County City Council Approves Tax Abatement for South Michigan Street Redevelopment

The South Bend City Council meeting on February 12, 2025, focused on a significant redevelopment project aimed at revitalizing a long-vacant building in downtown South Bend. Joseph Molnar, assistant director of growth and opportunity, presented a confirming resolution for a real property tax abatement for the properties located at 225 and 229 South Michigan Street, formerly known as the Grama Leader Building.

The redevelopment plan, spearheaded by developers Benjamin and Christina Miller, aims to restore the building's original stone facade and enhance its street presence by adding more windows. The project will transform the approximately 38,000-square-foot structure into a mixed-use space, featuring restaurant spaces on the ground floor, potentially anchored by a brewery, and hotel accommodations on the upper two floors.

The total investment for the project is estimated at over $5.8 million, which is expected to create around 11 full-time jobs with a payroll exceeding $800,000 once completed. Currently, the vacant building generates approximately $8,400 in annual taxes, but upon completion, this figure is projected to rise dramatically to over $116,000 annually.

The proposed tax abatement would result in approximately $611,000 in taxes being abated over its duration, while still ensuring that $322,000 is paid. After ten years, it is estimated that the project will contribute about $555,000 in taxes, a significant increase compared to the $84,000 that would be generated without the redevelopment.

The meeting included visual renderings of the proposed renovations, showcasing the anticipated improvements to the building's facade and overall aesthetic. Christina Miller, representing the development team, was present to provide additional insights into the project.

This redevelopment initiative is part of a broader effort to enhance downtown South Bend, aiming to attract more businesses and residents to the area. The council's approval of the tax abatement is a crucial step in moving the project forward, promising to breathe new life into a historic structure and contribute to the local economy.