25-14 Designating Resolution - Vacant Building Tax Abatement for 425 South Michigan Street

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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.