HomeMy WebLinkAboutConfirming Tax Abatement - 902 N. St. Peter - Patrick PerrellaRESOLUTION
4045-10
Passed by the Common Council of the City of South Bend, Indiana
August 23,
Attes
City Clerk
dent of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
August 24, 20 10
Approved and signed by me
August 2?,
2010
20 10
City Clerk
Mayor
RESOLUTION NO. qo? S- I C)
A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, COMMONLY KNOWN AS
902 N. ST. PETER STREET
AS RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A
(5) FIVE-YEAR RESIDENTIAL REAL PROPERTY
TAX ABATEMENT FOR
PATRICK PERRELLA
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 902 N.
St. Peter Street, South Bend, Indiana, and which is more particularly described as follows:
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 #130A of the Plat of "Sorin's Second Addition Fifth Replat" Subdivision
recorded by Document No. 0809811 in the Records of the St. Joseph County,
Indiana Recorder's Office.
Containing 0.38 acres more or less. Subject to all legal highways, easements &
restrictions of record.
and this property has Tax Key Number 18-5107-3786, 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 seq., 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 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.
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.
2
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 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.
Member of the Common Council
rr.L.ii(1 1ED a '2J
NOT APPROVED
ADOPTED
Fiird In Clef la's O flcO
AUG -4 2010
Jot, 11 VOORDE
3 CITY CLERK , M 01110, IN.
1200 COUNFY-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 & ECONOMIC DEVELOPMENT
JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
July 15, 2010
Council Member Timothy Rouse, 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:
Perrella, Patrick.
Dear Council Member Rouse:
Please find attached the Department of Community & Economic Development's report on a residential
real property tax abatement petition submitted by Patrick Perrella to build a single-family home at 902
N St. Peter Street. 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 a single-family home at a cost of $630,000. The project meets the qualifications for a (5) five-year
real property tax abatement. The petitioner will be available to meet with the Committee on Monday,
August 9, 2010.
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 235-5835.
Sincerely,
Bob Mathia
Assistant Director,
Economic Development
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeffrey Gibney
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM
PAMELA C. MEYER DONALD E. INKS MANAGEMENT
574/235-9660 574/235-9371 ELIZABETH LEONARD
FAx: 574/235-9697 574/235-9371
TAX ABATEMENT REPORT
TO: SOUTH BEND COMMON COUNCIL
FROM: BOB MATHIA
SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR:
PATRICK PERRELLA
DATE: July 15, 2010
On July 14, 2010, a petition for residential tax abatement consideration for real property located at 902 N.
St. Peter Street was filed with the City Clerk by Patrick Perrella. 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
Patrick Perrella intends to construct an approximate 3,350 square foot, two story single-family home as his
primary residence. The home will have four bedrooms, four baths, two half baths, a front porch, a finished
basement and a two-car garage. The project is part of the Notre Dame Avenue Housing Program and as
such will follow the design specifications and standards required by that program. The cost of the home will
be approximately $630,000. Total taxes to be abated during the (5) five-year abatement period are
estimated at $ . Total taxes to be paid during the (5) five-year abatement period are estimated at $ .
South Bend Common Council
RE: Perrella, Patrick
July 15, 2010
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 property 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 for a (5) five-year residential tax abatement under Section 2-77.1, Single Family
Residential Construction.
5 YEAR
PATRICK PERRELLA
23-Jul-10
South Bend Portage Township Residential Real Property Tax Abatement Schedule*
Estimated Project Cost:
Assessed Value:
STRUCTURE (% AV of cost)'._r 85.0°R -'
LAND Value I 10,000
Gross Assessed Value
Less Mortgage Exemption
Less Homestead Deduction
Less Supplemental Homestead Deduction
Base Assessed Value
$630:000.00'
Total Taxes Tax Abated** Tax Paid***
535,500.00 535,500.00 535,500.00
10,000.00 N/A N/A
545,500.00 535,500.00 535,500.00
(3,000.00) (3,000.00) (3,000.00)
(45,000.00) (45,000.00) (45,000.00)
_(175,175.00) (175,175.00) (175,175.00)
322,325.00 312,325.00 312,325.00
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 (237,445.00) N/A
N/A N/A 10,000.00
322,325.00 74,880.00 247,445.00
4.4598% 4.4598% 4.4598%
Gross Tax (tax rate x net assessed value) 14,375.05 3,339.50• 11,035.55
Less State & County Homestead Credit: 18.6246% (2,677.30) (621.97) (2,055.33)
Tax Due Before Circuit Breaker 11,697.75 2,717.53 8,980.22
Less Circuit Breaker Credit (4,612.76) (2,338.86) (2,273.90)
Net Tax 7,085.00 378.67 6,706.33
Circuit Breaker Cap
Circuit Breaker 1.0000% 5,455.00 5,355.00 5,455.00
Debt Service 0.5057% 1,630.00 378.67 1,251.33
Circuit Braker Cap 7,085.00 5,733.67 6,706.33
Net Total
Assessed Taxes Tax Tax
Year Value Due Abated Paid
1 322,325.00 7,085.00 378.67 6,706.33
2 322,325.00 7,085.00 378.67 6,706.33
3 322,325.00 7,085.00 378.67 6,706.33
4 322,325.00 7,085.00 378.67 6,706.33
5 322,325.00 7,085.00 378.67 6,706.33
5year totals: 35,424.99 1,893.34 33,531.65
*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
PATRICK PERRELLA
LAND" BUILDING" TOTAL
Year 1 $308 $6,706 $7,014
Year 2 $308 $6,706 7,014
Year 3 $308 $6,706 7,014
Year 4 $308 $6,706 7,014
Year 5 $308 $6,706 7,014
Total $1,540 $33,530 $35,070
"Current tax levy
"Additional tax revenue from new investment
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 sea., and South Bend Municipal Code Sec. 2-76 et se for this petition states the following:
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 long project descriptions):
I will be building a 2 story single family home as my primary residence. I anticipate the house will be
approximately 3,350 square feet with 4 bedrooms and 4 baths and 2 half baths. It will include a front porch, a
two car garage, and a finished basement. As a current resident of Clay Township, affiliated with the Universirv
of Notre Dame, it is important to me to live in the city of South Bend and close to work. I feel this is an
environmentally responsible choice that also allows me to take full advantage of both the events and amenities
the city and University have to offer.
2. Estimate the dollar value of the construction project (do not include land cost): 630 000.
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
Patrick Perrella 50660 Woodbury Way 100%
Granger, IN 46530
4. The commonly known address of the Property is: 902 N. St. Peter Street and having tax key no.: 018-5107-3786.
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 12,000.
8. Photographs of the Property, taken within two (2) weeks of the 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):
2009 - $ 308.40
2008 -$ 180.34
(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: $ 650.000
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 County Housing
Consortium or other public financial assistance, including but not limited to public works improvements:
None
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: In the midst of one of the most difficult real estate markets
in years, I am planning to build a new home on a vacant lot, which has been undeveloped for at least two years
with a home that is part of the Notre Dame Avenue Housing Program, following the complete design
specifications and standards. It is my desire to be part of the redevelopment and regentrification initiatives that
have been growing on Notre Dame Avenue for the last six years. This commitment to the community
contributes positively to the overall plans for development in that area and for South Bend as a whole. At the
same time, I will be selling my existing home in Clay Township.
14. The current use of the property is residential and the current zoning is SF2 (use).
(This information maybe 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):
North East Neighborhood
16. The following person should be contacted as the petitioners agent regarding additional information and public
hearing notifications:
Name Patrick T. Perrella
Address 50660 Woodbury Way
City, State, Zip Granger, IN 46530
Telephone 212.495-9196
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):
Patrick T. Perrella
By: -? - -=? ---
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Patrick T. Perrella - Homeowner
2
Exhibit A
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 # 130 A OF THE PLAT OF "SORIN'S SECOND ADDITION FIFTH
REPLAT" SUBDIVISION RECORDED BY DOCUMENT NO. 0809811 IN THE RECORDS OF THE
ST. JOSEPH COUNTY, INDIANA RECORDER'S OFFICE CONTAINING.38 ACRES MORE OR
LESS. SUBJECT TO ALL LEGAL HIGHWAYS, EASEMENTS & RESTRICTIONS OF RECORD.
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