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HomeMy WebLinkAboutConfirming Tax Abatement - Various Oak Court - SFI/LDI Partnership RESOLUTION 3709-07 Passed by the Common Council of the City of South Bend, Indiana February 26, 20 07 Attest: Presented by me to the Mayor of the City of South Bend, Indiana February 27, 20 07 City Clerk President of Common Council Approved and signed by me Februarv 28 20.QZ. ~~~~ City Clerk 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 sea., 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. 2 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. 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, 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 sea. 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. c ~ Member of the Co on Council Fi<c.~u~J.c'u Z-~i~-~~ NOT APPROVED ADOPTED Z ~ Z~ - O~ Find in ~i~ri:'~ Q~~ice JAN 2 5 2007 ~o~IN vooroE Ct'TY CLERK, SJ. 8E!~D, Ild. 1201) COUNTY-CITY BUILDING 2.27 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PIIONE 574/ 235-9371 FAX 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~L ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR January 16, 2007 Council Member Derek D. Dieter, Chairperson Community & Economic Development Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Residential Real Property Tax Abatement Petition for: SFI/LDI PARTNERSHIP Dear Council Member Dieter: Please find attached the Department of Community & Economic Development's report on a residential real property tax abatement petition submitted by SFI/LDI Partnership to build (4) four, new, single- family, villa/condominium units at 6320, 6323, 6328 and 6331 Oak Court. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The report contains the department's findings relative to the above petition. The petitioner proposes to build the (4) four single-family, villa/condominium units at a cost of $700,000. The project meets the qualifications fora (5) five-year real property tax abatement. The petitioner will be available to meet with the Committee on Monday, February 12, 2007. 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 235-5825. Sincerely, Sharon Terrell Economic Development Attachments cc: South Bend Common Council Members Mayor Stephen Luecke Jeff Gibney Don Inks Bill Schalliol COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HC PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELIZABETH LEONARD FAX: 574/235-9697 574/235-9371 1200 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SoLrFII BEND, INDIANA 46601-1830 PHONE 574/ 235-9371 FAX 574/235-9021 TDD 5741235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~L ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: SHARON TERRELL~ SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR: SFI/LDI PARTNERSHIP DATE: January 16, 2007 On January 8, 2007, a petition for residential tax abatement consideration for real property located at 6320, 6323, 6328 and 6331 Oak Court was filed with the City Clerk by SFI/LDI Partnership. Pursuant to Chapter 2, Article 6, Section 2-77.1 of the Municipal Code of the City of South Bend, this petition was referred to the Department of Community and Economic Development for purposes of investigation and preparation of a report determining whether the area qualifies as a Residentially Distressed Area pursuant to I.C.6-1.1-12.1 and whether all zoning requirements have been met. The Department of Community and Economic Development has reviewed the petition (a copy of which is attached), investigated the area, and makes the following report. PROJECT DESCRIPTION SFI/LDI Partnership plans to (4) four new, single-family villalcondominium units contained within the 1.889 acre subdivision known as Southfield Subdivision, Section 3. Each home will be approximately 1,500 to 2,000 square feet and will include two bedrooms, two baths, a den, open kitchen and living space and an attached garage. The construction will be wood frame with vinyl siding and exterior brick/stone accents. Additional options such as a fireplace, covered patio, and appliances may also be made avail- able. The price ofeach villa condominium will be between $160,000 and $240,000. The total price of the project is estimated at $700,000. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL SC PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELIZABETH LEONARD EAX: 5741235-9697 574/235-9371 South Bend Common Council RE: SFULDI Partnership January 16, 2007 Page 2 For a unit valued at $160,000, the total taxes to be abated during the (5) five-year abatement period is estimated at $10,216 a unit for a total $40,864 for the (4) four units. Total taxes to be paid during the (5) five-year abatement period is estimated at $4,518 for a unit valued at $160,000 for a total to be abated of $18,072. For a unit valued at $240,000, the total taxes to be abated during the (S) five-year abatement period is estimated at $10,216 a unit for a total of $40,864 for the (4) four units. Total taxes to be >l aid during the (5) five-year abatement period is estimated at $13,796 for a unit valued at $240,000 for a total to be abated of $55,184. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has been associated with or granted the following previous tax abatements. Term/Type Resolution No. Date 5-year real property 2749-99 6/14/1999 5-year real property 2595-98 4/13/1998 2. The Building Commissioner has reviewed this petition and finds the properties to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is not located in any of the development areas; therefore, approval of the tax abatement petition by the South Bend Redevelopment Commission is not required. 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications fora (5) five-year residential tax abatement under Section 2-77.1, Single Family Residential Construction. 5 YEAR 14-Jan-07 SFI/LDI PARTNERSHIP South Bend Centre Township Residential Real Property Tax Abatement Schedule* Estimated Project Cost Assessed Value: STRUCTURE (assume 85% of project cost) LAND (assume $10,000) Gross Assessed Value Less Mortgage Exemption Less Standard Homeowners Deduction Base Assessed Value $160,000.00 Total Taxes Tax Abated** Tax Paid"** 136,000.00 136,000.00 136,000.00 10,000.00 N/A N/A 146,000.00 136,000.00 136,000.00 (3,000.00) (3,000.00) (3,000.00) (35,000.00) (35,000.00) (35,000.00) 108,000.00 98,000.00 98,000.00 Less Maximum Abatement Deduction Less Non-Abated Amount Plus Land Assessed Value Net Assessed Value Property Taxes: Assume constant tax rate of N/A N/A (74,880.00) N/A (23,120.00) N/A N/A N/A 10,000.00 108,000.00 74,880.00 33,120.00 5.1338% 5.1338% 5.1338% Gross Tax (tax rate x net assessed value) 5,544.50 3,844.19 1,700.31 Less SRTC: 21.7230% (1,204.43) (835.07) (369.36) Less Homestead Credit: 32.0952% (1,392.95) (965.78) (427.17) Net Tax 2,947.12 2,043.34 903.79 Year Net Assessed Value Totaf Taxes Due Tax Abated Tax Paid 1 108,000.00 2,947.12 2,043.34 903.79 2 108,000.00 2,947.12 2,043.34 903.79 3 108,000.00 2,947.12 2,043.34 903.79 4 108,000.00 2,947.12 2,043.34 903.79 5 108,000.00 2,947.12 2,043.34 903.79 5 year totals: 14,735.61 10,216.68 4,518.93 *This schedule is for estimation purposes only and assumes constant tax rates. The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. "*Tax Abated is capped at $74,880 of assessed value of structures only and does not include land assessed value. *"*Tax Paid is calculated using the difference between actual assessed value of structure and maximum abated portion of $74,880 and adding back the land assessed value. 5 YEAR 14-Jan-07 SFI/LDI PARTNERSHIP South Bend Centre Township Residential Real Property Tax Abatement Schedule" Estimated Project Cost: Assessed Value: STRUCTURE (assume 85% of project cost) LAND (assume $10,000) Gross Assessed Value Less Mortgage Exemption Less Standard Homeowners Deduction Base Assessed Value $240,000.00 Total Taxes Tax Abated*" Tax Paid"'* 204,000.00 204,000.00 204,000.00 10,000.00 N/A N/A 214,000.00 204,000.00 204,000.00 (3,000.00) (3,000.00) (3,000.00) (35,000.00) {35,000.00) (35,000.00) 176,000.00 166,000.00 166,000.00 Less Maximum Abatement Deduction Less Non-Abated Amount Plus Land Assessed Value Net Assessed Value Property Taxes: Assume constant tax rate of Gross Tax (tax rate x net assessed value) Less SRTC: 21.7230% Less Homestead Credit: 32.0952% Net Tax N/A N/A (74,880.00) N/A (91,120.00) N/A N/A N/A 10,000.00 176,000.00 74,880.00 101,120.00 5.1338% 5.1338% 5.1338% 9,035.49 3,844.19 5,191.30 (1,962.78) (835.07) (1,127.71) (2,270.00) (965.78) (1,304.22) 4,802.71 2,043.34 2,759.37 Year Net Assessed Value Total Taxes Due Tax Abated Tax Paid 1 176,000.00 4,802.71 2,043.34 2,759.37 2 176,000.00 4,802.71 2,043.34 2,759.37 3 176,000.00 4,802.71 2,043.34 2,759.37 4 176,000.00 4,802.71 2,043.34 2,759.37 5 176,000.00 4,802.71 2,043.34 2,759.37 5 year totals: 24,013.54 10,216.68 13,796.86 "This schedule is for estimation purposes only and assumes constant tax rates. The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates. *`Tax Abated is capped at $74,880 of assessed value of structures only and does not include land assessed value. "'*Tax Paid is calculated using the difference between actual assessed value of structure and maximum abated portion of $74,880 and adding back the land assessed value. ~~ 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 seg., and South Bend Municipal Code Section 2-76, et se ., for this petition states the following: 1. Describe the proposed construction project, including information about square footage, numbers of rooms, amenities, 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 project description if necessary): This project involves the proposed construction of four (4) new, single family villa/condominium units (each, a "Home"ion buildin egL nvelopes 2, 3, 4 and 5 contained within the 1.889 acre subdivision known as "Southfield Subdivision -Section 3". Each Home will be approximately 1,500 - 2,000 square feet and include two bedrooms, two baths, a den, open kitchen and living space and attached garage. The petitioner intends that all construction will be wood frame with vinyl siding and exterior brick/stone accents. Additional options such as a fireplace, coveredpatio and appliances may also be made available with each Home. The petitioner intends that the price of each Home will be between $160,000 and $240,000. 2. Estimate the dollar value of the construction project (do not include land cost): Petitioner estimates that the total project (for construction of 4 Homes) will be .approximately $700,000. 3. The real property for which tax abatement consideration is petitioned (Property) is owned or to be owned by the following individual(s) or corporations (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 SFULDI Partnership 1442 Deerfield Court Owner South Bend. Indiana 46614 4. The commonly known address of the Property is: 6320, 6323. 6328 and 6331 Oak Court South Bend Indiana 46614 (located at corner of Ridge Trail and Miami Road and having tax key no: 23-1037-207313 (use additional sheet for multiple addresses). 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. The current assessed valuation of the property before construction is: $207,000 (subject to a eal (use additional sheet for multiple addresses). 8. Photographs of the Property, taken within two (2) weeks of filing of this petition, are attached hereto, marked "Exhibit C," and incorporated herein. 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): YEAR REAL PROPERTY TAXES 8.318.46 2005 $12,639.04 (Please see Exhibit D) 10. What is your best estimate of the after completion market value of the property: Petitioner estimates that land and improvements on four (4 buildin envelopes will have a market value of $700,000. 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 be 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 Housing Consortium or other public financial assistance, including but not limited to public works improvements: None. -2- 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 petitioner has learned from potential purchasers that current tax rates and liabilities are deterrents to the development of the property for residential or other use. A tax incentive related to new residential construction in this area within the City will assist the petitioner with marketing the Homes and facilitating future construction and sales. 14. The current use of the Property is vacant land and the current zoning is PUD Planned Unit Development. 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 petitioners agent regarding additional information and public hearing notifications: NAME: Richard J. Deahl, Barnes & Thornburg LLP ADDRESS: 100 N. Michigan Street, Suite 600 CITY, STATE, ZIP: South Bend, Indiana 46601 TELEPHONE: (5741233-1171 -3- 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. Name of Property Owner(s): SFULDI Partnershi By: (Signature) Leroy S. Troyer, Partner (Typed or printed name and capacity) ~,., r.e~"a6'~ l~i(t~E' SBDS02 RJD J48089v1 JAN ~ $ X001 - 4 - aoF~rt veaz~= ~o. F,,:ra~, ira. EXHIBIT A Legal Description of Tax Abatement Properly Lot 61 Southfield Subdivision, Section Three as shown on the recorded plat in the Office of the Recorder of St. Joseph County, Indiana excepting therefrom: Lot 61, Building One Envelope. Commencing at the Southeast corner of Lot 61; thence North 00°00'00" East, a distance of 9.40 feet; thence South 86°13'02" West, a distance of 14.50 feet to the point of beginning; thence continuing South 86°18'02" West, a distance of 86.45 feet; thence North 03°41' S8" West, a distance of 63.19 feet; thence North 45°03'37" East, a distance of 18.11 feet; thence North 86°18'02" East, a distance of 72.93 feet; thence South 03°41'58" East, a distance of 75.13 feet to the point of beginning. And further excepting Building Six Envelope. Commencing at the Northwest corner of said Lot 61; thence South 00°00'00" East, a distance of 196.39 feet; thence North 90°00'00" East, a distance of 50.00 feet; to the point of beginning; thence continuing North 90°00'00" East, a distance of 86.00 feet; thence South 00°00'00" East, a distance of 68.00 feet; thence South 90°00'00" West, a distance of 86.00 feet; thence North 00°00'00" West a distance of 68.00 feet to the point of beginning. H~~ ~ sta. J9 n;t ~C. g,;9; „~ Cf~ Cl.::;:, , ~~ \5a-0 ~Y+ JAN _ ~ X001 ~a~~U EXHIBIT B ' . 1 ~w Lot 61 Southfield Subdivis%on, Section Three as shown on the reco plat #n the.Offti'ce of the Recorder of St. Joseph County, Indiana. GENERAL PLAN OF 11EyELQPMENT . X O ~ ~ \\ ~ N89"40'OZ"W 330.00' ~ ~\ ~r 7.5' UTILITY Ei~SEAIENT M90'00'00'E 63.56' `~° N90'00 00 E S7S0 ~ ~~ ~~ POB No 3 POB No 2 - ~ ,~ N90'00'00'E 73.06' $ g 8 "' o ~I JSB4 ~ BLDG. Na 3 ~ ~ BUIG. No. 2 8 lJI ~ 1, 1, g go I I g ~ ~' g~ ~s ~ 8 nom. ~ _ ~~ 1\ \1 CAI ~+ ~• $ x ~ ~ X ~, NBB1802'E 7287 '~) w ~\ \~ ~ 6UIC.•No. ! Y N O -~ ~ -aS ~ ~, 75.0'.-17.!' r 21.0 q NPti I Oq . I 00 6S. S 0000 55.19' ~ ?.0' Sr ~ $ \\ e BLDG. No, t I p ~ ~ ~ ~ X U w' ~ N ~ ~° I N S90'00'00'W 1J.08' ~ 11.6' /.Iwti, IS./' ~ u ~ ~IJ2.00' 8 ~ N90'OD DO'Y 86.00' 8 '~6\ .,. I3.1' ~ ISJ' S~ I/ / o ^.I w N = SBBI8021P 86 ~~% ~/ '( 00 j ~ BLDG. No. S ; ~ // \ xY F / / ~ \ l z ~ g X $ /~~ oc~`L // ~ ~ ~ 590'00'OOIY 88.00' /~ , ~ ~ i ~ W Z 5o.ao a Nevao oD es.ao .. /~ ~~ / ~ ~ m ~ m EUIC. No. 6 X ~ \0 ~45`L // ~~~ ~ ' ~ , 00 ~\OC7/ ~ \` S90'00'OOIY 8.00_ ~- ,L~ O• / ~ ~. ~ ~N89'40'02"W 60.17 l ~ , ~ ~ / ~ UNE BEARING DISTANCE /~ -- -' - Mtn- ~,. ~.~r ~ ~TkT6 rt_ BLDG No, i "AS-BUILT" SURVEY PERFORMED AUGUST 4, 2005. SOUTHFIELD SU601VISION SECTION THREE LOT 61 for SF1/LD1 PARTNERSHIP Land Surveyors, Construction Engineers do Soil Scientists 715 South tAlchigan Street South Bend, Indiana 46601 Phone 574-233-1841 Fax 574-674-0374 ~ile Name Drown Dy Scala Southfield6l Envelopes JMS 1 „ = 6D~ )ote Rev. Date Drawing Na. 10-5-05 23768 cz~ .~_ c~ ~~ ~ Q o CA.! CIJ C~ ~ o° ~~ cn C.) i ~ =' ~ Z V ~~~ - _ .Q ~ v ~ ~ C1) U ~.