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Council confirms 9-year tax abatement for Allen Edwin Homes to build 16 residential units in Near Northwest
Summary
The council adopted a 9-year real property tax abatement confirming a declaratory resolution to support Allen Edwin Homes’ plan to build 16 residential units (12 affordable rentals under 120% AMI) on city-owned vacant parcels at Marion and Leland; staff said the investment is estimated at $2.5 million.
The South Bend Common Council on May 12 adopted Resolution 25-30 confirming a declaratory resolution that designates multiple city parcels as an Economic Revitalization Area and authorizes a nine-year real property tax abatement for Allen Edwin Homes, which plans to construct 16 residential units near Marion and Leland in the Near Northwest neighborhood.
Eric Glavich, director of Growth and Opportunity, presented the proposal and said the total project investment is estimated at $2.5 million. He said 12 of the 16 units will be styled as affordable rentals for households at or below 120% of area median income (AMI), that units will be two- and three-bedroom homes and that Allen Edwin Homes typically partners with local trades. Staff provided estimates that the site currently generates no property tax revenue as city-owned parcels and that post-completion the project could generate roughly $35,000 in annual taxes; during the nine-year abatement staff estimated approximately $190,000 abated and roughly $133,000 in taxes paid during the abatement term under the assumptions used in their analysis.
No members of the public spoke in opposition; council members praised the mixed-income design and the potential benefit to the school corporation. The council passed the confirming resolution 9-0.
Ending: With the confirming resolution passed, Allen Edwin Homes may proceed toward final permits and construction; staff and council said the abatement aims to spur investment on currently vacant city-owned lots and accelerate neighborhood revitalization.
