South Bend Seeks to Revoke Property Tax Break for Developer Dave Matthews

Photo byWVPE

SOUTH BEND, Ind. — The ongoing dispute between the city of South Bend and developer Dave Matthews has escalated as city officials move to revoke a significant property tax break granted to Matthews.

The city is challenging Matthews' property tax abatement for his 300 East LaSalle apartment highrise, which was initially approved in 2017 as part of a 10-year tax phase-in. The move follows Matthews' failure to pay property taxes on this highrise as well as on additional properties, including the nearby Commerce Center.

Mayor James Mueller's administration has formally requested that the South Bend Common Council cancel the abatement. The request comes after the city denied Matthews' appeal for a one-year extension of the tax break.

Council Member Troy Warner, who chairs the Community Investment Committee, agreed to table the bill to allow time for negotiations between the city, Matthews, and his lender, Key Bank. Warner suggested that the bank and potential investors might settle the overdue taxes and possibly acquire the property from Matthews.

Warner, who previously competed against Matthews in a contentious council race, expressed a preference to resolve the situation amicably rather than proceeding with the abatement termination, provided a viable solution can be reached.