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HomeMy WebLinkAboutResolution No 50-2022 - Adopting of a Fiscal Plan for the Cleveland-Shellbark Annexation AreaRESOLUTION NO. 50-2022 A RESOLUTION OF THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA ADOPTING A WRITTEN FISCAL PLAN AND ESTABLISHING A POLICY FOR THE PROVISION OF SERVICES TO AN ANNEXATION AREA IN GERMAN TOWNSHIP (CLEVELAND-SHELLBARK ANNEXATION AREA) WHEREAS, there has been submitted to the Common Council of the City of South Bend, Indiana, an Ordinance and a petition by all (100%) property owners which proposes the annexation of real estate located in German Township, St. Joseph County, Indiana, which is more particularly described at Page 14 of Exhibit “A” attached hereto; and WHEREAS, the territory proposed to be annexed encompasses approximately 2.8 acres of land containing a commercial building, which property is at least 12.5% contiguous to the current City limits, i.e., 50.0% contiguous, generally located at the northwest corner of Cleveland Road and Shellbark Avenue (21275 Cleveland Road). It is anticipated that the annexation area will be used for a car wash; and WHEREAS, the development will require a basic level of municipal public services of a non-capital improvement nature, including street and road maintenance, street sweeping, flushing, snow removal, and sewage collection, as well as services of a capital improvement nature, including street and road construction, street lighting, a sanitary sewer system, a water distribution system, and a storm water system and drainage plan; and WHEREAS, the Board of Public Works now desires to establish and adopt a fiscal plan and establish a definite policy showing: (1) the cost estimates of services of a non-capital nature, including street and road maintenance, street sweeping, flushing, and snow removal, and sewage collection, and other non-capital services normally provided within the corporate boundaries; and services of a capital improvement nature including street and road construction, street lighting, a sanitary sewer extension, a water distribution system, and a storm water system to be furnished to the territory to be annexed; (2) the method(s) of financing those services; (3) the plan for the organization and extension of those services; (4) that services of a non-capital nature will be provided to the annexed area within one (1) year after the effective date of the annexation, and that they will be provided in a manner equivalent in standard and scope to similar non-capital services provided to areas within the corporate boundaries of the City of South Bend, regardless of similar topography, patterns of land use, and population density; (5) that services of a capital improvement nature will be provided to the annexed area within three (3) years after the effective date of the annexation within the same manner as those services are provided to areas within the corporate boundaries of the City of South Bend regardless of similar topography, patterns of land use, or population density, and in a manner consistent with federal, state and local laws, procedures, and planning criteria; and (6) the plan for hiring the employees of other governmental entities whose jobs will be eliminated by the proposed annexation. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section I. It is in the best interest of the City of South Bend and the area proposed to be annexed that the real property described more particularly at Page 14 of Exhibit “A” attached hereto be annexed to the City of South Bend. Section II. That it shall be and hereby is now declared and established that it is the policy of the City of South Bend, by and through its Board of Public Works, to furnish to said territory services of a non-capital nature, such as street and road maintenance, street sweeping, flushing, and snow removal, within one (1) year of the effective date of the annexation in a manner equivalent in standard and scope to services furnished by the City to other areas of the City regardless of similar topography, patterns of land utilization, and population density; and to furnish to said territory, services of a capital improvement nature such as street and road construction, a street light system, a sanitary sewer system, a water distribution system, a storm water system and drainage plan, within three (3) years of the effective date of the annexation in the same manner as those services are provided to areas within the corporate boundaries of the City of South Bend regardless of similar topography, patterns of land use, or population density. Section III. That the Board of Public Works shall and does hereby now establish and adopt the Fiscal Plan, attached hereto as Exhibit “A”, and made a part hereof, for the furnishing of said services to the territory to be annexed, which provides, among other things, that the public sanitary sewer and water network is available with capacity sufficient to service this area with costs for extensions, any improvements in sewer or water capacity, and a City-approved drainage system to be paid for by the developer, all in compliance with state and local law; that no additional street lighting will be necessary and any future lighting especially of a decorative nature or with underground wiring will be at the developer/owner’s expense; that no new roads or streets will be required with the owner/developer to complete a traffic impact study to determine if any additional improvements are required for the car wash use, and for the developer to relocate the existing Cleveland Road driveway approach to be at least one hundred feet away from the Shellbark Avenue intersection. Section IV. Sidewalks should be provided by the owner/developer along public streets and be in compliance with the Americans with Disabilities Act (ADA) under the PROWAG standards. Section V. It is required as a condition of annexation that any future alterations to the property meet the City of South Bend’s building and zoning requirements. Adopted the day of , 2022. November 8, 2022 8th. November Exhibit “A” THE CITY OF SOUTH BEND FISCAL PLAN C LEVELAND -SHELLBARK A NNEXATION AREA Prepared by City of South Bend Department of Community Investment October 24, 2022 Cleveland-Shellbark Annexation Area 2 TABLE OF CONTENTS SECTION I. INTRODUCTION...............................................................................3 SECTION II. GENERAL DATA...............................................................................3 A. Location B. Legal Description C. Contiguity D. Size of Annexation Area E. Buildings & Land Use F. Zoning & Subdivisions G. Population H. Tax Rate & Impact I. Parcel Ownership & Assessments J. Municipal Legislative District K. Hiring Plan SECTION III. MUNICIPAL SERVICES ....................................................................6 A. Public Works B. Police Department C. Fire Department & EMS D. Neighborhood Services & Enforcement E. Environmental Services F. Administrative Services SECTION IV. LAND USE ANALYSIS & DEVELOPMENT CRITERIA .......................10 SECTION V. FISCAL IMPACT ...............................................................................11 Fiscal Impact: TABLE 1 SECTION VI. APPROVAL .......................................................................................13 Legal Description ......................................................................................................14 Map: MAP 1 ....................................................................................................15 Cleveland-Shellbark Annexation Area 3 SECTION I. INTRODUCTION This Fiscal Plan represents the City of South Bend’s (hereinafter, “City”) policy for the annexation of property in German Township, St. Joseph County, Indiana (hereinafter, “Annexation Area”), and was developed through the cooperative efforts of the following City Departments: Legal Department Department of Public Works South Bend Fire Department South Bend Police Department Department of Community Investment Department of Administration & Finance SECTION II. GENERAL DATA A. Location The Annexation Area is located at the northwest corner of Cleveland Road and Shellbark Avenue (21275 Cleveland Road). See Map 1. B. Legal Description The Annexation Area is part of the West Half of the Southeast Quarter of Section 22, Township 38 North, Range 2 East, in German Township, St. Joseph County, Indiana. For a complete legal description, see Page 14. C. Contiguity The Annexation Area is at least 1/8 (12.5%) contiguous to the current City limits: Contiguous 698 feet 50.0% Non-Contiguous 698 feet 50.0% Total 1,396 feet 100.0% D. Size of Annexation Area The Annexation Area is approximately 2.77 acres. Cleveland-Shellbark Annexation Area 4 E. Buildings & Land Use The Annexation Area contains a funeral home and an accessory building. The main building would be demolished for a proposed car wash. F. Zoning & Subdivisions The one property in the Annexation Area is currently zoned OB Office Buffer District in St. Joseph County. With the annexation petition, the petitioner seeks to rezone the land to C Commercial District in the City. The Annexation Area falls within the Lilac Acres unrecorded subdivision. G. Population No people currently reside in the Annexation Area. After development, no residents are proposed to live in the Annexation Area. H. Tax Rate & Impact The tax rates used are those of 2021 payable 2022. The total tax rate for unincorporated German Township is 2.7285 per $100 of taxable real estate. The total tax rate for South Bend German Township is 5.8326 per $100 of taxable real estate. Per State law, the tax caps expressed as a percentage of the gross assessed value for different classifications of property are as follows, regardless of the property’s location being within South Bend or unincorporated St. Joseph County: Property Type Cap Homestead Residential 1.0% Non-Homestead Residential 2.0% Agricultural 2.0% Other (Commercial) 3.0% For at least the four years after the effective date of the annexation, the expected tax rates, tax levies, expenditure levels, service levels, and annual debt service payments are estimated to be approximately the same as those in effect at the time of annexation for each of the political subdivisions to which the proposed annexation applies. Because of the relatively small size of the Annexation Area and its assessed value relative to the total size and tax base of the various political subdivisions, this annexation is expected, for at least four years after the effective date of this annexation, to have a negligible impact on the finances and tax revenues of South Bend and other political subdivisions to which the proposed annexation applies, on the political subdivisions in St. Joseph County not part of this annexation, and on taxpayers not part of this annexation. Cleveland-Shellbark Annexation Area 5 I. Parcel Ownership & Assessments Parcel Identification Number Address Parcel Owner Assessed Value (Total) 004-1050-1271 21275 Cleveland Road J. Patrick McGann $208,000 Total Assessments Land: $114,700 Improvements: $ 93,300 Total (Gross): $208,000 Total (Net): $208,000 Assessments are based on 2022 payable 2023 St. Joseph County property tax records. J. Municipal Legislative District The Annexation Area will be in the 1st District. K. Hiring Plan This annexation is not anticipated to result in the elimination of jobs for employees of any other governmental entities. The German Township Trustee has been notified of this proposed annexation. Cleveland-Shellbark Annexation Area 6 SECTION III. MUNICIPAL SERVICES A. Public Works Sewer – A 21”-diameter sanitary sewer runs along the north side of Cleveland Road, while a 12”-diameter sanitary sewer runs under the southbound lane of Shellbark Avenue. Capacity of the sewer will need to be verified. Development of the site requires City approval of a drainage plan that meets the City’s requirement to store on site all runoff from developed areas. Connection to the City storm sewer is not permitted. Water - The South Bend Water Works currently has a 12” water main on the north side of Cleveland Road along the Annexation Area. This water main would provide sufficient capacity for the Annexation Area, but a larger lateral may be required to support a car wash; this additional service would be done at the developer’s expense. Extensions of or taps into sanitary sewer and water lines shall be governed by state law and the rules and regulations of the South Bend Water Works and Sewer Utility. The Annexation Area may be subject to system development charges for both water and sewer services. Streets – Annexation would add approximately 318 feet of the Shellbark Avenue right-of-way to the city limits. The developer would be required to upgrade that portion of the street to commercial standards within three years. The developer also must complete a traffic impact study to determine if any additional improvements, such as turn lanes or a traffic signal, are required. The developer shall relocate the existing Cleveland Road driveway approach to be at least one hundred feet away from the Shellbark Avenue intersection. Street Lighting –Should any street lighting be necessary, it can be provided on wood poles with overhead wiring through an ongoing contract with Indiana Michigan Power. If the developer wishes to construct and dedicate additional street lighting, especially of a decorative nature or with underground wiring, the City may accept it for maintenance and operation, supported by property tax revenue. Waivers of Annexation – No waivers of right to remonstrate against annexation are in effect for this area. 2021 Actual Budget Report for the Department: Expenditures: $30,599,584 Miles of Roadway in City: @502 Cost per Mile: @$60,955 New Mileage within Area: @0.06 miles (318 feet) Estimated Maintenance Cost for Annexation Area per year: @$3,657 Cleveland-Shellbark Annexation Area 7 B. Police Department The Annexation Area would be added to the existing Beat 22. Police patrols and emergency responses will be part of the services the City will offer to this area. This proposed annexation would require officers to cover a relatively small additional area on this beat. At this time, it is not expected that this annexation would cause calls for service to increase significantly, and it is not anticipated that it will be necessary to increase police patrols beyond the existing beat patrol. The addition of this Annexation Area will not significantly increase response time. The cost for servicing the proposed area is not expected to impact the existing budget of the Police Department with any significance. The patrol costs would be assumed by the Police Department budget. However, this area, as well as all other areas of the City, will continually be monitored for level of service demands and other criteria that would necessitate additional resources through budgetary increases or possible shifting of existing resources, such as a beat restructure. Police services and response time in this area can be expected to be comparable with that found in all other areas of the City. Police coverage to this area could begin immediately upon annexation. Note: The cost of service for this Annexation Area is based on the number of parcels. Household information is provided for comparative purposes. 2021 Actual Budget Report for the Department: Expenditures (including pension cost): $47,137,731 Number of Households in City (2021): @42,707 Cost per Household: @$1,104 Number of Parcels in City (2022): @47,500 Cost per Parcel: @$992 Proposed Number of Households in Area: 0 Proposed Number of Parcels in Area: 1 Cost for Annexation Area per year: $992 (1 parcel x $992 / parcel) Cleveland-Shellbark Annexation Area 8 C. Fire Department & EMS Fire Response – The South Bend Fire Department provides a fully staffed, full-time fire department. The Annexation Area will be serviced primarily by Fire Station #11, located at 3505 N. Bendix Drive, approximately 0.7 miles away. Additional Fire Department units would respond from Fire Station #7 at 1616 Portage Avenue, which is approximately 2.4 miles away. The South Bend Fire Department does not foresee any unusual fire protection problems related to this annexation. Response times will be comparable to other areas of the City. No additional equipment will need to be purchased or personnel hired to service the Annexation Area. Fire coverage to this area could begin immediately upon annexation. Adequate water supply will be necessary as any development takes place. Emergency Medical Response – The City will provide emergency medical response to the Annexation Area. This area will be serviced by Medic #11, which is at Fire Station #11, located at 3505 N. Bendix Drive (approximately 0.7 miles away). Response times will be comparable to other areas of the City. No additional equipment will need to be purchased or personnel hired to service the Annexation Area. Emergency medical services are supported by user fees and would be available upon annexation. Note: The cost of service for this Annexation Area is based on the number of parcels. Household information is provided for comparative purposes. 2021 Actual Budget Report for the Department: Expenditures (including pension cost): $39,618,600 Number of Households in City (2021): @42,707 Cost per Household: @$928 Number of Parcels in City (2022): @47,500 Cost per Parcel: @$834 Proposed Number of Households in Area: 0 Proposed Number of Parcels in Area: 1 Cost for Annexation Area per year: $834 (1 parcel x $834 / parcel) Cleveland-Shellbark Annexation Area 9 D. Neighborhood Services & Enforcement The Annexation Area will be added to Area 5. The Division of Neighborhood Services & Enforcement will be able to provide services to the Annexation Area with comparable response times. The Division will respond to calls for service upon the effective date of the annexation. Full and dedicated response will be in place within one year of the effective date of the annexation. 2021 Actual Budget Report for the Division: Expenditures: $6,167,959 Number of Parcels in City (2022): @47,500 Cost per Parcel: @$130 Proposed Number of Parcels in Area: 1 Cost for Annexation Area per year: $130 (1 parcels x $130 / parcel) E. Environmental Services Wastewater Treatment - Wastewater treatment services are supported by user fees and are paid through the Water Works billing system. Solid Waste – Larger scale commercial or industrial customers are generally not served by the Bureau of Solid Waste. However, the Bureau of Solid Waste can provide service to small commercial customers at the prevailing rate at that time for a 96-gallon container with service beginning on the effective date of the annexation. F. Administrative Services The City of South Bend provides a wide range of services other than those noted above, such as the Mayor’s Office, the Legal Department, and Venues Parks & Arts. These services are available upon the effective date of the annexation. Full and dedicated response for non-capital services will be in place within one year of the effective date of the annexation. Costs for these services have not been calculated. The incorporation of the Annexation Area will not affect the provision of other services currently provided to this property on a countywide basis. The St. Joseph County Health Department, the St. Joseph County Public Library, and the St. Joseph County/South Bend Building Department are among the countywide agencies that will continue to provide the same type and level of services to the Annexation Area. Countywide services will continue to be supported by the County and Township taxes that will remain in effect. Cleveland-Shellbark Annexation Area 10 SECTION IV. LAND USE ANALYSIS & DEVELOPMENT CRITERIA This proposed annexation will add one property containing a funeral home to the City of South Bend. The petitioner proposes to use the Annexation Area for an automated car wash facility and associated uses. The Annexation Area is presently zoned OB Office Buffer District in unincorporated St. Joseph County. Single-family houses zoned R Single-Family District in the County are located to the north. To the east is vacant land zoned R Single-Family District in the County. To the south, across Cleveland Road, is the Indiana Toll Road and agricultural land zoned S1 Suburban Neighborhood in the City. To the west is a medical clinic zoned C Commercial District in the City. The Annexation Area is located on Cleveland Road between Portage Avenue and Riverside Drive. The future land use map of City Plan, South Bend’s comprehensive plan, designates this parcel for commercial use, and the proposed land use is consistent with the suburban, auto-oriented commercial development in the area. The petitioner proposes demolishing the main building on the site and replacing it with a car wash of nearly 5,000 square feet. The preliminary site plan shows the existing garage will remain, and vacuum stations will be added. The petitioner should carefully consider site access and circulation and should include required buffering to the residential properties to the north and northeast. Any improvements or future changes must meet the City’s applicable building, zoning, and subdivision ordinances. Cleveland-Shellbark Annexation Area 11 SECTION V. FISCAL IMPACT 1) Essential city services can be made available to the residents (and territory) of the Annexation Area in a timely and comparable fashion per the requirements of State law and this fiscal plan. 2) The City is financially able to support city services to the territory sought to be annexed. 3) Required improvements made by the petitioner and/or owner of the parcel(s) must be made in accordance with the standards of the City of South Bend. 4) Required improvements made by the City, if any, will be completed within the time frames provided by State law and this fiscal plan. 5) All figures are estimates. Final cost of capital expenditures, if any, will not be determined until bids are publicly solicited, contracts are awarded, and projects are closed out. 6) Property tax revenue and land assessment estimates are based on a combination of 2021 payable 2022 and 2022 payable 2023 tax information, assessments of comparable developments, estimates of units built, estimates of unit values and land assessments, and tax abatements or adjustments, if any. Tax rates are subject to change every year, and property tax revenues may be subject to tax caps. 7) Department expenditures and revenues are derived from the City of South Bend Budget. 8) The estimated costs to provide services, noted in Section III, Municipal Services, is a City- wide average based on a particular budget year. In the case of the proposed development in the Annexation Area, some of these services may not be required or possibly requested for many years. Hence, the cost of providing services over the first five years should be evaluated with this in mind. Cleveland-Shellbark Annexation Area 12 TABLE 1 Summary Table – Estimated Fiscal Impact Expenditures Capital (Est.) Non-Capital Per Year (Est.) Notes 5-Year Total Street Construction $0 $0 Sewer Extension $0 Connection at petitioner’s expense $0 Water Extension $0 Connection at petitioner’s expense $0 Street Lights $0 $0 Street Maintenance $0 $3,657 $18,285 Police $0 $992 $4,960 Fire $0 $834 $4,170 Neighborhood Services $0 $130 $650 Approximate 5-Year Expenditures $28,065 Revenues Notes Total (Est.) 5-Year Total Property Taxes (to City) Year 1 $3,992 $50,060 Year 2 $11,517 Year 3 $11,517 Year 4 $11,517 Year 5 $11,517 MVH/LRSA Estimated at revenue per mile of $27,893 $1,674 $8,370 Approximate 5-Year Revenues $58,430 Revenue estimate based on $208,000 net assessment and capped tax rate of 3% of $208,000 gross assessment in Year 1 and $600,000 net assessment and capped tax rate of 3% of $600,000 gross assessment for all years following. Cleveland-Shellbark Annexation Area 13 SECTION VI. APPROVAL Approved by the City of South Bend Common Council this day of , 2022. Cleveland-Shellbark Annexation Area 14 LEGAL DESCRIPTION Part of the West Half of the Southeast Quarter of Section 22, Township 38 North, Range 2 East, German Township, St. Joseph County, Indiana, being more particularly described as follows: Starting at the Southwest corner of the Southeast Quarter of Section 22, Township 38 North, Range 2 East; thence East 940 feet; thence North 40 feet to the Southwest Corner of Lot 91 in the Proposed Plat of Lilac Acres Subdivision to the Point of Beginning; thence North 318 feet along the West Line of Said Lot 91 to the Northwest Corner of Said Lot 91; thence East 380 feet to the Northwest Corner of Lot 95 in the Proposed Plat of Lilac Acres Subdivision; thence South 318 feet along the West Line of Said Lot 95, also being the East Right-of-Way Line of Shellbark Avenue, to the Southwest Corner of Said Lot 95; thence West 380 feet along the North Right-Of-Way Line of Cleveland Road to the Point of Beginning. Containing 2.77 acres, more or less. Cleveland-Shellbark Annexation Area 15 MAP 1 BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date October 31, 2022 Name Michael Divita Department DCI BPW Date November 8, 2022 Phone Extension 5843 Review and Approval Required Prior to Submittal to Board Diversity Compliance and Inclusion Officer Officer Name BPW Attorney Attorney Name Dept. Attorney Attorney Name Aladean DeRose Purchasing Check the Appropriate Item Type – Required for All Submissions Professional Services Agreement Contract Proposal Open Market Contract Amendment/Addendum Special Purchase, QPA Bid Opening Bid Award Req. to Advertise Title Sheet Quote Opening Quote Award Reject Bids/Quotes Proposal Opening C/O & PCA No. PCA Chg. Order, No. Traffic Control Resolution Other: Ease./Encroach Required Information Company or Vendor Name New Vendor Yes If Yes, Approved by Purchasing No MBE/WBE Contractor MBE WBE Completed E-Verify Form Attached Yes No Project Name Project Number Funding Source Account No. Amount Terms of Contract Purpose/Description Adoption of a Fiscal Plan for the Cleveland-Shellbark Annexation Area _______________________________________________________________ _______________________________________________________________ For Change Orders Only Amount of Increase Decrease $ ($ ) Previous Amount $ Current Percent of Change: Increase Decrease % ( %) New Amount $ Total Percent of Change: Increase Decrease % ( %) Time Extension Amount: New Completion Date: