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Home My WebLink AboutReconfirming Tax Abatement - 5405 Royal Street for Tampico Developments LLCRESOLUTION 4265 -13 Passed by the Common Council of the City of South Bend, Indiana July 8, 13 20 Attest: Presented by me to the Mayor of the City of South Bend, Indiana July 9, 2013 City Clerk President of Common Council Approved and signed by me 'J U L % r' 20 13 City Clerk RESOLUTION NO. 41 kS-1- A RESOLUTION RECONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 5405 ROYAL STREET AS RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A (5) FIVE -YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR Tampico Developments, LLC 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 WHEREAS, a Declaratory Resolution designated the area commonly known as 5405 Royal Street in Crescent Oaks Section 1, South Bend, Indiana, and which is more particularly described as follows: LOT 3 OF CRESCENT OAKS, SECTION IA, AS RECORDED AS INSTRUMENT 0839817 in the Office of the Recorder of Saint Joseph County, Indiana. and this property has Tax Key Number 026 - 1035- 058993 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 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. 3862 -08 on May 12, 2008. WHEREAS, the petitioner will exceed the five year designation period granted in the Confirmatory resolution which will expire on May 12, 2013. 1 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. PRESENTEO R01 AMOAC), 2 •- • I U • • • Filet! <' CITY CLERK, sourr�i SPEND, R TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 13 -41 A RESOLUTION RECONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 5405 ROYAL STREET AS A RESIDENTIALLY DISTRESSED AREA FOR PURPOSES OF A (5) FIVE -YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR TAMPICO DEVELOPMENTS, LLC 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. This bill was heard by the Community Investment Committee. Karen L. White Chairperson, Committee of the Whole 227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 June 3, 2013 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT SCOTT FORD, EXECUTIVE DIRECTOR Council Member Henry Davis, Chairperson: Community & Economic Development Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Residential Property Tax Abatement Petition for: Tampico Developments, LLC Dear Council Member Davis: PHONE: 574/235 -9371 FAX: 574/235 -9021 Tampico Developments, LLC was approved for a five year residential tax abatement through Resolution 3862 -08 adopted by the Common Council on May 12, 2008. They would like to receive a one year extension on the abatement. There is one remaining lot that needs to be sold in the Crescent Oaks development. They would like to have the tax abatement extended for an additional year so they can market the lot with a tax abatement benefit. In their original petition dated April 7, 2008, they stated they intended to develop 9.82 acres of agricultural farmland into 31 residential lots. The development was to include 1,427 linear feet of public streets, one stormwater retention area, and the associated public and private utilities. The homes were to be built by Weiss Homes and were to range in size from 1,300 to 2,000 square feet. The estimated price of each home was $185,000. Total taxes to be abated during the five year period on one home were estimated at $10,262.19. Total taxes to be paid during the five year abatement period on one home were estimated at $7,451.34. A, representative of the company will be available to meet with the Committee on Monday, March 11, 2013. . To accomplish this request, a tax abatement recipient must notify the Council in writing and submit a revised Statement of Benefits (Form SB -1). Attached you will find a letter from the company's representative, Bradley E. Mosness, PE of Abonmarche Consultants, Inc. , requesting the one year extension of the abatement. Included is a letter from Bradley Mosness along with an Exhibit showing the location of the last lot. Attached is the new SB -1. Should you or any of the other Council members have any questions concerning the report or need additional information, please feel free to call me at 235 -9278. Sincerely, /-7 G� Kathy Hahn Economic Development Specialist PIANNING NEIGAi& 66D ENGAGEMENT ECONOMIC RFsouRCEs JITIN KA[N ' ,1"-,. PAMELA C. MEYER DONALD E. INKS 227 W. JEFFERSON BOULEVARD SUITE 1400 S. Attacll 1980,113, IN 46601 -1830 c: South Bend Common Council Members \�\' 3 f'' Mayor Pete Buttigieg '86J Scott Ford CITY OF SOUTH BEND ' PETE BUTTIGIEG, MAYOR Don Inks COMMUNITY INVESTMENT. SCOTT FORD, EXECUTIVE DIRECTOR PHONE: 574/235 -9371 FAY: 574/235 -9021 PIANNING NEIGHBORHOOD ENGAGEMENT ECONOMIC RFSOURCES JITIN KAIN PAMELA C. MEYER DONALD E. INKS STATEMENT OF BENEFITS REAL ESTATE IMPROVEMENTS `• State Form 51767 (83112 -11) t+' _; �, �� Prescribed by the Department of Local Government Finance This statement is being completed for real property that qualifies under the following Indiana Code (check one box): m Redevelopment or rehabilitation of real estate improvements (IC 6-1.1- 12.1 -4) ❑ Eligible vacant building (IC 6-1.1- 12.1 -4.8) 20 PAY 20_ FORM SBA I Real Property INSTRUCTIONS: 1. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise this statement must be submitted to the designating body BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction. Projects" planned or committed to after July 1, 1987, and areas designated after July 1, 1987, require a STATEMENT OF BENEFITS. (IC 6 -1.1 -12.1) 2. Approval of the designating body (City 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 obtain a deduction, application Form 322 ERA/RE or Fora 322 ERA/VBD, Whichever is applicable, must be filed with the County Auditor by the later of., (1) May 10, or (2) thirty (30) days after the notice of addition to assessed valuation or new assessment is mailed to the property owner at the address shown on the records of the township assessor, if any, or the county assessor. 4. Property owners whose Statement of Benefits was approved after June 30, 1991, must attach a Form CF -1 /Real Property annually to the application to show compliance with the Statement of Benefits. (IC 6- 1.1- 12.1- 5.1(b) and IC 6-1.1- 12.1 - 5.30)] 5. The schedules established under IC 6 -1.1- 12.1 -4(d) for rehabilitated property and under IC 6 -1.1 -12.1- 4.8(1) for vacant buildings apply to any statement of benefits approved on or after July 1, 2000, unless an alternative deduction schedule is adopted by the designating body (iC 6-1.1- 12.1 -17). The schedules effective prior to July 1, 2000, shall continue to apply to a statement of benefits filed before July 1. 2000. SECTION •- • Name of taxpayer TAMPICO DEVELOPMENTS, LLC Address of taxpayer (number and street, city, state, and ZIP code) 737 RIVER POINTE PLACE, MISHAWAKA, IN 46544 Name of contact person Telephone number E-mail address DENNIS SCHWARTZ 574) 255 -1503 dschw1940 aol.com SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT Name of designating body Resolution number CITY OF SOUTH BEND COMMON COUNCIL 3862 -08 Location of property County DLGF taxing district number 5405 ROYAL STREET I ST. JOSEPH 033 Description of real property improvements, redevelopment, or rehabilitation (use additional sheets if necessary) Estimated start date (month, day, year) LOT 3 OF CRESCENT OAKS, SECTION 1A 2013 Estimated completion date (month, day, year) + / -1 YEAR SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT - Current number Salaries Number retained Salaries Number additional 7alaries N/A N/A N/A N/A N/A N/A SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT NOTE: Pursuant to IC 6 -1.1- 12.1 -5.1 (d) (2) the COST of the property REAL ESTATE IMPROVEMENTS is confidential. COST ASSESSED VALUE Current values 30 000.00 500.00 Plus estimated values of proposed project 155,000.00 Less values of any property being replaced N/A Net estimated values upon completion of project 185,000.00 SECTION • ■ AND OTHER BENEFITS PROMISED BY THE TAXPAYER Estimated solid waste converted (pounds) N/A Estimated hazard wed ounds) N/A Other benefits i 9-118cl in ` erw n N /A-- A iD6d�3 IiV 17 �.. +8.9�•:y �� 0..q•:t \iITV CLERK, JB� 3`s BEND, IN t SECTION I hereby ce ' fy that the representations in this statement are true. Signature of ut rued reproentativ Title Date signed (month, day, year) SOLE MEMBER ,¢ O/Z / �� Page 1 of 2 l FOR USE OF DESIGNATING :•r We have reviewed our prior actions relating to the designation of this Economic Revitalization Area and find that the applicant meets the general standards adopted in the resolution previously approved by this body. Said resolution, passed under IC 6 -1.1 -12.1, provides for the following limitations: A. The designated area has been limited to a period of time not to exceed calendar years * (see below). The date this designation expires is B. The type of deduction that is allowed in the designated area is limited to: 1. Redevelopment or rehabilitation of real estate improvements ❑ Yes ❑ No 2. Residentially distressed areas ❑ Yes ❑ No 3. Occupancy of a vacant building ❑ Yes ❑ No C. The amount of the deduction applicable is limited to $ D. Other limitations or conditions (specify) E. The deduction is allowed for years* (see below). F. Did the designating body adopt an alternative deduction schedule per IC 6- 1.1- 12.1 -17? ❑ Yes ❑ No If yes, attach a copy of the alternative deduction schedule to this form. We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have determined that the totality of benefits is sufficient to justify the deduction described above. Approved (signature and title of authorized member of designating body) Telephone number ( ) Date signed (month, day, year) Attested by (signature and title of attester) Designated body * If the designating body limits the time period during which an area is an economic revitalization area, it does not limit the length of time a taxpayer is entitled to receive a deduction to a number of years designated under IC 6- 1.12- 12.1 -4. A. For residentially distressed areas, the deduction period may not exceed five (5) years. B. For redevelopment and rehabilitation or real estate improvements: 1. If the Economic Revitalization Area was designated prior to July 1, 2000, the deduction period is limited to three (3), six (6), or ten (10) years. 2. If the Economic Revitalization Area was designated after June 20, 2000, the deduction period may not exceed ten (10) years. C. For vacant buildings, the deduction period may not exceed two (2) years. Page 2 of 2 ® ABONMARCHE ® Confidence By Design February 7, 2013 Members of the Common Council City of South Bend 227 West Jefferson Boulevard, Suite 400 S South Bend, IN 46601 RE: 5405 ROYAL STREET (LOT 3 - CRESCENT OAKS, SECTION 1 A) Residential Property Tax Abatement Resolution 3862.08 Request for Extension Dear Council Members: Engineering � "wED FEB -8 Architecture Land Surveying Marina /Waterfront Community Planning Landscape Architecture Development Services On behalf of the current Owner, Tampico Developments, LLC, c/o of Denny Schwartz, we are submitting a request to extend the residential property tax abatement for the above referenced property and identified on the attached Exhibit A. This property is the last remaining lot to be developed within this section of Crescent Oaks. All the other lots within this section have been developed and are benefiting from the tax abatement. The Owner respectfully requests your consideration to extend the tax abatement for an additional year so he can continue to market this lot with the some benefit. If you have any questions or require additional information regarding this request, please do not hesitate to contact our office. Sincerely, ABONMARCHE CONSULTANTS, INC. d'A �. q"' Bradley E. Mosness, PE Project Manager cc: Denny Schwartz File 750 Lincoln Way East 3177 Willowcreek Road South Bend, IN 46601 Portage, IN 46368 574.232.8700 219.850.4624 Filed '7_ Office FE� 07 /� � /... CI 1 T FY�MC a }i sp Z50'JU 95 West Main Street 361 Fast Street 503 Quaker Street Benton Harbor, MI 49022 Manistee, MI 49660 South Haven, MI 49090 269.927.2295 231.723.1 198 269.637.1293 www.abonmarche.com 30% °CW r?• 4 c 1' o 831 EXHIBIT A £ a It 6060 go 0 eb� $ ��ag =ba �_ Via$ II $� � � • $� g �S� � � g � �� g �� : � 1 ga$ v a 11 Q� Oil .+ A .4w w < < 4 c i 0 S a 0 - CE 1 gA3 a 1 s i i I �b $i I � I �g I gE� IJ g PAGE IOF2 > we Ap. ji r• ' �� j dam s ir•O); _ I t�7M1 f1 • iiifJie� —••— Y — ••— ••— ••OWC�Ia 1Rias —••- 1 "� k9ypq� G I 1 I LL I