Committee backs eight-year tax abatement for downtown rehabilitation at 225–229 S. Michigan St.

The Community Investment Committee on Jan. 9 voted to send Bill 2,501 to the full council with a favorable recommendation. The resolution would designate an eight-year real property tax abatement for the rehabilitation of a long-vacant building at 225–229 South Michigan Street — referred to in the hearing as Center City Place.

Joseph Molnar, assistant director of Growth and Opportunity, described the property as a roughly 38,000-square-foot building in downtown South Bend that has been vacant “for a decade plus” and has not seen a major renovation in about 50 years. Molnar said the total projected investment is “a little over $5,800,000” and estimated the project would create 11 new full-time jobs with an annual payroll “a little over $800,000” if fully completed.

Molnar presented staff estimates showing a projected rise in annual property taxes for the building from about $8,436 now to roughly $116,000 after renovation. During the eight-year abatement period staff estimated total taxes owed would be about $933,795, of which $611,740 would be abated and roughly $322,000 paid. Molnar said longer-term projections show substantially higher tax revenue with the project in place versus without it.

Developer Christina Miller of RSPG Global Consulting LLC said her small local development group and husband purchased the building and plan to restore the original stone facade, open windows and activate the ground floor. Miller said the plan would include a restaurant and brewery on the ground floor and a roughly 30–35-room hotel on the top two floors, with flexibility to phase hotel rooms and consider longer-term rentals in some units. She said the building is structurally sound but has roof and water-damage issues and asbestos in the basement; the group has commissioned structural and asbestos remediation reports and plans public bidding for trade work, using local contractors where possible.

Committee members asked about capacity and parking. Miller said the ground floor is about 11,000 square feet and can be subdivided into multiple tenant spaces or leased as one large tenant. She said the developers have worked with local architects and plan to solicit local contractors and public bids; she did not commit to a specific union hiring target.

Molnar and Miller said the development team hopes to activate the ground floor and have public-facing uses in place by the 2026 Notre Dame home schedule, and the project could be phased so some hotel rooms would be available earlier. No members of the public spoke in favor or opposition at the committee hearing.

A motion to send Bill 2,501 to the full council with a favorable recommendation passed by roll call: Committee Chair Gooden Rogers, Committee Member Bolton Simpson, Committee Vice Chair White and Committee Chair Warner were recorded as “aye.” The committee chair announced the bill will go forward to the full council at the 7 p.m. meeting.