HomeMy WebLinkAboutReconfirming Tax Abatement - 1833 Alfton Ct. Wilson, Roger & Alison RES�LUTION
4120-11
Passed by the Common Councii of the City of South Bend, Indiana
September 12, 11
20
Attest: City Clerk
Attest� � President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
September 13, 20 11
_�
City Clerk
Approved and signed by me S e p t em b e r 13, 20 11
�'��� ���
�
RESOLUTION NO. �1, �Z�-�I
A RESOLUTION RECONFIRMING THE ADOPTION OF A DECLARATORY
RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF
SOUTH BEND, INDIANA, CONIMONLY KNOWN AS
VACANT LAND AT 1833 ALFTON COURT
TO BE AN ECONOMIC REVITALIZATION AREA
FOR PURPOSES OF A FIVE (5) YEAR
RESIDENTIAL PROPERTY TAX ABATEMENT FOR
Roger W. Wilson and Alison S. Wilson
WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a
Declaratory Resolution designating certain areas within the City as Economic
Revitalization Areas for the purpose of tax abatement consideration; and
i i a ed he area commoni known as Vacant
WHEREAS a Declarato Resolut on des t t
� rY � Y
Land at 1833 Alfton Court , South Bend, Indiana, and which is more particularly
described as follows:
Lot number 35 as shown on the plat of Norawood Manor, recorded July 7,
2006 in the Office of the Recorder of St.Joseph County,Indiana as
Instrument 0628791
and which has Key Number Pt 023-1050-32Q1 as an Economic Revitalization Area; 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
WI�REAS, the Council has determined that the qualifications for an economic
revitalization area have been met.
WI�REAS,the Council issued a Confirmatory Resolution confirming the adoption of
the Declaratory Resolution as Resolution No. 3644-06 on September 25,2006; and
WHEREAS,the Petitioner will exceed the five year designation period granted in the
Confirmatory resolution,which will expire on September 25, 201 l; and
WHEREAS,the Petitioner has requested an additional period of time to complete �
construction of the planned project. .
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its Confirming Resolution
designating the area described herein as an Economic Revitalization Area for the
purposes of tax abatement. Such designation is for residential property tax abatement
only and is now limited to six (6) calendar years from the date of adoption of the
Declaratory Resolution by the Common CounciL
SECTION II. The Common Council hereby determines that the property owner is
qualified for and is granted residential property tax deduction for a period of five (5)
years.
SECTION III. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approval by the Mayor.
G � `
Member of the Common Council
�.,,�,,.,�,�,__.__
Filed i� �'�����,�:, ���,��
� r
(� S�rg ] pi
(_ y0 �+ riw'W i f
�ttESENTED l—`l L�'��, f
,�.;,,,.._,.„,.a;,� �
NO7 AP�RtOY��i JOHN��+���,� �
PR CITY CLER@C���°'�.'��q���u�, i x
ADOPTfs� .��" Q v,�L�� --— .,�.�,
l,
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
11-56 A RESOLUTION RECONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN
AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA,
COMMONLY KNOWN AS VACANT LAND AT 1833
ALFTON COURT TO BE AN ECONOMIC REVITALIZATION
AREA FOR PURPOSES OF A FIVE (5) YEAR
RESIDENTIAL PROPERTY TAX ABATEMENT FOR
ROGER W. WILSON AND ALISON S. WILSON
Respectfully report that they have examined the matter and that in their opinion,
this bilt is being recommended to the full Council with a favorable
recommendation.
This bill was heard by the Utilities Committee.
Timothy Rouse
Chairperson, Committee of the Whole
September 13, 2011
MEMO TO THE TAX ABATEMENT FILE
FROM: Kathy Hahn, Department of Community and Economic Development
RE: Foster Custom Homes
On September 25, 2006, a five year residential tax abatement was granted to Rojo
Development through resolution 3644-06. Subsequently two lots were sold to Foster
Custom Homes. That abatement period expires this month. A reconfirming resolution
was granted to Foster Custom Homes on September 12, 2011. The purpose of the
reconfirming resolution was to grant a one year extension.
�
,
SpU TH g�,
p� ,�till�Ill�//ji�'�0
- 12,00 CAUNTY-CITYBUILDING � .��•r����� /�� � PHOrrE 574/235-9371
V ���\ �i r. ii �.y
227 W.JEFFERSON BOULEVARD i Fk3C 574/235-9021
W �\\PEACE// �,
SOUTH BEND,IrrDr�wn 46G01-1830 �� � ^%�'a?
r
� R
1865
CITY OF SOUTH BEND STEPHEN J. LUECKE,MAYOR
COMML7NITY �L ECONOMIC DEUELOPMENT
,JEFFREY V. GIBNEY
EXECUTIVE DIRECTOR
August 30, 2011 �
Council Member Timothy Rouse, Chairperson
Community&Economic Development Committee
South Bend Common Council
4th Floor, County City Building
South Bend, IN 46601
RE: Residential Property Tax Abatement Designation Extension for:
Foster Custom Homes
Roger&Alison Wilson �
Brant& Louisa Maria Hesch
Dear Council Member Rouse:
Bernard Feeney,Vice_President of Lang,Feeney&Associates is the Agent for the three petitioners
who are: Foster Custom Homes(21ots);Roger&Alison W�lson(1 lot); and Brant&Louisa Maria
Hesch ( 1 lot). Mr. Feeney is requesting an extension of the designation period for a five year
residential property tax abatement granted to Rojo Development, Inc., Norawood Manor through
resolution number 3644-06 on September 25, 2006. The designation period granted to Rojo
Development was five years and is due to expire on September 25,2011.Subsequent to receiving the
designation, Rojo Development sold the four vacant lots to the three petitioners. Mr. Feeney is
requesting a one year extension on the designation (making the total designation six years). The
extension request is due to a delay in the anticipated construction due to the economy and the
depressed market for residential construction.
1n view of the current situation Mr. Feeney is requesting a one year extension of the designation
period. The request falls within the Council's guidelines,which allow for a petitioner to request up
to a one year extension for good reason. Also attached are a revised Statement of Benefits (Form
SB-1) from each of the three petitioners along with a map of Norawood.Enclosed also is a copy of
the original staffreport as prepared by Sharon Terrell in 2006. Mr.Feeney will be available to meet
with the Committee and answer any questions on Monday, September 12,2011.
COMMUNII'Y DEVELOPMENT ECONOMIC DEVELOPMENT FINAIVCIAL&PROGRAM
' PAMELA C.MEYER . DONALD E.INKS MANAGEMENT
5741235-9GG0 574/235-9371 ELIZABETH LEONARD
Fnx: 574/235-94G9 574/235-9371
Should you or any of the other Council members have any questions concerning the request or need
additional information, please feel free to call me at 235-9278.
Sincerely,
� ����
Kathy Hahn
Economic Development Specialist
Attachments
cc: South Bend Common Council Members
Mayor Stephen Luecke
Jeff Gibney
Don Inks
. ,.�,��,,,
�� ' � °'�� STATEMENT OF BENEFITS
�a!�� _' REAL ESTATE IMPROVEMENTS Fortnn ss•1/RE
���
�y � State Form 51767(R I 1-06)
'°'• Prescribed by the Department of Local Govemment Finance
INSTRUCTlONS:
1. This statemenf must be submitted to the body designating ihe Economic Revitalization Area prior to the public hearing if the designating body requires
iniormation from the applicant in making ifs decision about whefher to designate an Economic Revitalization Area. Oihenvise this statement musi be
submitted to the designating body BEFORE the redeve/opment or rehabilitation of real property for which the person wishes to claim a deduction.'Projects"
planned or committed to after Ju/y 1, 1987,and areas designated after July 1, 1987,require a STATEMENT OF BENEF/TS. (fC 6-1.1-12.1)
2. Approval of the designating body(Cify Council, Town Board,County Council,etc.)must be obtained prior to initiation of the redevelopment or rehabilitation,
BEFORE a deduction may be approved.
3. To obfain a deduction,Form 322 ERA,App(ication for Deduction from Assessed 1/aluation of Structures in Economic Revitalization Areas,must 6e filed
with the County Auditor by the later of.•(1)May 10;or(2J thirty(30)days a8er the notice of addition to assessed valuation or new assessment is meiled to
fhe property owner at the address shown on the records of the township assessor.
4. Propeny owners whose Statement of 8enefits was approved after June 30, 1991, must submit Form CF-1/RE annually to show compfiance wifh the
Statement of Benefits. (IC 6-9.9-92.1-5.1(b))
5. The schedules esta6/ished under IC 6-1.1-12.1-4(d)effective July 1,2000,app/y to any statement of benefits filed on or aRer July 1,2000. The schedules
effective prior to July 1,2000,shail continue to apply to those statement of benefits filed before July 1,2000.
• �- �
Name of taxpayer
Roger&Alison Wilson
Address of taxpayer(number and street,city,state,and ZIP code)
8120 Chagrin Mills Rd,Chagrin Falis,OH 44022
Name of contact person Telephone number
J.Bemard Feeney (574)233-1841
• • • � . • • -�•• � •••
Name of designating body Resolution number
City of South Bend Common Councii
Location of property County DLGF taxing district number
Alfton Court East of Bridgeton Drive St.Joseph South Bend-Centre .
Description of real property improvements,redevelopment,or rehabilitation.(use additional sheeis it necessary) ESTIMATED
Construction of a single family home in Norawood Manor Start Date Completion Date
08/18/2011 12/31/2014
• • • . • -•-• � •-•
Current number Salaries Number retained Salaries Number additional Salaries
0 N/A N/A N/A N/A N/A
• . . • . • -••. . •-.
NOTE:Pursuant to IC 8-1.1-12.1-5.1 (d)(2)the REAL ESTATE IMPROVEMENTS
COST of the properry is confidential: COST ASSESSED VALUE
Current values s,soo.00
Plus estimated values of proposed project 2�s.000.00
Less values of any property being repiaced
Net estimated values upon completion of project 2�s,soo.00
• • � � • -• �
Estimated solid waste converted(pounds) Estimated hazardous waste converted(pounds)
Other benefits:
•
I r by certify that the representations in this statement are true.
Sign ture of o' presentative Trde Vice-President, Date si ed(mo h,day,year)
Lang,Feeney&Associates $ �
/
` ��e� ���_ ; 4
�5��� ;> ; �
. �YRa�i� -----"`-a.?o.00s--�---� � '�;` <�.
�------------------------------
'—' . .10'LtfZ
� � . .. ��i� .
�
1 � I N
I 1 �
/ �
I ^
� / I 1 � I 8'�
� � � � � I / �'�^
� n � � � � a � .
^ � � ,o � � ^I$ �"��,
� � � I ,., � v. � � e� �
"�-_ I . I � - � I �
�_ � � I I
- I l"'� ' .
� � ��--� I I i/ .
` -� �..I-�' � � � . � I r
-'�_ . "'- � --�'._.-'_� � .
� _ 'T__'� •�� __ -��'---------- 'I �6�„ I .R
o , I I i ._,----� � ��� i
i � � o Ir i i i\ � � ����A o
� i � �--� e
i � � i � i � Q�•.� � „
�� � , � � ! .� � 1 � �yA{z � I.� .
I� 7 �--i,.� ' � � � � \� $ �'��u8a
i � � n i � I 9
� !%'`... 1 I ,o � .�
� I � � `~ .26.���� I � yp � !•
� I / .L6'1�61,IC.115 I .r6'SIZ�M.M.90DOS ,s
1 ^ -
1 � � ,Y"SI: � ,
� I � X I
`�`-. � '\: g „ I
� �� -�--� � _ ' R
�.� � W
, -- -- - � .;•� ,
�
�r•�_ ' i �" �" z
�
� ``�, � i � n � �_�p�. - ��A%s�E I Z '
! � �. '�' /.'i . ��' Sti4� � -
. ' � � ' -♦c_ � ���� (,° � �>' � ,
I � I .\P 7F ?. '�2� fr,Y � � `` � m �Z� ' .
� ��� ' \ 1� I tl o
- � � � � �R _ .at•i r i�o � d� n � � ,•^,� � �
�i / � 4� .9 tc Je�'s� .w I ay a s
. I � i g` � i ` �`J I i � ^ �N i
— L�."�'- • ' z � � �^ \ � i.� �� o
i •.\ `�'��� �\ _ � $i;, 1 i c� i ��
I �y� � °ly, 6L110DOS � N
I \ I,� � � � .00'O[I � Qj „�o
I r�:n � I 1, I
.. I � 7�• . \ � I �� � I I � o m .
I 3r�/� � � IS'6[I [I✓JAOi' 1
I R �\ ` ...is'ti:_ i !n�nfi ! I $ � .. � g W= . .. .
_,L, .��€ ''� `\ '" � ' � ! � � � i b � ��
/ � �+ I � I ON
� / Y� ��� \ `��\.,So 8i� ., i ! r z�SO�-� O so �
--�— �' �is �� ` -�x . ;' �� r .oauu_'i � ��
` i �t _ �
•` ' L'__' � I � s oa
10'S6� I[IWAOn- �„ I $g � _
�. � / \ .10'S01 4,-0..f4p4�, �I � .. � g y�Z . .
� ` \ �� I:•• � �la � j ^ x =O
� I 8�N I �� ��
� 1 K[�.roDOS � � O ��
��_� � \''� - �i� � I �� `� � .00a� � � � _�
Fi � i � � � p
Is�e' � � 15'oit�3.e�.�oWN � I � R j $ o oq n �.q �ry�
� ; I 6 N .�soa � .00ae i � I I 8 � �Si�'R��noc�'SZ:
1 fnSg' I� j � � ^ rain
� � a�� � '�i�_��- „ I$`' „i I� I I [I�oD05 � i9
_-�y-���_� £_J 1 ���� � _ '° I�.R I � 1 .00'OCI � �K
6 1 ��°� % � 3 ��� �M9,'t� � � �
��� i � � i i, �,• r. � �\�x i I �' ,. i :. �«S'Rg:°-�a^1
��g°, � % ���- ���.� � �.�. .96�6 � � ; � ���������i
�� � ., � 6 m ��^: �� w '
� � i �' r�� ��� i i �
� � � �z° � dy ��0. �PoWr I `� ` I � A2CCt.eq 1 � .
! r�� ^ .�` �D�� � 4+ .16'KI
� '-L-__-_ j h['G� �/•ft'u:.r,;�� `iTq� :�VrM i � Vi / � G .
�;" ,� , _ � � �
,._ �� i � • y � ,
�''<� �. ��8: i i
� y / ,,, I ►
__-,, ���� �� l, � ; � � , �. .:
_ ,. _ , ,� - �
�_�- ---,_ ��� � �. ; - � [ � � =�tl . ���� �� �;
� J\•.-� ``\ \ ��� .T/A`' `� �, �`�9, i f J �wv��
. �\ ` ` / �ja �p � .Os� 1 ' � �.1�
G� `'\ `\ ` `� \\Ty� � � /� f�2N I ��5 �
5� m / /, ``\`. `\�\` ���`�`V / /' :� � .
�� / � � �\ N .�� � � ���e���'
§ � � � \ ` : s = ' i � �?����`Rt�
. � - � � `�. � ��CyjN F�y.�o I ynoYoR ���+�nw�i�e
� � � ' �y
Y � � / '\ �N� "'�m� � ��m�3uc
i i � \ ���. ��
/' i ' ,i j ge=n �\ /�� . .'xv � . . .
' ���/ ; /�oo�u\ �\ i ��� . � � . I
i � °Jm � � J � h'
l � �1 i �\ r /� yv't 7l�Rl+YtR
/ ��� � h / � ��y /� i i�i����n°'io
/ ����rz" i// / Sd� \ � \ � / � R
i
% �" � / ��_ .. � . ' � ����R8$
; �� . `,1 '� '� �
, , s
, - ,
, , �W�€ � , .
, , , •
� �
, �
, x.----------� ---------� ,• �
� . • , ����Uar�scs
/ j � j �
, �'__�_�
��.���i:�•��F���:�.
��, �'��`�`'!��'''� .�����
p,/'� �:�! \� .. .
� _ 'n t �. - ir- r•�
��)lli . :�i . I-'!` . �. �\� �. ll�l .i. � ��f/ .v�-lir]
��,'�V tFFFLR�n� `'> \^• �\ �i�� Ci"' � .. -+! � � ` .
� 1 }.�l)1 l L f i ,�\ YEACE � y� i l� 1: }f 35-�� 1
5Ut',.,Ki.'�U.���Dl,i�:� 4:�(itl� ) ,.)�' �'j i:\>���.a�j� 1�)�))��/ �',>-S�fi7
�`��-:'..
��r_:r�,f�A•
x/�;"
• T865_/
t_ . i> ->vurr� BrNn S'C'EPfll3ti J. l.(.�l:.:t��_. ,`.t.. ..,.
Ca������`�1I��i' c�L ECONOMIC I..1�.��'i.�:�PiVIENT
SHARON T. KENI7ALL
F.XEC�,'I'IV��.Urr.F:c:rc;h
TAX ABA TEMENT REPOR T
TO: SOt1TH BEND COMMON COUNCIL
FROM: SHARON TERRELI�
SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR:
ROJO DEVELOPMENT, INC. (NORAWOOD MANOR)
DATE: August 31, 2006
On August 17, 200G, a petition for residential tax abatement consideration for real property was filed with
the City�Clerk by Rojo Development. 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 petitior� (a copy of which is
attached), investigated tlie area, and makes the following report.
PROJECT DESCRIPTION
Rojo Development intends to construct(13)thirteen,single-family,custom-built homes. The price of each
home will be approximately two hundred fifty thousand dollars($250,000). Taxes to be abated during the
(5)five-year abatement period is estimated at$10,216 for each home. The total amount abated for the(13)
thirteen homes totals�132,808. Taxes to be�aid for each home are estimated at$27,913. Total taxes to
be naid during the (5) five-year abatement period for the (13) thirteen homes is $362,880.
(;o�rMU�ar��Devfi,o�>n:r�i _-.�. Ecc�xci�•t�c L)i�.vr�.ui>��r�r:r .~..�_.W 1'i�n��c•�n�.&Pxoc;�cnn�
1�:>.�,�.�.a C.�terr:: D:,r::���,s...t�,:.; lvt.�N;�GEMLNT
5?4i2+i 9�i(;6 `,?,/'3.`.;.93?i lii�?.��r.l':i LiSUN�.r.t�
F+.x: 5;=ir2:,5-7v•)" 5,.i/235-`�:'�7:
South Bend C�o�l:rnon Council
RE: Rujo Development, Inc.
Au�ust 31, 2006
Pa�e 2 °
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted finds that the petitioner has been associated
with or been granted the f�llowing previous tax abatements.
Term/Tvpe Resolution No. Date
5-year real property 3303-04 February 9, 2004
5-year real property 3302-04 February 9, 2004
5-year real property 3301-04 February 9, 2004
5-year real property 3300-04 February 9, 2004
5-year real property 3298-04 February 9, 2004
5-year real property 3119-02 September 9, 2002
5-year real property 2873-00 May 22, 2000
5-year real property 2699-98 December l 4, I 998
5-year real property 2620-98 May 11, 1998
5-year real property 2561-98 March 30, 1998
5-year real property 2550-98 February 16, 1998
2. T'he Building Commissioner has reviewed this petition ancl finds the properties to be properly zoned
for the proposed project.
3. A review of the South Benci Redevelopment designation areas finds that the property is not located
in a Tax Incremental A(location area; therefore, no action is required by the Soutii Bend
Redevelopment Commission is required.
4. A review of the Tax Abatement Ordinance No. 9394-U; 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 30-Aug-06
° ROJO DEVELOPMENT INC. (NORAWOOD MANOR) �
South Bend Centre Township Residentia!Real Pr�operty Tax Abatement Srhedcrle*
Estimated Project Cost: $3,250,000.00
Total Taxes Tax Abated*x Tax Paid***
Assessed Value:
STRUCTURE (assume 85%of project cost) 2,762,500.00 2,762,500.00 2,762,500.00
LAND (assume$10,000) 10,000.00 N/A N/A
Gross Assessed Value 2,772,500.00 2,762,500.00 2,762,500.00
Less Mortgage Exemption (3,000.00) (3,000.00) (3,000.00)
Less Standard Homeowners Deduction (35,000,00) (35,000.00) (35,000.00)
Base Assessed Value 2,734,500.00 2,724,500.Od 2,724,500.00
Less Maximum Abatement Deduction N/A N/A (74,880.00)
Less Non-Abated Amount N/A (2,649,620.00) N/A
Plus Land Assessed Vafue N/A N/A 10,000.00
Net Assessed Value 2,734,500.00 74,880.00 2,659,620.00
Propertv Taxes:
Assume constant tax rate of 5.1338% 5.1338% 5.1338%
Gross Tax (tax rate x net assessed vafue) 140,383.76 3,844.19 136,539.57
Less SRTC: 21.7230% (30,495.56) (835.07) (29,660.49)
Less Homestead Credit: 32.0952% (35,268.84
) (965.78) (34 303.05)
Net Tax 74,619.36 2,043.34 72,576.03
Net Total
Assessed Taxes Tax Tax
Year Value Due Abated Paid
1 2,734,500.00 74,619.36 2,043.34 72,576.03
2 2,734,500.00 74,619.36 2,043.34 72,576.03
3 2,734,500.00 74,619.36 2,043.34 72,576.03
4 2,734,500.00 74,619.36 2,043.34 72,576.03
5 2,734,500.00 74,619.36 2,043.34 72,576.03
5 year totals: 373,096.78 10,216.68 362,880.15
*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.