HomeMy WebLinkAbout25-15 Designating Resolution - Real Property Tax Abatement for 425 South Michigan Street �� r, CITY OF SOUTH BEND
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February 19, 2025 Filed in Clerk's Office
Council Member Troy Warner
Chairperson, Community Investment Committee
South Bend Common Council Bianca Tirado
County-City Building,4th Floor City Clerk, South Bend, IN
South Bend, Indiana 46601
RE: Declaratory Resolutions (2): Vacant Building Tax Abatement and Mixed-use Development
Real Property Tax Abatement for Penny Hill Homes LLC
Dear Council Member Warner,
Please find the enclosed Declaratory Resolutions and supporting information pertaining to a tax
abatement petition submitted by Penny Hill Homes LLC, an Indiana Limited Liability Company. This
petition package includes:
• Department of Community Investment's summary report
• Petition for abatement
• Statement of Benefits forms (SB-1/Real Property& SB-1NBD)
• Supporting information
The report contains the Department's findings relative to the above-mentioned petition. Penny Hill
Homes intends to rehabilitate the building located at 425 S. Michigan Street, known as the Inwoods
Building. The building has been vacant since 1999, and Penny Hill Homes will renovate and
reactivate the space with the intent of proving a mixture of commercial spaces and an "art market"
for artists and small businesses.
The petitioner seeks both a real property tax abatement and a vacant building abatement, the latter
of which will abate existing taxes and provide additional capital that can be dedicated to the project.
The total investment for this project is$1.44 million. The project meets the qualifications for a two-
year(2)vacant building tax abatement and a ten-year(10) mixed-use development real property tax
abatement, both in accordance with Section 2-84 of the municipal code.
A representative from Penny Hill Homes LLC will be available on Monday, February 24, 2025. If you
or other Council members have questions about the report or need additional information, please
feel free to call me at(574)235-5838.
Sincerely,
r�J- - /a, ,..."--—-'
Erik Glavich
Director, Growth and Opportunity
EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
14005 County-City Building 227 W.Jefferson Blvd. South Bend,Indiana 46601 p 574.235.9371 www.southbendin.gov
Filed in Clerk's Office
BILL NO. 25-15
Bianca Tirado
RESOLUTION NO. City Clerk, South Bend, IN
A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN
THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS
425 S. Michigan Street, South Bend, Indiana 46601
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
TEN-YEAR (10) REAL PROPERTY TAX ABATEMENT FOR
Penny Hill Homes LLC
WHEREAS, a petition for real property tax abatement consideration has been filed with
the City Clerk for consideration by the Common Council of the City of South Bend, Indiana,
requesting that the area described as:
Key Number: 71-08-12-303-020.000-026
Local Parcel Number: 018-3016-060001
Commonly Known As: 425 S. Michigan Street
Legal Description: Lot 2 Martin's Addn-Penny Hill Minor Sub25/26
NP#964 5/24/2024
be designated as an Economic Revitalization Area under the provisions of Indiana Code 6-1.1-
12.1 et seq. and South Bend Municipal Code Sections 2-76 et seq.; and
WHEREAS, the petitioner has agreed to and has accepted responsibility to report any
changes in the Key Number and legal description to the Department of Community Investment
and to the Office of the City Clerk; and
WHEREAS,the Department of Community Investment has concluded an investigation and
prepared a report with information sufficient for the Common Council to determine that the area
qualifies as an Economic Revitalization Area under Indiana Code 6-1.1-12.1 et seq. and South
Bend Municipal Code Sections 2-76 et seq., and has further prepared maps and plats showing the
boundaries and such other information regarding the area in question as required by law; and
WHEREAS,the Community Investment Committee of the Common Council has reviewed
said report and recommended to the Common Council that the area qualifies as an Economic
Revitalization Area.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby determines and finds that the Petition for Real Property
Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the
requirements of Indiana Code 6-1.1-12.1 et seq. for tax abatement.
SECTION II. The Common Council hereby determines and finds the following:
A. That the description of the proposed redevelopment or rehabilitation meets the
applicable standards for such development;
B. That the estimate of the value of the redevelopment or rehabilitation is reasonable
for projects of this nature;
C. That the estimate of the number of individuals who will be employed or whose
employment will be retained by the Petitioner can reasonably be expected to result from the
proposed described redevelopment or rehabilitation;
D. That the estimate of the annual salaries of those individuals who will be employed
or whose employment will be retained by the Petitioner can be reasonably expected to result from
the proposed redevelopment or rehabilitation;
E. That the other benefits about which information was requested are benefits that can
be reasonably expected to result from the proposed described redevelopment or rehabilitation; and
F. That the totality of benefits is sufficient to justify the requested deduction, all of
which satisfy the requirements of Indiana Code 6-1.1-12.1-3.
SECTION III. The Common Council hereby determines and finds that the proposed described
redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the
Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement
Consideration and the Memorandum of Agreement between the Petitioner and the City of South
Bend, and that the Statement of Benefits form completed by the petitioner, said form being
prescribed by the State Board of Accounts, is sufficient to justify the deduction granted under
Indiana Code 6-1.1-12.1-3.
SECTION IV. The Common Council hereby accepts the report and recommendation of the
Community Investment Committee that the area herein described be designated as an Economic
Revitalization Area and hereby adopts a Resolution designating the area as an Economic
Revitalization Area for purposes of real property tax abatement.
SECTION V. The designation as an Economic Revitalization Area shall expire on December 31,
2027.
SECTION VI. The Common Council hereby determines that the property owner is qualified for
and is granted property tax deduction for a period of ten (10) years as shown by the schedule
outlined below as well as the attachment pursuant to Indiana Code 6-1.1-12.1-17.
Year 1 - 100%
Year 2 - 100%
Year 3 - 100%
Year 4 - 100%
Year 5 - 100%
Year 6 - 100%
Year 7 - 100%
Year 8 - 100%
Year 9 - 100%
Year 10 - 100%
SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of
this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana
Code 5-3-1 and Indiana Code 6-1.1-12.1-2.5, said publication providing notice of the public
hearing before the Common Council on the proposed confirming of said declaration.
SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approval by the Mayor.
Canneth Lee, Council President
South Bend Common Council
Attest:
Bianca Tirado, City Clerk
Office of the City Clerk
Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the
City of South Bend, Indiana, on the day of , 2025, at
o'clock .m.
Bianca Tirado, City Clerk
Office of the City Clerk
Approved and signed by me on the day of ,2025,at o'clock
.m.
James Mueller, Mayor
City of South Bend
Filed in Clerk's Office
TAX ABATEMENT REPORT
TO: South Bend Common Council Bianca Tirado
City Clerk, South Bend, IN
FROM: Erik Glavich, Director, Growth and Opportunity
SUBJECT: Vacant Building Tax Abatement and Mixed-Use Development Real Property Tax
Abatement Petition for Penny Hill Homes LLC
DATE: February 19, 2023
On February 19, 2025, a petition for tax abatement from Penny Hill Homes LLC was filed with
the Office of the City Clerk. The petition seeks consideration for both a vacant building tax
abatement and a mixed-use development real property tax abatement for property at 425 S.
Michigan 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, Penny Hill Homes LLC, plans to rehabilitate the commercial building at
425 S. Michigan Street, which is known as the Inwoods Building. It was built in 1927 to
1929 and was a Sears Roebuck store for many years. Between 1949 and 1989, the
building was home to the Inwoods grocery store. A few businesses occupied the space
in the 1990s, but the building has been vacant since 1999. The 50,000 sq. ft. building
has experienced significant damage from water. Despite this, the brick and concrete
structure has held up, and the building's exterior facade retains its character.
• The total project cost is an estimated $1,440,000. Phase 1 will include the first floor and
lower level.
• The project will create spaces for a variety of businesses in the Inwoods Building. The
plan is to provide a mixture of distinct enclosed commercial spaces and an "art market"
arcade of mini-spaces created for artists and small businesses to occupy. First floor and
lower level will be the first phase of the project.
• After renovation, the restored expansive storefront entrance will enhance the urban
streetscape, while the rear entrance and parking lot will provide convenient access and
provide ample opportunities for businesses to create both indoor and outdoor
experiences. The renovation of this building will have an extremely large impact on this
block and on the Monroe Street Arts District in general, having a positive impact on
current surrounding businesses.
Employment Impact
Per this petition and supporting material, it is estimated that the project will create an estimated
eight (8) new jobs with an estimated total annual payroll of$360,000.
Tax Estimates
Vacant Building Tax Abatement: The petitioner qualifies for a two-year(2)vacant building tax
abatement.
• Current estimated annual real property taxes: $6,764
• Estimated taxes being abated during the abatement period: $11,868
• Estimated total taxes to be paid during the abatement period: $1,659
Mixed-Use Development Real Property Tax Abatement: The petitioner qualifies for a ten-year
(10) mixed-use development real property tax abatement.
• Current estimated annual real property taxes: $6,764
• Estimated annual taxes after the project's completion: $35,189
• Total estimated combined taxes during the ten-year(10) abatement period: $351,893
o Estimated taxes being abated during the abatement period: $257,153
o Estimated total taxes to be paid during the abatement period: $94,740
Abatement Qualification
1. A review of the tax abatements previously granted finds that the petitioner has not been
granted a previous tax abatement.
2. The property is properly zoned for the proposed project.
3. Taxes on the property have been paid in full.
4. A review of the South Bend Redevelopment designation areas finds that the property is
in the River West Development Area.
5. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets
the qualifications for a two-year(2)vacant building tax abatement and a ten-year(10)
mixed-use development real property tax abatement under Section 2-84 (Council's
authority to enlarge real property tax abatement general standards).
2
2-Year Abatement February 17,2025
Penny Hill Homes LLC
South Bend Portage Township
Vacant Building Tax Abatement Schedule *
Property Address: 435 S. Michigan Street
Tax Key Number: 71-08-12-303-020.000-026
Current Year 1 Year 2
Assessed Value(AV)
Land $ 17,500 $ 17,500 $ 17,500
Structure 182,374 182,374 182,374
Gross Assessed Value 199,874 199,874 199,874
Abatement(100%of Structure) 100% 100%
Abatement Deduction (182,374) (182,374)
Net Assessed Value 199,874 17,500 17,500
Property Taxes
Assume constant tax rate of 5.3548%
Gross Tax(Tax Rate x Net AV) 10,703 937 937
Local Tax Credit(12.3682%of GT-DS (1,229) (108) (108)
Circuit Breaker Credit (2,710) - -
Taxes Due $ 6,764 $ 830 $ 830
3% 3% 3%
Circuit Breaker Cap 5,996 5,996 5,996
Debt Service(0.3840%of Net AV) 768 67 67
Max Tax Under the Cap 6,764 6,063 6,063
Year Abatement Taxes Due Taxes Abated Net Taxes
Paid
1 100% $ 6,764 $ (5,934) $ 830
2 100% 6,764 (5,934) 830
Total: 13,527 (11,868) 1,659
*This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2023 Payable 2024.
The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates.
e' Department of Community Investment
City of South Bend
10-Year Abatement February 17,2025
Penny Hill Homes LLC
South Bend Portage Township
Commerical Development Real Property Tax Abatement Schedule•
Type of Property: Mixed Use
Estimated Project Cost: $ 1,400,000 Rehabilitation
Property Address: 435 S.Michigan Street
Tax Key Number: 71-08-12-303-020.000-026
Without
Current Abatement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Assessed Value(AV)
Land $ 17,500 $ 17,500 $ 17,500 $ 17,500 $ 17,500 $ 17,500 $ 17,500 $ 17,500 $ 17,500 $ 17,500 $ 17,500 $ 17,500
Structure(AV=60%Project Cost) 182,374 1,022,374 1,022,374 1,022,374 1,022,374 1,022,374 1,022,374 1,022,374 1,022,374 1,022,374 1,022,374 1,022,374
Gross Assessed Value 199,874 1,039,874 1,039,874 1,039,874 1,039,874 1,039,874 1,039,874 1,039,874 1,039,874 1,039,874 1,039,874 1,039,874
Abatement 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Abatement Deduction - (840,000) (840,000) (840,000) (840,000) (840,000) (840,000) (840,000) (840,000) (840,000) (840,000)
Net Assessed Value 199,874 1,039,874 199,874 199,874 199,874 199,874 199,874 199,874 199,874 199,874 199,674 199,874
Property Taxes
Assume constant tax rate of 5.3548%
Gross Tax(Tax Rate x Net AV) 10,703 55,683 10,703 10,703 10,703 10,703 10,703 10,703 10,703 10,703 10,703 10,703
Local Tax Credit(12.3682%of GT-DS) (1,229) (6,393) (1,229) (1,229) (1,229) (1,229) (1,229) (1,229) (1,229) (1,229) (1,229) (1,229)
Circuit Breaker Credit (2,710) (14,101) - - - - - - - - - _ -
Taxes Due $ 6,764 $ 35,189 $ 9,474 $ 9,474 $ 9,474 $ 9,474 $ 9,474 $ 9,474 $ 9,474 $ 9,474 $ 9,474 $ 9,474
3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%
Circuit Breaker Cap 5,996 31,196 31,196 31,196 31,196 31,196 31,196 31,196 31,196 31,196 31,196 31,196
Debt Service(0.3840%of Net AV) 768 3,993 768 768 768 768 768 768 768 768 768 768
Max Tax Under the Cap 6,764 35,189 31,964 31,964 31,964 31,964 31,964 31,964 31,964 31,964 31,964 31,964
Combined
Year Abatement Current Taxes New Net Taxes
Current 8 Taxes Abated
Due Projected Tax New Taxes Paid
1 100% $ 6,764 $ 28,426 $ 35,189 $ (25,715) $ 9,474
2 100% 6,764 28,426 35,189 (25,715), 9,474
3 100% 6,764 28,426 35,189 (25,715) 9,474
4 100% 6,764 28,426 35,189 (25,715) 9,474
5 100% 6,764 28,426 35,189 (25,715) 9,474
6 100% 6,764 28,426 35,189 (25,715) 9,474
7 100% 6,764 28,426 35,189 (25,715) 9,474
8 100% 6,764 28,426 35,189 (25,715) 9,474
9 100% 6,764 28,426 35,189 (25,715) 9,474
10 100% 6,764 28,426 35,189 (25,715) 9,474
Total: 67,637 284,256 351,893 (257,153) 94,740
•This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2023 Payable 2024. I") Department of Community Investment
The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. City of South Bend
City of South Bend Instructions:Complete pages 1-3
AND the proper Form SBA for
Petition for Incentives
the type of abatement(real
property or personal property)
ii Petition must include a$250 filing fee payable to the for which you are applying.
"City of South Bend"before processing can be complete
General Information Project Name Monroe Street Arts Buildings Project Number
'Legal name as registered with
Secretary of State II Penny Hill Homes LLC
Business structure
Limited Liability Company
Company website 1 https://www.pennyhillhomes.com/
Proposed Project Information
Proposed project address 425 S. Michigan Street Parent company name Penny Hill Homes LLC
City,State,Zip South Bend, IN 46601 Legal owner Penny Hill Homes LLC
Site acreage or acreage required 0.3 Is the real estate owned
or leased? Owned
Square feet of facility 50,000 If leased,by whom?
Primary Contact Information
Primary company contact name Sarah Hill Title Owner
Address of company contact 1512 E.Wayne Street Phone 706-206-1363
ICity,State,Zip South Bend, IN 46615 Email pennyhillhomes@gmail.com
Senior Official Information
Company senior official name Title
Address of company contact Phone
(if different from above)
City,State,Zip Email
Consultant Information/Agent
Hired business consultant/agent name Consultant release?(V/N)
Address Local economic development partners
approval?(V/N)
City,State,Zip Email
Project Overview
Brief description of your
Penny Hill Properties revitalizes historic real estate near Downtown South Bend and is the property owner for
Company,project,and why the
425 S.Michigan,along with the 2 adjoining buildings(423 S.Michigan&107 W Monroe)and the adjacent
property is necessary for parking lot on Main street.
economic growth
Colloquially known as the lnwoods Building,425 S.Michigan was built as a Sears Roebuck store in 1927.This
50,000 sq.ft.brick and concrete building has been vacant since approximately 1999.Despite sitting empty for
an extended period,the building's exterior facade retains its character.After renovation,the restored expansive
storefront entrance will enhance the urban streetscape,while the rear entrance and parking lot will provide
convenient access and provide ample opportunities for businesses to create both indoor and outdoor
experiences.The renovation of this building will have an extremely large impact on this block and on the
Monroe Street Arts District in general,having a positive impact on current surrounding businesses.
Renovate and reactivate the interior and exterior of the building to create spaces for a variety of businesses.
The plan is to provide a mixture of distinct enclosed commercial spaces and an"art market"arcade of
mini-spaces created for artists and small businesses to occupy. First floor and lower level will be the first phase
of the project.
Certified Technology Park appropriate N/A
Is the project in a Tax Incremental Financing
(TIP)area? If so,which? River West
Have Building Permits been issued?(Y/N) Number of residential units created by
[Note-Not eligible for abatement if Yes] N project
If this is a petition for personal property tax abatement,has N/A
the equipment been installed?
Investment Details
Public Infrastructure needs Has any 504 funding been What is the value of any equipment being purchased in What is the value of any equipment being
(Off-site of project in dollars) received? Indiana for the project? purchased from out of state for the project?
N/A No N/A N/A
New Project Investments
Calendar Year 2023 2024 2025 2026 2027 2028 2029 2030
Land Acquisition
Building Lease Payments
Building Purchase Costs
New Building Construction
Existing Building Improvements $1,000.000 00 $440,000.00
New Machinery&Equipment
Special Tooling/Retooling
New Furniture/Fixtures
New Computer/IT Hardware
New Software
On-site Rail Infrastructure I
On-site Fiber Infrastructure
TOTAL $0.00 S 0.00 $1 000 000 00 $440,000.00 $0.00 $0.00 $0.00 I $0.00
Full-Time Permanent Indiana-Resident Positions by Calendar Year
Calendar Year lobs retained Hourly Cumulative#of net NEW full time l Hourly average wage,w/o Total training Total If to be
average permanent jobs created at project benefits or bonuses,of expenditure- trained-not
wage,w/o
benefits or cumulative net new jobs not cumulative
bonuses cumulative II
2024 0 $C CO 0 $0.00
2025 4 ! $25.00
2026 8 $22.50
2027 8 $23.00
2028 8 $24.00
2029 8 $24.00
2030 8 $25.00
2031 8 $25.00
€2032 8 $26.00
2033 8 $26.00
2034 8 $26.00
2035 8 S 26.00
Provide hourly wage information for new employees in the following positions.
Full time Part time
Laborers
Technical $30 00 S 30.00
Managerial $50.00
Administrative $20.00 $ 15.00
Who will be the individual responsible for coordinating
with WorkOne on recruiting?
Does your company have an EEO hiring policy? Are you an EEO employer?
Please list the number of full time and part time minority and/or female Please describe your commitment to
employees for the following years: diversity and inclusion by detailing your
outreach and recruitment efforts for the last
Year 2025 202,1 2023
three years as well as current policies.
Full Time Part Time Full Time Part Time Full Time Part Time
Black
Penny Hill Properties
Hispanic
has always been 100°/0
Asian
female owned and
Indian
operated.
Female 1 1 1
Other
Complete the table below for Real Property Tax Abatement only.
*** Sign at the bottom for all requested incentives (real AND personal property). ***
Public Benefit Item:
Information is required on both the construction companies and the
companies which will provide materials purchased for this project.
Qualify
Please complete the table below with the appropriate information. If (Yes or No) Earned Points Available Points
you qualify for the points,please enter the full amount of available
points.
1 Construction Related(Contractors): l
1
A. Employ Local Companies(75%) Y 20 20
B. Purchase Materials from Local Companies(75%) N 0 20
i
C. Require Employees vs.Independent Contractors N I 0 19
D. Require Prevailing Wage N I 0 ( 22
E. Require Health Benefits N ', 0 22
F. Require Retirement Benefits N RIII 0 18
G. Maintain Affirmative Action Plan N i 0 j 20
Sub-total Construction Related: 20 141
2 Wage&Benefit Related(Owner):
A. Pay Target Wage Levels N 0 33
B. Provide Health Benefits N 0 34
C. Provide Retirement Benefits N 0 29
D. Provide Training N 0 28
E. Provide Child Care 1 N 0 15
F. Provide Transportation Assistance
N 0 14
G. Provide Employer Assisted Housing program N 0 9
Sub-total Wage&Benefit Related: 0 162
3 Workforce Related:
A. Create New Jobs Y 42 42
B. Retain Existing Jobs Y 41 41
C. Maintain Affirmative Action Plan N 0 35
D. Provide Targeted Hiring Preference N 0 34
Sub-total Workforce Related: 83 152
4 Support a Municipal Facility:
Support a SB Municipal Facility(donations to the
A. zoo,conservatory,museum,etc.) Y 84 84
Name of Facility St.Joseph County Public Library
I Isub-total Municipal Facility: 84 84
Sub-total from Above: 187 539
The undersigned owner(s)of real property,located within the City of South Bend,herby petition the Common Council of the City
of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C.,6-1.1-12.1-1,et seq.,and
South Bend Municipal Code Sec.2-76 et seq.,for this petition state the above.
Submitted By: a fit, Date: 2"ei2025
For Staff Use Only Below This Line
Laid: f/7j5oi
What is the current assessed value? Real Property: gas• /gn ii7,1 Personal Property: ,
What is the projected assessed value? Real Property: ) '• 4 O tii 7y Personal Property: m
What is the tax key number(s)for this project? 7/^O! �/2' 63 ""0 LO.O— —d Z.4
What is the six digit NAICS code? �/� J
Please attach a Googie map and street view of the location.
Please list the amount of real and personal property taxes Real Property Taxes: Personal Property Taxes:
paid for the last five years when applicable.
Tax Year 2023/Pay 2024 it v 12-33 .()
Tax Year 2022/Pay 2023 2 22`r't -7
Tax Year 2021/Pay 2022 O 3 2 3 • LQ L
Tax Year 2020/Pay 2021 T 3 'Lto , y G i
Tax Year 2019/Pay 2020 7 t L/y• 4") 1�I
Please fill out the following Public Benefit Summary Information and add to total from above.
(Y or Ni Points Points
Public Benefit Item:
Project Related:
5 A. Redevelop a Site that has Special Needs q/ 49
B. Develop Based on Local University Research rq.) 35 I
C. Achieve a Physical Element of a Plan 'vi 3 C. 36
Sub-total Project Related: 3 5 120
6 Super Size Projects(point values are cumulative):
A. 100%to 149% fy 'Z.5 25
L B. 200%to 299% ! da 68
C. 300%to 399% Y 46 65
D. 400%and Over Y 5 L 52
Sub-total Super Size Projects: 2.I V 210
7 Pay for Municipal Infrastructure:
A. Pay for Oversizing or UpgradingN 14
B. Pay for 26-50%of Extension Cost !' — 26
C. Pay for 51-75%of Extension Cost 111 — 39
D. Pay for 76-100%of Extension Cost — 52
Sub-total Infrastructure Related: — 131
Total from Applicant Section: 187 539
Total from Staff Section: Z../5 461
Total Public Benefit Points: yp Z 1000
STATEMENT OF BENEFITS 2025 PAY 20 26
VACANT BUILDING DEDUCTION
J State Form 55182(R2/1-21) FORM SB-1/VBD
Prescribed by the Department of Local Government Finance
PRIVACY NOTICE
This statement is being completed for real property that qualifies as an"eligible vacant building"as defined by The cost and any specific individual's
IC 6-1.1-12.1-1(17). salary information is confidential:the
balance of the filing is public record
per IC 6-1.1-12.1-5.1(c)and(d).
INSTRUCTIONS:
1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body
requires information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise,this statement
must be submitted to the designating body BEFORE the occupation of the eligible vacant building for which the person wishes to claim a deduction.
2. To obtain a vacant building deduction,a Form 322NBD must be filed with the county auditor before May 10 in the year in which the property owner
or his tenant occupies the vacant building or not later than thirty(30)days after the assessment notice is mailed to the property owner if it was
mailed after April 10. If the property owner misses the May 10 deadline in the initial year of occupation,he can apply between January 1 and May 10
of a subsequent year.
3 A property owner who files the Form 322NBD must provide the county auditor and the designating body with a Form CF-1NBD to show compliance
with the approved Form SB-1NBD. The Form CF-1NBD must also be updated each year in which the deduction is applicable.
SECTION 1 TAXPAYER INFORMATION
Name of taxpayer
Penny Hill Homes LLC
Address of taxpayer
Number and Street: 1512 E. Wayne Street City: South Bend State: IN ZIP: 46616
Name of contact person �J Telephone number E-mail address
First Name: Sarah Last Name: nlii (706) 206-1363 pennyhillhomes@gmail.com
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number
Common Council of the City of South Bend
Location of property County DLGF taxing district number
Number and Street: 425 S.Michigan Street City. south Bend State: IN zip,46601 St. Joseph 026(South Bend-Portage)
Description of eligible vacant building that the property owner or tenant will occupy(use additional sheets if necessary). Estimated occupancy date(month,day,year)
Renovate and reactivate the interior and exterior of the building to create spaces for a variety of 3/1/2026
businesses.The plan is to provide a mixture of distinct enclosed commercial spaces and an"art Estimated date placed-in-use(month,day,year)
market"arcade of mini-spaces created for artists and small businesses to occupy. 3/1/2026
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS A RESULT OF PROPOSED PROJECT
Current Number O Salaries ids O Number Retained O Salaries O Number Additional 8 Salaries $ 360e 000
$
SECTION ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
REAL ESTATE IMPROVEMENTS
COST ASSESSED VALUE
Current values $0 $182,374
Plus estimated values of proposed project $1,440,000 $840,000
Less values of any property being replaced $0 $0
Net estimated values upon completion of project $1,440,000 $1,022,374
SECTION 5 EFFORTS TO SELL OR LEASE VACANT BUILDING
Described efforts by the owner or previous owner to sell,lease,or rent the building during period of vacancy.
Current owner purchased the building in 2022. Building is currently not habitable. It has been vacant for
25 years and has experienced significant water damage.
Show amount for which the building was offered for sale,lease,or rent during period of vacancy.
N/A
List any other benefits resulting from the occupancy of the eligible vacant building.
After renovation,the restored expansive storefront entrance will enhance the urban streetscape,while the rear entrance and parking lot
will provide convenient access and provide ample opportunities for businesses to create both indoor and outdoor experiences.The
renovation of this building will have an extremely large impact on this block and on the Monroe Street Arts District in general, having a
positive impact on current surrounding businesses.
SECTION 6 TAXPAYER CERTIFICATION
I hereby certify that the representations in this statement are true.
Signature of authorized representative 1 �Q Title Date signed(month,day,year)
1X Owner 2/18/2025
Page 1 of 2
FOR USE OF THE DESIGNATING BODY
We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed
under IC 6-1.1-12.1,provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed N/A calendar years*(see below). The date this designation
expires is 12/31/2027 _ . NOTE:This question addresses whether the resolution contains an expiration date for the designated area.
B. The amount of the deduction applicable is limited to$ N/A
C. Other limitations or conditions(specify) N/A
D. Number of years allowed: ❑ Year 1 ® Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5(*see below)
❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10
E. For a statement of benefits approved after June 30,2013,did the designating body adopt an abatement schedule per IC 6-1.1-12.1-17?
❑X Yes ❑ No
If yes,attach a copy of the abatement schedule to this form.
If no,the designating body is required to establish an abatement schedule before the deduction can be determined.
We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits is sufficient to justify the deduction described above.
Approved(signature and title of authorized member of designating body) Telephone number Date signed(month,day,year)
Printed name of authorized member of designating body Name of designating body
Common Council of the City of South Bend
Attested by(signature and title of attester) Printed name of attester
If the designating body limits the time period during which an area is an economic revitalization area,that limitation does not limit the length of time a
taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17.
IC 6-1.1-12.1-1
(17) "Eligible vacant building"means a building that:
(A)is zoned for commercial or industrial purposes;and
(B)is unoccupied for at least one(1)year before the owner of the building or a tenant of the owner occupies the building,as evidenced
by a valid certificate of occupancy,paid utility receipts,executed lease agreements,or any other evidence of occupation that the
department of local government finance requires.
IC 6-1.1-12.1-17
Abatement schedules
Sec.17. (a)A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under
section 4 or 4.5 of this chapter an abatement schedule based on the following factors:
(1) The total amount of the taxpayer's investment in real and personal property.
(2) The number of new full-time equivalent jobs created.
(3) The average wage of the new employees compared to the state minimum wage.
(4) The infrastructure requirements for the taxpayer's investment.
(b)This subsection applies to a statement of benefits approved after June 30,2013. A designating body shall establish an abatement schedule
for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year
of the deduction. Except as provided in IC 6-1.1-12.1-18,an abatement schedule may not exceed ten(10)years.
(c)An abatement schedule approved for a particular taxpayer before July 1,2013,remains in effect until the abatement schedule expires under
the terms of the resolution approving the taxpayer's statement of benefits.
Page 2 of 2
.<^'""""�. STATEMENT OF BENEFITS 25
/,�; 2025 PAY
1;4%� REAL ESTATE IMPROVEMENTS
f /' State Form 51767(R7/1-21) FORM SB-1 I Real Property
,'' Prescribed by the Department of Local Government Finance
\• IOIf
PRIVACY NOTICE
This statement is being completed for real property that qualifies under the following Indiana Code(check one box): Any information concerning the cost
❑r Redevelopment or rehabilitation of real estate improvements(IC 6-1.1-12.1-4) of the property and specific salaries
P P paid to individual employees by the
❑ Residentially distressed area(IC 6-1.1-12.1-4.1) property owner is confidential per
IC 6-1.1-12.1-5.1.
INSTRUCTIONS:
1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise,this statement must be
submitted to the designating body BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction.
2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the initiation of
the redevelopment or rehabilitation for which the person desires to claim a deduction.
3. To obtain a deduction,a Form 322/RE must be filed with the county auditor before May 10 in the year in which the addition to assessed valuation is
made or not later than thirty(30)days after the assessment notice is mailed to the property owner if it was mailed after April 10. A property owner who
failed to file a deduction application within the prescribed deadline may file an application between January 1 and May 10 of a subsequent year.
4. A property owner who files for the deduction must provide the county auditor and designating body with a Form CF-1/Real Property. The Form CF-1/Real
Property should be attached to the Form 322/RE when the deduction is first claimed and then updated annually for each year the deduction is applicable.
IC 6-1.1-12.1-5.1(b)
5. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each
deduction allowed. For a Form SB-1/Real Property that is approved prior to July 1, 2013, the abatement schedule approved by the designating body
remains in effect. IC 6-1.1-12.1-17
SECTION 1 TAXPAYER INFORMATION
Name of taxpayer Penny Hill Homes LLC
Address of taxpayer
Number and Street: 1512 E.Wayne Street City: South Bend State: IN ZIP: 46616
Name of contact person Telephone number E-mail address
First Name: Sarah Last Name: Hill (706)206-1363 pennyhillhomes@gmail.com
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body Resolution number
Common Council of the City of South Bend
Location of property Number and Street City State ZIP County DLGF taxing district number
425 S. Michigan Street South Bend IN 46601 St. Joseph 026(South Bend-Portage)
Description of real property improvements,redevelopment,or rehabilitation(use additional sheets if necessary) Estimated start date(month,day,year)
Renovate and reactivate the interior and exterior of the building to create spaces for a variety of 3/1/2025
businesses.The plan is to provide a mixture of distinct enclosed commercial spaces and an"art Estimated completion date(month,day,year)
market"arcade of mini-spaces created for artists and small businesses to occupy. 12/31/2027
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current Number Salaries Number Retained Salaries Number Additional 'Salaries
0 $0 0 $0 8 $360,000
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
REAL ESTATE IMPROVEMENTS
COST ASSESSED VALUE
Current values $0 $182,374
Plus estimated values of proposed project _ $1,440,000 $840,000
Less values of any property being replaced $0 $0
Net estimated values upon completion of project $1,440,000 $1,022,374
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted(pounds) 0 Estimated hazardous waste converted(pounds)
Other benefits
SECTION 6 TAXPAYER CERTIFICATION
I hereby certify that the representations in this statement are true.
Signature of authorized representative /7ititi ii� Date signed(month,day,year)
5_�f 2/18/2025
Printed name of authorized representative Title
Sarah Hill Owner
Page 1 of 2
FOR USE OF THE DESIGNATING BODY
We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution,passed or to be passed
under IC 6-1.1-12.1,provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed N/A calendar years*(see below). The date this designation
expires is 12/31/2027 . NOTE:This question addresses whether the resolution contains an expiration date for the designated area.
B. The type of deduction that is allowed in the designated area is limited to:
1.Redevelopment or rehabilitation of real estate improvements El Yes ❑No
2.Residentially distressed areas ❑Yes ✓❑No
C. The amount of the deduction applicable is limited to$ N/A
D. Other limitations or conditions(specify) N/A
E. Number of years allowed: ❑Year 1 ❑Year 2 ❑Year 3 ❑Year 4 ❑Year 5 (*see below)
❑Year 6 ❑Year 7 ❑Year 8 ❑Year 9 ❑✓ Year 10
F. For a statement of benefits approved after June 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17?
0 Yes ❑No
If yes,attach a copy of the abatement schedule to this form.
If no,the designating body is required to establish an abatement schedule before the deduction can be determined.
We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits is sufficient to justify the deduction described above.
Approved(signature and title of authorized member of designating body) Telephone number Date signed(month,day,year)
Printed name of authorized member of designating body Name of designating body
Common Council of the City of South Bend,Indiana
Attested by(signature and title of attester) Printed name of attester
If the designating body limits the time period during which an area is an economic revitalization area,that limitation does not limit the length of time a
taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17.
A. For residentially distressed areas where the Form SB-1/Real Property was approved prior to July 1,2013,the deductions established in IC
6-1.1-12.1-4.1 remain in effect.The deduction period may not exceed five(5)years. For a Form SB-1/Real Property that is approved after June 30,
2013,the designating body is required to establish an abatement schedule for each deduction allowed. Except as provided in IC 6-1.1-12.1-18,the
deduction period may not exceed ten(10)years. (See IC 6-1.1-12.1-17 below.)
B. For the redevelopment or rehabilitation of real property where the Form SB-1/Real Property was approved prior to July 1,2013,the abatement
schedule approved by the designating body remains in effect.For a Form SB-1/Real Property that is approved after June 30,2013,the designating
body is required to establish an abatement schedule for each deduction allowed.(See IC 6-1.1-12.1-17 below.)
IC 6-1.1-12.1-17
Abatement schedules
Sec.17.(a)A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under
section 4 or 4.5 of this chapter an abatement schedule based on the following factors:
(1) The total amount of the taxpayer's investment in real and personal property.
(2) The number of new full-time equivalent jobs created.
(3) The average wage of the new employees compared to the state minimum wage.
(4) The infrastructure requirements for the taxpayer's investment.
(b)This subsection applies to a statement of benefits approved after June 30,2013. A designating body shall establish an abatement schedule
for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of
the deduction. Except as provided in IC 6-1.1-12.1-18,an abatement schedule may not exceed ten(10)years.
(c)An abatement schedule approved for a particular taxpayer before July 1,2013,remains in effect until the abatement schedule expires under
the terms of the resolution approving the taxpayer's statement of benefits.
Page 2 of 2
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