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HomeMy WebLinkAboutDesignating Tax Abatement - 4441 Jade Crossing Drive, 4522, 4532 Ashard Drive, 4430 Jade Crossing Drive (or 4607 Ashard Drive), 4601, 4523, 4513, 4411, 4321, 4309 Ashard Drive all in Jade Crossing - Section IRESOLUTION 3902-08 Passed by the Common Council of the City of South Bend, Indiana September 8, Attest: City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana September 9, 20 08 Approved and signed by me September 10 , 20 0 8 zo 08 City Clerk RESOLUTION NO. 3 ~ ~ ~-~ S A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 4441 JADE CROSSING DRIVE, 4522, 4532 ASHARD DRIVE, 4430 JADE CROSSING DRIVE (OR 4607 ASHARD DRIVE), 4601, 4523, 4513, 4411, 4321 AND 4309 ASHARD DRIVE ALL IN JADE CROSSING - SECTION I AS RESIDENTIALLY DISTRESSED AREAS FOR PURPOSES OF A (5) FIVE-YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR CLELAND BUILDERS, 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 4441 JADE CROSSING DRIVE, 4522, 4532 ASHARD DRIVE, 4430 JADE CROSSING DRIVE (OR 4607 ASHARD DRIVE), 4601, 4523, 4513, 4411, 4321 AND 4309 ASHARD DRIVE ALL IN JADE CROSSING -SECTION I, South Bend, Indiana, and which is more particularly described as follows: LEGAL DESCRIPTION: JADE CROSSING -SECTION I LOTS NUMBERED 1, 83, 84, 87, 88, 90, 92, 95, 98 AND 100 AS SHOWN ON THE RECORDED PLAT OF JADE CROSSING, SECTION I, RECORDED APRIL 2, 2004 IN THE OFFICE OF THE RECORDER OF ST. JOSEPH COUNTY, INDIANA AS INSTRUMENT NO. 0415098 and this property which has Tax Key Numbers 25-1013-020748, 25-1013-020930 and 25-1013- 020931, 25-1013-020934, 25-1013-020935, 25-1013-020937, 25-1013-020939, 25-1013- 020942, 25-1013-020945 and 25-1013-020947, 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 seq., 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. 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 seQ., 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: 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. 2 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 the adoption of the Declaratory Resolution by the Common Council. 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. r ~• Member of the on Council PRESENTED ~. ~_p g' NOT APPROVED 7{DOPTED l -8'-d~ 3 fF?` . ~. tk~~.'~.'~ ~fi€iCe AUG - 4 2008 JGHI1 Vv^05v"t CITYCLEn~;, $0. F=';D, (Pd. 1200 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/235-9371 FAx 574/235-9021 TDD 5741235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~L ECONOMIC DEVELOPMENT ,JEFFREY V. GIBNEY EXECUTIVE DIRECTOR July 25, 2008 Council Member Derek D. Dieter, Chairperson Community & Economic Development Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 RE: Residential Real Property Tax Abatement Petition for: CLELAND BUILDIERS, INC. (Jade Crossing -Section I) Dear Council Member Dieter: Please find attached the Department of Community & Economic Development's report on a residential real property tax abatement petition submitted by Cleland Builders, Incorporated. This developer intends to develop ten lots remaining in Section I of Jade Crossing. Also attached is a copy of the petition, Statement of Benefits form, and supporting information. Please note that the petitioner applied for a tax abatement on eleven lots, however, the Building Department reported that one of those lots, lot number 77, already had a building permit issued for it and a house constructed on it. Therefore, that lot, number 77, was deleted from the list and the total number of lots reduced from eleven to ten. The project's cost estimates and estimated taxes were reduced accordingly. The report contains the department's findings relative to the above petition. The petitioner proposes to develop the ten lots at a cost of $1,380,000. The developer has sold twenty-two lots under a prior tax abatement. The term for that abatement expired June 8, 2008, and the developer is requesting a new tax abatement in order to continue offering tax abatements as incentives for the sale of the remaining lots. The project meets the qualifications for afive-year (5) real property tax abatement. The petitioner will be available to meet with the Committee on Monday, August 11, 2008. 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 235-5835. Sincerely, Bob Mathia Assistant Director, Economic Development COMMUNITY DEVELOPMENT ECONOMIC DHVELOPMENT FINANCIAL ~ PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELIZABETH LEONARD FAX: 574/235-9697 574/235-9371 Attachments cc: South Bend Common Council Members Mayor Stephen Luecke Jeff Gibney Don Inks 1200 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/235-9371 FAx 574!235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY S~Z ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY EXECUTIVE DIRECTOR TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BOB MATHIA SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR: CLELAND BUILDIERS, INC. (Jade Crossing -Section I) DATE: July 25, 2008 On June 23, 2008, a petition for residential tax abatement consideration for real property located in Jade Crossing - Section I was filed with the City Clerk by Cleland Builders, Incorporated. 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 and Economic Development for purposes of investigation and preparation of a report determining whether the area qualifies as a Residentially Distressed Area pursuant to I.C.6-1.1-12.1 and whether all zoning requirements have been met. The Department of Community and Economic Development has reviewed the petition (a copy of which is attached), investigated the area, and makes the following report. PROJECT DESCRIPTION Section I of the subject subdivision was granted afive-year residential real property tax abatement on June 23, 2003, through Common Council Resolution number 3205-03. The Common Council's resolution confirmed its earlier declaratory resolution designating Section I as a Residentially Distressed Area (RDA) and that designation was limited to five calendar years from the date of the passage of the declaratory resolution, which was June 9, 2003. The RDA designation is required in order for the developer, Cleland Builders, to offer tax abatements on the lots sold in Section I of the subdivision. The RDA expired on June 8, 2008. Ten lots remain available in Section I of the subdivision which has a total of 32 home sites. The developer is petitioning for a new tax abatement on Section I in order to continue offering tax abatements on the remaining available lots in that Section. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HC PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 574/235-9660 574/235-9371 ELiznserH LEONARD FAx: 574/235-9697 574/235-9371 South Bend Common Council RE: Cleland Builders, Inc. (Jade Crossing -Section I) July 25, 2008 Page 2 The average cost to construct the remaining homes to be built in Section I is $138,000 each. The new homes will be between 1200 and 1600 square feet with three to four bedrooms, one to one and one-half baths, two car attached garages and full basements. The new homes will be consistent in size and style with what is already constructed in Section I. Taxes to be abated during the five-year (5) abatement period are estimated at $6,692 per home. The taxes to be paid during the five-year (5) abatement period for each home are estimated at $1,940. Total taxes to be abated for the 10 houses during the five (5) year abatement period are estimated at $66,920. Total taxes to be paid during the five (5) year abatement period for the 10 houses are estimated~at $19,400. Please note that the petitioner applied for a tax abatement on eleven lots, however, the Building Department reported that one of those lots, lot number 77, already had a building permit issued for it and a house constructed on it. Therefore, that lot, number 77, was deleted from the list and the total number of lots reduced from eleven to ten in the draft resolutions approving the tax abatement petition. The project's cost estimates and estimated taxes were reduced accordingly. ABATEMENT QUALIFICATION A review of the tax abatements previously granted finds that the petitioner has been associated with or been granted the following previous tax abatements. Term/Type Resolution No. Date 5-year real property 3205-03 June 23, 2003 5-year real property 3353-04 July 12, 2004 5-year real property 3518-OS September 12, 2005 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. However, as noted above, the Commissioner found that one of the lots listed in the petition already has a building permit issued for it and a house constructed on it. That lot, number 77, was deleted from the resolutions approving the abatement. 3. A review of the South Bend Redevelopment designation areas finds that the property is not located in any of the development areas; therefore, approval of the tax abatement petition by the South Bend Redevelopment Commission is not required. 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petition, except for lot number 77, meets the qualifications fora (5) five-year residential tax abatement under Section 2- 77.1, Single Family Residential Construction. . 5 YEAR 30~Ju1-08 CLELAND BUILDERS, INC. South Bend German Township Residential Real Property Tax Abatement Schedu/e* Estimated Project Cost: Assessed Value: STRUCTURE (% AV of cost)'.. 85.0°i~ LAND Value 10.000 ___.. _.. Gross Assessed Value Less Mortgage Exemption Less Homestead Deduction Less Supplemental Homestead Deduction Base Assessed Value f$138,000.00 Total Taxes Tax Abated** Tax Paid*** 128, 000.00 128, 000.00 128, 000.00 10,000.00 N/A N/A 138, 000.00 128, 000.00 128, 000.00 (3,000.00) (3,000.00) (3,000.00) (45,000.00) (45,000.00) (45,000.00) (31,500.00) (31,500.00) (31,500.00) 58,500.00 48,500.00 48,500.00 Less Maximum Abatement Deduction Less Non-Abated Amount Plus Land Assessed Value Net Assessed Value Property Taxes: Assume constant tax rate of N/A N/A (48,500.00) N/A 0.00 N/A N/A N/A 10,000.00 58,500.00 48,500.00 10,000.00 4.3404% 4.3404% 4.3404% Gross Tax (tax rate x net assessed value) 2,539.13 2,105.09 434.04 Less State & County Homestead Credit: 0.4611% (269.74) (223.63) (46.11) Tax Due Before Circuit Breaker 2,269.39 1,881.46 387.93 Less Circuit Breaker Credit (543.13) (543.13) 0.00 Net Tax 1,726.26 1,338.33 387.93 Circuit Breaker Cap Circuit Breaker 1.0000% 1,380.00 1,280.00 1,380.00 Debt Service 0.5919% 346.26 287.07 59.19 Circuit Braker Cap 1,726.26 1,567.07 1,439.19 Net Total Assessed Taxes Tax Tax Year Value Due Abated Paid 1 58,500.00 1,726.26 1,338.33 387.93 2 58,500.00 1,726.26 1,338.33 387.93 3 58,500.00 1,726.26 1,338.33 387.93 4 58,500.00 1,726.26 1,338.33 387.93 5 58,500.00 1,726.26 1,338.33 387.93 5 year totals: 8,631.31 6,691.66 1,939.65 *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. ESTIMATED TOTAL TAX REVENUE Year1 Year 2 Year 3 Year4 Year 5 Total Cleland Builders, Inc. 10 lots LAND* BUILDINGS** $955 $19,400 955 19,400 955 19,400 955 19,400 955 19,400 TOTAL $20,355 20,355 20,355 20,355 20,355 $4,775 $97,000 $101,775 *Current tax levy for the 10 vacant lots **Additional tax revenue from new investment. 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 I.C.. 6-1.1-12.1-I, et-seg•, and South Bend Municipal Code Sec. 2-76 et seq., for this petition states the following: Describe the proposed .construction project, including information about square footage, number of rooms, amenities, 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 project descriptions); Construction of 11 single family homes including sewers water mains storm sewers and retention _ basins along nth public streets sidewalks and li tina 2. Estimate the dollar value of the construction project (do not include land cost): $ 1,518,000.00 __ 3. The real property for which tax abatement consideration is petitioned (Property) is owned or to be owned by the following individual(s) or corporations (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): Name Address Interest Cleland Builders 1117 Lincolnway West Mishawaka IN 46544 Owner Vacant land, South side 4. The commonly known address of the Property is: of Brick Road South Bend, IN and having tax key no.: See Attached Sheet (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. The current assessed valuation of the property before construction is $~ 26,200.00 (see attached sheetL (use additional sheet for multiple addresses). (This information may be obtained from the St. Joseph County Assessor's Office 235-9523) Photographs of the Property, taken within two (2) weeks of the. filing of this petition, are attached hereto, marked Exhibit `C', and incorporated herein. 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): 2006 - $1 034.78 2007 - $1 034.78 (This information may be obtained from the St. Joseph County Treasurers-office 235-9531) 10. What is your best estimate of the after completion market value of the property: $ $1,815,000.00 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 abatemern 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. None 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: Property has been used as a rg avel pit has also been farmed and used as a rernal property. Due to sunoundin~ commerciaUindustrial nothing has been done to improve or upgrade thi~arcel. 14. The current use of the property is Vacant land and the current zoning is Residential (use) and A (height and area). (This information may be 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 (requiring approval of the tax abatement by the Redevelopment Commission): 16. The following person should be contacted as the petitioners agent regarding additional information and public hearing notifications: Name J Bernard Feenev Lang Feeney & Associates Inc Address 715 South Michigan Street City, State, Zip South Bend Indiana 46601 Telephone 574-233-1841 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) Cleland Builders. Inc. (Signa e) Lance J. Cleland, President (Typed or printed name and capacity) Filed in Ctvr~-c'~ Office JUL 2 3 2G~8 2 ,!^Hta V0090E CETY CLEiiK, S0. BEND, IN., JADE CROSSING -SECTION ONE LOT # ADDRESS TAX KEY # ASSESSED VALUATION 2006 TAXES PAID 2007 TAXES PAID Lot 1 4441 Jade Crossin Drive 25-1013-020748 $2,200.00 $86.82 $86.82 Lot 77 4406 Ashard Drive 25-1013-020924 $2,000.00 $79.82 $79.82 Lot 83 4522 Ashard Drive 25-1013-020930 $3,800.00 $149.95 $149.95 Lot 84 4532 Ashard Drive 25-1013-020931 $3,800.00 $149.95 $149.95 Lot 87 4430 Jade Crossing Drive 4607 Ashard Drive 25-1013-020934 $2,100.00 $82.87 $82.87 Lot 88 4601 Ashard Drive 25-1013-020935 $1,900.00 $74.98 $74.98 Lot 90 4523 Ashard Drive 25-1013-020937 $1,800.00 $71.03 $71.03 Lot 92 4513 Ashard Drive 25-1013-020939 $3,200.00 $126.27 $126.27 Lot 95 4411 Ashard Drive 25-1013-020942 $1,800.00 $71.03 $71.03 Lot 98 4321 Ashard Drive 25-1013-020945 $1,800.00 $71.03 $71.03 Lot 100 4309 Ashard Drive 25-1013-020947 $1,800.00 $71.03 $71.03 -st : _ xa ~' A _ C ~ r ~ 0 ~ ~ ~ ..~ x~ ~ o W ~ zr^ 0 o 00 _ ~ ~ -y; h m Yahoo! Maps - 4298 Ashard Dr, South Bend, IN 46628-6159 Yahoo! Maps - 4298 Ashard Dr, South Bend, IN ~,:~+~c~~ ~c~cAL ~~~x 46628-6159 CJ~y.~,?arid _ _. ~ ~,sx, ~d~,.. ~ NT} ~,, __ ~ Nli~liat~ _ ~ ~ ~~ "~° 31 ~ ~~~Rrhards~n C.~r ~c ~C'relag~( Fly ;? . y ~/5/~ ~hirtu~f~~ - ~~~".. JM1f/,~1~`l........ ~d~~ c~ `i~<~ t~h ~,,~,... ~Yafioo~340.4,DaW~NAVTE~2~ When using any driving direckions or map, it's a goad idea to do a reality check and make sure the road still exists, watch out for construction, and follow all traffic safety precautions. This is only to be used as an aid in planning. Page 1 of 1 http://maps.yahoo.com/print?ard=1 &v3=0&.intl=us&&mvt=m&tp=1 &stx=&clat=41.73669&clon... 7/30/2008