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HomeMy WebLinkAboutConfirming Tax Abatement - James & Susan Farrington 802 E. St. Vincent St. (5 Year Residential Property) RESOLUTION 4499-15 Passed by the Common Council of the City of South Bend, Indiana September 28, 15 20 . Meet: Jere/LC—} City Clerk Attest ��+ President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana September 29, 15 20 c-cuta6r4 ) City Clerk Approved and signed by me Sep-11"k( 2 9 / 20 15 Maya- RESOLUTION NO. 9,4 s A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING A CERTAIN AREA WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 802 East St. Vincent Street, South Bend, IN 46617 AS A RESIDENTIALLY DISTRESSED AREA FOR PURPOSES OF A (5) FIVE-YEAR RESIDENTIAL REAL PROPERTY TAX ABATEMENT FOR James and Susan Farrington 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: 802 East St. Vincent Street, South Bend, IN 46617 and which is more particularly described as follows: THE WEST HALF OF LOT NUMBERED 83 AND 14 FEET OF THE NORTH SIDE OF LOT NUMBERED 84 IN EDWARD SORIN'S SECOND ADDITION TO THE TOWN OF LOWELL, NOW WITHIN AND A PART OF THE CITY OF SOUTH BEND, AS PER PLAT THEREOF RECORDED IN PLAT BOOK 1, PAGE 10 IN THE OFFICE OF THE RECORDER OF ST. JOSEPH COUNTY, INDIANA, WHICH PART IS BOUNDED BY A LINE RUNNING AS FOLLOWS, VIZ: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 83, SORIN'S SECOND ADDITION TO THE TOWN OF LOWELL; THENCE RUNNING SOUTH, 66 FEET; THENCE EAST ABOUT 111.55 FEET TO A PUBLIC ALLEY; THENCE NORTH, 66 FEET TO THE NORTH LINE OF SAID LOT; THENCE WEST, ABOUT 111.55 FEET TO THE PLACE OF BEGINNING, AND 14 FEET TAKEN OFF OF AND FROM THE NORTH SIDE OF THE WEST ONE HALF OF LOT 84, SORIN'S SECOND ADDITION TO THE TOWN OF LOWELL, NOW WITHIN AND A PART OF THE CITY OF SOUTH BEND, IN ST. JOSEPH COUNTY, INDIANA be designated as a Residentially Distressed Area under the provisions of Indiana Code 6- 1.1-12.1 et seq., 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. 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 two (2) 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 a real property tax deduction for a period of five (5) years as shown by the attachment pursuant to Indiana Code 6-1.1-12.1-17, 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. Member of t - s Council Filed in CIervs Office PRESENTED CU - -�r JOHN VOONDE NOT APPR©AC CITY CLERK,SOUTH SEND,IN SOUTH eg"' 227 W.JEFFERSON BOULEVARD /r� 1': PHONE:574/135-9371 SUITE 1400 S. >o� I d�€ FAX:574/235-9021 SOUTH BEND,IN 46601-1830 IF,w kk J86. CITY OF SOUTH BEND PETE BUTTIGIEG,MAYOR COMMUNITY INVESTMENT SCOTT FORD,EXECUTIVE DIRECTOR 9/4/2015 Mr. Charles Bulot Building Commissioner St. Joseph Co./South Bend Building Dept. 125 S. Lafayette Boulevard South Bend, IN 46601 RE: Residential Property Tax Abatement Petition For: James and Susan Farrington 802 East St.Vincent Street,South Bend, IN 46617 Prop ID 018-5104-3646 Dear Mr. Bulot: Please review the enclosed tax abatement petition for the above identified petitioner for the purpose of determining whether this project has met all zoning requirements. I also ask that you confirm whether or not any building permits have been issued for this project as of the date that you process this request.If a building permit has been issued,please indicate in your report the date of issue and include a copy of the permit with your report. This information will be included in a written report to the Community Investment Committee of the South Bend Common Council in order to determine tax abatement eligibility. I would appreciate your written determination by Wednesday, September 9, 2015. I thank you in advance for your time and consideration and,if you should have any questions, please call me at 235-9339. Sincerely, Aaron Kobb Department of Community Investment Enclosures PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITN KAIN PAMELA C.MEYER CHRIS FIELDING BROCK ZEEB •.SpUTH 227 W.JEFFERSON BOULEVARD ••s \\„;1„ :5 PHONE:574/235-9371 SUITE 1400S. 'ci TAX ABATEMENT REPORT TO: SOUTH BEND COMMON COUNCIL FROM: BROCK ZEEB SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR: James and Susan Farrington DATE: September 4,2015 On Monday, August 24, 2015, a petition from James and Susan Farrington was received and subsequently filed with the City Clerk for residential real property tax abatement consideration for a single-family home. Pursuant to Chapter 2, Article 6, Section 2-84.2 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 an Economic Revitalization Area pursuant to I.C.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 SUMMARY ➢ (1) One single-family home at an approximate net assessed value of$247,705 ➢ New total taxes during five year abatement period—$27,798 ➢ Estimated taxes being abated during five year abatement period—$1893 ➢ Total taxes to be paid during five year abatement period—$25,905 ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has not been granted or associated with any previous abatements. 2. The Building Commissioner has reviewed the petition and finds the property to be properly zoned for the proposed project. 3. A review of the South Bend Redevelopment designation areas finds that the properties are located in the River East Development 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 property tax abatement under section 2-77.1, Single Family Residential Construction. PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES SHIN ICAIN PAMELA C.MEYER CHRIS FIELDING BROCK ZEEB 5 YEAR 31-Aug-15 James and Susan Farrington South Bend Portage Township Residential Real Property Tax Abatement Schedule* Estimated Project Cost: $525.000.00 Total Taxes Tax Abated** Tax Paid"' Assessed Value: Structure(%AV of cost) 80.0% 420,000.00 420,000.00 420,000.00 Land Value 10,700 10,700.00 N/A N/A Gross Assessed Value 430,700.00 420,000.00 420,000.00 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 (134,995.00) (134,995.00) (134,995.00) Base Assessed Value 247,705.00 237,005.00 237,005.00 Less Maximum Abatement Deduction N/A N/A (74,880.00) Less Non-Abated Amount N/A (162,125.00) N/A Plus Land Assessed Value N/A N/A 10,700.00 Net Assessed Value 247,705.00 74,880.00 172,825.00 Property Taxes: Assume constant tax rate of 5.4968% 5.4968% 5.4968% Gross Tax(tax rate x net assessed value) 13,615.88 4,116.01 9,499.87 Less County COIT Homestead Credit: 6.8095% (927.17) (280.28) (646.89) Tax Due Before Circuit Breaker 12,688.71 3,835.73 8,852.97 Less Circuit Breaker Credit (7,129.06) (3,457.07) (3,672.00) Net Tax 5,559.64 378.67 5,180.98 Circuit Breaker Cap Circuit Breaker 1.0000% 4,307.00 4,200.00 4,307.00 Debt Service 0.5057% 1,252.64 378.67 873.98 Circuit Braker Cap 5,559.64 4,578.67 5,180.98 Net Total Assessed Taxes Tax Tax Year Value Due Abated Paid 1 247,705.00 5,559.64 378.67 5,180.98 2 247,705.00 5,559.64 378.67 5,180.98 3 247,705.00 5,559.64 378.67 5,180.98 4 247,705,00 5,559.64 378.67 5,180.98 5 247,705.00 5,559.64 378.67 5,180.98 5 year totals: 27,798.22 1,893.34 25,904.88 '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 seq.,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 project descriptions): Construction of a 3400 SF home (plus 950 SF finished area on lower level\kith 5 bedrooms and 5 1/2 baths and two cargarage and kitchen, dining room, family room and office on the 1st floor, and 4 bedrooms and laundry area on the 2nd floor. Features will include a linear fireplace,built-in bookcases,hardwood flooring_andpatio. 2. Estimate the dollar value of the construction project(do not include land cost): $ 525,000 3. The real property for which tax abatement consideration is petitioned (Property) is owned or to be 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): Name Address Interest James F. and Susan Farrington 15 Shady Acres Rd., Darien, CT 06820 4. The commonly known address of the Property is: 802 East St. Vincent St., South Bend and having tax key no.:71-08.01-281-001.000-026 (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 $ 35,400 (use additional sheet for multiple addresses). (Information may be 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): $0 (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: $ 600,000 (Rev. 5/13/11) 1 • 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: 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:lit e 11 a hborhood in which"/nls grope st reslal2$' dd er;o rkecliza d4 r ast*At�1910�-Lg9d's 7 elolreA2m, ,tettrt e_j alci t, r , 11e r is isktkiaresiden_c�is_bei_ up1I(}',� assrea.424.o��e�cf£zcall/ 1z Adirtli•aa' _ . ►, c Ia ,- �4 en l lnp�necl in'hien�rhov44,�kic11_m rn_t'rfs valuAO! '4nd II WY00.ses teal�e,SO-fatante. ac Cwwethon=, 14. The current use of the property is and the current zoning is SF2 (use). (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 petitioner's agent regarding additional information and public hearing notifications: Name Address City, State, Zip Telephone E-mail Address WHEREFORE, Petitioner has paid the required fee of$50.00 and requests that the Common Council of the City of South Bend, Indiana, adopt a declaratory resolution designating the area described herein as a residentially distressed area for the purposes of real property tax abatement consideration, and after publication of notice and public hearing, determine that the qualifications for a residentially distressed area have been met and confirm such resolution. Name of Ijfioperty Ow_ ner(s): ` : Filed in Clerk's Office ...D 0........ PU3 2 A `n15 By: " glit', (Signature) James F. Farrington and Susan Farrington CITY c1,E,Rit,au-' (Typed or printed name and capacity) (Rev. 5/13/11) 2 EXHIBIT A DESCRIPTION OF THE PROPERTY The West Half of Lot Numbered 83 and 14 feet of the North side of Lot Numbered 84 in Edward Sorin's Second Addition to the Town of Lowell,now within and a part of the City of South Bend,as per plat thereof recorded in Plat Book 1,page 10 in the Office of the Recorder of Saint Joseph County, Indiana,which part is bounded by a line running as follows,viz: Beginning at the Northwest corner of said Lot 83, Sorin's Second Addition to the Town of Lowell; thence running South,66 feet; thence East, about 111.55 feet to a public alley; thence North,86 feet to the North line of said Lot;thence West, about 111.55 feet to the place of beginning, and 14 feet taken off of and from the North side of the West One Half of Lot 84, Sorin's Second Addition to the Town of Lowell, now within and a part of the City of South Bend, in St.Joseph County, Indiana. Filed in Ci !i,$ Office AU0 2 4 2015 CITY MARK, vri�i�tn� I.ERK,soma aEND IN EXHIBIT B MAP SHOWING LOCATION OF SUBJECT PROPERTY 802 St. Vincent Street, South Bend E Angela Blvd O'Rourke's Public House.'t a Chipotle Mexican Grill 'it Z z rt Brothers Bat&Grill >n Blvd Napoleon Blvd a Napo' R m a co co m z R (0 3 C z j O. ta N 802 Ssrnt Vincent Street m J St Vincent St co m South Bend,IN 46617 R r > �Q w C 3 4 Howard St z Z m X d _ Kalorrna St ,a to Z (a m Corby Blvd 4 Z 0 Cs T ry Co 7 Filed in C'Nok'g Office RSo®CTY CLERK,JOHN C, H Ehq,IN EXHIBIT C PICTURES OF THE SUBJECT PROPERTY is .r .- , . t ��- .. . Existing structure from the corner of St. Vincent and St. Peter Streets Wo '. :' .. ' _ 11 ' :I -wM _ ,.-- - - ,.___ _ .. . Existing structures from St. Vincent Street Filed in Clerk's Office f�n r,vv 2 4 2C15 JUNy, CITY CLERK,SOU 111 JEND,IN