24-06-Declaratory Resolution, Mixed-Use Development Real Property Tax Abatement for Momentum Development Group,LLC

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TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Erik Glavich, Director, Growth and Opportunity SUBJECT: Mixed-Use Development Real Property Tax Abatement Petition for Momentum Development Group, LLC DATE: March 6, 2024 On March 6, 2024, a petition for tax abatement from Momentum Development Group, LLC, was filed with the Office of the City Clerk. The petition seeks consideration for a mixed-use development real property tax abatement for the redevelopment of the old Salvation Army building at 510 S. Main Street 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 petition, investigated the area, and makes the following report. Project Summary • The petitioner will redevelop a 1954 downtown building previously owned by the Salvation Army and then by the City. The building is located on the southeast corner of South Main Street and West Monroe Street. • The building has essentially been vacant since 2015 when the Salvation Army left the premises. The City acquired the building in 2019, and the southern retail space portion of the building was used as the City's weather amnesty program. Momentum Development Group, LLC, purchased the building from the City's Department of Redevelopment via a real estate purchase agreement approved in May 2023. Ownership of the property was transferred in July last year. • The petitioner will transform the building into an entrepreneurship hub with co-working spaces including private offices (-23,000 square feet total), a commercial kitchen (-10,000 square feet), retail space (-2,000 square feet), and a cocktail bar(-1,000 square feet). • Work will include restoration of the brick facade, new windows, and wholly new infrastructure of plumbing, electric, and HVAC systems. • Total investment for the project is $6,343,000.