RM 07-24-92 - Laserfiche WebLink

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partnership which will develop 65 units of affordable housing in the 1200 block of West Washington. Twenty -two duplexes and seven triplexes will be built on four acres of land which has been acquired and cleared by the Redevelopment Commission. All 65 apartments will be rented to low- income families. The total hard cost of new construction is $3,450,000. The estimated market value of the property upon completion of the project is $1,600,000 (using the income method of valuation). The project will create seventy (70) construction jobs to build the project. A property management firm will hire a property manager and a maintenance person. The property is properly zoned for the proposed use. The property is located in an area presently designated as a Tax Abatement Impact Area by the South Bend Common Council. The project is also located in an Economic Development Target Area. and in the West Washington- Chapin Redevelopment Blighted Area. It is also hw , located in a Tax Incremental Financing Allocation Area. The petitioner qualifies for 6 years of real property tax abatement under the tax abatement ordinance. However, they would like to be considered for ten years of abatement. According to the tax abatement guidelines, multi - family housing projects qualify for ten years of abatement if hard costs are greater than $4,000,000 and at least 20* of the units are available for occupancy by low or moderate income families. The petitioner feels that the project should be considered for a 10 year abatement because 1) 100* of the units will be rented to low income families; 2) the $3,450,000 in hard dollar costs is 80V of the $4,000,000 guideline for a 10 year abatement and far exceeds the $1,000,000 guideline set for a 6 year abatement; and 3) the project is an integral part of the neighborhood's larger revitalization plan and the City's redevelopment efforts in the neighborhood. -5-