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South Bend Redevelopment Commission <br />Regular Meeting -May 19, 2006 <br />6. NEW BUSINESS (CONT.) <br />B. Tax Abatements <br />continue ... <br />without tax abatement. He believes the city <br />must offer incentives to get people to move <br />back into the city. He used the Southfield <br />development as an example. Those lots were <br />offered for about five years with very little <br />interest. Once the residential tax abatement <br />program was in place, it took only about one <br />and a half years to fully develop it. Most of <br />those homes are now paying full taxes on <br />$200,000- $300,000 homes. Even with tax <br />abatement, they were paying $2,500 to <br />$3,500 per year in taxes. <br />Mr. Inks noted that Garden Homes has <br />focused on infill housing, rather than new <br />subdivisions. Infill housing is much tougher <br />than building on greenfield sites. <br />Mr. King noted that there has been recent <br />reporting in the South Bend Tribune about all <br />the vacant properties in South Bend, asking <br />why no one is doing anything about them. In <br />fact, with the residential tax abatement, just <br />one builder has been able to turn 140 <br />properties to productive use. <br />Mr. Urbanski also noted that Garden Homes <br />makes a point of preventing foreclosures on <br />its homes. FHA has about a 3% foreclosure <br />rate. Garden Homes has maintained a less <br />than 1% foreclosure rate with its <br />prescreening and use of local lenders. <br />Upon a motion by Mr. Hojnacki, seconded <br />by Mr. Blake and unanimously carried, the <br />Commission approved Resolution No. 2244 <br />COMMISSION APPROVED RESOLUTION N0.2244 <br />APPROVING AN APPLICATION FOR REAL <br />PROPERTY TAX DEDUCTION FOR PROPERTY <br />15 <br />