HomeMy WebLinkAboutConfirming Tax Abatement - 711/715 California Ave - Near Northwest Neighborhood, IncRESOLUTION
3591-06
Passed by the Common Council of the City of South Bend, Indiana
May 22,
Attest:
06
Zo
r ` d'~l/~
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
May 23, 06
20
Approved and signed by me MaY 25 20 06
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City Clerk
RESOLUTION NO. 3 S `~ ~ - b~
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
711/715 CALIFORNIA AVENUE
RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A
FIVE (5) YEAR RESIDENTIAL REAL PROPERTY
TAX ABATEMENT FOR
NEAR NORTHWEST NEIGHBORHOOD, INC.
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
WHEREAS, a Declaratory Resolution designated the area commonly known as 711/715
California Avenue, South Bend, Indiana, and which are more particularly described as follows:
Tax lot numbered 13 in lot numbered 134 of the third plat of Shetterley Place, South
Bend
and this property has Tax Key Numbers 18-1062-2664 and 18-1062-2665, 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 sea., 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. 8845-97, which was passed on
December 8, 1997:
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.
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.
P:OT l',?P~:~~,~'
r,pOPTE~ ,_
Member of the Co on Council
Filc~~1 Ira ~i~rk'~ Office
f,',~Y 3 L, .,J
JAH~dVnGRCE
3 CITY CL~nK, 5J. EE!dD, IPd.
1200 C,OCJNTY-CITY I~UILD[NG
227 W JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 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
SHARON T. KENDALL
EXECUTIVE DIRECTOR
Apri126, 2006
Council Member Roland Kelly, 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:
Near Northwest Neighborhood, Inc.
Dear Council Member Kelly:
Please find attached the Department of Community & Economic Development's report on a residential
real property tax abatement petition for the Near Northwest Neighborhood, Inc. to build a single family
house at 711/715 California Avenue. 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 a new single family, three bedroom home with a total of six rooms. It will contain 1,120 to 1,300
square feet and have a basement and an attached 20 ft. X 22 ft. garage. The cost of the home will be
approximately $120,000. The home will straddle the common property line of the two lots located at
711 and 715 California Avenue. The project meets the qualifications for five (5) year real property tax
abatement. The petitioner will be available to meet with the Committee on Monday, May 8, 2006.
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 235-5826.
Sincerely,
~» ~~ti~%
Bob Mathia
Assistant Director,
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Sharon Kendall
Don Inks
Filed In Clerk's Office
APR 2 7 2006
JOhra l~'~aRCE
CITY ClES C, ~0• B~idD, IV.
COMMUNITY DEVELOPMENT' ECONOMIC DEVELOPMENT
PAMELA C. MEYER DONALD E. INKS
574/235-9660 574/235-9371
FAX: 574/235-9697
FINANCIAL HC PROGRAM
MANAGEMENT
ELIZABETH LEONARD
574/235-9371
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/235-9371
FAx 574/235-9021
TDD 574/ 235-5567
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
COMMUNITY SL ECONOMIC DEVELOPMENT
SHARON T. KENDALL
EXECUTIVE DIRECTOR
TAX ABATEMENT REPOR T
TO: SOUTH BEND COMMON COUNCIL
FROM: ROBERT MATHIA
SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR:
NEAR NORTHWEST NEIGHBORHOOD, INC.
DATE: April 26, 2006
On Apri118, 2006, a petition for residential tax abatement consideration for real properties located at
711/715 California Avenue was filed with the City Clerk by the Near Northwest Neighborhood, Inc.
Pursuant to Chapter 2, Article 6, Section 2-77 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 (a copy of
which is attached), investigated the area and makes the following report.
PROJECT DESCRIPTION
The Near Northwest Neighborhood, Inc. is preparing to build a new home on the property listed above.
The petitioner proposes to build a new single family, three bedroom home with a total of six rooms. It will
contain 1,120 to 1,300 square feet and have a basement and an attached 20 ft. X 22 ft. garage. The cost of
the home will be approximately $120,000. The home will straddle the common property line of the two lots
located at 711 and 715 California Avenue. The petitioner plans to complete construction of the home by the
end of August, 2006.
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL SC PROGRAM
PAMELA C. MEYEA DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 EuzaeETx LEONARD
PAX: 574/235-9697 574/235-9371
South Bend Common Council
RE: Near Northwest Neighborhood, Inc.
Apri126, 2006
Page 2
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has been associated
with or granted the following previous tax abatements.
Term/Type
5 year real property
5 year real property
Resolution No.
3214-03
3506-OS
Date
07/28/03
08/22/05
2. The building commissioner has reviewed this petition and finds the properties to be properly zoned
for the proposed prof ect. However, the building commissioner did note that a replat may be needed
through the Area Plan Commission prior to a building permit being issued.
3. A review of the South Bend Redevelopment designation areas finds that the property is not located
in a Tax Increment Allocation Area; therefore, no action was required by the South Bend
Redevelopment Commission.
4. A review of the Tax Abatement Ordinance no. 8065-90, as amended by Ordinance No. 8854-97,
finds that the petitioner meets the qualifications for a five year residential tax abatement under
Section 2-77.1 (Single Family Real Property Abatement).
5 YEAR
26-Apr-06
NEAR NORTHWEST NEIGHBORHOOD. INC.
South Bend Portage Township Residential Real Property Tax Abatement Schedule*
Estimated Project Cost:
Assessed Value:
STRUCTURE (assume 85% of project cost):
LAND (assume $10,000):
Gross Assessed Value:
Less Mortgage Exemption:
Less Standard Homeowners Deduction:
Base Assessed Value:
Base Assessed Value:
Less Maximum Abatement Deduction
Less Non-Abated Amount:
Plus Land Assessed Value:
Net Assessed Value:
$120,000.00
Total Taxes Tax Abated** Tax Paid***
102,000.00 102,000.00 102, 000.00
10,000.00 N/A N/A
112, 000.00 102,000.00 102, 000.00
(3,000.00) (3,000.00) (3,000.00)
(35,000.00) (35,000.00) (35,000.00)
74,000.00 64,000.00 64,000.00
74,000.00 64,000.00 64,000.00
N/A N/A ($64,000.00)
N/A 0.00 N/A
N/A N/A 10,000.00
74,000.00 64,000.00 10,000.00
Property Taxes:
Assume constant tax rate of:
4.89060% 4.89060% 4.89060%
Gross Tax (tax rate x net assessed value): 3,619.04 3,129.98 489.06
Less SRTC (21.6113%): (782.12) (676.43) (105.69)
Less Homestead Credit (24.3982%): (692.16) (598.62) (93.54)
Net Tax: 2,144.76 1,854.93 289.83
Net Assessed Total
Year Value Taxes Due Tax Abated Tax Paid
1 74,000.00 2,144.76 1,854.93 289.83
2 74,000.00 2,144.76 1,854.93 289.83
3 74,000.00 2,144.76 1,854.93 289.83
4 74,000.00 2,144.76 1,854.93 289.83
5 74,000.00 2,144.76 1,854.93 289.83
5yeartotals: 10,723.80 9,274.65 1,449.15
*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 $74,600 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 $74,600 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 City of South Bend, hereby petition the Common
Council of the City of South Bend for Residential Real Properly tax abatement consideration and pursuant to I.C.,
6-1.1-12.1-1, et_ seq., and South Bend Municipal Code Sec. 2-76 et_ seq., 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 project description if necessary):
2. Estimate the.dollar value of the construction project (do not include land cost): $ ~ ~ d~~
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 (ifthe 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
d1~a~~arl-~..~. Al '~,dar{,a.,-.l r~ lvo7 P~~, ~¢, ~y~c~a~~ ~ t~ 466r~ boner
4. .The commonly known address of the Property is: 7// /; ~n -` 0. ~ 7iS~Q/, r~ f~nd having
tax key no.: 1R -- /QGo? '020 (o ~¢ (use additional sheet for multiple addresses).
s-eo6z-a~6s
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 is $~1s~~/OO (use additional sheet
for multiple addresses).
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):
rs ! A - -4- av ex Cm ~-'f
10. What is your best estimate of the after completion market value of the property: $ r~J ~~
1 1. 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 City of
South Bend, South Bend Housing Authority, Housing Assistance Office, St. Joseph County Housing
Consortium or other public financial assistance, including bit not limited to public works improvements:
Sf. J"osenh ~aur~Fu ~ol~sihq CbhS~~~iu.fn
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 nd prevent a. norm l development of the property:.
~~2 ~tf~U~.~,
14. The current use of the property is V aea~,~ ~ o ~ and the current
zoning is 5~ (use) and (height and area).
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):
n a
16. The following person should be contacted as the petitioners agent regarding additional information and public
hearing notifications:
Name
Addre:
City, S
Teleph
Vi~HEREFORE, 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 th qualifications for a residentially distressed area have been met, and confirm such
resolution.
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Name of Property Owner(s):
N~a~ Nor-N~, 4yes-f- N.e~ ~-6orh~-v~, ~t c,
(Signature)
1<al%e~~ C. /fir^~lsl ~ ~xecufr~v~ (~i ~e~v
t~ (Typed or printed name an capacity)
2
1.
NNN intends to construct new three bedroom, six room home of 1,120 to 1,300 sq/ft, on a full 8'
insulated basement. The home will have an attached 20' x 22' garage, vinyl siding, stove,
dishwasher, and vent hood. The lot will be seeded and fenced upon completion of the home. The
cost of the home will be in the one hundred and fifteen to twenty thousand-dollar range. The
importance of this project to the city and the residence of the city is that we will be building
affordable homes on infill lots in the City of South Bend.
13.
711/715 California. This area (the 700 block) of California Grove has deteriorated
substantially through years of neglect by property owners, absentee landlords and a high turnover
rate of property ownership and occupancy. New construction on this lot, together with the
rehabilitation of several other properties in the same block and low to moderate income eligible
home buyers willing to make a commitment to home ownership, is a part of the Near Northwest
Neighborhood Inc.'s effort to revitalize and stabilize the City's near northwest neighborhood. This
particular property has been a vacant lot for many years. Our work in this area will make this a
prime site for the investment of new construction. This property also anchors an area NNN has
worked to stabilize over the past two years.
Near Northwest Neighborhood, Inc. in partnership the St. Joseph County Housing Consortium
strongly feel New Construction in these areas will spur greater private investment and continued
growth and revitalization in the City's near northwest neighborhood.
Potential NNN, Inc. New Construction
California Ave