquire another 18 acres next to its future plant on the southwest corner of the tech park along US.

Jeremy Skinner, the city's director of community and economic development, explained the city's rationale in not offering 30 acres in earlier talks.

"Autocam would have taken all 30 acres, but unfortunately for them, I'm not a developer. I'm a job creator," Skinner said.

The city would not be interested in selling off part of the park that wouldn't have any quick return and because it would lose control of the land, which could then lead to unforeseen uses that don't fall within he parameters of a tech park.

Under the right to first refulsal agreement, a third party can still seek to buy the land, but Autocam would have a chance to match any offer as long as they agree to certain metrics, including job creation figures with the city.

The option would be available for as long as 2040, under the terms discussed Monday.

That led to the hypothetical discussion about a potential bidding war over the adjacent property, and Skinner said later that some companies might be interested in that specific land because it sits along US 30, which is appealing to some companies.

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WARSAW — It looks like the city of Warsaw has a potential buyer for the Marsh building on South Buffalo Street.

Warsaw Community and Economic Development Director Jeremy Skinner asked the city's Redevelopment Commission on Monday for permission to work with a group that wants to possibly convert the building into what was described as an antique artisan mall.

Skinner told officials they want to prepare an agreement that would allow the group, Warsaw Antique Mall, to look into the idea more carefully.

"The purchase price would be $1 million and we would enter into a five-year financing agreement," Skinner said.

The property has been vacant since 2017 and the city purchased it in 2023 after Cardinal Services acquired the land and then decided against using it for expansion plans.

The city paid $1.25 million to buy the property.

In a separate update, Skinner also told the redevelopment commission that the city is working with a developer who has a plan to revive the old Buffalo Street mixed-use development near Center Lake.

The original proposal was pitched about a half dozen years ago but never came to fruition bcause the developer, Dave Matthews, walked away from it (and a related plan to build various condos and homes) with little or no communications with the city.

The land is close to Center Lake where the old parks office once stood.

The development would entail 60,000 to 75,0000 square feet that would include 60-80 apartments and 4,000 to 6,000 square feet of commercial retail space.

He said the project cost would be around $15 million to $20 million.

Skinner said other nearby properties could be part of the project.

"We own a few. Matthews owns a few," Skinner. "We still need to untangle ourselves from Matthews and the rest of those properties."

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WARSAW — The city of Warsaw unveiled plans on Monday to construct a new public works facility that would be three times bigger.

The existing West Center Street facility, built in 1960, includes a series of cobbled-together buildings and a small office space that are undersized. The lack of space has required the city to keep many of its vehicles outdoors.

The new facility would put everything under one roof and would triple the department's footprint.

The department has a growing fleet of vehicles, expanded duties over the years and a lack of sufficient space for its mechanics.

"Our biggest challenge is capacity issues," said Public Works Superintendent Dustin Dillon. "If you want to come out and figure out how to put ten gallons of stuff in a five-gallon bucket, we'll certainly show you ..."

To accommodate the proposed project, the city has acquired three houses to the east along West Center Street.

The future building would be east of the existing office and construction is expected to span two years.

Tentative plans have been under consideration for months. Bakertilly Municipal Advisors gave city officials an in-depth proposal in December that outlined three proposals ranging from $6.5 million to $13.4 million.

Officials have embraced the $13.4 million plan and expressed a desire to reduce the price tag as the proposal is fine-tuned in the coming months.

Bakertilly's proposal also references a "not to exceed" $14 million figure in case the price of construction, for some reason, rises in the next few months.

If the price tag rises above that maximum level, it would force the city to re-do the financial plan.

Officials want the plan finalized this summer in hopes of beginning construction.

The worst-case scenario with this project, he said there’d be an addition of 6 to 7 cents on the property tax rate, but officials expressed confidence that that would not happen.

The city's assessed value is expected to continue to rise in the next few years and would help offset any increase in the tax rate, which has fallen about eight cents in recent years.

The city can also turn to EDIT and TIF money as a backup source to finance part of the plan and will see a few bond issues expire in the next few years, further reducing the city's financial constraints.

"If we don’t achieve the growth we need to cover that 6 to 7 cents in assessed valuation, we could use TIF, (or) EDIT to buy those down," said Jeremy Skinner, the city's director of community and economic development.

"At the end of the day, the intent is to keep this project net neutral on the tax rate,” he said.

Construction would span two years and Dillon said they hope to begin work this year.  Completion would happen in 2027.

Almost all existing structures would be demolished after construction is complete, Dillon said.

City Councilman Mike Klondaris pointed out that the city in recent years has upgraded several city departments, including constructing a new wastewater plant, parks office and fire station on the south side and he thinks the proposal put forth Monday is a "well thought out plan."

On Monday, the redevelopment commission and city council both took the first steps by approving plans to host two public hearings on the plan in the coming weeks.

[caption id="attachment_104734" align="aligncenter" width="843"] The three properties east of the Warsaw Street Department on West Center Street have been purchased by the city for the future construction of a new street department. News Now Warsaw photo by Dan Spalding.[/caption]

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WARSAW — The city of Warsaw plans to construct a new park near the airport that will be dog-friendly and will feature a cricket field and an 18-hole disc golf course in the first phase.

Plans were discussed at Monday’s redevelopment commission meeting.

The 60 acres along CR 300N and adjacent to the airport would represent the first park on the city's north side.

Jeremy Skinner, the city’s director of community and economic development, said the park would emphasize alternative recreation beyond the traditional sports of baseball, football, soccer and softball.

The first phase could be completed by the end of 2025, Skinner said.

The park will also be the first one in the city system that allows dogs, albeit on leashes.

"We've got lots of support, we've got lots of phone calls, we've got lots of emails. People are excited about it," Skinner said. "The dog-friendly part, I think, is huge."

Pickleball and a rugby field are tentatively planned for phase two, which does not have a timetable for now.

A maintenance building and restrooms would be part of phase one.

Part of a walking trail is also part of the first part.

Sanitary sewer extension is one of the bigger costs in phase one.

On Monday, the redevelopment commission approved an amendment to a contract with the engineering firm, DLZ Engineering.

The city previously paid DLZ $46,300 for preliminary work. The amendment to that agreement increases the fee to $354,300 to include the full design of phase one.

Construction cost for phase one would be covered with tax increment finance revenues and grant money, which is still to be sought and secured, Skinner said.

Once the final design is complete, the city will seek grant money.

"The goal is to make phase one around $2 million, but it may be closer to two and half, million," Skinner said.

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WARSAW — Warsaw is looking at plans for a new roundabout that would be on the far-north side of the city.

The city redevelopment commission approved plans that will allow the city to begin an en engineering study on a future roundabout at the corner of Husky Trail and CR 200N.

Jeremy Skinner, director of Community and Economic Development for the city, said they don't have immediate plans to construct the roundabout but want to be ready when money becomes available.

A & Z will do the engineering study.

Skinner said some right-of-way will be acquired to do the project.

Given the amount of traffic at the intersection, Skinner said a roundabout would improve efficiency and safety.

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WARSAW — The old Marsh building on South Buffalo Street in Warsaw may be sitting empty for a while longer.

The city bought the Marsh property, 500 S. Buffalo St., from Cardinal Services for $1.25 million in early 2023. The Warsaw Redevelopment Commission also approved an agreement with Ram Development last year for Ram to have one year to try to market the building to a national retailer, preferably a grocery store.

“I think we’re kind of coming to the end of the line with that agreement,” Warsaw Economic and Development Director Jeremy Skinner told the Redevelopment Commission at their meeting Monday. “Honestly, we’ll have to reset and figure out what our next steps are.”

Board President George Clemens asked if there was nothing in the works then with the building. At the recent Alcohol Tobacco Commission of Kosciusko County, Aldi was approved for an alcohol license at an undisclosed second location in Warsaw.

Skinner said Ram tried to market to some people who had some interest in the building, but that interest “wasn’t meeting the economic needs of the agreement. I think they’re pretty much saying that they could not find a tenant.”

The agreement between the city and Ram hasn’t officially been closed yet, but Skinner said he thinks that’s what they’re working toward now.

“We gave it our best shot,” he said.

Clemens said it’s now public knowledge that Aldi was looking for a second location in Warsaw. Skinner said he’ll reach out to them again, but he went “round and round” with them.

“To my knowledge, they had conversations and Aldi just basically said they do not want to be there,” he said. “It makes sense to me. It seems like a logical place for them. I think it would be a good place for them in terms of capturing specific segments of the market, but they don’t feel it.”

Even giving the building away is not incentive enough to draw them in, Skinner stated.
He said he thinks he knows where Aldi is thinking about for a location but they have not specifically said. In the last conversation he had with them, Skinner said he was told Aldi was withdrawing their plans for a second store in Warsaw.

“And then, lo and behold, they buy (a liquor license) and it ends up in the paper again,” he said. “The last conversation I had with their representative out of Chicago said they were not going to build a second store.”

He said Warsaw may be on their target list, maybe Aldi bought the license because it was available and although they said they were not going to build a store right now, two years from now Warsaw might be back on their list and they already have the liquor license.

“They’re going to set their schedules on when they’re going to open their stores. They set a specific amount of stores that they want to try to open. I’m sure it’s on the list if they’ve already looked at it a year ago. When they come forward, it’s hard to say,” Skinner said.

He reiterated that it would make a lot of sense for Aldi to go into the old Marsh building.

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WARSAW — Warsaw’s redevelopment commission took a precautionary step involving a new special tax that officials say with confidence it will not be enacted.

The special tax is one of several backup plans put in place by the commission as part of a financing plan for the$20 million Gatke redevelopment project 

The bond issue for the project is not to exceed $3 million for a period of not more than 25 years.

Jeremy Skinner,  Director of Community & Economic Development for Warsaw said the plan is an effort by the city to established a series of back-up plans to cover the bond and secure a lower interest rate.

 If the city ran into trouble and coud not cover the bond payment, a second backup would come from the developer who will include a guarantee.

"If that falls short, then your EDIT is your third back up. If that falls short, then they have the ability to issue a tax to cover any shortfalls," Skinner said.

But at the same time, Skinner said the city could turn to other funds rather than a special tax.

Wording about a tax, he said, is an attempt to help ensure the city gets a lower interest rate on the bond.

Asked if it's strictly intended to secure a lower interest rate, Skinner replied, "yes."

A public hearing on the lease between the city of Warsaw Building Corporation and Redevelopment Commission related to the Gatke development project drew no comments from the public Monday.

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