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Committee recommends tax abatement for HRP Construction headquarters on Cleveland Road
Summary
The Community Investment Committee forwarded Bill 2,516 recommending a declaratory tax‑abatement resolution for a newly annexed property on Cleveland Road where HRP Construction plans a $7.3 million headquarters, consolidation of three sites, retention of about 48 jobs and addition of roughly 6 new full‑time positions.
The Community Investment Committee voted to forward Bill 2,516 to the full council with a favorable recommendation to grant a tax abatement for a newly annexed property in northwest South Bend where HRP Construction intends to build a consolidated headquarters.
Eric Glavich, Director of Growth and Opportunity, presented the proposal and said HRP Construction plans three new buildings totaling about 30,000 square feet on the site. He described the project as a consolidation of three existing HRP sites (two in South Bend and one in Mishawaka), intended to keep the local civil contractor headquartered in the city.
Glavich summarized the financials presented to the committee: a total developer investment of about $7,300,000; current taxes for the greenfield parcel of roughly $6,000 a year; an estimated post‑project annual tax bill of about $130,000; a projected abatement of approximately $500,000 over seven years with the company still paying roughly $400,000 in taxes during that period; and total projected tax revenue exceeding $2,000,000 over 20 years.
Representatives from HRP Construction introduced themselves as Jared Baker and Nancy Knapick and described the company as a union‑based civil contractor specializing in water and wastewater infrastructure. HRP representatives said they currently employ about 48 full‑time equivalents and expect to add approximately four to eight jobs after consolidation, including additional office and field positions.
HRP representatives discussed pay scales and apprenticeship hiring during committee questions, noting journeyman operators earn in the range reported to the committee (example figures discussed by the representatives included an operator rate reported as $46.90 per hour and entry‑level apprenticeship starts reported as $22 per hour). The company said it also performs public bid work for municipal clients and has on occasion performed repair work for the city.
A committee motion to forward Bill 2,516 to the full council with a favorable recommendation passed on roll call with four ayes. The bill will go to the full council for final consideration at the next meeting.
Committee members praised HRP’s decision to remain in South Bend and noted that the annexation and consolidation should help the company add capacity and create local jobs. The committee did not attach additional conditions beyond the standard abatement review; final terms will be included in the council packet.
