HomeMy WebLinkAboutNo. 1417 approving an application for real property tax deduction (Bob Luan, BL Builders)RESOLUTION NO. 1417
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 five years of
real property tax abatement consideration from Bob Luan (d.b.a.: BL Builders) for real property
located at 1600 block of South Phillipa and 2200 block of South Meade in the Sample -Ewing
Development Area, the legal description of which is attached hereto, marked Exhibit "A" and
incorporated herein; and
WHEREAS, this Commission declared the Sample -Ewing Development Area by
Resolution No. 1222, adopted February 4, 1994, and in the same resolution declared the
Sample -Ewing Development Area, Allocation Area No. 8; and
WHEREAS, the properties located at 1600 block of South Phillipa and 2200 block of
South Meade are located within the Sample -Ewing Development Area, Allocation Area No. 8;
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment
Commission as follows:
1) The Commission finds that the application from Bob Luan (d.b.a.: BL Builders) for
five years of real property tax abatement consideration for property located at 1600 block of
South Phillipa and 2200 block of South Meade in the Sample -Ewing Development Area,
Allocation Area No. 8, 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 Bob Luan
(d.b.a.: BL Builders).
Approved this 16th day of February 1996, at the regularly scheduled meeting of the South
Bend Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
r�
Paula N. Auburn, President
ATTEST:
William P. Hojnac ' re
ML: Res l417
EXHIBIT A
LOTS 2599 260,261 AND 262 HOMELAND THIRD ADDITION
LOTS 779 78, 80, 81, 83 AND 84 SOUTH BEND INDUSTRIAL ADDITION
LOTS 100 AND 101 REPLAT OF HIGHLAND PARK ADDITION
i
1865 _ 1�
City of South Bend
Joseph E. Kernan. Mayor
Community & Economic Development
Jon R. Hunt
Executive Director
Ann E. Kolata
Deputy Executive Director
MEMORANOUM
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: MICHAEL BEITZINGERt�
SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR:
BOB LUAN (d.b.a.: BL Builders)
1600 BLOCK OF SOUTH PHILLIPA AND 2200 BLOCK OF SOUTH MEADE
DATE: FEBRUARY 13, 1996
On February 13, 1996, a petition for tax abatement consideration for real property
located in the 1600 block of South Phillipa and the 2200 block of South Meade was filed
with the City Clerk by Bob Luan (d.b.a.: BL Builders). Pursuant to Chapter 2, Article 6,
Section 2 -77 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 -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
The petitioner proposes to develop six new single family residences in the Rum
Village area. Lots will be combined in each of the areas to meet the minimum building
code standards, including 60 ft frontage and 6,000 sft total lot size. The homes will be
�+ between 900 and 1400 sft, with vinyl siding, 2 or 3 bedrooms, full insulated basement
and attached 1 or 2 car garage. Each home will feature an energy efficient furnace,
central air conditioning, stove, range hood, and a floor covering allowance for carpeting
and linoleum. The estimated cost for each home will average $60,000.
1200 County -City Building • South Bend, Indiana 46601.219/235 -9371 • Fax (219) 235 -9021 • TDD (219) 235 -5567
Redevelopment Business Assistance
Bureau of Housing
Financial & Program Planning &
Ann E. Kolata & Development
Kathryn Baumgartner
Management Neighborhood Development
235 -9371 Donald E. Inks
521 Eclipse Place
Elizabeth Leonard Pamela C. Meyer
235 -9335
235 -9475
235 -9335 235 -9660
Fax: 235 -9469
Fax: 235 -9697
Redevelopment Commission
Residential Tax Abatement
Bob Luan -BL Builders
February 13, 1996
Page 2
REPORT SUMMARY
1. A review of the tax abatement records, finds that the petitioner was granted a five
year residential real property tax abatement for a series of lots in the Emerson Forest
subdivision through Resolution No. 2330 -96, passed on January 8, 1996.
2. The building commissioner has reviewed the petition and has found the properties
to be properly zoned for the proposed use.
3. A review of the tax abatement maps finds that the property is not located in an area
presently designated as a Tax Abatement Impact Area.
4. A review of the Redevelopment allocation areas finds that the property is located in
the Sample /Ewing Development Area which is a Tax Incremental Financing
Allocation Area, therefore, the petition first requires the approval of the South Bend
Redevelopment Commission.
5. A review of the Tax Abatement Ordinance no. 8065 -90, as amended by Ordinance
No. 8600 -95, finds that the petitioner meets the qualifications for a five year real
property tax abatement under Section 2 -77.1 (Single Family Real Property
Abatement).
5 YEAR
BL BUILDERS
RESIDENTIAL REAL PROPERTY ABATEMENT SCHEDULE
Estimated Project Cost: $60,000.00
Total estimated Project Cost:
Assessed Value (1/4 Project Cost):
Less Mortgage Exemption:
Less Standard Homeowners Deduction:
Base Assessed Value:
Base Assessed Value:
Less Maximum Abatement Deduction:
Less Non Abated Amount:
Plus Land Assessed Value:
Net Assesed Value:
Assume constant tax rate of:
Gross Tax (tax rate x net assessed value):
Less SRTC (15.5201 %):
Less Homestead Credit (4 %):
Net Tax:
Base Assessed
Year Value
1 $12,000.00
2 12,000.00
3 12,000.00
4 12,000.00
5 12,000.00
Total Taxes
$ 60,000.00
15,000.00
(1,000.00)
(2,000.00)
$12,000.00
$12,000.00
N/A
N/A
1,006.00
$13,006.00
15.4932%
$2,015.05
(312.74)
(80.60)
$1,621.71
Total
Taxes Due
$1,621.71
1,621.71
1,621.71
1,621.71
1,621.71
$8,108.53
Tax Paid
$60,000.00
15,000.00
(1,000.00)
(2,000.00)
$12,000.00
$12,000.00
($12,000.00)
N/A
1,006.00
$1,006.00
15.4932%
$155.86
(24.19)
(6.23)
$125.44
Tax Paid
$125.44
125.44
125.44
125.44
125.44
$627.19
13- Feb -96
Tax Abated
$60,000.00
15,000.00
(1,000.00)
(2,000.00)
$12,000.00
$12,000.00
N/A
0.00
N/A
$12,000.00
15.4932%
$1,859.18
(288.55)
(74.37)
$1,496.27
Tax Abated
$1,496.27
1,496.27
1,496.27
1,496.27
1,496.27
$7,481.35