The URL can be used to link to this page

Home My WebLink About6.A.(1) Resolution No. 2506RESOLUTION NO. ?506 A RESOLUTION APPROVING AN APPLICAT[ON FOR REAL PROPERTY TAX DEDUCTION WHEREAS. LC. 6-l . l -12.1-?(1) provides that an application fr>r property tax deduction may not be appro~-ed when the property is located in an allocation area as dclined in LC. 36-7-14- 39. unless the Rede~~clopmcnt C ommission ~~~~hich desi~~nated that allocation area adopts a resolution appro~~ing that application; and WHEREAS, the South Bend Common Council has received a petition for (5) flue years ot~ real property tax abatement consideration from Robert J. and Deborah S. Bernhard fitx' real property located at 10l 9 Notre Dame Avenue in the Northeast Neighborhood De~~clopment Area, the development area location and legal description of ~~~hich are attached hereto, marked Exhibit "A" and incorporated herein: and WHEREAS.. this Conunission declared the Northeast Neighborhood Development Area by Resolution No. ?016. adopted No~~ember 17. ?003, and in the same resolution declared the Northeast Neighborhood Development Area Allocation Area; and ~~~IIEREAS. the property located at 1019 Notre Dame Avenue is located ~~eithin the Northeast Neighborhood Deg elopmcnt Arca Allocation Area: NOW. TI{EREFORE. BE [T RESOLVED by the South Bcnd Rcdcvclopmcnt Commission as iollovrs: I) The Commission finds that the application fiom Robert J. and Debrn~ah S. Ba shard for (5) five years of real property tax abatement consideration for property located at 1019 Notre Dame A~~enuc in the Northeast Neighborhood Development Arca Allocation Area should be and is hereby approval. ?) That a copy of this resolution be torwardcd to the South Bcnd Common Council to indicate the Commission's appro~-a1 of the pctiti<~n t<~r real property° tax abatement for Robert ,l. and Deborah S. Bernhard. Approved this 3rd day of October. ?008, at the regulm~ meeting of the South Bend Raie~~elopment Commission. SOU~IIi BEND REDEVELOPMEN"h COMMISSION 4TTEST: EllilE3[T A Address: 1019 '~otrc Dame A~~enuc (2 parcels) Legal Description: A part o(~ the I~~orthcast Quarter of Section I, T.37 ~~., R? G (Be ing a replat of part of Lot S4 and 85 of Sorin~s Second Addition to Lo~~~cil. no~~~ the City of South Bend) Portage ~I~o~~~nship. Cit}' of South Bend. St. Joseph County. Indiana Parcel ti~umher: Parcel 7 : 18-5104-3650 Parcel Z: 1 R-5104-365 13011 G,~.~:.-Crn lip !i.,,iv "' V:W'. ~i_i ri;ons Beni c:~:;i tiu~ n i 13r:~n, 1~'bi ~w 46601-I ~{.i0 I'uov! ~?'i/ Z 35-9i' I P~~ ~?4/ 3i5 ~)U' I ll)I)5~ti/Zi5-~SG~ Cr,v~~rS~x'ru Brno $ira~irnN ~. L~~i-ri<t, ~ti1~~~,iz COMMUNITY & ECONOMIC DEVELOPMENT TAX ABATEMENT REPOR T TO: SOUTH BEND REDEVELOPMENT COMMISSION FROM: BOB MATHIA ~~ '~~`"~~ SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR: BERNIIARD, ROBERT J. & DF,BORAH S. DATE: September 19, 2008 On September l 8, ?008, a petition for residential tax abatement consideration for real property located at 1019 Notre Dame Avenue was filed with the City Clerk by Robert J. and Deborah S. Bernhard. Pursuant to Chapter 2, Article 6, Section 2-77. I 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 Residential ly Distressed Area pursuant to LC.6-1.1-12.1 and whether all zoning requirements have been met. 1'he Department of Community and Economic Development has reviewed the petition (a copy of which is attached), investigated the area, and makes the follo~~~ing report. PROJECT DESCRIPTION Robert J. and Deborah S. Bernhard intend to construct a 3,100 square foot, single-family, owner-occupied home. "I'he home will have four bedrooms and Cour bathrooms plus a kitchen, dining room, den, great room, laundry room, fireplace and attached two-car garage. 'The cost of the home will be approximately $450,000. 'I'ota] taxes to be abated during the (~) five-year abatement period are estimated at $2,216. 'Total taxes to be paid during the (5) live-year abatement period are estimated at $24,036. Please note that the petitioner submitted two petition forms with different tax key numbers because the property in question has two tax key numbers. C<i~ihm~~rrrl)uri~>i~rom~r P.ain~~i,tiu.Dnau~rsir:~r li~n:u<~ini.&Pit~x,i<n,~a P,p~.ni,t .A0 ,. ~:a n,...~i i, ~ I>ti. ;V~nNn(~hN b:Nl South Bend Redevelopment Commission RL: Bernhard, Robert J. & Deborah S. September 19, 2008 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 properties to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the property is located in the Northeast Neighborhood Development Area, which is a Tax Incremental Allocation Area; therefore, approval of the tax abatement petition by the South Bend Redcvclopmeut Commission is required. 4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets the qualifications fora (5) five-year residential tax abatement under Section 2-77.1, Single Family Residential Construction. 5 YEAR 19-Sep-08 ROBERT J. & DEBORAH S. BERNHARD South Bend Portage Township Residential Rea! Property Tax Abatement Schedule` Estimated Project Cost: Assessed Value: STRUCTURE(%AVofcost)~ 850°I~ LAND Value ;' ~ ~'~l,pi)"E}E~ Gross Assessed Value Less Mortgage Exemption Less Homestead Deduction Less Supplemental Homestead Deduction Base Assessed Value $450:000.00' Total Taxes Tax Abated`" Tax Paid"' 382,500.00 382,500.00 382,500.00 10,000.00 N/A N/A 392,500.00 382,500.00 382,500.00 (3,000.00) (3,000.00) (3,000,00) (45,000.00) (45,000.00) (45,000.00) (120,575.00) (120,575-00) (120 575.00) 223,925.00 213,925.00 213,925.00 Less Maximum Abatement Deduction N/A N/A (74,880.00) Less Non-Abated Amount N/A (139,045.00) N/A Plus Land Assessed Value N/A N/A 10,000.00 Net Assessed Value 223,925.00 74,880.00 149,045.00 Property Taxes: Assume constant tax rate of 4.3592% 4.3592% 4.3592% Gross Tax (tax rate x net assessed value) 9,761.34 3,264.17 6,497.17 Less State & County Homestead Credit: 0.4625% (1.035.65) (346-32) (689.33) Tax Due Before Circu~l Breaker 8,725.69 2,917.85 5,807.84 Less Circuit Breaker Credit (3,47527) (2,474.63) (1,000.64) Net Tax 5,250.41 443.21 4,807.20 Circuit Breaker Cap Circuit Breaker 1.0000°/ 3,925.00 3,825.00 3,925.00 Debt Service 0.5919% 1,325.41 443.21 882.20 Circuit Braker Cap 5,250.41 4,268.21 4.807.20 Year Net Assessed Value Total Taxes Due Tax Abated Tax Paid 1 223,925.00 5,250.41 443.21 4,807.20 2 223,925.00 5,250.41 443.21 4,807.20 3 223,925.00 5,250.41 443.21 4,807.20 4 223,925.00 5,250.41 443.21 4,807.20 5 223,925.00 5,250.41 443.21 4.807.20 5 year totals: 26,252.06 2,216.07 24,035.99 '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 374,880 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 574,880 and adding back the land assessed value. ESTIMATED TOTAL TAX REVENUE ROBERT J. & DEBORAH S. BERNHARD LAND" BUILDING" TOTAL Year1 $602 $4,205 $4,807 Year 2 5602 $4,205 4,807 Year3 5602 $4,205 4,807 Year 4 5602 $4,205 4,807 Year 5 $602 $4,205 4,807 Total $3,010 $21,025 $24,035 'Current tax levy ""Additional tax revenue from new investment