HomeMy WebLinkAbout6. B (1) Res 2553RESOLUTION NO. 2553
A RESOLUTION APPROVING AN APPLICATION FOR
REAL PROPERTY TAX DEDUCTION
WHEREAS, I.C. 6 -1.1- 12.1 -2(1) provides that an application for property tax deduction
may not be approved when the property is located in an allocation area as defined in I.C.
36- 7- 14 -39, unless the Redevelopment Commission which designated that allocation area adopts
a resolution approving that application; and
WHEREAS, the South Bend Common Council has received a petition for (5) five years of
real property tax abatement consideration from Joseph and Carolyn Queenan for real property
located at 912 North St. Peter Street in the Northeast Neighborhood Development Area, the
development area location and legal description of which are attached hereto, marked Exhibit "A"
and incorporated herein; and
WHEREAS, this Commission declared the Northeast Neighborhood Development Area
by Resolution No. 2016, adopted November 17, 2003, and in the same resolution declared the
Northeast Neighborhood Development Area Allocation Area; and
WHEREAS, the property located at 912 North St. Peter Street is located within the
Northeast Neighborhood Development Area Allocation Area;
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment
Commission as follows:
1) The Commission finds that the application from Joseph and Carolyn Queenan for (5)
five years of real property tax abatement consideration for property located at 912 North St. Peter
Street in the Northeast Neighborhood Development Area Allocation Area should be and is hereby
approved.
2) That a copy of this resolution be forwarded to the South Bend Common Council to
indicate the Commission's approval of the petition for real property tax abatement for Joseph and
Carolyn Queenan.
Approved this 16th day of January, 2009, at the regular meeting of the South Bend
Redevelopment Commission,
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
Address: 912 North St. Peter Street
Legal Description:
That part of the Northeast Quarter of Section 1, Township 37 North, Range 2 East, Portage
Township, City of South Bend, St. Joseph County, Indiana which is described as:
Lot # 129A of the Plat of "Sorin's Second Addition Fifth Replat" Subdivision recorded by
document No. 0809811 in the Records of the St. Joseph County, Indiana Recorder's Office.
Containing 0.19 acres more or less.
Subject to all legal highways, easements & restrictions of record.
Tax Key Number:
018 -5107 -2783
1200 COUN1_Y -CI'cv 13k n.niN(,
227 W. Ju Fc.RsoN BOULEVARD
SOUTH BEND, INDIANA 46601 -1830
PIK)N1' 574/235-9371
FAx 574/235 -9021
I DD 574/ 235 -5567
C1 cir Sc>a1-H BI NI) STEPHEN J. 1AA C I , MAYOR
COMMUNITY & ECONOMIC DEVELOPMENT
JEFFREY V G1I3NEY
E.XF.C1 l Ivi' DIRECTOR
TAX ABATEMENT REPORT
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: BOB MATHIA 9
SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR:
QUEENAN, JOSEPH & CAROLYN
DATE: January 6, 2009
On January 6, 2009, a petition for residential tax abatement consideration for real property located at 912
North St. Peter Street was filed with the City Clerk by Joseph and Carolyn Queenan. 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 LC.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
Joseph and Carolyn Queenan intend to construct a 2,300 square foot, single - family, owner- occupied home.
The home will be two stories. It will have three bedrooms and three bathrooms, a front porch, a finished
basement and a two -car garage. The project is part of the Notre Dame Avenue Housing Program and as
such will follow the design specifications and standards specified by the University's architect. The cost of
the home will be approximately $345,000. Total taxes to be abated during the (5) five -year abatement
period are estimated at $2,336. Total taxes to be paid during the (5) five -year abatement period are
estimated at $17,736.
COMMUNR'YD[.wi OPMCN1 B.CONOMI<- DISvii0i'MINI FINANCIAL& PROGRAM
PANII.A C. M1 Yi R Dona: t, E. kLk MANAGWI4NT
5741235 -9660 574/235 -93 -1 1:.11zAM [r i I II1NAR11
P,�X: 5741'35 -9697 574/`35 -9371
South Bend Redevelopment Commission
RE: Queenan, Joseph & Carolyn
January 6, 2009
Page 2
ABATEMENT OUALIFICATION
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 Redevelopment Commission is required.
However, it must be noted that the property is not located within the Northeast Neighborhood's
residential TIF area.
4. 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
6- Jan -09
JOSEPH & CAROLYN QUEENAN
South Bend Portage Township Residential Real Property Tax Abatement Schedule"
Estimated Project Cost:
Assessed Value:
STRUCTURE (% AV of cost) 85.0%
LAND Value 10,000
Gross Assessed Value
Less Mortgage Exemption
Less Homestead Deduction
Less Supplemental Homestead Deduction
Base Assessed Value
Less Maximum Abatement Deduction
Less Non - Abated Amount
Plus Land Assessed Value
Net Assessed Value
Property Taxes:
Assume constant tax rate of
$345,000.00
Total Taxes Tax Abated** Tax Paid * **
293,250.00 293,250.00 293,250.00
10,000.00 N/A N/A
303,250.00 293,250.00 293,250.00
(3,000.00) (3,000.00) (3,000.00)
(45,000.00) (45,000.00) (45,000.00)
(89,337.50) (89,337.50) (89,337.50)
165,912.50 155,912.50 155,912.50
N/A N/A (74,880.00)
N/A (81,032.50) N/A
N/A NIA 10,000.00
165,912.50 74,880.00 91,032.50
4.3592% 4.3592% 4.3592%
Gross Tax (tax rate x net assessed value)
7,232.46
3,264.17
3,968.29
Less State & County Homestead Credit:
0.4625%
(767.35)
(346.32)
(421.03)
Tax Due Before Circuit Breaker
6,465.11
2,917.85
3,547.26
Less Circuit Breaker Credit
(2,450.58)
(2,450.58)
0.00
Net Tax
4,014.54
467.27
3,547.26
Circuit Breaker Cap
Circuit Breaker
1.0000%
3,032.50
2,932.50
3,032.50
Debt Service
0.5919%
982.04
443.21
538.82
Circuit Braker Cap
4,014.54
3,375.71
3,57132
Net
Total
Assessed
Taxes
Tax
Tax
Year
Value
Due
Abated
Paid
1
165,912.50
4,014.54
467.27
3,547.26
2
165,912.50
4,014.54
467.27
3,54726
3
165,912.50
4,014.54
467.27
3,547.26
4
165,912.50
4,014.54
467.27
3,547.26
5
165,912.50
4,014.54
467.27
3,547.26
5 year totals:
20,072.68
2,336.36
17,736.32
*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
.JOSEPH & CAROLYN QUEENAN
Total $2,250 $15,485
`Current tax levy
"Additional tax revenue from new investment
$17,735
LAND'
BUILDING"
TOTAL
Year 1
$450
$3,097
$3,547
Year 2
$450
$3,097
3,547
Year 3
$450
$3,097
1547
Year 4
$450
$3,097
3,547
Year 5
$450
$3,097
3,547
Total $2,250 $15,485
`Current tax levy
"Additional tax revenue from new investment
$17,735