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TAX ABATEMENT REPORT <br />TO: South Bend Common Council FEd 2 2 L(12'3 <br />ff <br />I I <br />FROM: Erik Glavich, Director, Growth and Opportunity DAWN M.JONES <br />CITY CLERK, SOUTH BEND,IN <br />SUBJECT: Multi-Family Residential Real Property Tax Abatement Petition <br />for SoMa Capital LLC (536 S. Main Street) <br />DATE: February 22, 2023 <br />On February 21, 2023, a petition for tax abatement from SoMa Capital LLC was filed with the <br />Office of the City Clerk. The petition seeks consideration for a multi-family residential real <br />property tax abatement for property at 536 S. Main Street in South Bend, Indiana. <br />Pursuant to Chapter 2, Article 6, Section 2 84.2 of the Municipal Code of the City of South Bend, <br />this petition was referred to the Department of Community Investment for purposes of <br />investigation and preparation of a report determining whether the area qualifies as an Economic <br />Revitalization Area pursuant to I.C.6 1.1 12.1 and all zoning requirements have been met. <br />The Department of Community Investment has reviewed the petition (a copy of which is <br />attached), investigated the area, and makes the following report. <br />Project Summary <br />The developer, SoMa Capital LLC, plans to rehabilitate the abandoned apartment <br />building located at the northeast corner of S. Main Street and W. South Street. Built in <br />1915, the building has been vacant since a summer 2021 fire (a previous fire had also <br />occurred) and had fallen into neglect due to serious deferred maintenance. <br />SoMa Capital LLC will re-develop the building into 12 newly rehabbed apartments <br />originally there were 8 apartments), totaling over 11,000 square feet and consisting of <br />four(4) studios, five (5) one-bedroom and three (3)two-bedroom units. The building will <br />receive all new mechanical, plumbing, fire, and electrical infrastructure. Each unit will <br />have new HVAC systems and appliances. The building will have new windows, and the <br />exterior brick facade will be restored. <br />The building will include at least three (3)affordable units for low-to moderate-income <br />households at 80% of AMI. <br />Tax Estimates <br />The petitioner qualifies for an eight-year(8) multi-family residential real property tax abatement. <br />Taxes paid in 2022 for the existing property: $5,235 <br />Total estimated taxes during the eight-year(8) abatement period: $342,850 <br />Estimated taxes being abated during the abatement period: $213,157 <br />Estimated total taxes to be paid during the abatement period: $129,693