12-08-03 Council Meeting Minutes

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REGULAR MEETING DECEMBER 8, 2003 Mr. Lawrence Maloney, 606 Pierce Street, Osceola, Indiana, informed the Council that he invested in several properties on Lincolnway which he rehabed. He stated that now his taxes are up one hundred fifty per cent (150% ). He stated that he is trying to save the neighborhood and asked why anyone would want to invest any further. He noted that this tax increase has to be passed onto the renters and the renters cannot afford it. Mr. Maloney stated that he has been told that the City of South Bend has more repossessions that anyone in the nation. His only problem now is selling those properties that no one will want to buy. Mr. Maloney stated that he was helping this City because he rescued these houses from demolition and turned them into properties that generate money for the City. Mr. Will Taylor, 511 Marigold Way, South Bend, Indiana, advised that he is a mortgage broker and he knows of mortgage brokers that bring a lot of money into this area. He noted that every week at the Sheriff s property sale there are twenty -five (25) to fifty (50) homes for sale. He advised that he tracks foreclosures all over the nation and the State of Indiana led the whole nation at 3.6 per one hundred (100) homes foreclosed. He stated that the Council does a great job handling appropriations and all the things they do for the City spending millions of dollars to get people to this City. Mr. Taylor stated that the State of Indiana, the City of South Bend and the County are in for a financial storm where there will be fifty (50) homes foreclosed on each week and landlords throwing their keys on the Mayor's desk. Ms. Darla Teese, 301 East Eckman Street, South Bend, Indiana, told the Council that she purchased a property in October for which the previous owner paid sixty three dollars and fifty cents ($63.50) in taxes. Those taxes have now gone up to three hundred fifty eight dollars ($358.00). Ms. Teese also stated that she owns a few properties and is trying to earn money for her retirement which she will not be able to do if all her money will be needed to pay taxes. Ms. Teese stated that property owners need the Council's help. Mr. Larry Lempke, 1022 South 35th Street, South Bend, Indiana, stated that his company rehabs distressed properties in Portage Township and has spent over three hundred thousand ($300,000.000) in the area. He noted that his company budgeted over $1 million dollars for next year which they will not do because they cannot make any money as rental properties and because of the debt income ratio they will be less desirable for people to purchase. He noted that his company has also bought homes from the condemned list to save the City money on demolition. Mr. Lempke presented pictures to the Council for their review. Ms. Vickie Black, 26123 Brush Trails, South Bend, Indiana, advised that she and her husband buy, renovate and sell property. However, there is no longer an incentive for them to invest within Portage Township. She stated that without the incentive of lower taxes in the inter City, their investment money will go elsewhere. Ms. Black informed the Council that taxes on a property on Sherman Street went from eight hundred dollars ($800.00) a year to two thousand one hundred dollars ($2,100.00). This is a Section 8 tenant who has been in the house for twelve (12) years and the rent should be raised to cover this cost. However, Section 8 will not allow the increase. Ms. Black asked the Council to send a Resolution to state and federal officials concerning this problem She noted that the federal officials could increase the budget for Section 8 tenants and the state officials could offer special credits and exemptions for rental properties and older homes within City limits. Ms. Black asked the Council to take this issue seriously as it does affect the entire City. ANNOUNCEMENT OF NEXT MEETING DATE Council President White announced that the next meeting of the Common Council will be held on Monday, January 12, 2004. President White wished everyone a wonderful holiday.