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Council approves 8‑year tax abatement for downtown Center City Place rehabilitation
Summary
The Common Council adopted Resolution 25‑01 approving an eight‑year real property tax abatement for RSPG Global Consulting LLC to rehabilitate the vacant Center City Place building at 225–229 S. Michigan St.; proponents estimate $5.8 million investment and increased tax revenue compared with leaving the building vacant.
The South Bend Common Council unanimously adopted Resolution 25‑01 on Jan. 13 to designate 225 and 229 South Michigan Street as an Economic Revitalization Area and grant an eight‑year real property tax abatement to RSPG Global Consulting LLC for the planned rehabilitation of the Center City Place building.
Joseph Molnar, assistant director of Growth and Opportunity, told the council the 38,000‑square‑foot building has been vacant for about 10 years and has not had a major renovation in roughly 50 years. Molnar presented an estimated total investment of about $5.8 million and said the developer intends to restore the original stone façade, add a ground‑floor restaurant or brewery, and place a hotel on the top two floors.
“Currently the estimated annual taxes are $8,436,” Molnar said. “Estimated annual taxes after this project would be completed would be a little under $117,000.” Molnar’s packet estimated that over the eight‑year abatement period the total taxes would be roughly $933,000 with approximately $611,000 abated and $322,000 paid. He said that without the project the city would continue to collect only the much lower current tax receipts and that the developer indicated the abatement was needed to make the project financially viable.
Developer representative Christina Miller described the team’s multi‑year interest in the property and said the group has tested the façade behind later coverings, locating intact stonework on upper floors. Miller said the developer is interested in historic tax credits and preservation of the building’s frontage where feasible.
Resident Dr. Robert Bennett spoke in opposition during the public hearing, arguing that abatements amount to a “tax giveaway” and urging broader community support for low‑income residents. Molnar responded with the tax projections and said the project would raise taxes compared with current revenue from the vacant property.
The council voted 9–0 to adopt the resolution. With the abatement in place, staff estimates a higher assessed value and substantially higher eventual tax receipts compared with the building remaining vacant.
