Confirming Tax Abatement - 128 South Michigan - The South Bend Chocolate Company

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Exh~ 6. ~" a 124 North Micltigan Street, Redevelopmertt Project .Summary The South Bend Development Corporation (SBDC) and the South Bend Chocolate Company (SBCC) proposes to purchase the former Osco's building for rehabilitation into an upscale retail development called Michigan Street Shops. This retail development would connect with the Gridiron Row building and allow for expansion of both the Chocolate Cafe and the restaurant space formerly occupied by The Vine. Michigan Street Shops will keep standard operating hours and a marketing budget. The Proposed Development The former Osco's building occupies 11,847 square feet between the Gridiron Row Building and the Jefferson Center Building. Michigan Street shops would be developed in this space with entrances and storefront facing both DeRue Court and Michigan Streets. The building is actually composed of two separate buildings with a 1970's era stuccoed facade that gives the impression of one storefront. The SBDC and the SBCC companies propose to return the Michigan Street facades to their original look (or historically similar) and add a central entry way and a hallway from Michigan to DeRue Court. The Chocolate Cafe and the restaurant would occupy the smaller building adjacent to their current locations. The additional space will be rented to other retail stores. Rationale The South Bend Chocolate Company has had great success in downtown South Bend with its Chocolate Cafe and the SBDC has made the Gridiron Row Building one of the cities nicest, most affordable, multi-use buildings in the downtown. However, both companies have concern about the adjoining retail (or lack of it) and the negative effects this may have on business. Also Jefferson Building, an office building in the same block, has an uncertain future and its success is important to both companies' interests. The SBCC and SBDC are the best developers for this parcel and the Michigan Street shops for three reasons. First, proximity. Second, experience in both what makes downtown retail and development work. Third, commitment and vision. Both companies are committed to seeing South Bend improve and have the retail vision (and key tenants) that are required that a purely profit-driven developer would not have, consider, invest or risk. Fourth, this project, if successful, could help stabilise (if not improve) the Jefferson Building and increase downtown retail while at the same time setting a good model for other sustainable retail developments.