HomeMy WebLinkAboutDCI_Presentation_Cascade_2026Department of Community Investment South Bend Common Council April 13, 2026 '8l\ City of South Bend 'W Indiana Filed in Clerk's Office •·· ~:~ ,.. APR 1 4 2026 Bianca Tirado City Clerk, South Bend, lN
Bill No. 26-11 Declaratory Resolution: 6-year Real Property Tax Abatement for Wharf Partners LLC (Cascade Phase 11) ~~-1 .i • Presentation Outline o Cascade Phase I ■ Overview ■ 2018 Tax Abatement ■ Impact of Seitz Park and Hydro Projects o Cascade Phase 11 ■ Current Site ■ Project Summary including Renderings o Cascade Phase 11 Tax Abatement ■ Overview ■ Tax Estimates for Commercial Spaces ■ Tax Estimates for Residential Units ■ Total Combined Tax Estimates City of South Bend Indiana
f ~\ City of South Bend ~ .-.:: .. 3 Indiana Abatement Commitments & Project Summary • 6-year Real Property Tax Abatement • 7-story mixed-use building, approx. 77,000 sq ft • Private Investment Commitment: $19,350,000 o Actual Private Investment: $24,SQO,OOO • Job Creation Commitment: 20 • Project Completion Commitment: April 23, 2020 o Actual Completion: [December 23, 2019 o Cascade Restaurant opened August 15, 2024
f~\ City of South Bend ··r,_}~-.1 Indiana Review • 6-year Real Property Tax Abatement • Developer investment exceeded commitment by $5,150,000 • Actual jobs is more than double the developer commitment • Assessed value before project: $101,000 o Pay 2020 real property taxes: $3,030 • 2025 assessed value: $20,639,800 o Pay 2026 real property taxes: $254,815 o 12 of 18 units are primary homestead residences (1 % cap)
Delays: Seitz Park and Hydro Projects • Original agreement with City: Developer committed to accommodate Seitz Park and Hydroelectric projects o Developer could not start on Cascade Phase II until other Seitz Park and Hydroelectric projects were complete • Developer provided laydown area for Seitz Park for 5+ years o Free of charge to City • Both projects experienced significant unforeseen delays outside the Developer1s control o Seitz Park officially opened Summer 2025 o Original park opening expectation was May 2022 • Developer donated land to City for the expanded riverwalk o Free of charge to City (~\ City of South Bend c:_ ·7 ...... Indiana
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Bill No. 26-11: Cascade Phase II Tax Abatement City of South Bend Indiana
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Bill No. 26-11: Cascade Phase II Tax Abatement Project Summary Wharf Partners LLC is a locally owned and operated development company, committed to transforming the ~-----...---------------. East Bank into vibrant and welcoming urban environment. /;:-,1, City of South Bend ~> ~-_,. Indiana • 8 stories, 112,000 square feet • 22-32 residential units o 2-, 3-, and 4-bedroom units; 1,550 to 3,429 sq ft • 30,200 square feet of commercial space • Total cost (Phase II): $50,000,000 • The project will complement the Phase I building, Three Twenty at The Cascade Employment Impact • 15 new jobs ($750,000 in annual payroll)
City of South Bend Indiana • COMMERCW.2 POTENTIAL BREAKFASTt\.UNCH FOODSERVICE • • • ·--,,~--',, ~ ---,,~ THE CASCADE @FLR 1 _____ .,_Jt .E:.. "'~-------~ ..... n:J~,.,., ~auq,..._-..,..r...,,.~•..qlf~•"~~I!•~ • # ',,,\',,,',,,,, ',, __ .-• COMMER:CIAl 1 POTENTIAL OfFtCE OR DA¥ SPA COMMERCIAL ) OFFICE! VISITORCENlE~ CJ ·a
/~\ 1 ·~ i City of South Bend Indiana ,----::r.11:::T"' )au,try Collection 2 BED I 2 BATH 1.16" Sf RtSIDENCE • !YPICAl Of \!NITS 202 302 402 502 602 & 702 GRAPHIC SCALE (FT.) ~ "®
[~) City of South Bend Indiana \ \ \. ~,. ·~· ~-"\. . ~· ~-' )tt:t;Ury Collection 3 BED I 3 BATH 2.241 Sf Rl:SlDENCE• l'rPICAL Of UNITS 203, 303 400 603, 603 & 703 •-WL----(I'\ GRAPHIC SCALE (FT) 0 1 2 4 6 10 w
Bill No. 26-11: Cascade Phase II Tax Abatement {~\ City of South Bend ",. :-. _, Indiana Mixed-Used Development Tax Abatement (6 years) • Commercial spaces for full 6 years • Residential units ONLY when owned by the Developer o Abatement does not transfer to a new owner o Abatement length for an individual unit will not exceed 6 years if a unit is not sold
Bill No. 26-11: Cascade Phase II Tax Abatement ~1 -.. ----r--------------,1 ~\ City of South Bend ·:-•1 Indiana Mixed-Used Development Tax Abatement (6 years) Tax Summary -Commercial Spaces Only • Pay 2026 Tax Liability: $4,487 • Estimated annual taxes after project: $312,046 • During the 6-year abatement: o Total estimated taxes: $1,872,276 o Estimated taxes abated: $1,775,398 o Estimated taxes paid: $96,878 • Estimated taxes paid with abatement included o After 10 years: $1,345,063 ($44,870 with no project) o After 20 years: $4,465,523 ($89,740 with no project)
Bill No. 26-11: Cascade Phase II Tax Abatement Mixed-Used Development Tax Abatement (6 years) I -1 Tax Summary -Residential Estimate {;;;\ City of South Bend ", ~-/ Indiana • Pay 2026 Tax Liability: $0 • Assumptions PER UNIT after completion o Land assessed value: $35,000 o Improvements assessed value: $1,455,000 • Estimated annual tax PER UNIT after completion: $33,500 o Estimated taxes abated: $31,735 o Estimated taxes paid: $1,765
Bill No. 26-11: Cascade Phase II Tax Abatement Mixed-Used Development Tax Abatement (6 years) ~-~---------, Tax Summary -Residential Estimate {~\ City of South Bend t:, :. / Indiana • Assumptions after completion o Developer holds possession of 10 units for an average of 3 years • 10 units over 3 years: o Total taxes: $1,006,700 o Estimated taxes abated: $953,800 o Estimated taxes paid: $52,900
Bill No. 26-11: Cascade Phase II Tax Abatement {~\ City of South Bend "~, ~-/ Indiana Mixed-Used Development Tax Abatement (6 years) Tax Summary -Entire Abatement • Assumptions (first 3 years) o Full abatement on commercial spaces o 10 residential units owned by Developer o 8 units privately owned at 1% cap o 4 units privately owned at 2% cap • Assumptions (year 4 and on) o Full abatement on commercial spaces through year 6 o Zero units owned by Developer o 15 units privately owned at 1% cap o 7 units privately owned at 2% cap
Bill No. 26-11: Cascade Phase II Tax Abatement * Includes taxes paid by condo owners ("\ City of South Bend ". ·~-_; Indiana Mixed-Used Development Tax Abatement (6 years) Tax Summary -Entire Abatement ~ Both Commercial and Residential • After 6 years o Estimated taxes abated: $2,729,165 o Estimated taxes paid for entire Phase II*: $2,470,513 • Taxes paid if no project: $26,922 • After 10 years o Estimated taxes abated: $2,729,165 o Estimated taxes paid for entire Phase II*: $5,709,693 ■ Taxes paid if no project: $44,870 • After 20 years o Estimated taxes abated: $2,729,165 o Estimated taxes paid for entire Phase II*: $13,807,645 • Taxes paid if no project: $89,740