A proposed deal between the City of South Bend, Beacon Health System, and Great Lakes Capital is poised to unlock the largest redevelopment project in downtown South Bend and support Beacon’s transformative Patient Tower initiative.

The new Madison Lifestyle District plans include over 240 new apartment units including some designated workforce housing, a 100 key-hotel, approximately 40,000 square feet of commercial space, and more than 900 structured parking spaces on the two blocks south of Memorial Hospital. Final plans will be dependent on approval by the Redevelopment Commission and abatement from the Common Council.

The combined investments by the partners for the Madison Lifestyle District and the Memorial Hospital’s Patient Tower will total in excess of $330 million.

“Beacon is proud to partner with the City of South Bend and help enable the redevelopment and revitalization of the northern end of downtown,” said Larry Tracy, President, Memorial Hospital of South Bend. “We believe the planned mixed-use district will be a positive for both South Bend and Beacon Health System as it further connects our Memorial Hospital campus with downtown. The health and vitality of downtown is important to our entire community.”

The series of agreements would include at least $100 million in private investment in a mixed-use two-block urban development, logistical support for the $232 million expansion of Memorial Hospital’s Patient Tower, and the construction of public parking garages. The City’s primary role will be to construct and manage the needed parking infrastructure. In 2022, the Northern Indiana Regional Development Authority committed $11.78 million of READI funds to this project, and last year the South Bend Common Council approved $24 million of redevelopment bond funds.

“Great Lakes Capital is pleased to be a partner in this generational opportunity to enhance the quality of life in our region through the development of the Madison Lifestyle District,” said Brad Toothaker, Managing Partner, Great Lakes Capital. “We appreciate the ongoing support of the Regional Development Authority and the City of South Bend as we work together to retain talent, grow the regional workforce, and enhance downtown South Bend.”

If approved by the South Bend Redevelopment Commission, groundbreaking is planned in 2025.

“This historic investment into the heart of South Bend will lift up our economy, transforming the north end of downtown and creating hundreds of good paying jobs,” said Mayor James Mueller. “I thank Beacon Health System and Great Lakes Capital for believing in our city’s future and taking on this bold project, which would not be possible without the support of the South Bend Common Council, Redevelopment Commission, South Bend – Elkhart Regional Partnership, Northern Indiana Regional Development Authority, and the Indiana Economic Development Corporation.”