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HomeMy WebLinkAboutConfirming Tax Abatement - Moreno & Jerez 1028 Notre Dame Ave. (5 Year Residential Property)RESOLUTION 4306 -13 Passed by the Common Council of the City of South Bend, Indiana December 9, Attest: 13 20 . Presented by me to the Mayor of the City of South Bend, Indiana December 10, 20 13 Approved and signed by me p L"-t8 City Clerk President of Common Council 20 ;3 . City Clerk M. RESOLUTION NO. '� 30�o-L3 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING A CERTAIN AREA WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 1028 Notre Dame Avenue AS A RESIDENTIALLY DISTRESSED AREA FOR PURPOSES OF A (5) FIVE -YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR Maria Jose Fernandez Moreno & Francisco de Asis Martinez Jerez WHEREAS, the Common t :ouicil of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating curtain 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 1028 Notre Dame Avenue, South Bend, Indiana, and which is more particularly described as follows: That part of the Northwest Quarter Section 1, Township 37 North, Range 2 East, Portage Township, City of South Bend, St. Joseph County, Indiana, which is described as Lot `B" as shown on the Plat of Boyd - Snee's Subdivi 7ion, First Replat recorded June 13, 2012 in the Office of the St. Joseph County, Indiana Recorder as Instrument No. 1217686. Containing 0.19 acres more or less. Subject to all legal right -of —ways, easements, and restrictions of record. and this property has Tax Key Number 018 -5105- 370203 be designated as a Residentially Distressed Area under the provisions of Indiana Code 6 -1.1 -12.1 et sea., and South Bend Municipal Code Sections 2 -76 et sea., and; WHEREAS, notice of the adoption of a Declaratory Resolution and the public hearing before the Council has been publishe +' pursuant to Indiana Code 6- 1.1- 12.1 -2.5; and WHEREAS, the Counci' held a public hearing for the purposes of hearing all remonstrances and objections froin - -,terested persons; and WHEREAS, the Council Has det,rinined that the qualifications for a residentially distressed area have been met. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The Common Council herby detennines 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 se q., 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. 9394 -03, which was passed on February 10, 2003: 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: L 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 (100%) 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 five (5) calendar years from the date of the adoption of this Resolution by the Common Council. SECTION IV. The Common Council hereby confirms its Declaratory 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 five (5) calendar years from the date of adoption of the Declaratory Resolution by the Common Council as shown by the attachment pursuant to Indiana Code 6 -1.1- 12.1 -17. 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. PRESENTED _ 12� \--t-3 NOT APPROVId ADOPTED l 2,-A ' 1 Member of the Common Council hn aTY CLEHit .,OW Y"", 227 W. JEFFERSON BOULEVARD SUITE 1400 S. SOUTH BEND, IN 46601 -1830 November 13, 2013 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT SCOTT FORD, EXECUTIVE DIRECTOR Council Member Gavin Ferlic, Chairperson Community Investment Committee South Bend Common Council 4th Floor, County City Building South Bend. IN 46601 RE: Residential Real Property Tax Abatement Petition for: Maria Jose Fernandez & Francisco de Asis Martinez Jerez Dear Council Member Ferlic: PHONE: 574/235 -9371 FAX: 574/235 -9021 Please find attached the Department of Community Investment's report on a residential real property tax abatement petition submitted by Maria Jose Fernandez Moreno and Francisco de Asis Martinez .Jerez to build a single- family home at 1028 Notre Dame Avenue. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. The report contains the department's findings relative to the above petition. The petitioner proposes to build a single- family home at a cost of approximately $550,000. The project meets the qualifications for a (5) five -year real property tax abatement. The petitioner will be available to meet with the Committee on Monday, November 25, 2013. 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 -9339. Sincere]�� Brock Director, Economic Resources Attachments cc: South Bend Common Council Members Mayor Pete Buttigieg Scott Ford Chris Fielding ASSISTANT EXECUTIVE DIRECTOR PIANNING NEIGHBORHOOD ENGAGEMENT ECONOMIC RESOURCES CHRIS FIELDING JITIN KMN PAMELA C. MEYER BROCKZEEB 227 W. JEFFERSON BOULEVARD Su1TF. 1400 S. SOUTH BEND, IN 46601 -1830 CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR COMMUNITY INVESTMENT SCOTT FORD, EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: KATHY HAHN PHONE: 574/235 -9371 FAX: 574/235.9021 SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR: Maria Jose Fernandez Moreno and Francisco de Asis Martinez Jerez DATE: November 13, 2013 On November 13, 2013, a petition for residential tax abatement consideration for real property located at 1028 Notre Dame Avenue was filed with the City Clerk by Maria Jose Fernandez Moreno and Francisco de Asis Martinez Jerez. 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 Investment for purposes of investigation and preparation of a report determining whether the area qualifies as a Residentially Distressed Area pursuant to LC.6 -1.1 -12.1 and whether all zoning requirements have been met. The Department of Community Investment has reviewed the petition (a copy of which is attached), investigated the area, and makes the following report. PROJECT DESCRIPTION The petitioners intend to construct an approximate 3,800 square foot, single - family home. This will be a Prairie style house with four bedrooms, an office, a family and dining room, and a two car garage; it will probably have a finished basement. The cost of the home is expected to be $550,000. Total taxes to be abated during the (5) five -year abatement period are estimated to be $1,893. Total taxes to be paid during the (5) five -year abatement period are estimated to be $34,827. ASSISTANT ExECUTwE DIRECTOR PIANNING NEIGHBORHOOD ENGAGEMENT ECONOMICRFSOURCES CHRIS FIELDING JITIN KAIN PAMELA C. MEYER BROCK ZEEB South Bend Common Council RE: Maria Jose Fernandez Moreno & Francisco de Asis Martinez Jerez November 13, 2013 Page 2 ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted finds that the petitioner has not been associated with or been granted any previous tax abatements. 2. The Building Commissioner has reviewed this petition and finds the property to be properly zoned for the proposed project. 3. A review of the Tax Abatement Ordinance No. 9394 -03 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 Martinez Jerez South Bend Portage Township Residential Real Property Tax Abatement Schedule` 13- Nov -13 Estimated Project Cost: $550.000.00 Total Taxes Tax Abated" Tax Paid'.' Assessed Value: Structure (% AV of cost) 100.0% 550,000.00 550,000.00 550,000.00 Land Value 15,000 15,000.00 N/A N/A Gross Assessed Value 565,000.00 550,000.00 550,000.00 Less Mortgage Exemption (3,000.00) (3,000.00) (3,000.00) Less Homestead Deduction (45,000.00) (45,000.00) (45,000.00) Less Supplemental Homestead Deduction (182,000.00) (182,000.00) (182,000.00) Base Assessed Value 335,000.00 320,000.00 320,000.00 Less Maximum Abatement Deduction N/A N/A (74,880.00) Less Non - Abated Amount N/A (245,120.00) N/A Plus Land Assessed Value N/A N/A 15,000.00 Net Assessed Value 335,000.00 74,880.00 260,120.00 Property Taxes: Assume constant tax rate of 5.0228% 5.0228% 5,0228% Gross Tax (tax rate x net assessed value) 16,826.30 3,761.05 13,065.24 Less County COIT Homestead Credit: 7.3430 %_ (1,235.55) (276.17) (959.38) Tax Due Before Circuit Breaker 15,590.74 3,484.88 12,105.86 Less Circuit Breaker Credit _ (8,246.65) (3,106.21) (5,140.44) Net Tax 7,344.10 378.67 6,965.43 Circuit Breaker Cap Circuit Breaker 1.0000% 5,650.00 5,500.00 5,650.00 Debt Service 0.5057% 1,694.10 378.67 1,315.43 Circuit Braker Cap 7,344.10 5,878.67 6,965.43 Net Total Assessed Taxes Tax Tax Year Value Due Abated Paid 1 335,000.00 7,344.10 378.67 6,965.43 2 335,000.00 7,344.10 378.67 6,965.43 3 335,000.00 7,344.10 378.67 6,965.43 4 335,000.00 7,344.10 378.67 6,965.43 5 335,000.00 7,344.10 378.67 6,965.43 5 year totals: 36,720.48 1,893.34 34,827.13 -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. CITY OF SOUTH BEND, INDIANA PETITION FOR RESIDENTIAL TAX ABATEMENT CONSIDERATION The undersigned owner(s) of real property, located within the City of South Bend, hereby petition the Common Council of the City of South Bend for Residential Real Property tax abatement consideration and pursuant to 6.1.1. 12.1.1, et seq., and South Bend Municipal Code Sec. 2 -76 et sea., for this petition state the following: 1. Describe the proposed construction project, including information about square footage, number of rooms, number of stories, other amenities such as finished basements and garages, the amount of land to be used, the proposed use of the improvements, and a general statement as to the importance of the project (use additional sheet for long pro!'ect descriptions): We plan to build our family house in Notre Dame Avenue. Our plan is to - - - - ---------------------- - - - - -- - - -- - -- build -a- pra irie -atyle -h ome_- that --till ma i nt a i n- th -- feeling- -o-f -r-ommuni t O the -�16 rE- Hameri4S;`--- I1E3EJlibO h@ Hd- fi31i33 $- add 3-nq- ees the t3ta-l- ly- -to-- -it. feet house and possibly a finished basement in our 66' by 102' lot. 2. Estimate the dollar value of the construction project (do not include land cost): $_ 3. The real property for which tax abatement consideration is petitioned (Property) is owned or to he owned by the following individual(s) or corporation(s) (if the business organization is publicly held, indicate also the name of the corporate parent, if any, and the name under which the corporation has filed with the Securities and Exchange Commission): Address Interest IN 46 ------------------- Fxancisco- He - sis- Marrtinez- ierezT -a redress- same_-as -abaveL, -cu —owner -- 4. The commonly known address of the Property is: 1028 Notre Dame Avenue ----------------- - - - --- and having tax key no.:_ 018 51053 7 02 03________ (use additional sheet for multiple addresses or key numbers). 5. A legal description of said Property(s) is attached hereto, marked Exhibit A, and is incorporated herein. 6. A map and /or plat indicating the location of the Property(s) is attached hereto, marked Exhibit B, and is incorporated herein. 7. Photographs of the Property(s), taken within two (2) weeks of the filing of this petition, are attached hereto, marked Exhibit C, and incorporated herein. 8. The current assessed valuation of the property before construction is $ n/a (use additional sheet for multiple addresses). (Information may he obtained from the St. Joseph County Assessor's Office, 235. 9523). 9. List the real property taxes paid at the location during the previous two years, whether paid by the current owner or a previous owner use additional sheet for multiple addresses): No taxes co lected in this property because it is a brand new prone -------------------- - - - - -- - _nd_before_it_was_a_not_for profit_or�aniz�tion_ —__--------- (This information may be obtained from the St. Joseph County Treasurers office, 235.9535 10. What is your best estimate of the after completion market value of the property: $625,000 - - - - (Rev. 5/13/11) 11. No building permit has been issued for construction on the property in connection with the improvement in question as of the date of filing of this petition. The building permit may be issued after the South Bend Common Council has approved the Declaratory Resolution. (Tax abatement is not available if a building permit has already been issued). The signature below is verification of this statement. 12. List other anticipated public financing for the project, including any assistance to be sought or already authorized through the United States Department of Housing and Urban Development funds from the City of South Bend, South Bend Housing Authority, Housing Assistance Office, St. Joseph County Housing Consortium or other public financial assistance, including but not limited to public works improvements: n/a 13. Describe how the property has become undesirable for or impossible of normal development because of a lack of development, cessation of growth, deterioration of improvements or other factors which have impaired values and prevent a normal development of the property: The_ne hh_ orh(iQd _il)- Rhich_this_r�tY -,raa de,s-_dete -r orAt d_6 adly_-thLQUghoarL}hp 1970'x, LQQQ'�s_��d_19QQ'�s__The_Ngtre Dame Av_enu_e_AOUSing_Progrm�_ under whigh_thi residence is being_built� was_created_specifical1_by_ the University_ of_NOtr_e_Dame_in_ cooperation with the_City_of South_Bend to reverse this trend bv_encouraging_new.-high= quality_residential development in the neighborhood, which supports housing values and real estate taxes. 14. The current use of the property is vacant lot ------ ----------- ---- -- _ ----- and the current zoning is -&F -2_— (use). (This information may he obtained from the Building Department 235.9553) 15. The property is located in the following Allocation Area (if any) declared and confirmed by the South Bend Redevelopment Commission (requirin approval of the tax abatement by the Redevelopment Commission): Northeast Neighborhood Developmen�Area 16. The following person should be contacted as the petitioner's agent regarding additional information and public hearing notifications: Name Francisco_- de_Asis_Martine7--Jerez ----------------------------- - - - - - -- Address 50841-Ashford _Lane - - - -- -- - ----------------------------- CityCi State, Zip Gran er _ , p - - - -� --�-IN _4 6 5 3 0----- - - - - -- ----------------------------------- Telephone 574_631_ 5195—_ -------------------- EmailAddress asismartinez @nd.edu_ -- - - - --- WHEREFORE, Petitioner has paid the required fee of $50.00 and requests that the Common Council of the City of South Bend, Indiana, adopt a declaratory resolution designating the area described herein as a residentially distressed area for the purposes of real property tax abatement consideration, and after publication of notice and public hearing, determine that the qualifications for a residentially distressed area have been met and confirm such resolution. Name of Property Owner(s): Maria Jose Fernandez Moreno (Signature) (Typed or printed name (Rev. 5/13/11) )Ice ,JOHN CITY CLERK, S00-i i SEND, IN EXHIBIT "A' Legal Description of the Real Estate: THAT PART OF THE NORTHWEST QUARTER SECTION 1, TOWNSHIP 37 NORTH, RANGE 2 EAST, PORTAGE TOWNSHIP, CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA, WHICH IS DESCRIBED AS LOT "B "AS SHOWN ON THE PLAT OF "BOYD- SNEE'S SUBDIVISION, FIRST REPLAT" RECORDED JUNE 13TH, 2012 IN THE OFFICE OF THE ST. JOSEPH COUNTY, INDIANA RECORDER AS INSTRUMENT NO. 1217686. CONTAINING 0.19 ACRES MORE OR LESS. SUBJECT TO ALL LEGAL RIGHT -OF -WAYS, EASEMENTS, AND RESTRICTIONS OF RECORD. COMMONLY KNOWN AS: 1028 NOTRE DAME AVENUE, SOUTH BEND, INDIANA Filed f `C, 222493 � CITY 0 aYk+IV/7, Ihl