Council committee recommends confirming tax abatement for proposed Burton’s Laundry on South Side

A Community Investment Committee voted to recommend that the South Bend Common Council confirm a six‑year real property tax abatement for a proposed Burton’s Laundry redevelopment on the city’s south side.

Council member Warner introduced Resolution 26‑06 and turned the item over to a city presenter who said the project is a new 4,300‑square‑foot freestanding Burton’s Laundry with an estimated total cost of about $2,000,000 — roughly $1.2 million for real property improvements and $800,000 for equipment. The presenter said Burton’s Laundry has operated in South Bend since 1976 and owns 15 facilities in the area. The project was described as creating four new jobs at the location.

The presenter provided a tax comparison showing the current vacant parcel pays roughly $1,300 a year in property taxes. He said that, with the new building in place, the parcel’s annual tax bill would rise to more than $25,000, and that over 10 years the property would generate more than $140,000 in taxes even accounting for the abatement. The committee was shown a six‑year abatement schedule in which total taxes attributable to the project over the abatement period were estimated at about $153,000; the presenter said the net amount abated would be roughly $112,000 while the owner would pay a little less than $41,000 during the abatement period.

A representative for the owner, identified in the record as Mr. Neuffer, said the business is not seeking an abatement on equipment and noted that equipment valued at about $800,000 would carry an estimated $6,000–$7,000 a year in equipment taxes. He also told the committee that the petitioner intends to keep some pricing lower than other regional locations during and after the abatement, saying the business would “lower the prices for the facility compared to the other prices that we charge throughout South Bend, Mishawaka [and] Elkhart — 10% or more of a savings” for customers.

No members of the public signed up to speak during the public‑hearing portion. Committee members thanked the petitioner; Council member Bolden Simpson moved and Council member Gooden Rogers seconded the motion to send the resolution to the full council with a favorable recommendation. The clerk recorded vocal “Aye” votes from Council member Gooden Rogers, Council member Bolden Simpson, Citizen member Thomas Greif, Committee Vice Chair White and Committee Chair Warner and announced "All ayes." The committee then adjourned.

The recommendation sends Resolution 26‑06 to the full council for final consideration; the committee vote was a favorable recommendation, not final council approval.