Years of controversy that have surrounded a new South Bend apartment high-rise could come to a head at tonight’s common council meeting.
Developer Dave Matthews says because of construction delays caused by the pandemic, he should get more time before he has to start paying full property taxes at 300 E. LaSalle in South Bend’s East Bank Village area.
In 2017, after months of contentious hearings over the proposed apartment building’s height, Matthews and the city finally agreed to terms on the massive development deal. The city agreed to give $5 million and a major set of tax breaks that see Matthews paying virtually no property taxes for 10 years. That 10-year abatement period started in 2021, but Matthews is asking for the period to start in 2022, meaning he would begin paying the property taxes in full in 2032.
At its last meeting the council tabled the resolution.
Mayor James Mueller has declined to support it, citing the city’s ongoing lawsuit against Matthews that seeks to make him repay the money, plus penalties, for opening the apartments without a grocery store on the ground floor. Matthews finally opened a store himself and says it’s losing money so far.
Martin’s Supermarkets initially committed but left Matthews hanging a few months later when it sold out to Grand Rapids-based Spartan Nash, who had no interest in the project.
Matthews says the city has granted such extensions to 14 other tax abatement recipients whose projects were delayed by the pandemic.
