There’s an update in the saga pitting developer Dave Matthews against the city of South Bend. Matthews’ is late on his property taxes, so the city is coming after a tax break it gave him.
First the city of South Bend denied Matthews’ request to extend his property tax abatement for a year on his 300 East LaSalle apartment highrise. Now the Mayor James Mueller administration has asked the common council to revoke the abatement altogether.
The administration last week cited several factors in filing a bill to end the 10-year tax phase-in approved by the council in 2017 before construction began. Matthews is delinquent not only on the building’s property taxes, but also on taxes for other properties he owns, including the nearby Commerce Center.
Council member Troy Warner chairs the Community Investment Committee. Warner granted the administration’s request Monday to table the bill while the city, Matthews and his lender, Key Bank, negotiate a possible way out for Matthews. Warner says the bank and some investors could pay off the back taxes and buy the property from Matthews.
Warner, who beat Matthews in a bitter council race in 2019, said he thinks the abatement should be terminated but he'd like to avoid that if the bank and investors can find a solution.
