Bill No. 23-35 Declaratory Resolution 1202 Lafayette 10 yr. Real Property Tax Abatement KCG Company

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TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Erik Glavich, Director, Growth and Opportunity SUBJECT: Multi-Family Development Real Property Tax Abatement for KCG Properties, LLC DATE: June 21, 2023 On June 20, 2023, a petition for tax abatement was filed by KCG Companies, LLC, for a low- income housing project that will be located at 1202 S. Lafayette Boulevard in South Bend. Pursuant to Chapter 2, Article 6, Section 2-84.9 of the Municipal Code of the City of South Bend, the petition was referred to the Department of Community Investment for purposes of investigation and preparation of a report determining whether the area qualifies as an Economic Revitalization Area pursuant to Indiana Code 6 1.1-12.1 and all zoning requirements have been met. The Department of Community Investment has reviewed the petitions (a copy of each is attached), investigated the area, and makes the following report. Project Summary • Founded in 2015, KCG Companies, LLC (KCG) is an Indianapolis-based developer, builder, and manager of affordable housing. • KCG is proposing a 50-unit multi-family affordable housing development consisting of 30 one-bedroom and 20 two-bedroom units. Rents will be a mix of 60 percent, 40 percent and 30 percent of the Area Median Income (AMI)with eight units offering Project-Based Vouchers. • KCG is competing for Low Income Housing Tax Credits (LIHTC)with the Indiana Housing & Community Development Authority (IHCDA). Project completion is contingent upon receiving a satisfactory LIHTC award. • Currently the site is an empty lot owned by the City of South Bend. If the project proceeds, KCG has committed to spending $12.5 million to develop this lot. Employment Impact • Upon completion of the project, KCG will create one (1)full-time position with an estimated annual payroll of$40,000. Tax Estimates Due to being a LIHTC project that will increase the availability of affordable rental units within South Bend, a ten-year(10) multi-family real property tax abatement is being sought. • Current taxes are zero—property is owned by the City of South Bend.