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Home My WebLink About6.A.(1) Resolution No. 2529RESOLUTION NO. A RESOLUTION APPROVING AN APPLICA~hION FOR RE:-~L PROPER"fY TAX DEDUCTION V'~'HERF,AS_ LC. G-I.I-L.I-?(l) pro~~idcs that an application i~~r propety tax deduction ma~~ not be ahlxo~ ed ~~~hen the property is located in an allocation area as defined in LC. 36-7-14-39. unless the Redevelopment Commission ~~~hich designated that allocation area adopts resolution appro~~ing that application: and WHEREAS. the South Bend Common Council has recci~ed a petition for (5) ii~eycars of real property tax abatement consideration from the Northeast 'V~eighborhood Rc~italization Organization. Inc. and y'V'eiss Homes. Inc. for real properly located at 719 and 7?5 Turnock Street in the Northeast Neighborhood De~~clopmcnt Arca_ the dc~°elopment area location and legal description of ~ihich arc attached hereto_ marked Cxhibit "A" and incorporated herein; and ~y'HERI=AS. this Commission declared the Northeast Neighborhood Deg clopment Arca by Resolution No. ?016, adopted No~~embu 17. ?00;. and in the same resolution declared the Northeast Neighborhood Dc~elupmcnt Arca Allocation Arl:a; and WHE~RI:AS, the property located at 719 and 7?5 Tw-nock SUect is located ~~~ithin the Northeast Neighborhood Dc~~elopment Area Allocation .Area: NO\~_ I~HFREFORE_ BE I"h RESOLy'ED by the South I3cnd Rcde~~clopmcnt Commission as follo«'s: i) The Commission tinds that the application from the Northeast Neighborhood Rc~italixution Organisation. Inc. and ~y'eiss Homes. Inc. fbr (j) tisc wars of real property tax abatement consideration f~~r property located at 719 and 7'?5 Turnock Street in the Northeast '~'cighborhood Dc~clopmcnt Arca Allocation Arca should be and is hercb~~ appro~~cd. ?) l~hat a copy of this resolution be t~~r~~~arded to the South Bend Common Council to indicate the Conuuission's appro~a1 of the petition for rail property tax tibatement for the Northeast Neighborhood Rey italizatiun Organization. lnc. and Vdeiss Humes. Inc. Appro~cd this day of December. ?OOS. at the regular meeting of the South Bcnd Rcdc~clopmcnt Commission. SOUTH }SEND REDEVELOPS-1l:AT COM'v11SSlON A~(~~I~EST: L~l~lE31T A Address: 719 and 7~~ ~furnock Street Lc~~al I~cscripti~~n: A lr<u~l ol~thc A~ esl half of fhe Southeast yuartcr of Section 1 . fo~rnshih ;7'v'orth_ Rank East_ Portage 10.. nshih_ City of South E3end. St. {osq~h County. ind~uvui. more particularl~~ described as tollo~~~s: Lots I) and I~: of ~l~urnock~s suhdi~ision of a hart of Turnock and ~1ack~s addition to the City of South Bend as rea~rded in Plal book 9. ~~agr K2. in the Office of Recorder of said county. Also including the Aorth 7 feet of a I ~ foot ~~,~ide alley being the first gist-~~~est alley I~in~ south ol~ Kalorama Street het~~~ecn ~l~urnock Street and the tint north-south alley, east of V~orth St. Louis I3oule~ ard. Subject to rights-of~-wa~~. easements. covenants. and restrictions of recrnd. Parcel ti~umbcr: Parcel ? : 1 S-jU?-l-1 ?? TAX ABATEMENT REPOR T TO: SOI;~I H BEND REDEVELOPMGN"C CO'~nMISSION FROM: [30[3 MATHIA SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR: 'Northeast Neighborhood Re~~italization O-ganization, Inc. (O~~~ner) ~~'eiss Homes. Inc. (Contingent Owner) DATE: December 10. 2008 On December S. 2008. ~~ petition 1~ir residential tax abatement consideration tier real property located at 719 and 725 Turnock SU~eet ~~as tiled ~~ith the City Clerk b~ Northeast Neighborhood Rc~~italization Organization. [ne. Pursuant to Chapter 2. Article 6. Section 3-77.1 of the Municipal Code of the City of South Bend. this petition ~~as referred to the Department of Community and Economic De~~elopment for purposes of investigation and pre~~aration of a report determining ~i~hethcr the area qualifies as a Residentially Distressed Area pursuant to LC.G-1 . I-1 2.1 and ~~hethcr all roving requirements ha~~c been m ct. The Department ofConununity and Economic De~clopmcnt has rc~~ic~~cd the petition (a copy ofuhieh is attached), imcstigated the area, and makes the follu~~ing report. PROJECT DESCRIPT101' Northeast Nci~hborhood Re~~italization Or~ani'r_ation. Inc. and yy%eiss Homes, lnc. intends to construct t~ao ne~~~ ~in~~le family homes. The homes ~~ill ha~c approximately 1. X00 square feet c.acluding the basement and ~~ill consist of three bedrooms. R~~o to t~~~o and a half baths. and an attached t~~o car ~~ara~c. The cost of the t~~o homes Neill be approxinxrtely S28U.OOU. Total taxes to be abated during the (5) fi~c-near abatement period are estimated at 55.508. Total taxes to bed aid dm~ing the (~) ti~~e-year abatement period are estimated at S 10.7 ~9. South [3cnd Rcdc~ elopmcnt Conunission RE: northeast 'V~eighborhood Revitalization Organization. Inc. ~ Wciss Homes. Inc. December 10. 2008 Page ABATE~~IENT QI;ALIFICATIO:~ A rcyie~a of the tax abatements prc~~iously granted finds that the Northeast ncighbrn-hood Revitalization Organization. Inc. has not been associated ~a~ith or been granted any prey°ious tax abatements. Wciss Homes has been associated ~~~ith the frillo~~~ing abatements ~~~hich ~a-a e granted to Kendall- Weiss. LLP. Tcrny~I_v c Resolution Igo. Date year real property 3828-08 January ?8. ?008 ~ year real propcity 3810-07 noyember 1 1. 2007 5 year real propcrt_v ;788-07 September 24. 2007 5 year real property 3697-07 February 12. 2007 5 h'em' real property 3551-U6 January 9. 2006 5 year real property 3494-OS July 25. 2005 S year real property ;481-OS June 27. 2005 5 year real property 3398-U4 October 25.2004 5 year real property 3352-04 Jule 12. 2004 ?. The Quilling Commissioner has reyie~~ed this petition and finds the properties to he properly zoned for the proposed project. 3. A rcyic~i~ of the South Bend Redevelopment designation areas finds that the property is located in the northeast Tv'ei~ghborhood De~~elopment Area. ~~~hich is a Tax Incremental Allocation ~~rea; therefore. approval ofthe tax abatement petition by the South Bend Redcyclopment Commission is required. 4. A re~~iew~ of the ~~az Abatement Ordinance no. 9 39=~-03 finds that the petitioner meets the qualifications fix a (5) fi~~c-year residential tax abatement under Section ?-77.1. Single Family Residential Construction. 5 YEAR 15-Dec-O8 Northeast Neighborhood Revitalization Organization, Inc. & Weiss Homes, Inc. South Bend Portage Township Residential Real Property Tax Abatement Schedule` Estimated Project Cost Assessed Value: STRUCTURE (°6 AV of cost)' 85.0°0 LAND Value 10.000 Gross Assessed Value Less Mortgage Exemption Less Homestead Deduction Less Supplemental Homestead Deduction Base Assessed Value Total Taxes Tax Abated"" Tax Paid"' 238.000.00 238.000.00 238,000.00 10.000.00 N/A NlA 248,000.00 238,000.00 238,000.00 (3,000.00) (3,000.00) (3,000.00) (45.000.00) (45.000.00) (45,000.00) i7o,oo0.00> (70,000.00) ~70,000.00~ 130,000.00 120,000.00 120.000.00 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 (74,880.00) N/A (45.120.00) N/A N/A NiA 10.000.00 130,000.00 74,880.00 55.120.00 4.3592% 4.3592% 4.3592% Gross Tax (tax rate x net assessed value) 5,666.96 3,264.17 2,402.79 Less State & County Homestead Credit: 0.4625% (601.25) (346.32) (254.93) Tax Due Before Circuil Breaker 5,065.71 2,917.85 2.147.86 Less Circuit Breaker Credit (1,816.24) (1,816.24) 0.00 Net Tax 3,249.47 1.101.61 2,147.86 Circuit Breaker Cap Circuit Breaker 1.0000% 2.480.00 2,380.00 2,480.00 Debt Service 0.5919°'0 769.47 443.21 326.26 Circuit Braker Cap 3,249.47 2,823.21 2,806.26 Net Total Assessed Taxes Tax Tax Year Value Due Abated Paid 1 130.000.00 3,249.47 1.101.61 2,147.86 2 130,000.00 3.249.47 1,101.61 2,147.86 3 130,000.00 3.249.47 1,101.61 2.147.86 4 130,000.00 3.249.47 1,101.61 2.147.86 5 130,000.00 3,249.47 1.101.61 2,147.86 5 year totals 16,247.35 5,508.04 10,739.31 '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 574.880 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 Vand assessed value. ESTIMATED TOTAL TAX REVENUE NORTHEAST NEIGHBORHOOD REVITALIZATION ORG. AND WEISS HOMES LAND' BUILDING" TOTAL Year 1 S668 S1,480 $2,148 Year 2 S668 51,480 2,148 Year 3 $668 $1,480 2.148 Year 4 5668 S1,480 2,148 Year 5 5668 S1.480 2,148 Total $3.340 57,400 510.740 'current tax levy "°Additlonaf tax revenue from new investment