ELKHART, Ind. (WOWO) — Elkhart has secured a $1.5 million Regional Economic Acceleration and Development Initiative (READI) grant to help redevelop part of the city’s historic railroad district, a project that will bring new housing, infrastructure upgrades and public gathering spaces to an area just south of downtown.
The funding will support the city’s Freight Street Initiative, a multi-phase redevelopment effort centered on two historic sites near the railroad tracks that have long marked the southern edge of downtown Elkhart.
City leaders said the investment will help transform the area into a new cultural district while preserving its connection to the city’s railroad heritage according to WNDU.
“The Freight Street project actually is located on Freight Street, which is just adjacent to the tracks and is actually where the New York Central Railroad Museum is located, and the Main Street project is located at the corner of Main and Prairie,” Development Services Director Mike Huber said.
The Freight Street portion of the project includes construction of two new mixed-use buildings, one at the corner of Freight and Main streets and another adjacent to existing businesses.
Huber said the development is expected to add approximately 100 new housing units while also bringing significant infrastructure improvements to the area.
“You’re going to see two new buildings constructed, one at the corner of Freight and Main and another flanking the two businesses, a total of a hundred new housing units in that phase of the project,” Huber said. “It will also include, we’re going to bury all the overhead electrical lines in that space and we’re going to completely revitalize the streetscape on both Main Street and Freight Street.”
Plans also call for burying overhead utility lines and rebuilding sidewalks, streets and other public infrastructure to create a more pedestrian-friendly environment.
A second phase of the initiative will focus on creating a new public gathering space at Main Street and Prairie Avenue. The centerpiece of that area will be a sculptural recreation of artist Kelby Love’s 1996 mural honoring the city’s railroad history.
The READI grant builds on an earlier investment announced last year, when the residential portion of the project received approximately $6 million in funding.
Jeff Rea, president and CEO of the South Bend Regional Chamber, said READI investments have helped communities throughout northern Indiana pursue projects designed to improve quality of life and strengthen economic development.
“I couldn’t be more proud of Goshen, Elkhart, Mishawaka, Niles — really the main communities up and down the river — and all of the great attractions that they have put in place for residents to enjoy,” Rea said.
Downtown business owners say the redevelopment could provide another boost for Elkhart’s city center by increasing housing opportunities and attracting more residents and visitors.
“Anything that continues the growth and development in downtown Elkhart,” said Jeanne Kern, owner of The Vine. “Density creates vibrancy and that’s fantastic.”
City officials said both phases of the Freight Street Initiative remain in the planning stages, with construction expected to begin in 2027.
