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HomeMy WebLinkAboutConfirming Tax Abatement - South Bend Mutual Homes, LP 1015, 1042 & 1107 Oak Street (5 Year Residential Property)Attest: RESOLUTION 4436 -15 Passed by the Common Council of the City of South Bend, Indiana April 13, 15 20 Presented by me to the Mayor of the City of South Bend, Indiana April 14, 2015 City Clerk President of Common Council Approved and signed by me 14ile,,� 20/— . City Clerk RESOLUTION NO. A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING A CERTAIN AREA WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 1015 Oak Street; 1042 Oak Street; 1107 Oak Street AS A RESIDENTIALLY DISTRESSED AREA FOR PURPOSES OF A (5) FIVE -YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR South Bend Mutual Homes, LP WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as Residentially Distressed Areas for the purpose of tax abatement consideration; and WHEREAS, a Declaratory Resolution designated the area commonly known as 1015 Oak Street; 1042 Oak Street; 1107 Oak Street, South Bend, Indiana, and which is more particularly described as follows: 1) 1015 Oak Street, South Bend, IN Parcel ID: 18 -1033 -1461 Legal Description: Lot Numbered seventeen (17) as shown in the recorded Plat of William Miller's Addition to the City of South Bend, excepting therefrom that part taken for Sherman Avenue in St. Joseph County, Indiana. 2) 1042 Oak Street, South Bend, IN Parcel ID: 18- 1033 -1444, 18- 1033 -1442, 18- 1033 -1443 Parcel I: A part of lot numbered eleven (11) as shown on the recorded Plat of William Miller's Addition to the City of South Bend, described as follows, viz: Beginning at the westerly corner of said lot running thence North 39.5° East with the southeasterly line of Oak Street 60 feet; thence southeasterly 38.45 feet to a point 53 feet from the easterly line of LaPorte Avenue; thence South 39.5° West parallel with Oak Street 53 feet; thence North 37.5° West with the easterly line of LaPorte Avenue 36 feet to the place of the beginning. (18 -1033 -1442) Parcel II: A part of lot numbered eleven (11) as shown on the recorded Plat of William Miller's Addition to the City of South Bend, described as beginning at the southwest corner of said Lot 11; thence North 277' West of the easterly line of LaPorte Avenue 13.13 feet to an angle in said street; thence North 37.5° West on said line of said Avenue 31.65 feet; thence northeasterly parallel with Oak Street 53 feet; thence southeasterly 30.6 feet to a point in the east line of said Lot 11, 56 feet north of the southeast corner of said Lot; thence South 56 feet to said southeast corner; thence west 27.39 feet to the place of beginning. (18 -1033 -1443) 56 feet on Oak Street, 76 feet north and south along east line Lot 11, William Miller's Addition, according to the recorded Plat thereof, St. Joseph County, Indiana records. (18 -1033 -1444) 3) 1107 Oak Street Parcel ID: 18 -1033 -1430 Ex 76 feet SW end of Lots 52 and 53, Birner PL Add, according to the recorded plat thereof, St. Joseph County, Indiana records be designated as a Residentially Distressed Area under the provisions of Indiana Code 6- 1.1 -12.1 et sea., and South Bend Municipal Code Sections 2 -76 et sect., and; WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing before the Council has been published pursuant to Indiana Code 6- 1.1- 12.1 -2.5; and WHEREAS, the Council held a public hearing for the purposes of hearing all remonstrances and objections from interested persons; and WHEREAS, the Council has determined that the qualifications for a residentially distressed area have been met. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council hereby determines and finds that the petition for real property tax abatement and the Statement of Benefits form meet the requirements of Indiana Code 6 -1.1- 12.1 et se q., for tax abatement. SECTION II. The Common Council hereby determines and finds that the area meets one of the following conditions as formally established in Ordinance No. 9394 -03, which was passed on February 10, 2003: A. The area is comprised of parcels that are either unimproved or contain only one (1) or two (2) family dwellings designed for up to four (4) families, including accessory buildings for those dwellings; or B. Any dwellings in the area are not permanently occupied and are: i. the subject of an order issued under IC 36 -7 -9; or ii. evidencing significant building deficiencies; or C. Parcels of property in the area: i. have been sold and not redeemed under IC 6- 1.1 -24 and IC 6- 1.1 -25; or ii. are owned by a unit of local government; or D. A significant number of dwelling units within the area are not permanently occupied or a significant number of parcels in the area are vacant land; or E. A significant number of dwelling units within the area are: i. the subject of an order issued under IC 36 -7 -9; or ii. evidencing significant building deficiencies; or F. The area has experienced a net loss in the number of dwelling units, as documented by census information, local building and demolition permits, or certificates of occupancy, or the areas are owned by Indiana or the United States; or G. The area (plus any areas previously designated under this subsection) will not exceed ten percent (10 %) of the total area within the Council's jurisdiction. SECTION III. The Common Council also hereby determines and finds the following: A. That the description of the proposed redevelopment meets the applicable standards for such development. B. That the estimate of the value of the redevelopment is reasonable for projects of this nature; C. That the other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment; and D. That the totality of benefits is sufficient to justify the requested deduction, all of which satisfy the requirements of Indiana Code 6 -1.1- 12.1 -3. E. The deduction will not be allowed unless the dwelling is rehabilitated to meet local code standards for habitability. F. The deduction will not be allowed unless the dwelling rehabilitation is completed within five (5) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION IV. The Common Council hereby confirms its Declaratory Resolution designating the area described herein as a Residentially Distressed Area for the purposes of tax abatement. Such designation is for Real property tax abatement only and is limited to five (5) calendar years from the date of adoption of the Declaratory Resolution by the Common Council as shown by the attachment pursuant to Indiana Code 6 -1.1- 12.1 -17. SECTION V. The Common Council hereby determines that the property owner is qualified for and is granted Real property tax deduction for a period of five (5) years as shown by the attachment pursuant to Indiana Code 6 -1.1- 12.1 -17, and further determines that the petition complies with Chapter 2, Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6 -1.1- 12.1 et seq. SECTION VI. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. PRESENTED L(—L3-L 1' Not APPaovEo ADOPTO :k�- �3A5, Member of the Co o . n""�I et`�`�n C9�rk's Office Er, 2 2 0 15 JOHN Oo-qvr& CITY CLSRIC SOUTH{ SEND, IN 227 W. JEFFERSON BOULEVARD Surn: 1400 S. SouTH BEND, IN 46601 -1830 March 13, 2015 CITY OF SOUTH BEND PETE BUmuw, MAYOR COMMUNITY INVESTMENT SCOTT FORD, EXECUTIVE DIRECTOR Council Member Gavin Ferlic, Chairperson Community Investment Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 PHONE: 574235 -9371 FAX: 574235 -9021 RE: Residential Real Property Tax Abatement Petition for: South Bend Mutual Homes, LP Dear Council Member Ferlic: Please find the attached information pertaining to a residential real property tax abatement petition submitted by Anne Mannix of Lincoln Park Development LLC to build 24 single - family homes as part of a housing cooperative in the Lincoln Park Neighborhood. This current petition includes three properties that were not part of the petitioner's 2014 abatement: ➢ Department of Community Investment's summary report ➢ Copy of the petition ➢ Statement of Benefits form ➢ Supporting information. The report contains the Department's findings relative to the above petition. The petitioner proposes to build 24 single - family homes with an approximate assessed value of $641,520. The project meets the qualifications for a (5) five -year residential property tax abatement and a representative from South Bend Mutual Homes, LP will be available to meet with the Committee on Monday, March 23, 2015. Should you or any of the other Council members have any questions concerning the report, or need additional information, please feel free to call me at 715 -0110 Sincerely, B oLeb Director Economic Resources Attachments cc: South Bend Common Council Members Filed In Clerk's Office rAR 16 2015 JOHN VOORDF CITY CLERK, SOUTH BEND, IN PLANNING NEIGHBORHOOD ENGAGEMENT BusINEss DEVELOPMENT ECONOMIC REsouRCEs 11TIN KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR: South Bend Mutual Homes, LP DATE: March 13, 2015 On Monday, March 2, 2015, a petition from South Bend Mutual Homes, LP was received and subsequently filed with the City Clerk for residential real property tax abatement consideration for 3 single - family homes in the Lincoln Park Neighborhood. Pursuant to Chapter 2, Article 6, Section 2 -84.2 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 pursuant to I.C.6 -1.1 -12.1 and whether all zoning requirements have been met. The Department of Community Investment has reviewed the petition (a copy of which is attached), investigated the area, and makes the following report. PROJECT SUMMARY ➢ (24) Twenty Four single - family homes at an approximate assessed value of 641,520 ➢ The three parcels included in this report were not included in the 2014 approved tax abatement and are part of a housing cooperative consisting of 24 single - family homes that will include garages and basements with a total square footage of 1100- 1200 sq ft. ➢ New project taxes — $84,324 ➢ Estimated taxes being abated during five year abatement period — $24,350 ➢ Total taxes to be paid during five year abatement period — $59,974 ABATEMENT QUALIFICATION A review of the tax abatements previously granted, finds that the petitioner has been granted or is associated with any previous abatements. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITIN KAIN PAMELAC.MEYER CHRIS FIELDING BROCKZEEB A review of the South Bend Redevelopment designation areas finds that the properties are not located in a Development Area. 4. A review of the Tax Abatement Ordinance No. 9394 -03 finds that the petitioner meets the qualifications for a (5) five -year residential property tax abatement under section 2 -77.1, Single Family Residential Construction. March 13, 2015 p. 2 Lincoln Park Development, LLC 227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 3/5/2015 Mr. Charles Bulot CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT SCOTT FORD, EXECUTIVE DIRECTOR Building Commissioner St. Joseph Co. /South Bend Building Dept. 125 S. Lafayette Boulevard South Bend, IN 46601 RE: Residential Property Tax Abatement Petition For: South Bend Mutual Homes, LP Dear Mr. Bulot: PHONE: 574/235 -9371 FAx: 574/235 -9021 Please review the enclosed tax abatement petition for the above identified petitioner for the purpose of determining whether this project has met all zoning requirements. I also ask that you confirm whether or not any building permits have been issued for this project as of the date that you process this request. If a building permit has been issued, please indicate in your report the date of issue and include a copy of the permit with your report. This information will be included in a written report to the Community Investment Committee of the South Bend Common Council in order to determine tax abatement eligibility. I would appreciate your written determination by Tuesday, March 10, 2015. I thank you in advance for your time and consideration and, if you should have any questions, please call me at 235 -9339. Sincerely, Brock Zeeb Director of Economic Resources Department of Community Investment Enclosures PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES 11TIN KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB ) \)k} / ¥£ \ ° °� - !f - /22) £ £(\ ) )! F F § §/! � ^«\ ¥ / §§!■ (/ ¥§# ■ ■° / x � \( }k (\ k( (} ( \f \} ` (o $ a Z w )\\k\ ({/ ) \)k} / ¥£ \ ° °� - - /22) £ £(\ ) )! F F § §/! � ^«\ ¥ / §§!■ ¥§# ■ ■° / x � )\ )) }�z \ \}\ \ wow \ ,» §§ R)§ m iMS - , ) §\ / }» *% I \kw( \\ E n 0-1 o \\ 6 \\[) , k� \k /f \\ \§ \\[§ \ \[§ k � ( \ \}\ \ wow \ ,» §§ R)§ m iMS - , ) §\ / }» *% I \kw( \\ E n 0-1 o \\ 6 \\[) , k� \k /f \\ \§ \\[§ \ \[§ k � ( wow \ ,» §§ R)§ m iMS - , ) §\ / }» *% I \kw( \\ E n 0-1 o \\ 6 \\[) , k� \k /f \\ \§ \\[§ \ \[§ k � ( \k /f \\ \§ \\[§ \ \[§ k � ( CITY OF SOUTH BEND, INDIANA PETITION FOR RESIDENTIAL TAX ABATEMENT CONSIDERATION The undersigned owner(s) of real property, located within the City of South Bend, hereby petition the Common Council of the City of South Bend for Residential Real Property tax abatement consideration and pursuant to I.C. 6.1.1. 12.1.1, et sea., and South Bend Municipal Code Sec. 2.76 et sec., for this petition state the following: 1. Describe the proposed construction project, including information about-square footage, number of rooms, number of stories, other amenities such as finished basements and garages, the amount of land to be used, the proposed use of the improvements, and a general statement as to the importance of the project (use additional sheet for long project descriptions): This is a request for tax abatement for three single family homes which are part of a larger prolcet, known as South fiend Mutual I tomes. The homes will have garages and basements aid will be 1,100 to 1.200 square feet mid will be located on standard city Iots in the neighborhood. Many of the homes will be built on lots where the city has demolished vacant and abandoned houses for the overall project, a total of 24 homes will be constructed in an eight block area in the Lincoln Park neighborhood_'I'he project will be a housing cooperative, the residents kill be members of z corporation that controls the ownership mid makes management decisions about the housing. Flue goal is to revitalize the Lincoln Park neighborhood. 2. Estimate the dollar value of the construction project (do not include land cost): $_ 620871 3. The real property for which tax abatement consideration is petitioned (Property) is owned or to be owned by the following individual(s) or corporation(s) (if the business organization is publicly held, indicate also the name of the corporate parent, if any, and the name under which the corporation has filed with the Securities and Exchange Commission): Name Address Interest South Bend Mutual Homes, LP. _ 724 W. WasliingtonSouth Brad_IN 46601 _ 100% ed sheet with parcel address and tax id please see attach 4. The commonly known address of the Property is: _____ -------------------------------- and having tax key no.:____ Exhibit D ____________ (use additional sheet for multiple addresses or key numbers). 5. A legal description of said Property(s) is attached hereto, marked Exhibit A, and is incorporated herein. 6. A map and /or plat indicating the location of the Property(s) is attached hereto, marked Exhibit B, and is incorporated herein. 7. Photographs of the Property(s), taken within two (2) weeks of the filing of this petition, are attached hereto, marked Exhibit C, and incorporated herein. 8. The current assessed valuation of the property before construction is $_L0 zQQ________ (use additional sheet for multiple addresses). (Information may he obtained from the St. Joseph County Assessor's Office, 235. 9523). 9. List the real property taxes paid at the location during the previous two years, whether paid by the current owner or a previous owner (use additional sheet for multiple addresses): Please see Exhibit D ___ _______________ ____________ (This information may be obtained from the St. Joseph County Treasurers office, 235.9531) 10. What is your best estimate of the after completion market value of the property: $_____$620,871 (Rev. 5/13/11) 11. No building permit has been issued for construction on the property in connection with the improvement in question as of the date of filing of this petition. The building permit may he issued after the South Bend Common Council has approved the Declaratory Resolution. (Tax abatement is not available if a building permit has already been issued). The signature below is verification of this statement. 12. List other anticipated public financing for the project, including any assistance to be sought or already authorized through the United States Department of Housing and Urban Development funds from the City of South Bend, South Bend Housing Authority, Housing Assistance Office, St. Joseph County Housing Consortium or other public financial assistance, including but not limited to public works improvements: Ecquiy from the low income housingtax credits, HOME funds from the _ City of South Bend ____ _ Grant from the Federal Home Loan Bank of Indianapolis 13. Describe how the property has become undesirable for or impossible of normal development because of a lack of development, cessation of growth, deterioration of improvements or other factors which have impaired values and prevent a normal development of the property: The properties have been abandoned and the neighborhood has seen many years of decline. This is an area in great need of redevelopment yet, it has been slow to aftracldevelopers The hones that existed on the properties suffered from neglect and were no longer habitable and needto betorn down. The vacant land increases the abandoned look of the entire neighborhood, The moslcompatible and logical development is redeveloping single family hones on the lots to attract more developers to the area. In the recent discussions involving the Linoolnway Comida Plan this area was mentioned as a prime redevelopment site because of the location between the Chapin Park and the ___—________ __________— ___________________— 14. The current use of the property is Vacantiots and the current zoning is residential_ (use). (This information may he obtained from the Building Department 235 -9553) 15. The property is located in the following Allocation Area (if any) declared and confirmed by the South Bend Redevelopment Commission (requiring approval of the tax abatement by the Redevelopment Commission): n/a 16. The following person should be contacted as the petitioner's agent regarding additional information and public hearing notifications: Name Anne Mannix _____________ Address 724 W Washington Sl ___________________________________ ___________________________ ____ ------------ South Bend. W 06-6- ____ ___________________________ ___________ City State, Zip — __ -- - --_ Telephone'___ (574)288 -0369 ---------------------------------------------------- -------------------------------------------------------------------------- E -snail Address amannix.nda @comcast.net WHEREFORE, Petitioner has paid the required fee of $50.00 and requests that the Common Council of the City of South Bend, Indiana, adopt a declaratory resolution designating the area described herein as a residentially distressed area for the purposes of real property tax abatement consideration, and after publication of notice and public hearing, determine that the qualifications for a residentially distressed area have been met and confirm such resolution. (Rev. 5/13/11) Name of Property Owner(s): Lincoln Park Development, LLC By ___ (Signature) 2 Anne Mannix, Member Lincoln Park (Typed or printed name ff'ce --22015 CITY CLE� South Bend Mutual Homes Application for Tax Abatement Exhibit A — Legal Descriptions 1015 Oak Street (18 -1033 -1461) Lot numbered seventeen (17) as shown on the recorded Plat of William Miller's Addition to the City of South Bend, excepting therefrom that part taken for Sherman Avenue, in St. Joseph County, Indiana. 2. 1042 Oak Street Parcel I: A Part of Lot Numbered Eleven (11) as shown on the recorded Plat of William Miller's Addition to the City of South Bend, described as follows, viz: Beginning at the Westerly corner of said Lot running thence North 39.5° East with the Southeasterly line of Oak Street 60 feet; thence Southeasterly 38.45 feet to a point 53 feet from the Easterly line of LaPorte Avenue; thence South 39.5° West parallel with Oak Street 53 feet; thence North 37.5° West with the Easterly line of LaPorte Avenue 36 feet to the place of beginning. (18 -1033 -1442) Parcel I1: A Part of Lot Numbered Eleven (11) as shown on the recorded Plat of William Miller's Addition to the City of South Bend, described as beginning at the Southwest corner of said Lot 11; thence North 27 °7' West of the Easterly line of LaPorte Avenue 13.13 feet to an angle in said street; thence North 37.5° West on said line of said Avenue 31.65 feet; thence Northeasterly parallel with Oak Street 53 feet; thence Southeasterly 30.6 feet to a point in the East line of said Lot 11, 56 feet North of the Southeast comer of said Lot; thence South 56 feet to said Southeast corner; thence West 27.39 feet to the place of beginning. (18- 1033 - 1443). 56 feet on Oak Street, 76 feet North and South Along East line Lot 11, William Millers Addition, according to the recorded Plat thereof, St. Joseph County, Indiana Records. (18- 1033- 1444). 3. 1107 Oak Street Ex 76 feet SW End of Lots 52 and 53, Birner PL Add, according to the recorded plat thereof, St. Joseph County Indiana Records. -2 2015^ CITYcLE MY, €- IN