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HomeMy WebLinkAboutCommendation Mark O'DellRESOLUTION 3799-07 Passed by the Common Council of the City of South Bend, Indiana October 8, 07 20 Attest: City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 9, 20 07 Approved and signed by me October 11, 200.Z_ . / ~ l/ City Clerk RESOLUTION NO. .3 ~ 1 `~ ' O1 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 1247 HOWARD STREET AS RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A (5) FIVE-YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR HABITAT FOR HUMANITY WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Residentially Distressed Areas for the purpose of tax abatement consideration; and requesting that the area commonly known as 1247 Howard Street, South Bend, Indiana, and which is more particularly described as follows: Lot 29 Talbots Plat and this property has Tax Key Number 18-5095-3359 be designated as a Residentially Distressed Area under the provisions of Indiana Code 6-1.1-12.1 et sea., and South Bend Municipal Code Sections 2-76 et sea., and; WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5; and WHEREAS, the Council held a public hearing for the purposes of hearing all remonstrances and objections from interested persons; and WHEREAS, the Council has determined that the qualifications for a residentially distressed area have been met. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby determines and finds that the petition for real property tax abatement and the Statement of Benefits form meet the requirements of Indiana Code 6-1.1-12.1 et seq., for tax abatement. SECTION II. The Common Council hereby determines and finds that the area meets one of the following conditions as formally established in Ordinance No. 9394-03, which was passed on February 10, 2003: A. The area is comprised of parcels that are either unimproved or contain only one (1) or two (2) family dwellings designed for up to four (4) families, including accessory buildings for those dwellings; or B. Any dwellings in the area are not permanently occupied and are: i. the subject of an order issued under IC 36-7-9; or ii. evidencing significant building deficiencies; or C. Parcels of property in the area: i. have been sold and not redeemed under IC 6-1.1-24 and IC 6-1.1-25; or ii. are owned by a unit of local government; or D. A significant number of dwelling units within the area are not permanently occupied or a significant number of parcels in the area are vacant land; or E. A significant number of dwelling units within the area are: i. the subject of an order issued under IC 36-7-9; or ii. evidencing significant building deficiencies; or F. The area has experienced a net loss in the number of dwelling units, as documented by census information, local building and demolition permits, or certificates of occupancy, or the areas are owned by Indiana or the United States; or G. The area (plus any areas previously designated under this subsection) will not exceed ten percent (10%) of the total area within the Council's jurisdiction. SECTION III. The Common Council also hereby determines and finds the following: A. That the description of the proposed redevelopment meets the applicable standards for such development. B. That the estimate of the value of the redevelopment is reasonable for projects of this nature; C. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment; and D. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code 6-1.1-12.1-3. E. The deduction will not be allowed unless the dwelling is rehabilitated to meet local code standards for habitability. F. The deduction will not be allowed unless the dwelling rehabilitation is completed within five (5) calendar years from the date of the adoption of this Resolution by the Common Council. 2 SECTION IV. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as a Residentially Distressed Area for the purposes of tax abatement. Such designation is for Real property tax abatement only and is limited to five (5) calendar years from the date of adoption of the Declaratory Resolution by the Common Council. SECTION V. The Common Council hereby determines that the property owner is qualified for and is granted Real property tax deduction for a period of five (5) years, and further determines that the petition complies with Chapter. 2, Article 6; of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12.1 et sea. SECTION VI. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. 0 <. /-~ Member of the o on Council PRESENTED ~ ~' ~~~ ~ NOT APPROVED ADOPTED I ~~ ~, 3 Filed In C1erk'~ C~~ic~ SEP 1 2 2007 JOhiP1 VOC~DE CITY CLERK, SQ. BEAD, IN. 1200 C.oUNT'T-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, 1NDIANA 46601-1830 PHONE 574/235-9371 FAx 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~ ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR September 11, 2007 Council Member Derek D. Dieter, Chairperson Community & Economic Development Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Residential Real Property Tax Abatement Petition for: HABITAT FOR HUMANITY (1247 Howard Street) Dear Council Member Dieter: Please find attached the Department of Community & Economic Development's report on a residential real property tax abatement petition submitted by Habitat for Humanity to build one (1), new, single- familyhome at 1247 Howard Street. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The report contains the department's findings relative to the above petition. The petitioner proposes to build one (1), new, single-family home at a cost of $65,000. The lot is currently owned by the City of South Bend. Habitat for Humanity intends to purchase the lot, construct a home and sell the property to a qualified, low-income family. The project meets the qualifications fora (5) five-year real property tax abatement. The petitioner will be available to meet with the Committee on Monday, September 24, 2007. Should you or any of the other Council members have any questions concerning the report, or need additional information, please feel free to call me at 235-5835. Sincerely, ~~~ ~~ ~.~ Bob Mathia Assistant Director, Economic Development Attachments cc: South Bend Common Council Members Mayor Stephen Luecke Jeff Gibney COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660- 574/235-9371 ELIZABETH LEONARD FAX: 574/235-9697 574/235-9371 1200 C.OiJNTY-CIT'Y BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/235-9371 FAx 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTFI BEND STEPHEN J. I.UECKE, MAYOR COMMUNITY ~L ECONOMIC DEVELOPMENT JEFFREY U GIBNEY EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BOB MATHIA SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR: HABITAT FOR HUMANITY (1247 Howard Street) DATE: September 11; 2007 On September 11, 2007, a petition for residential tax abatement consideration for real property located at a 1247 Howard Street was filed with the City Clerk by Habitat for Humanity. Pursuant to Chapter 2, Article 6, Section 2-77.1 of the Municipal Code of the City of South Bend, this petition was referred to the Department of Community and Economic Development for purposes of investigation and preparation of a report determining whether the area qualifies as a Residentially Distressed Area pursuant to I.C.6-1.1-12.1 and whether all zoning requirements have been met. The Department of Community and Economic Development has reviewed the petition, investigated the area, and makes the following report. PROJECT DESCRIPTION Habitat for Humanity plans to build a new, single-family residence with three bedrooms and one bathroom. The home will have 1,120 square feet and it will be built with afour-foot crawl space. Habitat will use volunteer labor and donated materials to build the home. The price of the home will be $65,000. The lot is currently owned by the City of South Bend. Habitat for Humanity intends to purchase the lot, construct the house and then offer the property for sale to qualified, low-income families using a no-interest loan and mortgage. Taxes to be abated during the (5) five-year abatement period are estimated at $2,895. Taxes to be Isaid during the (5) five-yeas- abatement period are estimated at $1,371. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL SC PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-966(1 574/235-9371 Et~znserx LeoNaaD FAX: 574/235-9697 574/235-9371 South Bend Common Council RE: Habitat for Humanity September 11, 2007 Page 2 ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has been associated with twelve (12) previous tax abatements. Term/Tyue Resolution No. Date 5-year real property 3738-07 Apri123, 2007 5-year real property 3737-07 Apri123, 2007 5-year real property 3585-06 May 8, 2006 5-year real property 3448-OS Apri125, 2005 5-year real property 3393-04 October 11, 2004 5-year real property 3389-04 September 27, 2004 5-year real property 3388-04 September 27, 2004 5-year real property 3387-04 September 27, 2004 5-year real property 3203-03 June 23, 2003 5-year real property 2894-00 June 26, 2000 5-year real property 2862-00 Apri124, 2000 5-year real property 2610-98 Apri127, 1998 2. The Building Commissioner has reviewed this petition and finds the property to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the Northeast Neighborhood Development Area, which is a Tax Incremental Allocation Area; therefore, approval of the tax abatement petition by the South Bend Redevelopment Commission is required. 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications fora (5) five-year residential tax abatement under Section 2-77.1, Single Family Residential Construction. 5 YEAR 11-Sep-07 HABITAT FOR HUMANITY South Bend Portage Township Residential Real Property Tax Abatement Schedule* Estimated Project Cost: $65,000.00 Total Taxes Tax Abated*" Tax Paid'`'`" Assessed Value: STRUCTURE (assume 85% of project cost) 55,250.00 55,250.00 55,250.00 LAND (assume $10,000) 10,000.00 N/A N/A Gross Assessed Value 65,250.00 55,250.00 55,250.00 Less Mortgage Exemption (3,000.00) (3,000.00) (3,000.00) Less Standard Homeowners Deduction (31,125.00) (31,125.00) (31,125.00) Base Assessed Value 31,125.00 21,125.00 21,125.00 Less Maximum Abatement Deduction N/A N/A (21,125.00) Less Non-Abated Amount N/A 0.00 N/A Plus Land Assessed Value N/A N/A 10,000.00 Net Assessed Value 31,125.00 21,125.00 10,000.00 Propertv Taxes: Assume constant tax rate of 5.1524% 5.1524% 5.1524% Gross Tax (tax rate x net assessed value) 1,603.68 1,088.44 515.24 Less SRTC: 21.6906% (347:85) (236.09) (111.76) Less Homestead Credit: 32.0670% (402.71) (273.32) (129.38) Net Tax 853.13 579.03 274.10 Net Total Year Assessed Value Taxes Due Tax Abated Tax Paid 1 31,125.00 853.13 579.03 274.10 2 31,125.00 853.13 579.03 274.10 3 31,125.00 853.13 579.03 274.10 4 31,125.00 853.13 579.03 274.10 5 31,125.00 853.13 579.03 274.10 5yeartotals: 4,265.63 2,895.17 1,370.51 "This schedule is for estimation purposes only and assumes constant tax rates. The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. *"Tax Abated is capped at $74,880 of assessed value of structures only and does not include land assessed value. ''"Tax Paid is calculated using the difference between actual assessed value of structure and maximum abated portion of $74,880 and adding back the land assessed value. CITY OF SOUTH BEND, INDIANA PETITION FOR RESIDENTIAL TAX ABATEMENT CONSIDERATION The undersigned owner(s) of real property, located within the Ciry of South Bend, hereby petition the Common Council of the City of South Bend for Residential Real Property tax abatement consideration and pursuant to I.C.. 6-1.1-12.1-1, etet sea•, and South Bend Municipal Code Sec. 2-76 et se .for this petition states the following: 1. Describe the proposed construction project, including information about square footage, numbers of rooms, amenities, the amount of land to be used, the proposed use of the improvements, and a general statement as to the importance of the project (use additional sheet for long project descriptions): Habitat for Humanity will construct one affordable single familyhome using volunteer labor and donated materials. Habitat will then sell the house to a qualified low-income family for the approximate cost of $65,000 using_a no-interest loan and mortgage. The house will be 1120 square feet and will have 3 bedrooms and 1 bathroom. It will be built on a four foot crawl space. 2. Estimate the dollar value of the construction project (do not include land cost): 65 000. 3. The real property for which tax abatement consideration is petitioned (Property) is owned or to be owned by the following individual(s) or corporations (if the business organization is publicly held, indicate also the name of the corporate parent, if any, and the name under which the corporation has filed with the Securities and Exchange Commission): Name Address Interest Habitat for Humanity of St. oseph County; 402 E. South Street South Bend, IN 46601; Future Owner 4. The commonly known address of the Property is: 1247 Howard and having tax key no.: 1&5095-3359. 5. A legal description of said Property(s) is attached hereto, marked Exhibit A, and is incorporated herein. 6. A map and/or plat indicating the location of the Property(s) is attached hereto, marked Exhibit B, and is incorporated herein. 7. The current assessed valuation of the property before construction: S 00. (This information may be obtained from the St. Joseph County Assessor's Office, 235-9523). 8. Photographs of the Property, taken within two (2) weeks of the filing of this petition, are attached hereto, marked Exhibit C, and incorporated herein. 9. List the real property taxes paid at the location during the previous two years, whether paid by the current owner or a previous owner (use additional sheet for multiple addresses): No property taxes were paid at this location during the previous two years since it is owned by the Ciry of South Bend. (This information maybe obtained from the St. Joseph County Treasurers office, 235-9531) 10. What is your best estimate of the after completion market value of the property: 85 000. 11. No building permit has been issued for construction on the property in connection with the improvement in question as of the date of filing of this petition. The building permit may be issued after the South Bend Common Council has approved the Declaratory Resolution. (Tax abatement is not available if a building permit has already been issued). The signature below is verification of this statement. 12. List other anticipated public financing for the project, including any assistance to be sought or already authorized through the United States Department of Housing and Urban Development funds from the Ciry of South Bend, South Bend Housing Authority, Housing Assistance Office, St. Joseph County Housing Consortium or other public financial assistance, including but not limited to public works improvements: This house will be partially underwritten by a SHOP grant written through Habitat for Humanity International and funded by HUD. 13. Describe how the property has become undesirable for or impossible of normal development because of a lack of development, cessation of growth, deterioration of improvements or other factors which have impaired values and prevent a normal development of the property: This property is located in Census Tract 10 which is designated as a "Low-Income Housine Tax Credit ualified Census Tract" ~ Housing and Urban Development. These qualified tracts are federally designated regions which have been identified as financially depressed with a significant percentage of residents living below the poverty line In this particular census tract the poverty rate is 29% and 51 3% of households are below 60% of the area median income. 14. The current use of the property is Vacant and the current zoning is SF2 Sinele Family. (This information maybe obtained from the Building Department 235-9553) 15. The property is located in the following Allocation Area (if any) declared and confirmed by the South Bend Redevelopment Commission (requiring approval of the tax abatement by the Redevelopment Commission): This propert~is located in the Northeast Neighborhood Development Area. 16. The following person should be contacted as the petitioner's agent regarding additional information and public hearing notifications: Name: Violet Schorsch Address: Habitat for Humanity, 402 E. South Street City, State, Zip: South Bend, IN, 46601 Telephone: 5 74-2 88-6967 WHEREFORE, Petitioner has paid the required fee of $50.00 and requests that the Common Council of the City of South Bend, Indiana, adopt a declaratory resolution designating the area described herein as a residentially distressed area for the purposes of real property tax abatement consideration, and after publication of notice and public hearing, determine that the qualifications for a residentially distressed area have peen met and confirm such resolution. Name of Property Owner(s): CITY OF SOUTH BEND, INDIANA Acting by and through its BOARD OF~PU/B`~LIC WORKS ~~'`~--a~w`~.~Q~ Gary A. Gilot, President Donald E. Inks, Member ATTEST: Linda M. Martin, Clerk 2 Carl P. Limell, Member F!lc~~ Ire ~l~rl~'~ G~fiice SEP 1 1 2007 JONN ~'QG?D~ GlTY CLER'4, ~0, BEPlD, IN r~ 1' `, r ,i :` ., ~e~ f;','" 5 .~~ ~~ i ~ ~II_II~I_IJI_I_I_~I_!!J1I ~~ III'llll!~II ~_I_U 11W!~ ~~~IJ IJ11 I I I I IJ l 1 '~,,, M` ~~~, \/~'1 . / a'' `e ~ ~~~ `~1` 4, • ~~~ SEP 1 1 2001 ,ICH?I L'r~~zrrs CITY CI_"•.Y, E;~. ~c.'t7, tK o ~ ~ ~ ~ O d ~. ~'d ~' ~- Habitat for Humanitym SL Joseph County September 11, 2007 Mr. Robert Mathia Economic Development 1200 County-City Building 227 W. Jefferson Blvd. South Bend, IN 46601 Dear Mr. Mathia: As you are aware, we have cancelled our application for residential tax abatement for Vacant Lot Adjacent to 1239 Campeau, and have instead decided to purse abatement for 1247 Howard. This is a city-owned lot that is in the process of being transferred to Habitat for Humanity. At the permission of the Board of Public Works, we have begun this abatement application prior to our ownership. We hope to build one single-family residence on this lot this fall. Thank you for all your assistance with this process. Sincerely, ~~~~:~ Violet Schorsch Land Development Habitat for Humanity of St. Joseph County Fit Ct~rk's Office SEP 1 1 2007 JOH~1 ~'dORDB C11Y Gi..E~?iC, SQ. BEftD, IK 402 E. South St. • South Bend, IN 46601 • Ph: (574) 288-6967 • Fx: (574) 289-1954 • www.habitat-for-humanity.org