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HomeMy WebLinkAboutNo. 1153 approving an application for real property tax deduction (Macri's Italian Bakery, Inc., 212, 214, 214 1/2 Niles Ave.)RESOLUTION NO. 1153 A RESOLUTION APPROVING AN APPLICATION FOR REAL PROPERTY TAX DEDUCTION WHEREAS, I.C. 6 -1.1- 12.1 -2(j) 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 six (6) years of real property tax abatement consideration from Macri's Italian Bakery, Inc. for real property located at 212, 214, 214% Niles Avenue in the South Bend Central Development Area, the legal description of which is attached hereto, marked Exhibit "A" and incorporated herein; and WHEREAS, this Commission declared the South Bend Central Development Area by Resolution No. 737, adopted May 10, 1985, and in the same resolution declared the South Bend Central Development Area, Allocation Area No. lA; and WHEREAS, the property located at 212 -214, 214M Niles Avenue is located within the South Bend Central Development Area, Allocation Area No. IA; NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: 1) The Commission finds that the application from Macri's Italian Bakery, Inc. for six (6) years of real property tax abatement consideration for property located at 212, 214, 214% Niles Avenue in the South Bend Central Development Area, Allocation Area No. 1A, 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 Macri's Italian Bakery, Inc. Approved this 7th day of May, 1993, at the regularly scheduled meeting of the South Bend Redevelopment Commission. ATTEST: C Theo F. Sharp, ecretary Res1153 LM 0 SOUTH BEND REDEVELOPMENT COMMISSION Paula N. Auburn, President EXHIBIT A ( 212 N. Niles Ave.) Key No. 18 5005 0115 Legal Description; 14 FT S SIDE 93 FT W END LOT 82 AND 20 FT N SIDE 93 FT W END LOT 83 0 P LOWELL ( 214 N. Niles Ave.) Key No. 18 5005 0113 Legal Description; 52x93 FT NW COR LOT 82 O.P LOWELL (214 1/2 N. Niles Ave.) Key No. 18 5005 0114 Legal Description 72 FT E END LOT 82.& 20x72 FT HE COR LOT 83 0 P LOWELL. City of South Bend Joseph E. Kernan. Mayor Department of Economic Development Jon R. Hunt Executive Director Ann E. Kolata Deputy Executive Director MEMORANDUM TO: HUMAN RESOURCES COMMITTEE OF THE SOUTH BEND COMMON COUNCIL FROM: DEPARTMENT OF ECONOMIC DEVELOPMENT - MICHAEL BEITZINGER SUBJECT: TAX ABATEMENT PETITION MACRI'S ITALIAN BAKERY, INC. 212, 214 & 214 1/2 N. NILES AVENUE DATE: MAY 3, 1993 On April 30, 1993, a petition for tax abatement consideration for real property located at 212, 214 & 214 1/2 N. Niles Avenue was filed with the City Clerk by Macri's Italian Bakery, Inc. 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 Economic Development for purposes of investigation and preparation of a report determining whether the area qualifies as an Economic Revitalization Area pursuant to I.C.6 -1.1- 12.1 -1 and whether all zoning requirements have been met. The Department of Economic Development has reviewed the petition (a copy of which is attached), investigated the area and makes the following report. PROJECT DESCRIPTION The proposed project is a much needed expansion of Macri's Bakery. The project calls for moving the business from 520 E. LaSalle Avenue around the corner to 214 Niles Avenue. An existing 6500 square foot building will be renovated and a 4500 square foot addition will be built. The building will then house a bakery, a gourmet food section, a deli and an Italian restaurant. The total projected cost of the project is $550,000. The project will create twenty five (25) new permanent jobs in the first year, representing an annual payroll of $85,000 and will maintain twenty three (23) existing permanent full -time jobs and seventeen (17) part time positions with an annual payroll of $ 210,000. 1200 County -City Building • South Bend, Indiana 46601 • 219/235 -9371 Fax 219/235 -9021 Redevelopment Business Assistance Housing Rehabilitation Ann Kolata & Development Kathryn Baumgartner 235 -9371 Donald Inks 521 Eclipse Place 235 -9335 235 -9475 CDBG Program & Financial Management Elizabeth Leonard 235 -9335 Planning & Neighborhood Development Pamela Meyer 235 -9449 REPORT SUMMARY 1. The petitioner has not applied for any previous tax abatement consideration. 2. The property is properly zoned for the proposed use. A copy of the report from the Building Commissioner is attached. 3. The property is located in an area presently designated as a Tax Abatement Impact Area by the South Bend Common Council. 4. The property is located in a Tax Incremental Financing Allocation Area. The Redevelopment Commission considered this abatement petition at its regularly scheduled meeting on Friday, May 5, 1993. A copy of their resolution is attached. 5. The petitioner qualifies for 6 years of real property tax abatement under Section 2 -79 (Retail Developments in the East Bank Development Area) of the Tax Abatement Ordinance (No. 8065 -90). 6 YEAR MACRI'S ITALIAN BAKERY, INC. 05- May -93 Real Property Abatement -------------------------------- Schedule Total estimated Project Cost: $550,000 Base Assessed Value: $183,333 (Approx. 1/3 Project Cost) Assume constant tax rate of: 14.3955 Assessed Tax Tax Year Abated Value Abated Paid 1 100 $0 $26,392 $0 2 85 27,500 22,433 3,959 3 66 62,333 17,419 8,973 4 50 91,667 13,196 13,196 5 34 121,000 8,973 17,419 3 6 17 152,167 4,487 21,905 -- - - - - -- -- $92,899 - - - - -- - $65,452 Without Abatement: $158,351 With Abatement: 65,452 Amount Abated: 92,899 In