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South Bend Redevelopment Commission <br />Regular Meeting -May 2, 2008 <br />6. NEW BUSINESS (CONT.) <br />B. Tax Abatements <br />(2) continued... <br />Dr. Varner asked if the calculations of <br />abatement are based on the new system with <br />its caps or on the old system. Mr. Mathia <br />responded that he is still using the old system <br />until we get the new numbers. <br />Dr. Varner asked what becomes of the <br />abatements granted during this time if the 1% <br />cap holds. Do they still get an abatement in <br />addition to the 1% cap? Mr. Mathia <br />responded that the Council will have to <br />decide how to handle them. Dr. Varner <br />thought people should be made aware of the <br />possibility that the Council might declare a <br />moratorium on tax abatements. The purpose <br />of abatement was to level the playing field <br />between city and county for new housing <br />development. The 1% cap will do that. <br />Mr. King asked Ms. Chamblee the impact of <br />the Council's potential rescinding of tax <br />abatements because of HB 1001 on the <br />feasibility of Cooreman's development. Ms. <br />Chamblee said that their experience is that <br />even with tax abatement, city homes still pay <br />more taxes than those outside the city. <br />They will still need abatement as an incentive <br />to purchase in the Villas. <br />Dr. Varner stated that if the cap is 1%, it's <br />1%. A house in Lake Blackthorn will have <br />the same taxes as a house of the same value <br />in Westwood Knolls. So, there would be a <br />distinct advantage to also have tax abatement <br />for the Lake Blackthorn homes. <br />8 <br />