The South Bend Common Council on June 23 adopted Resolution 25-35 designating the 29-acre Studebaker-area property at 701 West Chippewa Avenue as an economic revitalization area and approving an eight-year real property tax abatement to support redevelopment by Industrial Realty Group (IRG).

City staff presented the designation as part of the redevelopment plan that IRG and local representatives described in committee. IRG representatives said the site comprises approximately 1,400,000 square feet of building area with about 975,000 square feet leasable, while roughly 221,000 square feet is currently unusable because of relic testing cells and other obsolete structures. IRG said the work will include roof replacement, paving, landscaping, new utility trenching, dock installation and other site improvements that it estimates at roughly $11,000,000 in a first phase; a second phase involving environmental abatement and demolition of the obsolete test-cell area is estimated to cost in excess of $11,000,000.

"This redevelopment project is significant," said Matt D'Vecchio, vice president and senior portfolio manager at IRG. He said IRG has interest from a potential 200,000-square-foot user once the space is ready and that the firm has already taken initial cleanup steps and site improvements. John Shipchak, property manager, described current tenants such as manufacturers, parts distributors and a bus company storing vehicles for the school district.

Staff presented financial comparisons showing the site currently pays little or no property tax (because it was city-owned through the Redevelopment Commission) and that expected post-development tax revenues would increase substantially. The staff memo and presentation estimated taxes would rise to about $503,000 annually after improvements; the abatement would reduce taxes paid during the abatement period by roughly $194,000 over the term, with net tax revenue increasing relative to the vacant condition.

The council adopted the resolution by roll call (8-0). Officials said the abatement is part of a package to make large-scale adaptive reuse feasible and that IRG will pursue phased construction once permits and funding align. Council members who spoke welcomed reuse of the historic property and said the project would create jobs and increase taxable value compared with a long-vacant lot.