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Committee moves tax-abatement confirmation for Chippewa building to council
Summary
The Community Investment Committee recommended a confirming resolution for a tax abatement for South Bend Chippewa LLC to support a two-phase rehabilitation of a former Studebaker/industrial building on Chippewa; staff said the abatement helps a costly preservation and reuse project and includes an MOA condition tying jobs to project completion.
The Community Investment Committee voted Aug. 25 to forward a confirming resolution (Bill 25-38) to the full council with a favorable recommendation for a tax abatement requested by South Bend Chippewa LLC.
Eric Glavich, director of Growth and Opportunity, said the property is an old industrial building (the former Studebaker/Studio Acre plant on Chippewa) and that the rehabilitation is costly and complex. The petitioner proposed a two-phase project: standard rehabilitation work (faade, repairs) in Phase 1 and a more costly Phase 2 that includes removal of decommissioned aviation test cells to reclaim unusable space. Glavich said the memorandum of agreement (MOA) includes a provision that the company's commitment to create 55 jobs is contingent on its ability to complete the full project scope because the Phase-2 work is expensive.
City staff presented estimated tax changes. Glavich said current estimated annual property taxes on the parcel are about $360,000 and that post-investment tax estimates increase by roughly $140,000to $150,000 annually. He said the 8-year abatement would abate roughly $100,000 over that period, and that even with the abatement the property would generate an estimated $1.3 million in additional property-tax revenue over 10 years in Glavich's estimate.
Matt Dovecchio, vice president and senior portfolio manager for IRG Realty Advisors (the petitioner), thanked the committee and said the initiative would preserve a historic site and create economic opportunities. No public speakers registered during the committee hearing. Committee members moved and seconded a favorable recommendation; the roll-call vote recorded all ayes and the committee chair said the bill will go to the full council meeting at 7 p.m. with a favorable recommendation.
