HomeMy WebLinkAbout6.A.(1) Resolution No. 2608RESOLUTION NO. 2608 ~ ~ ~~>
A RESOLUTION APPROVING AN APPLICATION FOR
REAL PROPERTY TAX DEDUCTION
WHEREAS, LC. 6-1.1-12.1-2(1) provides that an application for property tax deduction
may not be approved when the property is located in an allocation area as defined in I.C.
36-7-14-39, unless the Redevelopment Commission which designated that allocation area adopts
a resolution approving that application; and
WHEREAS, the South Bend Common Council has received a petition for (5) five years of
real property tax abatement consideration from Peter & Nancy Kilpatrick for real property located
at 1015 North Frances Street in the Northeast Neighborhood Development Area, the development
area location and legal description of which are attached hereto, marked Exhibit "A" and
incorporated herein; and
WHEREAS, this Commission declared the Northeast Neighborhood Development Area
by Resolution No. 2016, adopted November 17, 2003, and in the same resolution declared the
Northeast Neighborhood Development Area Allocation Area; and
WHEREAS, the property located at 1015 North Frances Street is located within the
Northeast Neighborhood Development Area Allocation Area;
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment
Commission as follows:
1) The Commission finds that the application from Peter & Nancy Kilpatrick for (5) five
years of real property tax abatement consideration for property located at 1015 North Frances
Street in the Northeast Neighborhood Development Area Allocation Area should be and is hereby
approved.
2) That a copy of this resolution be forwarded to the South Bend Common Council to
indicate the Commission's approval of the petition for real property tax abatement for Peter &
Nancy Kilpatrick.
Approved this 16th day of October, 2009, at -the regular meeting of the South Bend
Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
Address: 1015 North Frances Street
Legal Description:
That part of the Northeast Quarter of Section 1, Township 37 North, Range 2 East, Portage
Township, City of South Bend, St. Joseph County, Indiana which is described as:
Lot B of the plat of "Frances Street Minor Subdivision" recorded as Document No. 0835847
in the records of the St. Joseph County, Indiana Recorder's Office
Containing 0.185 acres more or less.
Subject to all legal highways, easements and restrictions of record.
Tax Key Number: 18-5105-3672.01
I20~ COUNTY-CITY BUILDING
227 W. IEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 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 DIRF.C"]'OR
TAX ABATEMENT REPOR T
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: BOB MA"rHIA ~j~ ~'l~/'
SUB.IECT: RESIDENTIAL REAL, PROPF,RTY TAX ABATEMENT PETITION FOR:
KILPATRICK, PETER & NANCY
DATE: October 5, 2009
On October 2, 2009. a petition for residential tax abatement consideration for real property located at 1015
North Frances Street was filed with the City Clerk by Peter and Nancy Kilpatrick. 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 Areapursuant 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 ofwhich is
attached), investigated the area, and makes the following report.
PROJECT DESCRIPTION
Peter and Nancy Kilpatrick intend to construct an approximate 3.500 square foot, single-family home. The
home will be two stories high. It will have eight rooms and a finished basement. The project is part of the
Notre Dame Avenue Housing Program. The cost of the home will be approximately $615,000. Total taxes
to be abated during the (~) five-year abatement period are estimated at $2,216. Total taxes to be paid during
the (5) five-year abatement period are estimated at $33,746.
COMMUNI'T'Y DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. 1Vl EYER DUNALU E. INKS MANAGEMENT
574!235-9660 574/235-9371 EL~zasETH LEONARD
FAX: 574/235-9697 574/23-9371
South Bend Redevelopment Commission
RE: Kilpatrick, Peter & Nancy
October 5, 2009
Page 2
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the petitioner has not been associated with
or been granted any previous tax abatements.
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 located in the
Northeast Neighborhood Development Area, which is a Tax Incremental Allocation Area; therefore,
approval of the tax abatement petition by the South Bend Redevelopment Commission is required. In
addition, it must be noted that the property is not located within the Northeast Neighborhood's
residential TIF area.
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
5-Oct-09
PETER 8~ NANCY KILPATRICK
South Bend Portage Township Residential Real Property Tax Abatement Schedule*
Estimated Project Cost:
Assessed Value:
STRUCTURE (% AV of cost) 85.0%
LAND Value 10,000
Gross Assessed Value
Less Mortgage Exemption
Less Homestead Deduction
Less Supplemental Homestead Deduction
Base Assessed Value
Total Taxes Tax Abated** Tax Paid***
522,750.00 522,750.00 522,750.00
10,000.00 N/A N/A
532,750.00 522,750.00 522,750.00
(3,000.00) (3,000.00) (3,000.00)
(45,000.00) (45,000.00) (45,000.00)
(169,662.50) (169,662.50) (169,662.50)
315,087.50 305,087.50 305,087.50
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 (230,207.50) N/A
N/A N/A 10,000.00
315,087.50 74,880.00 240,207.50
4.3592% 4.3592% 4.3592%
Gross Tax (tax rate x net assessed value) 13,735.29 3,264.17 10,471.13
Less State & County Homestead Credit: 0.4625% (1,457.28) (346.32) (1,110.96)
Tax Due Before Circuit Breaker 12,278.01 2,917.85 9,360.17
Less Circuit Breaker Credit (5,085.51) (2,474.63) (2,610.88)
Net Tax 7,192.50 443.21 6,749.29
Circuit Breaker Cap
Circuit Breaker 1.0000% 5,327.50 5,227.50 5,327.50
Debt Service 0.5919% 1,865.00 443.21 1,421.79
Circuit Braker Cap 7,192.50 5,670.71 6,749.29
Net Total
Assessed Taxes Tax Tax
Year Value Due Abated Paid
1 315,087.50 7,192.50 443.21 6,749.29
2 315,087.50 7,192.50 443.21 6,749.29
3 315,087.50 7,192.50 443.21 6,749.29
4 315,087.50 7,192.50 443.21 6,749.29
5 315,087.50 7,192.50 443.21 6,749.29
5 year totals: 35,962.51 2,216.07 33,746.44
'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.
ESTIMATED TOTAL TAX REVENUE
PETER & NANCY KILPATRICK
LAND BUILDING** TOTAL
Year 1 $1,569 $5,180 $6,749
Year 2 $1,569 $5,180 6,749
Year 3 $1,569 $5,180 6,749
Year4 $1,569 $5,180 6,749
Year 5 $1,569 $5,180 6,749
Total $7,845 $25,900 $33,745
Current tax levy
~~Additional tax revenue from new investment