Laserfiche WebLink
CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – August 28, 2025 <br /> <br />9 <br /> <br />• Completion: 2029 <br /> <br />Finally, the developer is no longer seeking a tax abatement for the <br />residential portion of Phase 2. The original agreement anticipated a <br />request for a 5- or 6-year, 100% abatement, but that has been <br />removed. This has been replaced with a potential abatement for the <br />commercial portion of the new building. The RDC also retains the right <br />to withdraw funding if the Common Council does not approve the <br />updated terms. <br /> <br />Mr. Molnar explains that the tax payback period for Phase Two, similar <br />to what we reviewed for The Yard. <br />• The developer is committed to investing at least $38.5 million in <br />Phase Two. <br />• The current assessed value of the parcel is $83,000, with annual <br />taxes just under $3,000. <br />• Based on our modeling, the projected assessed value after <br />completion is expected to exceed $27 million. This estimate is <br />conservative, considering Phase One is assessed just below that <br />and Phase Two is larger. <br />• This would result in an estimated annual tax liability between <br />$480,000 and $563,000, depending on whether the residential units <br />are owner-occupied or rented. We’ve split the estimate to reflect <br />both possibilities. Given these projections, the payback period for <br />the city’s investment in Phase Two is estimated at 12 to 15 years, <br />based on conservative assumptions and excluding any income tax <br />contributions. <br />• This model does account for tax abatements—assuming council <br />approval of a payment in lieu of taxes. If the developer proceeds <br />without abatements, the tax revenue would increase, and the <br />payback period would shorten. <br /> <br />Looking at the Cascade Project as a whole, including both phases: <br />• The city’s support represents just over 13% of the total <br />investment. <br />• For comparison, The Yard had a slightly higher percentage due <br />to its community-building focus. <br />• The combined investment across all parties for both projects is <br />just under $87 million. <br /> <br />Mr. Perri stated that he’s excited along with his partners—Mr. Tom, <br />Phillip, and Bill Panzica—to finally be getting Phase II going after the <br />delays that were no fault of their own. Mr. Panzica explained that our <br />building has to be post-tensioned concrete to get the views. We have a <br />lot of glass, so we have more of an urban style of building. We call it a <br />metro style that you would see in Chicago or Indianapolis or larger