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HomeMy WebLinkAbout10034-10 Approving- Temporary Loan of $39,763 Income Tax(#408)ORDINANCE No. +oo~,o Passed by the Common Council of the City of South Bend, Indiana August 9, Attest: Attest: Presented by me to the Mayor of the City of South Bend, Indiana August 10, 10 20 City Clerk President of Common Council City Clerk Approved and signed by me ~ o ~ ~~ l L 20 ~ ~ iL/~ ~~~ Mayer 2010 ORDINANCE NO. l ~~ 3~'~~ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING TEMPORARY LOAN OF $39,763.60 FROM ECONOMIC DEVELOPMENT INCOME TAX FUND (#408) TO PAY FOR ACQUISITION OF 25 PROPERTIES BY THE SOUTH BEND REDEVELOPMENT COMMISSION WITHIN TIF REVENUE-AIRPORT FUND (#324) STATEMENT OF PURPOSE AND INTENT The St. Joseph County Treasurer recently offered for sale a number of real estate properties on its tax sale list which are beneficial to South Bend's economic development projects, and which could not have been anticipated in advance of the actual sale listing. The South Bend Redevelopment Commission has acquired 25 of these properties at greatly reduced cost, a total of $39,973.60, or an average of $1,600.00 per parcel. At the time of tax sale, the properties were not on the South Bend Redevelopment Commission's 2010 acquisition list necessitating the temporary use of monies from Economic Development Income Tax Fund (#408) in the sum of $39,973.60 to make the purchase, which is authorized by I.C. 36-1-8-4. The sum of $39,973.60 temporarily transferred by EDIT Fund (#408) to TIF Revenue -Airport Fund (#324) shall be returned promptly to EDIT Fund #408 in satisfaction of the inter-fund loan for acquisition of the tax sale properties. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA as follows: Section I. The temporary use of $39,973.60 within Economic Development Income Tax Fund #408 to purchase the 25 tax sale properties described in this Ordinance is approved which temporary loan shall be repaid to Fund #408 promptly by and from TIF Revenue-Airport Fund #324, and no later than December 31, 2010. Section III. This Ordinance shall be in full force and effect from and after its p ssage by the Common Council and approval by the Mayor. Member of the Common Council A City ClT~rk Presented by me to the Mayor of the City of South Bend, Indiana on the l4~ day of c.~s~ , 2~~ , at ~~'-~ o'clock q m. ~~ Approved and signed by me on the ~~ day ~ m. 1st READING ~ `Z~ ,~~ PU6LIC HEARING ~~- l~ 3rd READING ~ ~ - ~ c~ NOT APPROVED REFERRED PASSED ~ ~.~~a City erk ~ ~.-~ 2~rn , atP=.3~o'clock City of uth Bend JUL 2 1 2010 ,!0}i?d VOORDE CIT`! CLERK, S0. BEt3D, IN. TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 42-10 A BILL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING TEMPORARY LOAN OF $39,763.60 FROM ECONOMIC DEVELOPMENT INCOME TAX FUND (#408) TO PAY FOR ACQUISITION OF 25 PROPERTIES BY THE SOUTH BEND REDEVELOPMENT COMMISSION WITHIN TIF REVENUE-AIRPORT FUND (#324) Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Ann Puzzello Chairperson, Committee of the Whole COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, IN 46601 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR OFFICE OF ADMINISTRATION & FINANCE GREGG D. ZIENTARA, CITY CONTROLLER July 21, 2010 Mr. Derek Dieter President, South Bend Common Council 4~h Floor, County-City Building South Bend, IN 46601 PHONE 574-235-9216 FAx 574-235-9928 Re: Ordinance Approving Temporary Loan of $39,763.60 from Economic Development Income Tax Fund (#408) to allow Redevelopment Commission Acquisition of 25 Tax Sale Properties by the South Bend Redevelopment Commission TIF Airport Fund (#324) Dear President Dieter: The Saint Joseph County Treasurer recently offered for sale a number of real estate properties on its tax sale list which, upon acquisition by the City Redevelopment Commission, are beneficial to the City's economic development projects in Ignition Park. The properties offered for sale of City interest, included 25 properties on Indiana Avenue adjacent to the south boundary of Ignition Park. The City through the Redevelopment Commission was able to acquire these properties at a total cost of $39,973.60, an average of $1,598.94 per property. Acquisition of these properties through the tax sale is estimated to save the Redevelopment Commission and the City $630,000 versus acquisition of these properties on the open market. At the time of the tax sale, the subject properties were not on the South Bend Redevelopment Commission 2010 property acquisition list, and could not be added to the South Bend Redevelopment Commission 2010 property acquisition list within the time frame prior to the property tax sale, necessitating the temporary use of monies from the City Economic Development Income Tax Fund (#408) in the aforementioned sum to secure the property acquisition, which is authorized by I.C. 36-1-8-4. The sum of $39,973.60 was temporarily transferred by EDIT Fund (#408) to the TIF Airport Fund (#324) to secure the purchase. The South Bend Redevelopment Commission has subsequently approved the subject properties and added these to the 2010 property acquisition list, and has repaid the temporary loan to the EDIT Fund (#408). At the time of the initial transaction, the City approach was to transfer monies between funds, subject to repayment which would not require ordinance approval by the Common Council. Subsequent to the event, the City was advised by the State Board of Accounts, that the proper temporary loan transaction did in fact require ordinance approval by the Common Council. As such, this ordinance is submitted for Common Council approval. This ordinance to the Common Council at its Committee meeting and at the public hearing will be presented by either Don Inks or Gregg Zientara. Sincere) `i Gregg D. 'entara Controller fo he City of South Bend ! . ~~ ~a ~ ~~~€w~. J U L 2 1 201~~ ~~,,i vc~hn_ cmrc>_~r~~,~a. s~T~~a, ira.