The South Bend Common Council on June 23 approved a rezoning petition and adopted a resolution designating 2020 South Main Street as an economic revitalization area tied to a 10-year property tax abatement for KCG Donald and Main LP, supporting a proposed 50-unit affordable housing project.

City zoning staff described Bill 37-25 as a petition to rezone 2018 and 2020 South Main Street from industrial to an urban neighborhood district to allow construction of a four-story stacked-flat building with about 50 affordable units. Joe Molnar, assistant director of Growth and Opportunity, said the developer will apply for Low Income Housing Tax Credits (LIHTC) through the state and that the abatement helps score the application.

"Approximately half of those units will be at the 60% AMI level, which today meets out to for a one-bedroom, that proposed rent would be about $750," Molnar said. City staff told the council the minimum site investment would be roughly $14,000,000 and that KCG has two years under the purchase agreement to apply for tax credits in November 2025 and a subsequent cycle if needed.

Megan Shoots, vice president of development with KCG Companies, said the company looks forward to bringing additional affordable housing and praised city staff assistance. Council members representing the area praised the proposal's potential to activate a long-vacant lot, add sidewalks and lighting, and provide on-site management.

The council committee recommended the zoning change with a favorable recommendation; the ordinance then passed on third reading with an 8-0 vote. Separately, the council adopted Resolution 25-34, designating 2020 South Main Street an economic revitalization area and approving a 10-year real property tax abatement to help the project's LIHTC competitiveness. Staff projected that after construction, the site's annual property tax payments would rise substantially compared with remaining vacant land; staff estimated an increase to about $41,000 annually and roughly $450,000 over a 10-year span without the abatement, with the abatement representing approximately $327,000 of that 10-year total.

Zoning and redevelopment officials said the project would also invest in new sidewalks and lighting along Main Street and is expected to help spur additional private investment in the corridor.