25-34 Designating Resolution - Real Property Tax Abatement for KCG Companies, LLC

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TAX ABATEMENT REPORT Filed in Clerk's Office JUN 1 6 2025 TO: South Bend Common Council Bianca Tirado FROM: Erik Glavich, Director, Growth and Opportunity City Clerk, South Bend, IN SUBJECT: Multi Family Development Real Property Tax Abatement Petition for KCG Companies, LLC DATE: June 16, 2025 On June 23, 2025, a petition for tax abatement from KCG Companies LLC was filed with the Office of the City Clerk. The petition seeks consideration for a multi-family development real property tax abatement for property 2020 S. Main Street. 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, KCG Companies LLC, has partnered with the South Bend Redevelopment Commission to build a multi-family building on currently owned RDC land. The project will apply for Low Income Housing Tax Credits. The abatement will only go into effect if the project is chosen by the IHCDA in this year's competitive Tax Credit application round. • The project will consist of 50 affordable residential apartments.. Private investment into this project is approximately $13 million. • The project will greatly contribute to the walkable urban community of the near south side as well as provide affordable housing options for South Bend residents. Employment Impact Per this petition and supporting material, it is estimated that the company will create: • Upon completion of the current building's construction, at least two (2) new full-time jobs with an estimated total annual payroll of$105,000. • The project will also create many job opportunities during construction for builders of the project and local sub-contractors.