Bill No. 23-19 Res. Tax Abatement 724 & 726 Harrison

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TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Erik Glavich, Director, Growth and Opportunity SUBJECT: Residential Real Property Tax Abatement Petition for Cross Community, Inc. DATE: April 19, 2023 On March 30, 2023, a tax abatement petition for Cross Community, Inc., was filed with the Office of the City Clerk. The petition seeks consideration for a residential development real property tax abatement for the completion of two new 2 -story homes that will range from 1,400 to 1,600 square feet. These new houses will be sold to first time homebuyers who have participated in financial/credit building workshops. Pursuant to Chapter 2, Article 6, Section 2-84.9 of the Municipal Code of the City of South Bend, this petition was referred to the Department of Community Investment for purposes of investigation and preparation of a report determining whether the area qualifies as an Economic Revitalization Area or a Residentially Distressed Area pursuant to Indiana Code 6 1.1-12.1 and all zoning requirements have been met. The Department of Community Investment has reviewed the petitions (a copy of which each is attached), investigated the area, and makes the following report. Project Summary The petitioner, Cross Community, Inc., plans to build two new single-family houses at 724 and 726 Harrison Ave. These new houses will range from 1,400 to 1,600 square feet and will feature 3 bedrooms, 2.5 bathrooms, and a finished basement. The intended occupants will be first time homebuyers who have participated in financial/credit building workshops. The petitioner is investing a total of $440,000 to develop these two new houses. These houses will be built in two empty lots where former houses had been torn down. The lots had become abandoned, vacant, and blighted. Tax Estimates The petitioner qualifies for a five-year (5) residential real property tax abatement. Current taxes for 2022: $86 Total estimated taxes during the five-year (5) abatement period: $21,303 Estimated taxes being abated during the abatement period: $17,978 Estimated total taxes to be paid during the abatement period: $3,325