HomeMy WebLinkAboutConfirming 6741 Lutz Dr. for five year residential property tax abatement Jeffrey Szalay and Amber O'BrienRESOLUTION
No. 4529 -16
Passed by the Common Council of the City of South Bend, Indiana
February 22, 20 16
Attest
City Clerk
Attest, President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
February 23, 20 16
City Clerk
Approved and signed by me 201 .
t�� MW
RESOLUTION NO. 452_,1-!(r
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING A CERTAIN AREA WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
6741 Lutz Drive, South Bend, IN 46614
AS A RESIDENTIALLY DISTRESSED AREA FOR PURPOSES OF A
(5) FIVE -YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR
Jeffrey Szalay and Amber O'Brien
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:
6741 Lutz Drive, South Bend, IN 46614
and which is more particularly described as follows:
LOT 336 LAFAYETTE FALLS PHASE III SECTION TWO
TAX KEY NO. 023 -1002- 002424
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 sea., 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 seq., 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
2
designation is for Real property tax abatement only and is limited to two (2) 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 a 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
NOT APPROVED
ADOPrpn
3
i
Member of the Common Council
Filed in Clerk's Office
JAN 2 0 NIG
KAREEMAH FOWLER
CITY CLERK, SOUTH BEND, IN
227 W. JEFFERSON BOULEVARD
SUITE 1400 S.
SOUTH BEND, IN 46601-1830
January 20, 2016
CITY OF SOUTH BEND PETE BUTTIGIEG, 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: 574/235 -9371
FAX: 574/235 -9021
RE: Residential Real Property Tax Abatement Petition for: Jeffrey Szalay and Amber
O'Brien
Dear Council Member Ferlic:
Please find the attached information pertaining to a residential real property tax abatement
petition submitted by Jeffrey Szalay and Amber O'Brien to a build a single- family home:
➢ 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 a single - family home with an approximate construction value of
$182,500. The project meets the qualifications for a (5) five -year residential property tax
abatement and Jeffrey Szalay and Amber O'Brien will be available to meet with the
Committee on Monday, January 25, 2016.
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 -9339.
Sincerely,
Brock Zeeb
Director Economic Resources
r=iled in Clerk' cs 6---
1A N1
KAREEMAH FOWLER
CITY CLERK, SOUTH BEND, IN
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
JITTN KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: BROCK ZEEB
SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR:
Jeffrey Szalay and Amber O'Brien
DATE: January 20, 2016
On Thursday, January 7, 2016, a petition from Jeffrey Szalay and Amber O'Brien was
received and subsequently filed with the City Clerk for residential ' real property tax
abatement consideration for a single - family home. 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
➢ (1) One single - family home at an approximate net assessed value of $62,910
➢ New total taxes during five year abatement period — $8911
➢ Estimated taxes being abated during five year abatement period — $8809
➢ Total taxes to be paid during five year abatement period — $102
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has not
been granted or 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.
3. A review of the South Bend Redevelopment designation areas finds that the property
is not located in a designated 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.
PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES
Jim KAIN PAMELA C. MEYER CHRIS FIELDING BROCK ZEEB
5 YEAR 20- Jan -16
Jeffrey Szolav and Amber O'Brien
South Bend Portage Township
Residential Real Property Tax Abatement Schedule*
Estimated Project Cost:
$182,500.00
1,464.00
1,460.00
1,464.00
Total Taxes
Tax Abated'*
Tax Paid"*
Assessed Value:
2.02
Circuit Braker Cap
Structure (% AV of cost) 80.0%
146,000.00
146,000.00
146,000.00
Land Value 400
400.00
N/A
N/A
Gross Assessed Value
146,400.00
146,000.00
146,000.00
Less Mortgage Exemption
(3,000.00)
(3,000.00)
(3,000.00)
Less Homestead Deduction
(45,000.00)
(45,000.00)
(45,000.00)
Less Supplemental Homestead Deduction
(35,490.00)
(35,490.00)
(35 490.00)
Base Assessed Value
62,910.00
62,510.00
62,510.00
Less Maximum Abatement Deduction
N/A
N/A
(62,510.00)
Less Non - Abated Amount
N/A
0100
NIA
Plus Land Assessed Value
N/A
N/A
400.00
Net Assessed Value
62,910.00
62,510.00
400.00
Prooerty Taxes:
8,910.68
8,808.92
101.76
Assume constant tax rate of
5.4597%
5A597%
5.4597%
Gross Tax (tax rate x net assessed value)
3,434.67
3,412.83
21.84
Less County COIT Homestead Credit:
6.8095% (233.88)
(232.40)
(1.49)
Tax Due Before Circuit Breaker
3,200.79
3,180.43
20.35
Less Circuit Breaker Credit
(1,418.65)
(1,418.65)
0.00
Net Tax
1,782.14
1,761.78
20.35
Circuit Breaker Cap
Circuit Breaker
1.0000%
1,464.00
1,460.00
1,464.00
Debt Service
0.5057%
318.14
316.11
2.02
Circuit Braker Cap
1,782.14
1,776.11
1,466.02
Net
Total
Assessed
Taxes
Tax
Tax
Year
Value
Due
Abated
Paid
1
62,910.00
1,782.14
1,761.78
20.35
2
62,910.00
1,782.14
1,761.78
20.35
3
62,910.00
1,782.14
1,761.78
20.35
4
62,910.00
1,782.14
1,761.78
20.35
5
62,910.00
1,782.14
1,761.78
20.35
5 year totals:
8,910.68
8,808.92
101.76
*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 II.,
6- 1.1.12.1.1, ==., . and South Bend Municipal Code Sec. 2-76 et sea., 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):
We plan to construct .a single family, one story home of 1719 sq. feet with three bedroom.,
and two bathrooms, and a two stall garage There will be an additional bathroom and
�edronm t..rith_pa�esc w^..�nrl�,�. ;n thA hasPment on ; _
primary residence of our growing family in the - 111Si`'ThlB 'home wi17 neYVe as the
- years to come.
2. Estimate the dollar value of the construction project (do not include land cost): $ 1 82, 500
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):
Naive
Jeffrey szalay Address Interest
722 S G
Amber O' Brien ladstone Ave, homeowner
722 S Gladstone Ave. homeowner
4. The commonly known address of the Property is: 6741 Lutz Drive
key no.: 023 -1002- 002424 (use additional sheet for multiple addresses or key numbers). having tax
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 $ 400
multiple addresses). (Information may be obtained from the St. Joseph County Assessor's�Office, 235.9523) t for
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 dditional sheet for multiple addresses):
2013 oavable 2m a - T St -)C-
2014 payable 2015 - $10.45
(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: $ 200,000
(Rev. 5/13/11)
I. 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 County Housing
Consortium or other public financial assistance, including but not limited to public works improvements:
not applicable
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:
Dev elopment within the subdivision Lafayette Falls has been stagnant since December cf 2014
whgn remain;ncr v-r ant 1M1Z fell into bank oG P-rAbjp A h am
of the subdivision also began to deteriorate and has been in ill - repair nt l recently i r' on
when the HOA has been overtaken by a group of neighborhood occupants whose goal is to begin
revitalization and improvement of the subdivision.
14. The current use of the property is meant subdivision to
zoning s agricult and the current
g _ lam). (This information may be 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):
16. The following person should be contacted as the petitioner's agent regarding additional information and public
hearing notifications:
Name _Amber O'Brien
Address 722 S Gladstone Ave.
City, State, Zip south send, IN, 46619
Telephone (574) 298 -31137
E -mail Address _obrienamRN @gmail . com
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. 5113111)
2
Name of Property Owner(s):
aer O'Br ien and Jeffrey SzalaBy:
ure)
Amber O'Brien
(Typed or printed name and capacity)
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SHEET OF
LOT 335 LAFAYETTE
FALLS PHASE III SECTION TWO
PART OF SECTION 2, TOWNSHIP 36 NORTH, RANGE 2 EAST,
CENTRE TOWNSHIP, ST. JOSEPH - COUNTY,
INDIANA
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9,836 SO. FT.
(0.23 ACRES)
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LEGEND
NOTE:
B.O.C. BACK OF CURB
THIS ORABANG DEPICTS THE APPROXIMATE
LAYOUT OF THE LOT. FOR ACTUAL
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E.O.P. EDGE OF PAVEMENT
DIMENSIONS, SEE THE RECORDED FINAL PLAT.
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LOT DRAWING
wa® ABONMARCHE CONSULTANTS, L.L.C.
FOR
KENDALL- WE1$$, L.L.P.
750 Lincoln Way East . Fort Wayne, Indiana
South Bond, Indiana 46601 Benton Harbor, Michigon
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(574) 232 -6700 Manistee, Michigan
FAX: -4440
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DATE:
01/14/08
SCALE, 1° =30'
(574) 251
ENGINEERING / LAND WRVE"NG / PLANNING / CONSTRUC11011 -%%ES
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