HomeMy WebLinkAbout6A(1) Resolution No. 2759RESOLUTION NO. 2759 ~~'
A RESOLUTION APPROVING AN APPLICATION FOR
REAL PROPERTY TAX DEDUCTION
WHEREAS, I.C. 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 Snyder Custom Homes, Inc. for real property
located at 901 and 909 North St. Peter Street (old consolidated address is 727 East Corby 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 901 and 909 North St. Peter 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 Snyder Custom Homes, Inc. for (5)
five years of real property tax abatement consideration for property located at 901 and 909 North
St. Peter Street (old consolidated address is 727 East Corby 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 Snyder
Custom Homes, Incorporated.
Approved this 3`d day of September, 2010, at the regular meeting of the South Bend
Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
Address: 901 (Lot 2) and 909 (Lot 1) North St. Peter Street (old consolidated address is 727
East Corby Street)
Legal Description:
Lot 1 and Lot 2 as shown the same and designated on the Plat of Snyder's Corby Street Minor
Subdivision as in the Office of the Recorder of St. Joseph County, Indiana.
Parcel Numbers:
Old consolidated tax key number is 018-5107-3766
1200 COUNTY-CITY BUILDING
227 W. JEFFERSON 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 DIRECTOR
TAX ABATEMENT REPOR T
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: BOB MATHIA/~,~'V~'
SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR:
SNYDER CUSTOM HOMES, INC.
DATE: August 30, 2010
On August 30, 2010, a petition for residential tax abatement consideration for real property located at 901
and 909 North St. Peter Street (current consolidated address is 727 E. Corby Street) was filed with the City
Clerk by Snyder Custom Homes, Incorporated. 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
Snyder Custom Homes intends to construct two new single family homes. Each home will be two stories.
One of the homes will contain approximately 2,850 square feet with three bedrooms and an attached two-
stall garage. The other home will contain approximately 3,000 square feet with four bedrooms, a finished
lower level and an attached two car garage. The cost of the two homes will be approximately $525,000
each. Total taxes to be abated during the (5) five-year abatement period for one home are estimated at
$1,893.34. Total taxes to be paid during the (5) five-year abatement period for one home are estimated at
$27,602.30. Total taxes to be abated for the two homes are estimated to be $3,786.68. Total taxes to be
paid for the two homes are estimated at $55,204.60.
COMMUNITY DEVELOPMENT
PAMELA C. MEYER
574/235-9660
Fnx: 574!235-9697
ECONOMIC DEVELOPMENT
DONALD E. INKS
574/235-9371
FINANCIAL Et PROGRAM
MANAGEMENT
ELIZABETH LEONARD
574/235-9371
South Bend Redevelopment Commission
RE: Snyder Custom Homes, Inc.
August 30, 2010
Page 2
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that Snyder Custom Homes, Inc. 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
30-Aug-10
SNYDER CUSTOM HOMES. INCORPORATED
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"`
446,250.00 446,250.00 446,250.00
10,000.00 N/A N/A
456,250.00 446,250.00 446,250.00
(3,000.00) (3,000.00) (3,000.00)
(45,000.00) (45,000.00) (45,000.00)
(143,937.50) (143,937.50) (143,937.50)
264,312.50 254,312.50 254,312.50
Less Maximum Abatement Deduction
Less Non-Abated Amount
Plus Land Assessed Value
Net Assessed Value
Property Taxes:
Assume constant tax rate of
NIA N/A (74,880.00)
N/A (179,432.50) N/A
N/A N/A 10,000.00
264,312.50 74,880.00 189,432.50
4.4598% 4.4598% 4.4598%
Gross Tax (tax rate x net assessed value) 11,787.81 3,339.50 8,448.31
Less State & County Homestead Credit: 18.6246°i° (2,195.43) (621.97} (1,573.46)
Tax Due Before Circuit Breaker 9,592.38 2,717.53 6,874.85
Less Circuit Breaker Credit (3,693.25) (2,338.86) (1,354.39)
Net Tax 5,899.13 378.67 5,520.46
Circuit Breaker Cap
Circuit Breaker 1.0000% 4,562.50 4,462.50 4,562.50
Debt Service 0.5057% 1,336.63 378.67 957.96
Circuit Braker Cap 5,899. `• 3 4,841.17 5,520.46
Year Net
Assessed
Value Total
Taxes
Due
Tax
Abated
Tax
Paid
1 264,312.50 5,899.13 378.67 5,520.46
2 264,312.50 5,899.13 378.67 5,520.46
3 264,312.50 5,899.13 378.67 5,520.46
4 264,312.50 5,899.13 378.67 5,520.46
5 264,312.50 5,899.13 378.67 5,520.46
5 year totals: 29,495.64 1,893.34 27,602.30
'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
SNYDER CUSTOM HOMES, INC.
LAND' BUILDING'`'` TOTAL
Year 1 $1,920 $9,121 $11,041
Year 2 $1,920 $9,121 11,041
Year 3 $1,920 $9,121 11,041
Year 4 $1,920 $9,121 11,041
Year 5 $1,920 $9,121 11,041
Total $9,600 $45,605
$55,205
'Current tax levy
"'`Additional tax revenue from new investment
LEGAL DESCRIPTION
EXAIBIT `A'
LOTI AND LOT 2 AS THE SAME ARE SHOWN AND DESIGNATED ON THE PLAT OF
SNYDER'S CORBY STREET MINOR SUBDMSION AND RECORDED IN THE OFFICE OF THE
RECORDER OF ST. JOSEPH COUNTY, INDIANA.
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