2 Minutes 5/29/14 Meeting - Laserfiche WebLink

Home Browse Search

South Bend Redevelopment Commission Regular Meeting —May 29, 2014 7. PROGRESS REPORTS Mr. Varner asked about some uncertainty expressed at the Council meeting. Ms. Hahn responded that the tax abatement program has never had a housing cooperative before, so there is no precedent on whether it should be handled as a residential abatement or multi - family /commercial because he complex will offer very affordable rents. Residential units up for abatement are typically owner - occupied. They are five -year abatements and the cost is calculated with a special residential calculator. A commercial abatement could be three to seven years, based on the number of points scored on the points schedule. After consulting with Council member Gavin Ferlic and the Council's legal counsel, they suggested processing it as a residential abatement. However, in that type of tax credit project, the assessment is based on the level of rent divided by a cap rate. So, we're not sure how to determine the actual cost of the abatement. You would need an attorney that specializes in tax credit projects to develop an analysis for the Council if it wants that analysis. Mr. Varner said he would like staff to arrange for an accurate cost estimate. Ms. Hahn said she would be happy to arrange for one prior to the Council considering the confirming resolution. 8. NEXT COMMISSION MEETING The Next Regular Meeting of the Redevelopment Commission is scheduled for 9:30 a.m., June 12, 2014. 9. ADJOURNMENT There being no further business to come before the Redevelopment Commission, the meeting was adjourned at 9:40 a.m. Scott C. Ford, Executive Director Mr. David Varner, Vice - President