Committee backs tax abatements to revive long-vacant Inwoods Building at 425 S. Michigan

The Community Investment Committee voted to send two declaratory resolutions (Bills 2,514 and 2,515) to the full City Council with favorable recommendations to support redevelopment of the Inwoods Building at 425 South Michigan Street.

Eric Glavich, Director of Growth and Opportunity, told the committee the downtown property has been vacant for about 25 years and was built in the 1920s. He said the owner, Penny Hill Homes, a female‑owned small developer that purchased the building in 2022, plans to invest roughly $1,440,000 to stabilize and reactivate the first floor and lower level for public‑facing uses.

Glavich said the package includes two separate abatements: a vacant‑building tax abatement that would abate the building’s current taxes (about $6,700 a year) for two years to free funds for initial repairs, and a 10‑year abatement on the incremental new taxes that result from the project’s increased assessed value. Glavich added that, even with the proposed abatement, the city would collect more tax revenue over time than if the building remained vacant because of how the state circuit breaker cap and property assessment changes work.

Sarah Hill, who identified herself as representing Penny Hill Homes, told the committee the company has stabilized the property since purchasing it, and showed examples of historical and recent exterior images. "It's been really great. We've been able to fill the vacant storefronts that we had when we first took ownership, and it's really thriving," Hill said of the owners' prior downtown work at the Monroe Arts Building and noted the team hopes to replicate that activation strategy at 425 South Michigan.

Glavich said a conservative employment estimate for an activated building is about eight full‑time jobs, noting that additional retail or arts tenants could increase that number. When asked about the timeline, Hill said, "Hopefully, within 2 years' time, we'll have that First Floor activated."

A committee motion to forward Bill 2,514 received a second and passed on roll call. A separate motion to forward Bill 2,515 likewise passed on roll call. The committee recorded four ayes on each motion; both bills will go forward to the full council with favorable recommendations.

The committee packet included photographs and a short project history showing the building’s use as a Sears & Roebuck store until about 1949 and later as the Inwood store until roughly 1989. Glavich and Hill said major deferred maintenance, including past water damage, remains a key repair area but that the building’s shell and exterior are salvageable. The committee did not set any additional requirements or conditions beyond the standard abatement review and will forward both resolutions to the council for final consideration.