Confirming Tax Abatement - Royal Oak Estates - Sections 2 & 3 - First Federal Savings Bank

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ABONMARCHE Confidence By Deslgn ENGINEERS ARCHITECTS PLANNERS SURVEYORS 750 Lincoln Way East South Bend, IN 46601 T. 574-232-8700 F. 574-251-4440 www,abonmarche,com FORT WAYNE, IN BENTON HARBOR, MI MANISTEE, MI SOUTH HAVEN, MI October 22, 2008 Members of the Common Council City of South Bend 227 West Jefferson Boulevard, Suite 400 S South Bend, IN 46601 RE: Royal Oak Estates, Section 2 8~ 3 VarIOUS LOtS 5 Year Residential Property Tax Abatement Renewal Dear Council Members: On behalf of the current owner, First Federal Savings Bank, and the contingent owner and builder, Weiss Homes, Inc., we are requesting the renewal of a 5 year residential property tax abatement for 43 lots within Royal Oak Estates, Section 2 and 3. Royal Oak Estates is located on the south side of the City of South Bend and lies to the south of Johnson Road between Miami Road and U.S. 31. Sections 2 and 3 of this subdivision were subdivided and a 5 year property tax abatement was approved in 2003. The abatement for Section 2 was approved by the Common Council on January 27, 2003 (Resolution No. 3156-03), and the abatement for Section 3 was approved by the Common Council on December 8, 2003 (Resolution No. 3277-03). Therefore, the abatement for the lots included within this petition have either already expired or soon will be expiring. First Federal Savings Bank acquired ownership of the remaining undeveloped lots within Royal Oak Estates this month via a tax sale. These lots were previously owned by D 8~ H Home Builders, Inc.; the original developer of the subdivision. Weiss Homes, Inc. has an agreement with First Federal Saving Bank that they will be the sole builder of homes upon these lots. By approving the renewal of the tax abatement, Weiss Homes, Inc. will be able to market the lots with this incentive. Also, the prospective owners of these undeveloped lots will be able to benefit from the same abatement which has been granted for every other developed lot within the subdivision. The City of South Bend will still receive the additional taxes generated by these improved residential lots based upon the 5 year abatement schedule. After the 5 year abatement expires, the City will receive 100 percent of the taxes assessed for these lots.