Loading...
HomeMy WebLinkAboutConfirming Tax Abatement - 926 N St. Peter St. Markus& Krupali Krusche 5yr. Real~~~®~u-rion~ 4065-10 Passed by the Common Council of the City of South Bend, Indiana October 25, 10 20 Attest: City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 26, 20 10 City Clerk Approved and signed by me October 26, 2p10 RESOLUTION NO. ~- ~ ~~ ~-~ A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 926 North St. Peter Street AS RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A (5) FIVE-YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR Markus and Krupali Krusche 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 926 North St. Peter Street, South Bend, Indiana, and which is more particularly described as follows: 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; and this property has Tax Key Numbers 18-5107-3773 and 18-5107-3774, 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 sea., 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 seq., 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. E. The deduction will not be allowed unless the dwelling is rehabilitated to meet local code standards for habitability. 2 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 rFESENTED ~ ~ ~~ ` ~ ~~T, APPROVEL ADO?TED ~,~ Z~~-6 Filed in Clerlc'~ ~~fiic~ OCT20~010 JOHN VOQ~CE CITY GI.yRK, S0.9END, IN. 1200 COUN"I'Y-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOLTCI I BEND, INDIANA 46601-1830 PxoNE574/235-9371 FAX 574/235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY HL ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR September 22, 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: Krusche, Markus & Krupali. 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 Markus and Krupali Krusche to build asingle-family home at 926 North 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 asingle-family home at a cost of approximately $450,000. The project meets the qualifications fora (5) five-year real property tax abatement. The petitioner will be available to meet with the Committee on Monday, October 11, 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, ~111^~ ~n~~~ Bob Mathla Assistant Director, Economic Development Attachments cc: South Bend Common Council Members Mayor Stephen Luecke Jeffrey Gibney Don Inks COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL & PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELIZABETH LEONARD FAX: 5741235-9697 574!235-9371 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 ~ ECONOMIC DEVELOPMENT ,JEFFREY V. GIBNEY EXECUTIVE DIRECTOR TAX ABATEMENT REPOR T TO: SOUTH BEND COMMON COUNCIL FROM: BOB MATHIA SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR: KRUSCHE, MARKUS & KRUPALI DATE: September 22, 2010 On September 21, 2010, a petition for residential tax abatement consideration for real property located at 926 North St. Peter Street was filed 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 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 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 DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL SC PROGRAM PAnIELA C. MEYER DONALD E. INKS 1~IANAGEMENT 574/235-9660 574/235-9371 ELazAReTe LEONARD FAX: 574/235-9697 574/235-9371 South Bend Common Council 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 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 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 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 450.000.00 Total Taxes Tax Abated** Tax Paid*** 382,500.00 382,500.00 382,500.00 10,000.00 N/A N/A 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) (121,625.00) (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 N/A 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 Net Total Assessed Taxes Tax Tax Year Value Due Abated 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 5yeartotals: 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 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 seq.' and South Bend Municipal Code Sec. 2-76 et se .for this petition states the following: 1. 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): New home of sgft. 2400 including 10 rooms on two 2 floors with 2,5 bath , 3 bedrooms, 1 great room, 1 study room, l dinning room, small patio in backyard and unfinished basement. This home will be cladded in brick and will be designed in a colonial revival style to fit and improve the conditions of the Northeast Neighborhood. 2. Estimate the dollar value of the construction project (do not include land cost): $450,000. 3. The real property for which tax abatement consideration is petitioned (Properly) 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 Krupali and Markus Krusche 306 Bond Hall, University of Notre Dame Owner 46556 Notre Dame, IN 4. The commonly known address of the Property is: 926 N. St. Peters Street, South Bend, 1N and having tax key no.: Portage (use additional sheet for multiple addresses or key numbers). 5. A legal description of said Property(s) is attached hereto, marked Exhibit A, and is incorporated herein. 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 of 18-5107-3773 and 18-5107-3774. Subject to all legal highways, easements and restrictions of record. 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 $30,000 (use additional sheet for multiple addresses). (This information may be obtained from the St. Joseph County Assessor's Office, 235-9523}. 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): Paid by previous owner University of Notre Dame, Notre Dame,1N - Forthe 2008, payable 2009 taxes: 18-5107-3773: $147.28 18-5107-3774: $156.30 For the 2009, payable 2010 taxes: 18-5107-3773: $74.53 18-5107-3774: $66.82 (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: $480,000 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: not applicable 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: The neighborhood in which this property resides deteriorated badly throughout the 1970's, 1980's and 1990's.The area of Northeast neighborhood has been under developed and is susceptible to crime to due lack of quality development in the neighboring community. This has led to fast deterioration of the real estate value and also caused adversed reaction of no individual involvement in starting new or redevelopment projects for the area. The banks are skeptical of providing loans for new houses in the neighborhood due to issue related to market value of the property in the projected future. Houses such as the one we are building are necessary to bring revitalization in the community and to jump start growth in the neighborhood. The Notre Dame Avenue Housing Program, under which this residence is being built, was created specifically by the University of Notre Dame in cooperation with the City of South Bend to reverse this trend by encouraging new, high-quality residential development in the neighborhood, which supports housing values and real estate taxes. 14. The current use of the property is vacant lot and the current zoning is housing (use). (This information may be 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): Designated redevelopment area of the Northeast Neighborhood as identified by the South Bend Redevelopment Commission. 16. The following person should be contacted as the petitioners agent regarding additional information and public hearing notifications: Name Markus Krusche -, L3 3 Address 306 Bond Hall, 1~ `' City Notre Dame State IN Zip 46556 Telephone 574 303 8577 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): Krupali and Markus Krusche By: Owners n r ~,/~. 1~. ~ .1 C (Typed or printed name and capacity) Fli^',,~ ~il ~~Ci"~e',~a ®~ilCB S E P 2 ] 2010 fir;.:; VO~:i^= EXHIBIT "A" Legal Description and/or address of the Real Estate 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 of 18- 5107-3773 and 18-5107-3774. Subject to all legal highways, easements and restrictions of record. SEP 2 ~ 2010 11 ~f~~t7,' a/`1;^ a~ ST. PETER STREET (R/W VARIES) N 00'00'31 " W 66.04' M 3/4" OPEN TOP 60' (R) IRON FOUND 3/4" OPErJ TOP 0.4' WEST IRON FGUrJD 0.1' rJORTH ~ .--. ~ °~ CV PROPERTY DETAIL i`- SCALE: 1" = 30' ~ t` CV PT o PT W 127 ~ 126 0 ~ ~ ~ rn ~ \ IRON FOUND C.43' SOUTH IRON DETAIL SCAL_. i' 1 z 4 W 5 I/ 6 '-' ~o w N m~ 7 ~ , ~/: T1 N 8 °~ J 9 m ~- m 19 ° z PT 125 PART OF TF RANGE LEGEND o IRON FOUND D 5/8" REBAR SET ~~d;TH LFA CAP • "V" CUT FOU?.D I:'~; CO^JCRETE (~t) n~_,aSURED (R) RECORD 66' (R) S 00'58'11" E 66.04' M PT 126 ~ 136 135 134 ~ 12 11 ~ j g ~.~~`~~s~~N ~~o S R/vr UNE ST. PETER STREET (R/W VARIES) 3/4'~ cPErJ Toy i~u~, FOUNO ~.~ ~~ z/4" OFEN T0~ Ce^O'0 0.1' NORTH ~iRO~J FOUND r. fROr FOUND R/'~5' LIN E \ 66.25' (art) 1 ' \ 65.26' (td) ` ' 66.i4' (fit) ' \ ~LFA (R) 66 ~R} 66 ~ ` 66 (?) \ \ IRO': FOUND ' PT ~ PT PT ~ EAST \ SEE 0.2 oPEN Fc~~~o ^ 130 ~ 129 8 ~ MoD ~ ~ PT 127 \ D_TA,~_ \` ~\ PT 0 ~a ~~ P ~_ S ~ Q~ 1 I{o~J Fou~:D 0 43' SOUTH\ ~ 125 ~~ \ ~ a0~`~ ~ 66.14 (!J) . l~L z ~ CP?PED J PT IRC~: FoU`:u PT PT PT PT 130 PT 128 127 126 125 129 1111`~,II(~u; \\\,~,~~~cE , S-05: * ': STATE ~ •-.,, urrrrnoiln o'