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HomeMy WebLinkAboutReconfirming Tax Abatement - The Villas at Lake Blackthorn - SBRC for benefit of : Coorman Real Estate Group, IncRESOLUTION 3806-07 Passed by the Common Council of the City of South Bend, Indiana October 22, 20 7 Attest: City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 22, 2007 Approved and signed by me October 24, 2007 ~~ ~~~ City Clerk ~Ya' RESOLUTION NO. ~ ~0~-O) A RESOLUTION RECONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS THE VILLAS AT LAKE BLACKTHORN (Located on approximately 56 acres north of Brick Road, and west of and adjacent to the U.S. 31 Bypass) RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A FIVE (5) YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR The South Bend Redevelopment Commission for the benefit of: COOREMAN REAL ESTATE GROUP, INC. 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 The Villas at Lake Blackthorn, South Bend, Indiana, and which are more particularly described as follows: LEGAL DESCRIPTION: THE VILLAS AT LAKE BLACKTHORN, SECTION ONE A PART OF THE NORTHWEST, SOUTHWEST, AND SOUTHEAST QUARTERS OF SECTION 18, TOWNSHIP 38 NORTH, RANGE 2 EAST, GERMAN TOWNSHIP, CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF THE SOUTHEAST QUARTER OF SECTION 18, TOWNSHIP 38 NORTH, RANGE 2 EAST, 5.8 FEET SOUTH OF A 2" IRON MONUMENT WITH A CAP LABELED "SEC. CORNER"; THENCE SOUTH 89 DEGREES 49 MINUTES 49 SECONDS WEST, A DISTANCE OF~1549.41 FEET TO THE WEST RIGHT OF WAY OF U.S. ROUTE 31 AND THE POINT OF BEGINNING; THENCE ALONG SAID WEST RIGHT OF WAY THE FOLLOWING NINE (9) COURSES: (1) SOUTH 17 DEGREES 36 MINUTES 51 SECONDS WEST, A DISTANCE OF 85.66 FEET; (2) THENCE SOUTH 25 DEGREES 35 MINUTES 58 SECONDS WEST, A DISTANCE OF 409.65 FEET TO THE POINT OF CURVATURE OF ANON-TANGENT CURVE, CONCAVE TO THE EAST, HAVING A RADIUS OF 5950.00 FEET, A CENTRAL ANGLE OF 8 DEGREES 59 MINUTES 58 SECONDS, AND A CHORD OF 933.60 FEET BEARING SOUTH 12 DEGREES 00 MINUTES 23 SECONDS WEST; (3) THENCE SOUTH ALONG SAID RIGHT OF WAY CURVE, A DISTANCE OF 934.56 FEET; (4) THENCE SOUTH 16 DEGREES 02 MINUTES 40 SECONDS WEST, A DISTANCE OF 211.20 FEET; (5) THENCE SOUTH 38 DEGREES 30 MINUTES 20 SECONDS WEST, A DISTANCE OF 481.60 FEET; (6) THENCE NORTH 0 DEGREES 45 MINUTES 39 SECONDS ' EAST, A DISTANCE OF 114.32 FEET TO THE NORTHEAST CORNER OF LAND DESCRIBED IN DEED RECORD BOOK 741, PAGES 475-477, AS RECORDED IN THE OFFICE OF RECORDER OF ST. JOSEPH COUNTY, INDIANA; (7) THENCE SOUTH 35 DEGREES 15 MINUTES 20 SECONDS WEST, A DISTANCE OF 401.95 FEET; (8) THENCE SOUTH 2 DEGREES 36 MINUTES 09 SECONDS WEST, A DISTANCE OF 256.87 FEET; (9) THENCE SOUTH 85 DEGREES 31 MINUTES 45 SECONDS WEST, A DISTANCE OF 199.30 FEET TO THE SOUTHEAST CORNER OF LAND DESCRIBED IN INSTRUMENT NUMBER 8717366, AS RECORDED IN THE OFFICE OF SAID RECORDER; THENCE ALONG THE EAST LINE OF SAID LAND, NORTH 0 DEGREES 15 MINUTES 44 SECONDS EAST, A DISTANCE OF 181.22 FEET; THENCE ALONG THE NORTH LINE OF SAID LAND, NORTH 89 DEGREES 48 MINUTES 51 SECONDS WEST, A DISTANCE OF 323.58 FEET; THENCE NORTH 0 DEGREES 03 MINUTES 20 SECONDS WEST, A DISTANCE OF 500.00 FEET; THENCE NORTH 89 DEGREES 48 MINUTES 51 SECONDS WEST, A DISTANCE OF 2.00 FEET; THENCE NORTH 0 DEGREES 03 MINUTES 20 SECONDS WEST, A DISTANCE OF 100.00 FEET; THENCE SOUTH 89 DEGREES 48 MINUTES 51 SECONDS EAST, A DISTANCE OF 2.00 FEET; THENCE NORTH 0 DEGREES 03 MINUTES 20 SECONDS WEST, A DISTANCE OF 500.00 FEET; THENCE NORTH 89 DEGREES 48 MINUTES 51 SECONDS WEST, A DISTANCE OF 2.00 FEET; THENCE NORTH 0 DEGREES 03 MINUTES 20 SECONDS WEST, A DISTANCE OF 100.00 FEET; THENCE SOUTH 89 DEGREES 48 MINUTES 51 SECONDS EAST, A DISTANCE OF 2.00 FEET; THENCE NORTH 0 DEGREES 03 MINUTES 20 SECONDS WEST, A DISTANCE OF 800.00 FEET TO THE SOUTHWEST CORNER OF LOT "A" AS DEPICTED IN THE REPEAT OF RIGHTER'S ORANGE ROAD MINOR SUBDIVISION, DESCRIBED IN INSTRUMENT NUMBER 8525803, AS RECORDED IN THE OFFICE OF SAID RECORDER; THENCE ALONG THE SOUTH LINE OF SAID LOT "A", NORTH 89 DEGREES 50 MINUTES 13 SECONDS EAST, A DISTANCE OF 100.00 FEET; THENCE ALONG THE EAST LINE OF SAID LOT "A", NORTH 0 DEGREES 03 MINUTES 20 SECONDS WEST, A DISTANCE OF 251.56 FEET TO THE POINT OF CURVATURE OF ANON-TANGENT CURVE, BEING THE CENTERLINE OF ORANGE ROAD, CONCAVE TO THE NORTH, HAVING A RADIUS OF 335.00 FEET, A CENTRAL ANGLE OF 19 DEGREES 18 MINUTES 44 SECONDS, AND A CHORD OF 112.38 FEET BEARING NORTH 67 DEGREES 34 MINUTES 35 SECONDS EAST; THENCE EAST ALONG SAID CENTERLINE CURVE, A DISTANCE OF 112.92 FEET; THENCE SOUTH 0 DEGREES 11 MINUTES 04 SECONDS EAST, A DISTANCE OF 70.83 FEET TO THE SOUTHWEST CORNER OF LOT 1 OF BOGUE'S MAJOR SUBDIVISION, DESCRIBED IN INSTRUMENT NUMBER 8932797, AS RECORDED IN THE OFFICE OF SAID RECORDER AND THE NORTHWEST CORNER OF LAND DESCRIBED IN INSTRUMENT NUMBER 9331954, AS RECORDED IN THE OFFICE OF SAID RECORDER; THENCE ALONG THE BOUNDARY OF SAID LAND THE NEXT THREE (3) COURSES; (1) SOUTH 26 DEGREES 45 MINUTES 04 SECONDS EAST, A DISTANCE OF 66.96 FEET; (2) THENCE NORTH 89 DEGREES 49 MINUTES 49 SECONDS EAST, A DISTANCE OF 556.25 FEET; (3) THENCE NORTH 0 DEGREES 45 MINUTES 39 SECONDS EAST, A DISTANCE OF 80.00 FEET TO THE NORTH LINE OF THE SOUTH HALF OF SECTION 18, TOWNSHIP 38 NORTH, RANGE 2 EAST; THENCE ALONG SAID NORTH LINE NORTH 89 DEGREES 49 MINUTES 49 SECONDS EAST, A DISTANCE OF 729.56 FEET TO THE POINT OF BEGINNING. EXCEPTING THAT PORTION WHICH INCLUDES LOTS 1 THROUGH 5 INCLUSIVE, OF THE VILLAS AT LAKE BLACKTHORN SECTION ONE, AS SHOWN ON THE FINAL PLAT, RECORDED APRIL 21, 2003, IN THE OFFICE OF THE RECORDER OF ST. JOSEPH COUNTY, AS INSTRUMENT #0323151. SAID DESCRIBED TRACT CONTAINING 56.25 ACRES, MORE OR LESS. SUBJECT TO ALL EASEMENTS, AND RIGHT OF WAY OF RECORD. LOT # STREET ADDRESS KEY # VLB lot 6 4622 Lake Blackthorn Drive 025-1010-017624 6616 Dockside Drive VLB lot 7 6568 Dockside Drive 025-1010-017625 VLB lot 8 4636 Starboard Drive 025-1010-017626 VLB lot 9 4644 Starboard Drive 025-1010-017627 VLB lot 10 4702 Starboard Drive 025-1010-017628 VLB lot 11 4710 Starboard Drive 025-1010-017629 VLB lot 12 4720 Starboard Drive 025-1010-017630 VLB lot 13 4728 Starboard Drive 025-1010-017631 VLB lot 14 4736 Starboard Drive 025-1010-017632 VLB lot 15 4746 Starboard Drive 025-1010-017633 VLB lot 16 4806 Starboard Drive 025-1010-017634 VLB lot 17 4814 Starboard Drive 025-1010-017635 VLB lot 18 4822 Starboard Drive 025-1010-017636 6506 Still Waters Court VLB lot 19 6510 Still Waters Court 025-1010-017637 VLB lot 20 6501 Still Waters Court 025-1010-017638 VLB lot 21 6507 Still Waters Court 025-1010-017639 VLB lot 22 6515 Still Waters Court 025-1010-017640 4904 Starboard Drive VLB lot 23 4914 Starboard Drive 025-1010-017641 4914 Stern Line Court VLB lot 24 4922 Stern Line Court 025-1010-017642 VLB lot 25 4930 Stern Line Court 025-1010-017643 VLB lot 26 4938 Stern Line Court 025-1010-017644 VLB lot 27 4946 Stern Line Court 025-1010-017645 VLB lot 28 4954 Stern Line Court 025-1010-017646 VLB lot 29 5004 Stern Line Court 025-1010-017647 VLB lot 30 5014 Stern Line Court 025-1010-017648 VLB lot 31 5026 Stern Line Court 025-1010-017649 VLB lot 32 5011 Stern Line Court 025-1010-017650 6505 Cudd Court VLB lot 33 6515 Cudd Court 025-1010-017651 VLB lot 34 6528 Cudd Court 025-1010-017652 VLB lot 35 6516 Cudd Court 025-1010-017653 VLB lot 36 6506 Cudd Court 025-1010-017654 5003 Stern Line Court VLB lot 37 4935 Stern Line Court 025-1010-017655 VLB lot 38 4925 Stern Line Court 025-1010-017656 VLB lot 39 4915 Stern Line Court 025-1010-017657 VLB lot 40 6535 Leewa Drive 025-1010-017658 4906 Masthead Court VLB lot 41 4914 Masthead Court 025-1010-017659 VLB lot 42 4924 Masthead Court 025-1010-017660 VLB lot 43 5006 Masthead Court 025-1010-017661 VLB lot 44 5018 Masthead Court 025-1010-017662 VLB lot 45 5023 Masthead Court 025-1010-017663 VLB lot 46 5015 Masthead Court 025-1010-017664 VLB lot 47 5005 Masthead Court 025-1010-017665 VLB lot 48 4925 Masthead Court 025-1010-017666 VLB lot 49 4917 Masthead Court 025-1010-017667 VLB lot 50 4907 Masthead Court 025-1010-017668 6615 Leewa Drive VLB lot 51 6629 Leewa Drive 025-1010-017669 4908 Bow Line Court VLB lot 52 4918 Bow Line Court 025-1010-017670 VLB lot 53 4926 Bow Line Court 025-1010-017671 VLB lot 54 5002 Bow Line Court 025-1010-017672 VLB lot 55 5010 Bow Line Court 025-1010-017673 VLB lot 56 5013 Bow Line Court 025-1010-017674 VLB lot 57 5003 Bow Line Court 025-1010-017675 VLB lot 58 4933 Bow Line Court 025-1010-017676 VLB lot 59 4925 Bow Line Court 025-1010-017677 VLB lot 60 4919 Bow Line Court 025-1010-017678 VLB lot 61 4909 Bow Line Court 025-1010-017679 VLB lot 62 4838 Portside Drive 025-1010-017680 VLB lot 63 4840 Portside Drive 025-1010-017681 VLB lot 64 4830 Portside Drive 025-1010-017682 VLB lot 65 4822 Portside Drive 025-1010-017683 VLB lot 66 4814 Portside Drive 025-1010-017684 VLB lot 67 4804 Portside Drive 025-1010-017685 VLB lot 68 4746 Portside Drive 025-1010-017686 VLB lot 69 4738 Portside Drive 025-1010-017687 VLB lot 70 4730 Portside Drive 025-1010-017688 VLB lot 71 4722 Portside Drive 025-1010-017689 VLB lot 72 4712 Portside Drive 025-1010-017690 VLB lot 73 4704 Portside Drive 025-1010-017691 VLB lot 74 6641 Dockside Drive 025-1010-017692 VLB lot 75 4627 Pier Court 025-1010-017693 VLB lot 76 4619 Pier Court 025-1010-017694 VLB lot 77 4611 Pier Court 025-1010-017695 VLB lot 78 4603 Pier Court 025-1010-017696 VLB lot 79 4604 Pier Court 025-1010-017697 VLB lot 80 4614 Pier Court 025-1010-017698 VLB lot 81 4624 Pier Court 025-1010-017699 VLB lot 82 4632 Pier Court 025-1010-0177 6626 Dockside Drive VLB lot 83 6631 Dockside Drive 025-1010-017701 VLB lot 84 6623 Dockside Drive 025-1010-017702 VLB lot 85 6613 Dockside Drive 025-1010-017703 VLB lot 86 6605 Dockside Drive 025-1010-017704 VLB lot 87 4635 Starboard Drive 025-1010-017705 VLB lot 88 4645 Starboard Drive 025-1010-107706 VLB lot 89 4703 Starboard Drive 025-1010-017707 VLB lot 90 4711 Starboard Drive 025-1010-017708 VLB lot 91 4719 Starboard Drive 025-1010-017709 VLB lot 92 6520 Lake Crest Circle 025-1010-017710 VLB lot 93 6530 Lake Crest Circle 025-1010-017711 VLB lot 94 6539 Lake Crest Circle 025-1010-017712 VLB lot 95 6521 Lake Crest Circle 025-1010-017713 VLB lot 96 4805 Starboard Drive 025-1010-017714 VLB lot 97 4813 Starboard Drive 025-1010-017715 VLB lot 98 4821 Starboard Drive 025-1010-017716 VLB lot 99 4829 Starboard Drive 025-1010-017717 VLB lot 100 4903 Starboard Drive 025-1010-017718 VLB lot 101 6530 Leewa Drive 025-1010-017719 VLB lot 102 6604 Leewa Drive 025-1010-017720 VLB lot 103 6612 Leewa Drive 025-1010-017721 VLB lot 104 6620 Leewa Drive 025-1010-017722 VLB lot 105 6628 Leeway Drive 025-1010-017723 VLB lot 106 6634 Leewa Drive 025-1010-017724 be designated as a Residentially Distressed 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 WHEREAS, the Council has determined that the qualifications for a residentially distressed area have been met. WHEREAS, the Council issued a Confirmatory Resolution confirming the adoption of the Declaratory Resolution as Resolution No. 3138-02 on December 9, 2002; 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 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 sea., 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. 8845-97, which was passed on December 8, 1997: 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. F. The deduction will not be allowed unless the dwelling rehabilitation is completed within one (1) calendar year from the date of the adoption of this Resolution by the Common Council. SECTION IV. The Common Council hereby reconfirms its Declaratory Resolution and its Confirmatory 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 SIX (6) calendar years from the date of adoption of the Declaratory Resolution by the Common Council. 6 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. Mem er of the Co on Council NRESEN7ED ~ d_Z1-~l NOT gppROVED ADOPTED ~O-LZ-a~ 7 Filed In Cterk's Office ACT 1 7 2007 JCHt~ V0~ z~~~, ~N.. Cl7Y CI.ERs., - TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 07-131 A RESOLUTION RECONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS THE VILLAS AT LAKE BLACKTHORN, LOCATED ON APPROXIMATELY 56 ACRES NORTH OF BRICK ROAD, AND WEST OF AND ADJACENT TO THE U.S. 31 BYPASS AS RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A FIVE (5) YEAR RESIDENTIAL REAL PROPERTYTAXABATEMENT FORTHE SOUTH BEND REDEVELOPMENT COMMISSION FOR THE BENEFIT OF: COOREMAN REAL ESTATE GROUP, INC. Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Karen L. White Chairperson File=d Irt clerk's ~ffiGe ,~ '~~ ~ ` OCT 1 7 ~~'l1 COOREMAN T ris~ . NEIGHBORHOODS ~ 1 ~ _ ~~~~ r fir C!TY G':_:':;~~, Vin. zl:~i:. '~. Dear Common Council Members: 4404 Technology Dr. South Bend, IN 46628 Ph: 574-277-0116 Fax: 574-277-6511 www.cooreman.com October 16, 2007 As Developer of The Villas at Lake Blackthorn (VLB), I wish to submit a resolution for an extension of our existing five-year tax abatement. For Section One of the VLB subdivision the expiration date of the RDA is November 11, 2007, thus time is of the most extreme essence here. I respectively request a waiver of the two weeks requirement for submission, and ask that you consider this resolution at your October 22, 2007 meeting. I apologize for not bringing the matter to the Council in a timelier manner. A number of circumstances contributed to this falling through the cracks in . our system, including major senior level staffing changes within the past year, and a move to our new space on Technology Drive. And quite frankly, until recently, we were under the mistaken impression that the five-year deadline applied only to the length of time an individual property owner could receive the deduction, which also happens to be five years. We also thought the development would be sold out by now - we underestimated the negative impact the higher City taxes would have on our sales pace. In spite of impressive efforts in marketing, infrastructure improvements, and the fact that it is a beautiful neighborhood with rare amenities, the development's sales have not kept pace with the projections. Five years after launch, 53 home sites out of 109 remain unsold, with a significant stagnation in the last 2 years. Even with the abatement in place the higher city taxes prompt many potential buyers to choose county properties instead when they are looking to purchase newer construction. The Villa's sister neighborhood, Westwood Knolls at Blackthorn, which is located just across Orange Road from the Villas, has surpassed sales projections, and the lower County taxes are repeatedly listed as a primary factor in the purchase decision. Thus, as the abatement is set to expire this November, the sales pace is expected to deteriorate further as buyers lose this important incentive. Following is an excerpt of a recent analysis by Stephen Smith, our Director of Sales/Marketing for Cooreman Neighborhoods, which states the case for continued abatement: "The abatement is currently most beneficial to homes $350k and below, because it is a flat $74,800 reduction in assessed value ($2200 on taxes). Homes over $350k might do better with the straight 2.0% circuit breaker than with homestead, mortgage, and abatement, exemptions. That being said, of the remaining lots, only I1 are on the big and little lake, which would support home values in excess of $350k, which means 421ots would benefit most from the abatement. Of those 42, 16 backup directly to the bypass and at least 1 S allow 1400 sq. ft. minimums which translate to a value between $200-$2251c Homes in this price range stand to have their taxes nearly cut in half by the value of the abatement! So in short, we already have experienced a significant decreased sales pace, with great reason to believe the trend will continue. It would be very dill cult to sell a $220k home with $4400 annual taxes to an empty nester, which is currently paying $1000 in taxes annually. Sales of remaining inventory will be greatly impacted by the lack of an abatement. " We have approximately 2.3 million dollars of unsold inventory in this development and would like to sell out in a timely manner as in our other developments. Continued tax abatement status, and any other assistance the City can offer with this project certainly would help, and would also enhance the possibility of additional City projects in the future. Thank you for your time and careful consideration. Regards, Steve Coorema ,Developer Cooreman Real Estate Group, Inc. Residential c~ Commercial Real Estate Land Development Villas at Lake Blackthorn Westwood Knolls at Blackthorn Westwood Hills at Elbel West4vood Shares at Elbel Stone Oak Estates • New Prairie Knolls • Boulder Bay Wintergreen Meadows