First South Bend – Elkhart region READI 2.0 project approved by Indiana Office of Commerce
SOUTH BEND, Ind. (Oct. 13, 2025) – The Indiana Office of Commerce approved the first READI 2.0 project in the South Bend – Elkhart Region. A partnership between Herstoric Development, Chateaux 14 Development, and Penny Hill, the collective project looks to restore historical vibrancy and economic vitality by creating the Michigan & Monroe Arts District near the intersection of Monroe and Michigan streets.
“The South Bend – Elkhart region is a great example of what region-led growth looks like,” said Governor Mike Braun. “This wasn’t a plan handed down from the state – it was built by local leaders who saw an opportunity to reimagine a space and turn it into a community asset. When regions take ownership like this, the state’s role is to stand behind them, provide support, and help accelerate their vision. That’s how you get growth that sticks: business backing business, communities investing in themselves, and talent choosing to stay and grow here. I’m excited to see how this momentum carries South Bend forward.”
The project includes the redevelopment of several historic buildings, as well as new housing, looking to ensure broader impact rather than isolated improvements. The Michigan & Monroe Arts District in South Bend was awarded $3.7 million in READI 2.0 funds.
“To me, being part of building the future of this neighborhood – and the South Bend-Elkhart region – means showing that revitalization can be both creative and thoughtful,” said Charity Stowe, Founding Partner of Herstoric Development. “It’s about guiding growth that puts longtime residents first and builds a stronger, more connected community that can thrive for generations to come.”
The Herstoric Development component, known as Milkweed Commons, includes two historic mixed-use buildings – The Monarch and The Hope – as well as the two vacant lots between the buildings that will be made into a pocket park and micro-farm. The Monarch will be home to a coffee shop with a local patisserie, four mixed-income housing units, and a community clubhouse with flex space. Future plans for The Hope include a commercial kitchen space and food market, with a boutique hotel on the second floor. The empty lots will be transformed into a pocket park with native plantings, edible gardens, outdoor seating, and a live music stage. The organization is also rehabilitating two historic, multi-family buildings into six new residences on nearby St. Joseph St.
Chateaux 14’s The Monreaux development will sit at 505 S. Michigan, the now vacant former home of the “Fat Daddy’s” commercial strip which was demolished in 2019. The development will include 57 mixed-income apartment units, commercial space, and a concept new to downtown South Bend – live-work loft apartments. The project also includes a co-working space, parking and tenant green space, and improvements to the streetscape.
“I hope this project creates the community and resources that Herstoric, Penny Hill, and Chateaux 14 development have envisioned for that corridor,” said Devereaux Peters, Principal of Chateaux 14. “When we partnered, we had a goal of supporting each other to create something great and we are very close to reaching that goal. I hope the community sees what we have built and wants to be a part of it and that it transforms the area in a positive way.”
Penny Hill’s portion of the project includes the Monroe Street Arts Buildings, located on the north side of the street across from The Monreaux. The project builds on the budding arts center located in the Monroe Arts Building. A daycare center presently located there will expand its space, extending the capacity from 45 to 60 children. The adjacent Inwoods Building will be restored to include commercial tenants, as well as artist focused micro-galleries and a restaurant at the rear of the building.
“For me, making South Bend a great place to live isn’t just about improving buildings – it’s about creating spaces where community, creativity, and everyday life can intersect,” said Sarah Hill, owner of Penny Hill. “My little cluster of three buildings has become home to artists, small business owners, and neighbors who are each contributing to a more vibrant, interesting, and welcoming South Bend. The READI funding has been essential in turning this vision into reality.”
The Northern Indiana Regional Development Authority (RDA) preliminarily awarded $42.5 million in Regional Economic Acceleration and Development Initiative (READI) 2.0 grant funds to 13 projects during its meeting at Elkhart Health & Aquatics in December. The remaining projects are currently in the process of approval by the Office of Commerce and can be viewed here. The grant funding will be leveraged to infuse an added $613 million of total regional investments across the projects.
In April 2024, the South Bend – Elkhart region was one of six regions awarded $45 million in READI 2.0 funds. Other awards ranged from $10 million to $35 million.
“The approval of the Michigan & Monroe Arts District as the first READI 2.0 project in our region underscores the transformative potential of strategic investment,” said Bethany Hartley, President and CEO of the South Bend – Elkhart Regional Partnership. “By revitalizing historic assets and introducing new mixed-use development, this project strengthens South Bend’s urban core, attracts additional private investment, and supports long-term regional competitiveness. It represents the kind of catalytic development that not only enhances quality of place but also drives sustainable economic growth across the South Bend – Elkhart region.”
READI encourages regional collaboration and data-driven, long-term planning that will attract and retain talent in Indiana. The South Bend – Elkhart region was the recipient of $50 million in READI 1.0 funds in 2021. In 2022, the RDA awarded $40 million to 17 of Quality of Place projects and $6.4 million in funding to 11 programs, resulting in an estimated $448 million in additional private and public investment. The full list of regional READI 1.0 projects can be found here.
For more information about the South Bend – Elkhart region’s READI grant, visit www.bit.ly/READIsbe.
To learn more about the READI grant program, visit www.IndianaREADI.com.
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About the South Bend – Elkhart Regional Partnership
The South Bend – Elkhart Regional Partnership seeks to unify and collaborate so that together, the communities across the region to work together to achieve what cannot be done individually. For more information about the Regional Partnership, visit SouthBendElkhart.org.
About the Northern Indiana Regional Development Authority (RDA)
Formed in 2015, the Northern Indiana Regional Development Authority (RDA) represents the three Indiana counties of Elkhart, Marshall, and St. Joseph. The RDA is overseen by a five-member board, each appointed by the mayors and commissioners of member counties and municipalities. The RDA is committed to the continued improvement of the South Bend – Elkhart region and receives staffing support from the South Bend – Elkhart Regional Partnership, the lead regional economic development organization for the region. For more information about RDA, click here.
About the Indiana Office of Commerce
The State of Indiana’s Office of Commerce was created by Governor Mike Braun to align and accelerate the state’s economic development efforts and is led by Indiana Secretary of Commerce David J. Adams.
Media Contact
Liz Folkerts
South Bend – Elkhart Regional Partnership