BH Commissioners Approve Tax Abatement With A Limit

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The Benton Harbor City Commission has approved a tax abatement for a developer seeking to turn the building at the corner of Riverview Drive and Empire Avenue into an events center. The action at a Monday meeting granted a Commercial Rehabilitation District exemption to Chicago Industrial Real Estate, LLC, allowing owner Matt Rogatz to have the property taxes frozen at this year’s level while he invests an estimated $1.5 million into the former All Phase electric building. However, there’s a slight catch. The commission granted Rogatz the abatement for seven years instead of the requested ten. The idea was pitched by mayor Pro Tem Duane Seats.

“The gentleman, I believe, is going to do the work because he’s passionate about it,” Seats said. “He can come back and say, ‘Hey, can I get another three years? Can I get another five? We worked excellent together.’”

Mayor Marcus Muhammad was in favor of the proposed development, but willing to go along with the compromise proposed by Seats.

“Whatever the will of the commission is, but we need to do something,” Muhammad said.

Rogatz told commissioners his expenses for the project are growing. The requested ten-year tax abatement was intended to help him recoup costs once the events center is open. Cornerstone Alliance President Rob Cleveland, who spoke in favor of Rogatz during the hearing, had his thoughts about the proceeding.

“The mayor said we have to do better, and we have to,” Cleveland said. “We had a golden opportunity tonight to send a developer back to Chicago to tell them how great it was to do business in the city of Benton Harbor, and I don’t think he’s going to do that.”

Cleveland said it will be up to the developer as to whether to proceed. The developer’s plan is to turn the building into a venue for graduation parties, corporate gatherings, and other functions. The nearly two-hour hearing on the matter included several comments from residents opposed to the tax break.