10034-10 Approving- Temporary Loan of $39,763 Income Tax(#408)

Home Browse Search

COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, IN 46601 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR OFFICE OF ADMINISTRATION & FINANCE GREGG D. ZIENTARA, CITY CONTROLLER July 21, 2010 Mr. Derek Dieter President, South Bend Common Council 4~h Floor, County-City Building South Bend, IN 46601 PHONE 574-235-9216 FAx 574-235-9928 Re: Ordinance Approving Temporary Loan of $39,763.60 from Economic Development Income Tax Fund (#408) to allow Redevelopment Commission Acquisition of 25 Tax Sale Properties by the South Bend Redevelopment Commission TIF Airport Fund (#324) Dear President Dieter: The Saint Joseph County Treasurer recently offered for sale a number of real estate properties on its tax sale list which, upon acquisition by the City Redevelopment Commission, are beneficial to the City's economic development projects in Ignition Park. The properties offered for sale of City interest, included 25 properties on Indiana Avenue adjacent to the south boundary of Ignition Park. The City through the Redevelopment Commission was able to acquire these properties at a total cost of $39,973.60, an average of $1,598.94 per property. Acquisition of these properties through the tax sale is estimated to save the Redevelopment Commission and the City $630,000 versus acquisition of these properties on the open market. At the time of the tax sale, the subject properties were not on the South Bend Redevelopment Commission 2010 property acquisition list, and could not be added to the South Bend Redevelopment Commission 2010 property acquisition list within the time frame prior to the property tax sale, necessitating the temporary use of monies from the City Economic Development Income Tax Fund (#408) in the aforementioned sum to secure the property acquisition, which is authorized by I.C. 36-1-8-4. The sum of $39,973.60 was temporarily transferred by EDIT Fund (#408) to the TIF Airport Fund (#324) to secure the purchase. The South Bend Redevelopment Commission has subsequently approved the subject properties and added these to the 2010 property acquisition list, and has repaid the temporary loan to the EDIT Fund (#408). At the time of the initial transaction, the City approach was to transfer monies between funds, subject to repayment which would not require ordinance approval by the Common Council. Subsequent to the event, the City was advised by the State Board of Accounts, that the proper temporary loan transaction did in fact require ordinance approval by the Common Council. As such, this ordinance is submitted for Common Council approval. This ordinance to the Common Council at its Committee meeting and at the public hearing will be