Confirming Tax Abatement - 1728 North Ironwood Drive - Robert R. Lee (C.E. Lee Company, Inc.)

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1200 COUNTY-CITY BUILDING 227 W.,JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PxoNE574/235-9371 FAx 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~L ECONOMIC DEVELOPMENT JEFFREY V. GISNEY EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BOB MATHIA SUBJECT: REAL PROPERTY TAX ABATEMENT PETITION FOR: ROBERT R. LEE (C. E. LEE COMPANY, INC.) DATE: DECEMBER 22, 2008 On November 10, 2008, a petition for real property tax abatement consideration for vacant property located at 1728 North Ironwood Drive was filed with the City Clerk by Robert R. Lee (C. E. Lee Company, Inc.). Please note: The petitioner is asking for a special exception because the project does not meet the general standards for real property tax abatement set forth in Chapter 2, Article 6, Sections 2-77 through 2-83.3 of the Municipal Code of the City of South Bend. Pursuant to Chapter 2, Article 6, Section 2-82 of the Municipal Code of the City of South Bend, this petition was referred to the Department of Community and Economic Development for purposes of investigation and preparation of a report determining whether the area qualifies as an Economic Revitalization Area pursuant to I.C.6-1.1-12.1 and whether all zoning requirements have been met. The Department of Community and Economic Development has reviewed the petition, investigated the area, and makes the following report. PROJECT SUMMARY Robert R. Lee is proposing to construct a new retail facility to be leased by C.E. Lee Company, Incorporated. C.E. Lee Company, a retail decorating center, has been established in South Bend since 1872. They sell several different brands of paint, window treatments, and wall coverings. Customers consist of individual homeowners as well as many paint contractors and maintenance accounts. On Apri122, 2008, their retail store at 1728 North Ironwood Drive was destroyed by fire. Because their local insurance agent failed to provide accurate replacement cost estimates, the company found itself underinsured after the fire. Replacement costs for the building, equipment, and inventory total $687,000. The company has received $485,000 in insurance proceeds and intends to finance the COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL 8C PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574!235-9660 574/235-9371 ELrueErH LEONARD FAX: 574/235-9697 574/235-9371