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HomeMy WebLinkAboutConfirming Tax Abatement - 3927 Riverside Drive - Edward A. MyersRESOLUTION 3826-0$ Passed by the Common Council of the City of South Bend, Indiana January 14, 20 08 Attest: City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana January 15, 20 08 Approved and signed by me January 16, 20~, y~~~~~G~ ~ ,. City Clerk RESOLUTION NO. 3 gZl~"~ A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3927 RIVERSIDE DRIVE AS RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A (5) FIVE-YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR EDWARD A. MYERS 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 3927 Riverside Drive, South Bend, Indiana, and which is more particularly described as follows: Lot numbered Two Hundred Eighty-three Riverside Manor and this property has Tax Key Number 25-1011-0455, 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 se ., 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. 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. Member of the o on Council i.1i'ED l~ ~~~ 0 .Jf APPROVED b ADOPTED ~-' ~~ Filed In Clerk'S ®fflce ~~~.~ JAN - J4Ht: ViDDRDE CITY CLEhK, ED. uEF1?~, iN. 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 ~ ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR November 26, 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: EDWARD A. MYERS 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 Michael Urbanski of Garden Homes on behalf of Edward A. Myers. They intend to build asingle-family home at 3927 Riverside Drive. 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 asingle-family home at a cost of $125,452. 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, December 10, 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 Don Inks COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL A' PROGRAM PA\1ELA C. MEYER DONALD E. INKS ~ MANAGEMENT 574/235-9660_ 574/235-9371 ELIZABETH LEONARD EAX: 574/235-9697 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 ~L ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: - SOUTH BEND COMMON COUNCIL FROM: BOB MATHIA SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR: EDWARD A. MYERS DATE: November 26, 2007 On November 14, 2007, a petition for residential tax abatement consideration for real property located at 3927 Riverside Drive was filed with the City Clerk by Michael Urbanski of Garden Homes on behalf of Edward Myers. 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 (a copy of which is attached), investigated the area, and makes the following report. PROJECT DESCRIPTION Edward Myers intends to construct a new 1,768 square foot home with three bedrooms and a total of five rooms. The home will have a full eight foot insulated basement and attached two stall garage. The home will be built on a lot that has been vacant for several years. The size of the lot measures 58 feet x 115 feet. The price of the home is $125,452. Total taxes to be abated during the (5) five-year abatement period are estimated at $9,337. Total taxes to be paid during the (5) five-year abatement period are estimated at $1,365. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL Sz PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELIZABETH LEONARD Fax: 574!235-9697 574/235-9371 . South Bend Common Council RE: Edward A. Myers November 26, 2007 Page 2 ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has not been associated with or granted any previous tax abatements. 2. The Building Commissioner has reviewed this petition and finds the properties to be properly zoned for the proposed project. 3. A review of the redevelopment allocation areas finds that the property is not located in a Tax Incremental Financing Allocation Area; therefore, no action is required by the South Bend Redevelopment Commission. 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 26-Nov-07 EDWARD A. MYERS South Bend German 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 $125,452.00 Total Taxes Tax Abated'`* Tax Paid""'' 106,634.20 106,634.20 106,634.20 10,000.00 N/A N/A 116,634.20 106,634.20 106,634.20 (3,000.00) (3,000:00) (3,000.00) (35,000.00) (35,000.00) (35,000.00) 78,634.20 68,634.20 68,634.20 Less Maximum Abatement Deduction N/A N/A (68,634.20) Less Non-Abated Amount N/A 0.00 N/A Plus Land Assessed Value N/A N/A 10,000.00 Net Assessed Value 78,634.20 68,634.20 10,000.00 Property Taxes: Assume constant tax rate of 5.1376% 5.1376% 5.1376% Gross Tax (tax rate x net assessed value) 4,039.91 3,526.15 513.76 Less SRTC: 21.7293% (877.84) (766.21) (111.64) Less Homestead Credit: 32.1230% (1,015.75) (886.58) (129.17) Net Tax 2,146.32 1,873.36 272.95 Year Net Assessed Value Total Taxes Due Tax Abated Tax Paid 1 78,634.20 2,146.32 1,873.36 272.95 2 78,634.20 2,146.32 1,873.36 272.95 3 78,634.20 2,146.32 1,873.36 272.95 4 78,634.20 2.,146.32 1,873.36 272.95 5 78,634.20 2,146.32 1,873.36 272.95 5 year totals: 10,731.58 9,366.81 1,364.77 *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 PETTITION FOR RESIDENTIAL REAL PROPERTY TAX ABATEMENT The undersigned owner of real property, located within the City of South Bend, hereby petition the Common Council of the City of South Bend for Residential Real Property Tax Abatement consideration and pursuant to Indiana Code.,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, number of rooms, amenities, the amount of land to be used, and the proposed use of the improvements, and a general statement as to the importance of the project: Garden Homes intends to construct new three bedroom, five room homes of 1768 sq/ft, on a full 8'insulated basement. Homes will have a 22' x 23' attached garage, vinyl siding, stove, dishwasher, and vent hood and garbage disposal. The homes will be built on a 58' x 115' lot. The cost of the homes will be in the low one hundred 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. 2. Estimate the dollar value of the redevelopment project: $125,452 3. The real property for which tax abatement consideration is petitioned is owned or to be owned by the following individuals or corporations: Edward A. Myers Jr. 1861 North Meade Street South Bend, IN 46628 4. The commonly known address of the Property is: Street Address Rey Number 3927 Riverside Drive 25-1011-0455 5. A legal description of said Properties: Street Address: Legal Description: Key Number 3927 Riverside Drive Lot 283 Riverside Manor 25-1011-0455 6. A map and/or plat describing the property is attached hereto, marked Exhibit "A", and incorporated herein. 1 7. The Current assessed valuation of the real property before redevelopment is: Address: Valuation 3927 Riverside Drive 10,600 8. Photographs of the Property, taken within two (2) weeks of filing of this petition, are attached hereto, Marked Exhibit "B", and incorporated herein. 9. List the real property taxes paid at the location during .the previous two years, whether paid by the currant owner or a previous owner. ADDRESS: TAXES: 3927 Riverside Drive 329.74 10. What is your best estimate of the after completion market value of the property: $135,000 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. 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 but not limited to public works improvements: n/a 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 that have impaired values and .prevent a normal development of the property: DESCRIBE HERE WHAT IS APPLIBLE TO YOUR NIEGHBORHOOD EXAMPLE: . The lot has been vacant for many years. It has a terrain that is not good for building a home. We have a home we designed for a lot in another area of the city, and found that it will fit this lot. 14. The current use of the property is VACANT and the currant zoning is "A" (use) and "A" (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 2 16. The following ,person should be contacted as the petitioner agent regarding additional information and public hearing notification: Michael E. Urbanski 14299 Day Road Mishawaka, IN 46545 2: or 993-2268 Agent for Garden Homes ~~ ti Edward A. Myers ~r. 1861 North Meade Street South Bend, IN 46628 Michael E. Urbanski will represent Edward A. Myers Jr. in all hearings concerning this Tax Abatement ~~ i Michael E. Urbanski Find In Glrrk'~ ®ffMce NOV 1 4 2007 JOFIt~ \'OORDE C{TY CI.E~tK, S~. EEf~4, iK 3 Map Output ~ ~ ~ ~~ Page 1 of 1 x~i~6~f ArcIMS Viewer Ma 0 1011 WA6 ~ U?71 C4A9 - ~1n11 Ca JY+t ~ ~., .?. ' - t -~"10 `+ - G'sD1&1 ~:. 'y s: 7011 Uti0 ~ ~ . '~ ~ + ~+~ ri~1C01[a 1101 • ~ y r •)tr~. ' +'A ' ' ,. "" • "" . 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