04-28-08 Community & Economic Development Committee

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COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE Page #1 of 2 The April 28, 2008 meeting of the Community and Economic Development Committee of the South Bend Common Council was called to order by Chairperson Derek Dieter, Community and Economic Development Committee at 3:30 p.m. in the Council's Informal Meeting Room. Persons in attendance included Council Member's David Varner, Oliver Davis, Timothy Rouse; Bob Mathia, David Morgan, Catherine Fannello, Derek Spier, Ann Kolata, Don Inks, Kathleen Cekanski-Farrand, John Voorde, City Clerk. Committee Members present, Derek D. Dieter, Chairperson; Ann Puzzello, Member BILL N0.08-36 -Tax Abatement -Tampico Derek Dieter, Chairperson, recognized Bob Mathia from Community & Economic Development to report on the application. Bob described Tampico's intent to develop 9.82 acres of farmland into 31 residential lots for homes ranging from 1300 to 2000 square foot to be built by Weiss Homes at an avg. selling price of $185,000. Taxes abated during the 5 year period would be approximately $10,200 per home with taxes paid of approximately $7,400 per home. Bob further stated all requirements of the residential abatement request were met. Derek Spier of Abonmarche Consultants further described the developers projected timetable. Tim Rouse questioned whether the Council should be considering abatements given a previously proposed moratorium until the effects of tax reform acted upon by the state legislature. Dieter and Varner recalled there was no actual consensus for a moratorium therefore none was officially imposed. City Controller Catherine Fanello stated the city administration was now ready to make a presentation to Council on the ramifications of Bill 1001. This would perhaps guide future abatement policy. The Mayor's Office was to be contacted to set an appropriate date for the presentation. There being no quorum; no action was taken. BILL N0.08-37 -Residential Tax Abatement request for 601 Cottage Grove and 701 S. Grant Bob Mathia again described the petition made by Habitat for Humanity for two homes they were building on lots donated to Habitat. Habitat would build two homes 1120 and 1360 square feet respectively. Mathia stated 13 abatements had previously been given to Habitat. These requests were very similar and all criteria for abatement were met. David Hatch of Habitat said the homes would be offered to families who earn 30-55% of an average family income. The homes would carry a $12,000 no interest loan for the buyers. Oliver Davis asked if there would be garages. David Hatch responded that due to lot size and available building funds only Cottage Grove would have a garage. Again without a quorum no official recommendation was made. BILL N0.08-38 -Tax Abatement -Request for special exception fora 2 Year Real Property tax abatement for River Rock Inc. Bob Mathia of Community 8~ Economic Development explained the need for a special exception petition. He noted that state law allows a two year real property abatement for properties experiencing vacancy for over a year. The property in question was vacant for two years. First offered for sale @ $340,000; subsequent reductions reduced the sale price to $225,000. According to estimates the building would generate approximately $12,900 per year in taxes after 2 years. No taxes were generated before as the building was occupied and owned by a non- profit.