07-09-18 Community Investment - Laserfiche WebLink

Home Browse Search

CITY OF SOUTH BEND I OFFICE OF THE CLERK round of applications had three (3) developers that proposed projects. One (1) of them was the Fat Daddy's Project, for example. All three (3) of those were denied but the highest scoring one (1) was for Historic Lincoln Way West Homes. DCI has worked with them to fine tune the project to reapply for the current round of tax credits. It is important to note that the tax abatement we are proposing is contingent upon the tax credit being won at the State level. It is an exciting project for the West Side. It is on and surrounds Lincoln Way West. Specifically,the former Brewery that is now Classic Beauty at 1636 Lincoln Way West will be redone. You might recognize that (referencing a presentation which is available in the City Clerk's Office). The project cost is slated to be about $7 million total. The output of the project will be twenty-two (22) apartments and we are asking for a real property tax abatement for ten (10) years and it will be phased in. The estimated total taxes possible over that ten (10) year period would be about $665,000. The taxes abated would be about$538,000 and the remaining$127,000 would be paid over that ten(10)year period. Mr. Buckenmeyer continued, Then part two (2) of this abatement is a residential tax abatement and that asks for a designation of a residentially distressed area.It is actually fourteen(14)different lots. It is about a$3.8 million project.It is a request for a five(5)year one hundred percent(100%) tax abatement. The estimated total taxes possible over that five (5) year period would be about $105,000. We are asking to abate about $67,000 with the remaining $38,000 to be paid over that five (5) year period. Both projects have three (3) years to start and be completed. They are also being supported with $1 million of TIF funds. Committee Chair Ferlic asked, Is the development contingent on the tax credits being granted for both projects or is that only for the larger project? Ann Mannix, 724 W. Washington Street, replied, We are getting Historic Tax Credits on this building and then low-income housing tax credits on both buildings. Those are due July Oth. If we leverage additional funds then we have a higher priority. This (referencing the presentation) is the before picture. It has a design of a castle so when it's done we hope to accentuate those with big lights. This is the rendering of what it will look like after it is done and it is consistent with the historic appearance of the building. We will be ripping the whole addition off so it can go back to how it used to look. It is a nice building and it has a lot of different levels. There will be a couple lofts. We hope some young people will think they are cool. There will be fourteen (14) Single- Family homes. They will be on lots where houses were torn down through the blight elimination program. They will be on the streets between Lincoln Way West, Elwood, Olive and Allen. It will be $7.09 million to rehab the old Brewery. It needs a whole lot of work and tech pointing, a new roof and everything else. The houses are $3.8 million. Ms. Mannix continued, We have several funding sources including low-income housing tax credits,a grant from the Federal Home Loan Bank,TIF funds,and Historic Credits. We got a small grant from 1St Source Bank and are putting some of our developer fee back into it as well. The target market is low and moderate income individuals and familes. The tax credit program has changed and we can go up to eighty percent(80%) of area median income so it is not as restrictive as it used to be.It will be one hundred percent(100%)affordable as the rents will be between$225 and $675 per month. We are going to provide housing for seven (7) homeless individuals or families and twelve (12) intellectually or developmentally disabled persons. That will give us EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.91731 TTD 574.235.5567 l www.southbendi n.gov 2