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HomeMy WebLinkAboutWaiving Tax Abatement - 6819 Stewart Drive - Kendall Weiss, LLPRESOLUTION 3804-07 Passed by the Common Council of the City of South Bend, Indiana October 22, Attest: 2007 City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 22, 2007 Approved and signed by me n~t~hPr 74~ 20 07 ~-~r,~ City Clerk RESOLUTION NO. 3 T ~~~ ~ I A RESOLUTION WAIVING CONDITIONS PRECEDENT TO THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA COMMONLY KNOWN AS 6819 STEWART DRIVE, SOUTH BEND, INDIANA TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5 YEAR REAL PROPERTY TAX ABATEMENT FOR KENDALL WEISS, L.L.P. WHEREAS, Kendall Weiss, L.L.P., an Indiana limited liability partnership (the "Petitioner") filed a petition for real property tax abatement (the "Petition") and a Form SB-1 statement of benefits with the South Bend City Clerk on October 3, 2007 for consideration by the Common Council of the City of South Bend, Indiana (the "Common Council"), requesting that the area commonly known as 6819 Stewart Drive, South Bend, Indiana, being more specifically Lot 409 in Lafayette Falls, Phase III, Section One (Instrument Number 0728461) and which has a parcel key number of 23-1002-0023.71, (the "Property"), be designated as an economic revitalization area under the provisions of Indiana Code sections 6-1.1-12-1 et seg•, and South Bend Municipal Code sections 2-76 et seq.; and WHEREAS, the Petitioner obtained building Permit No. 109523 on August 6, 2007 and began redevelopment of the Property as defined by Indiana Code section 6-1.1- 12.1-1 (5)) on August 6, 2007; and WHEREAS, the Common Council has adopted a policy requiring that petitioners for tax abatement wait until after the Common Council has adopted declaratory and confirming resolutions in accordance with Indiana Code section 6-1.1-12.1-2.5 (b) and (c), before obtaining a building permit and before initiating redevelopment or rehabilitation of real property, absent compelling reasons and circumstances where a petitioner initiated such activities before such resolutions have been adopted; and WHEREAS, the Petitioner has presented substantial evidence to the Common Council that circumstances existed where the Petitioner inadvertently obtained the above described building permit and initiated redevelopment of the Property before the Common Council has adopted declaratory and confirming resolutions, and the Common Council has concluded that such circumstances present a compelling reason to waive the Common Council's policy; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Petitioner has presented testimonial and documentary evidence of the following facts and the Common Council hereby makes the following findings of fact in support of this resolution: A. The Petitioner's intention since the Lafayette Falls residential development (the "Development") began construction in 2003 is to seek residential tax abatements for every single lot within the Development. B. The Petitioner has filed separate tax abatement petitions for each individual section of the Development as they have been subdivided. C. The Common Council has adopted Resolutions 3352-04, 3398-04, 3481-05, 3494- 05, 3551-06, and 3697-07, which confirm the adoption of declaratory resolutions for 175 single-family residential lots within the Development as residentially distressed for purposes of a (5) five year residential real property tax abatement for the Petitioner. The 175 lots included within these confirming resolutions to date have an approximate mazket value of over $31 million. D. Said Resolution 3697-07 was adopted on February 12, 2007 and included Lots 403 through 408 within the Development. These lots lie immediately to the north of the Property. E. The Petitioner was unawaze that the Property was not included within Resolution 3697-07; and therefore, inadvertently obtained a building permit for the Property prior to its inclusion within an adopted declaratory and confirming resolution. F. The Petitioner is thoroughly and continually committed in investing within this 400 plus lot Development which was annexed into the City in 2003. In addition to this commitment by the Petitioner, the residents of the City of South Bend through the City Plan process identified that the City must encourage the development more market rate housing and promote homeownership within the City. The continuing support of the residential tax abatement program for new single family home construction within the City both encourages and promotes the development of owner occupied homes within the City. The City Plan, the 20 yeaz Comprehensive Plan was adopted by Common Council on November 13, 2006. G. The Petitioner acknowledges and respects the long-standing policy of the Common Council to require that the economic revitalization declaratory resolution be adopted by the Common Council before a building permit is obtained and before redevelopment begins. H. At all times throughout these proceedings, the Petitioner has acted in good faith, has promptly cooperated with all requests of the Common Council and the South Bend Department of Community Development, and has made every effort to comply, to the best of its ability, with the requirements of law and the policies of the Common Council. I. Because of the unusual and adverse circumstances described herein, the Petitioner proceeded with the redevelopment of the Property without first receiving adoption of a declaratory resolution by the Common Council. SECTION II. The foregoing facts, taken together, lead the Common Council to conclude that compelling reasons exist to waive noncompliance by the Petitioner with certain conditions precedent to the redevelopment of the Property, in accordance with Indiana Code section 6-1.1-12.1-11.3. SECTION III. 'The Common Council hereby waives such noncompliance, for the purpose of permitting the Council to proceed with consideration of the Petition on its merits. SECTION IV. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. r ~~ Mem er of the on Council PRESENTED ~ O'Z.L-Q~ NOT APPROVED ADOPTED ~ L ~ ~Z'v7 filed In Cterk'~ Office OCT - 3 2007 JOHt! VOORDE CITY CLEr~K, 50. BEP~O, IN. TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 07-129 A RESOLUTION WAIVING CONDITIONS PRECEDENT TO THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA COMMONLY KNOWN AS 6819 STEWART DRIVE, SOUTH BEND, INDIANA TO BE AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR REAL PROPERTY .TAX ABATEMENT FOR KENDALL WEISS, L.L.P. Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Karen L. White Chairperson ABONMARCHE Conftdence By bestgn ENGINEERS ARCHITECTS PLANNERS SURVEYORS 750 Lincoln Way East South Bend, IN 46601 T. 574-232-8700 F. 574-251-4440 www,abonmarche.com FORT WAYNE, IN BENTON HARBOR, MI MANISTEE, MI SOUTH HAVEN, Ml October 3, 2007 Members of the Common Counci! City of South Bend 227 West Jefferson Boulevard, Suite 400 S South Bend, IN 46601 Find' In Clark's Office 0 CT - 3 2007 JOKN YOORDE CrrY CLERK, S0. BEMD, IK RE: Kendall Weiss, L.L.P. Petition for 5 year Residential Real Property Tax Abatement far 6819 Stewart Drive (tot 409 within Lafayette Falls, Phase 111, Section One) Dear Council Members: As the agent for Kendal! Weiss, L.t.P., which is a Weiss Homes, Inc. development partnership, we are requesting a waiver for Lot 409 within Lafayette Falls, Phase Ill, Section One (Instrument #0728461) from the requirement of obtaining Council action on a tax abatement prior to the issuance of a building permit. This lot has a common property address of 6819 Stewart Drive, South Bend, Indiana 46614. Firstly, !would like to point out that it is the developer's intention since the development began construction in 2003 to seek residential tax abatements for every single lot within the Lafayette Falls residential development. Separate tax abatement petitions have been filed and have been approved for each individual section of the development as they have been subdivided. A 5 year residential real property tax abatement was adopted by the Common Council on February 12, 2007, (Resolution 3697-07) for Lots 403 through 408. These lots lie immediately to the. north of Lot 409. The developer was unaware that Lot 409 was not included within this approved abatement and inadvertently obtained a building permit for this lot. By approving this waiver, the owner of Lot 409 will be able to benefit from the same abatemenfi which has been granted for every other lot within the development. The City of South Bend will still receive the additional taxes generated by this improved residential lot based upon the 5 year abatement schedule. After the 5 year abatement expires, the City will receive 100 percent of fhe taxes assessed for this lot. We strongly believe that the circumstances presented above and the developer's continuing commitment to invest in this 400 plus lot October 2007 Lafayette Falls, Phase III, Secfiion One -Lot 409 Waiver for Residential Tax Abatement naoru~na~cee Citv of South Bend Indiana 2 residential development within the City of South Bend justify the Council's consideration of our request to waive its policy regarding a residential tax abatement for a single lot within this development. Therefore, we are respectfully requesting the favorable consideration of this waiver by both the Council's Community and Economic Development Committee and the entire Council. If you have any questions or require any additional information regarding this request, please do not hesitate to contact ovr office: Sincerely, Derek J. Spier, A.LC.P. Planner cc: Fie M3-1 l 67-791 Brian Miller, Vi esidenfi of E-ar~ruction for Weiss Homes, Inc. F:\Propects\M3-116T'lax Abatement\tax abatement waiver requssi - loi 409_doa