A zoning petition to rezone two vacant parcels at 2018 and 2020 South Main Street and a companion 10‑year real property tax abatement were recommended for favorable action by committee after staff and the developer described a plan for a 50‑unit affordable housing development.

The rezoning request would change the parcels from industrial to Urban Neighborhood 3 to allow a four‑story mixed‑use “stacked flats” building. Tim Staub, zoning specialist for the city, told the committee the plan calls for a mix of one‑, two‑ and three‑bedroom units with amenities including a community room, fitness center, on‑site management and surface parking. Joe Molnar, assistant director of Growth and Opportunity, said the site is owned by the Redevelopment Commission and would be developed by KCG Development if the project wins Low Income Housing Tax Credits from the Indiana Housing and Community Development Authority (IHCDA).

Why it matters: The project would put an estimated $14 million minimum into a long‑vacant lot on South Main and deliver 50 affordable units, half of them aimed at households at or below 60% of area median income and smaller shares at 50% and 30% AMI — a configuration the developer and city staff said will strengthen the IHCDA application.

KCG’s Megan Schutz said the developer will apply for state LITHC funds; if awarded, the purchase agreement gives KCG two annual chances to secure credits and then proceed to planning and construction. Caleb Bauer, executive director of Community Investment, said KCG’s properties that will use LITHC are subject to separate annual inspections by IHCDA and that those inspections can be accepted in place of the city’s multifamily certification process while the units remain in the LITHC program.

Committee discussion focused on neighborhood impacts and code enforcement. A council member urged stronger, more proactive code enforcement in multifamily complexes and asked staff to prioritize known problem properties. Molnar and Bauer said staff had delivered letters to surrounding properties after the plan commission meeting and urged neighbors to use 311 to report housing problems so staff can pursue inspections and recertification when appropriate.

Formal action: The Zoning & Annexation Committee voted to send the rezoning petition to the Committee of the Whole with a favorable recommendation; roll call recorded unanimous support (6 ayes). The Community Investment Committee separately recommended a 10‑year tax abatement by favorable vote and staff presented the abatement estimate showing roughly $327,000 of the project’s first‑decade taxes would be abated while about $121,000 would be paid over that period. The property is currently Redevelopment Commission‑owned and pays no taxes while vacant.

The next steps: KCG must secure the IHCDA tax credits (award announcements in November per staff) and complete application due diligence. If credits are awarded, the purchase and financing timeline anticipates planning in 2026 and construction timetables tied to the tax credit schedule.