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TAX ABATEMENT REPORT <br /> TO: South Bend Common Council <br /> FROM: Erik Glavich, Director, Growth and Opportunity <br /> SUBJECT: Mixed-Use Development Real Property Tax Abatement Petition for the Tower at <br /> Washington Square LLC (Liberty Tower) <br /> DATE: March 22, 2023 <br /> On March 21, 2023, a petition for tax abatement from for the Tower at Washington Square LLC <br /> was filed with the Office of the City Clerk. The petition seeks consideration for a mixed-use <br /> development real property tax abatement for the completion of the rehabilitation of the building <br /> known as Liberty Tower at 213 West Washington Street in downtown South Bend. <br /> Pursuant to Chapter 2, Article 6, Section 2 84.9 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 Indiana Code § 6 1.1-12.1 and all zoning requirements have <br /> been met. <br /> The Department of Community Investment has reviewed the petitions (a copy of which each is <br /> attached), investigated the area, and makes the following report. <br /> Project Summary <br /> • The petitioner, the Tower at Washington Square LLC, plans to complete the <br /> rehabilitation of Liberty Tower. Previous phases of the remodel included the opening of <br /> the Aloft hotel and commercial space in 2017. However, for a variety of reasons <br /> including increased construction costs and COVID, the final phase of the project has <br /> been delayed. <br /> • The petitioner will complete the remodel of roughly 90 apartment units, restore and <br /> create new meeting and event spaces, and create a bar/lounge and event space with <br /> rooftop access on the seventh floor. <br /> • The petitioner is investing a total of$14.7 million into this lates phase of the project. The <br /> previous phases of the remodel had costs in excess of$40 million. <br /> Tax Estimates <br /> The petitioner qualifies for an eight-year(8) mixed-use development real property tax <br /> abatement. <br /> • Current taxes for 2022: $41,900 <br /> • Total estimated taxes during the eight-year(8) abatement period: $2,631,150 <br /> • Estimated taxes being abated during the abatement period: $1,287,128 <br />