South Bend developer Dave Matthews will have to start paying full property taxes a year sooner on his East Bank apartment high-rise, after a contentious city common council vote Monday night.
After more than three hours of debate, the council voted 6-2 against a resolution that would have granted Matthews the extension. He says the construction on the 10-story building at 300 E. Lasalle was delayed by the COVID pandemic and roadwork the city did to LaSalle Avenue.
Council members Oliver Davis and Sherry Bolden-Simpson sponsored a resolution that would have given him an extra year before he has to start paying full taxes on a property tax abatement the city granted him for the project. They were the only council members who voted for the extension, which was opposed by Mayor James Mueller.
The city is suing Matthews to recover $5 million in incentives it gave for the project on the condition that it include a ground-floor grocery store. Matthews missed the deadline for a grocer to open the store, prompting the lawsuit, and now he’s trying to run one on his own.
Council Member Rachel Tomas-Morgan said the lawsuit gave her enough reason to oppose the extension, but her opposition was confirmed after two two-hour meetings she had last week with Matthews and his wife Velvet Canada at their invitation. Matthews couldn’t guarantee the grocery store would be open in six months or that he won’t be facing these same financial difficulties next year.
But Tomas-Morgan also said the bitterness between Matthews and the Mueller administration factored into her vote.
"I heard a request for us to be people of goodwill and empathy," Tomas-Morgan said before the vote. "Mr. Matthews and I talked about that when we met last Thursday and I asked what that looked like for him. Talked about how humility goes a long way, and that I felt that even just a little bit of humility, and showing up at meetings, respect, wouldn't have landed us in this situation that we see ourselves in today."
