The URL can be used to link to this page

Home My WebLink About6B(1) Resolution No. 2776RESOLUTION NO. 2776 ~' ~ ~ ~~ A RESOLUTION APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION WHEREAS, I.C. 6-l .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 Markus and Krupali Krusche for real property located at 926 North St. Peter 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 926 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 Markus and Krupali Krusche for (5) five years of real property tax abatement consideration for property located at 926 North St. Peter 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 Markus and Krupali Krusche. Approved this 1st day of October, 2010, at the regular meeting of the South Bend Redevelopment Commission. SOUTH BEND REDEVELOPMENT COMMISSION ATTEST: EXHIBIT A LEGAL DESCRIPTION Address: 926 North St. Peter Street Legal Description: The West half of Lot Numbered One Hundred Twenty-six (126) as shown on the recorded Plat of Sorin's Second Addition to the Town of Lowell, now within and a part of the City of South Bend, recorded July 27, 1860 in Plat Book 1, page 10 in the Office of the Recorder of St. Joseph County, Indiana. Containing .18 acres more or less, with tax identification numbers 18-5107-3773 and 18- 5107-3774. 1200 COUNTY-CITY BUILDING 227 W. IF~FERSON BOULEVARD SOU'T'H BCND,INDIANA 4660]-1830 PHONe574/235-9371 FAx 574/235-)021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN 1. LUECKE, MAYOR COMMUNITY HL ECONOMIC DEVELOPMENT ~EFFREY V. GIBNEY FXECGI"IVE DIRECTOR TAX ABA TEIV~ENT REPOR T TO: SOUTH BEND REDEVF_.LOPMENT COMMISSION FROM: BOB MATHIA ,/~ . ~''~ SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PE"ITTION FOR: KRUSCHE, MARKUS & KRUPALI DATE: September 22, 2010 On September 2l , 2010, a petition for residential tax abatement consideration for real property located at 926 North St. Peter Street was tiled with the City Clerk by Markus and Krupali Krusche. 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 determinin;„ whether the area qualifies as a Residentially Distressed Area pursuant to LC.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 Markus and Krupali Krusche intend to construct an approximate 2,400 square foot, single-family home as their primary residence. The home will have two stories with a brick exterior. It will have three bedrooms, two and one-half bathrooms, a great room, a study, a dining room, a small backyard patio and an unfinished basement. 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 $450,000. Total taxes to be abated during the (5) five-year abatement period are estimated at $1,893. Total taxes to be paid during the (5) five-year abatement period are estimated at $23,367. COMMUNITY DB'V81.OPM ENT ECONOMIC D6VELOPMHNT FINANCIAL IIc PROGRAM PAS\IELA C. M~1'F.F DONALD I~,. INKS MANAG EM GNT 574/235-9660 574/235-9371 ELIZACiGI_H LEONAan Fnx: 574/235-9697 >74l235-9371 South Bend Redevelopment Commission RE: Krusche, Markus & Krupali. September 22, 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 properties t0 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 22-Sep-10 KRUSCHE, MARKUS & KRUPALI South Bend Porfage Township Residential Real Property Tax Abatement Schedule'` Estimated Project Cost: Assessed Value: STRUCTURE (% AV of cost) 85.0% _:, LAND Value j 10,000 .,! Gross Assessed Value Less Mortgage Exemption Less Homestead Deduction Less Supplemental Homestead Deduction Base Assessed Value Total Taxes Tax Abated" Tax Paid"" 382,500.00 10,000.00 382,500.00 N/A 382,500.00 NIA 392,500.00 382,500.00 382,500.00 (3,000.00) (3,000.00) (3,000.00) (45,000.00) (45,000.00) (45,000.00) (121625.00) (121,625.00) (121,625.00) 222,875.00 212,875.00 212,875.00 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 (137,995.00) N/A NIA N/A 10,000.00 222,875.00 74,880.00 147,995.00 4,4598% 4.4598% 4.4598% Gross Tax (tax rate x net assessed value) 9,939.78 3,339.50 6,600.28 Less State & County Homestead Credit: 18.6246% (1 851.24) (621.97) (1,229.28) Tax Due Before Circuit Breaker 8,088.54 2,717.53 5,371.01 Less Circuit Breaker Credit (3 036.46) (2,338.86) (697.59) Net Tax 5,052.08 378.67 4,673.41 Circuit Breaker Cap Circuit Breaker 1.0000% 3,925.00 3,825.00 3,925.00 Debt Service 0.5057% 1,127.08 378.67 748.41 ' Circuit Braker Cap 5,052.08 4,203.67 4,673.41 Year Net Assessed Value Total Taxes Due Tax Abated Tax Paid 1 222,875.00 5,052.08 378.67 4,673.41 2 222,875.00 5,052.08 378.67 4,673.41 3 222,875.00 5,052.08 378.67 4,673.41 4 222,875.00 5,052.08 378.67 4,673.41 5 222,875.00 5,052.08 378.67 4,673.41 5 year totals: 25,260.39 1,893.34 23,367.05 '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 KRUSCHE, MARKUS & KRUPALI LAND* BUILDING~~ TOTAL Year 1 $141 $4,532 $4,673 Year 2 $141 $4,532 4,673 Year 3 $141 $4,532 4,673 Year 4 $141 $4,532 4,673 Year 5 $141 $4,532 4,673 Total $705 $22,660 $23,365 Current tax levy 'Additional tax revenue from new investment