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CITY OF SOUTH BEND OFFICE OF THE CITY CLERK <br /> Joseph Molnar, Vice President of the Board of Public Works, with offices on the 131h floor of the <br /> County-City building, stated the property is a vacant old historic building bult in 1923 located on <br /> the south part of downtown. The business is seeking a vacant building tax abatement for two (2) <br /> years and a mixed-used development real property tax abatement for eight(8)years, which would <br /> incentivize renovating the building for a commercial kitchen food market and hotel chain, creating <br /> at least eight (8) new full time employees and investment worth one million, six hundred thirty- <br /> one thousand,five hundred dollars($1,631,500).The vacant building tax abatement will lower tax <br /> by eleven thousand, one hundred nineteen dollars ($11,119)over two (2)years and the mixed-use <br /> development real property tax abatement would lower tax by ninety-three thousand,seven hundred <br /> twenty two dollars($93,722)over eight(8)years. The abatements would incentivize rehabilitating <br /> the building, which is not believed to be able to survive the next few years if it does not receive <br /> this investment.After ten(10)years,the city will see taxes increase from one hundred six thousand, <br /> nine hundred thirty-four dollars ($106,934)to two hundred ninety seven thousand, seven hundred <br /> seventy three dollars ($297,773) with the abatement of the project going forward as planned. <br /> Citizen member Thomas Gryp enquired about consequences relating to the abatement if the <br /> developer is unable complete the project. <br /> Joseph Molnar stated there is no consequence for the mixed-use development real property tax <br /> abatement and there would be a loss of eleven thousand, one hundred nineteen dollars ($11,119) <br /> in value from the vacant building tax abatement if the project is incomplete, but the risk is worth <br /> the investment to rehabilitate the building. <br /> Committee Chair Warner stated the building is near demolition in the next decade and tax <br /> abatements are some of the best economic tools for the city to spur development as it does not <br /> require the city to spend tax dollars. <br /> Joseph Molnar stated helping individuals bring life back into troubled properties is why the vacant <br /> building tax abatement was designed. <br /> Committee Member Sherry Bolden-Simpson enquired about the petitioner's progress in <br /> application for the READI grant program. <br /> Joseph Molnar stated the READI 2.0 grant is a state grant program that leverages public-private <br /> partnerships to help development projects across Indiana.The petitioner submitted the application <br /> with support from city staff and a letter from the Mayor's Office. The issue date for the grant is <br /> December 18, 2024. <br /> Committee Chair Warner stated the READI grant requires the local government to match twenty <br /> percent(20%)of the state's grant. The tax abatement value can be used toward that match amount. <br /> Committee Vice-Chair Rachel Tomas Morgan enquired about the timeframe for construction. <br /> Joseph Molnar stated the designation period for the real property tax abatement is three (3)years. <br /> Committee Vice-Chair Tomas Morgan enquired if there was already funding from the <br /> Redevelopment Commission for this project. <br /> EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT <br /> 455 County-City Building 227 W.Jefferson Blvd. South Bend,Indiana 46601 p.574.235.9221 f.574.235.9173 www.southbendin.gov <br />