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Home My WebLink About6.A.(1) Resolution No. 2600(~ ~ ~ ~~ RESOLUTION NO. 2600 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 five years of real property tax abatement consideration from South Bend Heritage Foundation for vacant real property located between 1016 and 1032 West Washington Street in the West Washington- Chapin Development Area, the legal description of which is attached hereto, marked Exhibit A and incorporated herein; WHEREAS, this Commission declared the West Washington-Chapin Development Area by Resolution No. 818, adopted October 23, 1987, and in the same resolution declared the West Washington-Chapin Allocation Area (South Bend Allocation Area No. 7) and WI-IEREAS, the vacant property located between 1016 and 1032 West Washington Street is located within the West Washington-Chapin Allocation Area (South Bend Allocation Area No. 7); NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission as follows: 1) The Commission finds that the application from South Bend Heritage Foundation for five years of real property tax abatement consideration for vacant property located between 1016 and 1032 West Washington Street in the West Washington-Chapin Allocation Area (South Bend Allocation Area No. 7) 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 South Bend Heritage Foundation. Approved this 18th day of September 2009 at the regularly scheduled meeting of the South Bend Redevelopment Commission. SOUTH BEND REDEVELOPMENT COMMISSION ATTEST: EXHIBIT A LEGAL DESCRIPTION Address: Vacant Lot Between 1016 and 1032 West Washington Street (to be replatted into 2 parcels) Current Legal Description: A tract of land 120.78 feet, East and West, by 144.64 feet, North and South, located in the Northeast corner of Bank Out Lot Numbered Eighty-nine (89) of the Second Plat of Out Lots to the Town, now City of South Bend, platted by the State Bank of Indiana. In the process of being replatted into two equal lots -Lots #1 and #2 of Washington Street Minor Subdivision. Current Parcel Number: 18-3068-2608 1200 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PROVE 574/ 235-9371 FAx 5741235-9021 TDD 574/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~ ECONOMIC DEVELOPMENT JEFFREY V. GIBNEY E7CECUTIVE DIRECTOR TAX ABATEMENT REPOR T TO: SOUTH BEND REDEVELOPMF,NT COMMISSION FROM: BOB MATHIA ~~~ SUBJECT: RESIDENTIAL REAL PROPERTY TAX ABATEMENT PETITION FOR: South Bend Heritage Foundation, Inc. DATE: September 14, 2009 On September 1 1, 2009, a petition for residential tax abatement consideration for real properly located on a vacant lot between 1016 and 1032 West Washington Street was tiled with the City Clerk by the South Bend Heritage Foundation, 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 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 The South Bend Heritage Foundation, Inc. intends to construct two new single-family homes on the vacant lot they currently own on West Washington Street. The lot is being replatted to permit the construction of the two homes. The homes will each have two stories totaling approximately l ,700 square feet with three bedrooms. The average cost of the two homes will be approximately $180,000. The two homes are part of the Iirst allocation of the Neighborhood Stimulus Program (NSP) funding. Several single-family homes will be built in targeted areas to serve homeowners with a household income of up to 120% of the Area Median Income using NSP funds. The sales prices of the two homes will be discounted in order to make them affordable to these potential customers. South Bend Heritage will be the developer of several of these houses. COMMUNITY DEVELOPMENT ECONOMIC DENELOPMF.NT FINANCIAL HL PROGRAM PAMELA C. MEYER DONALD E. INKti MANAGEMENT 574/235-9660 574/235-9371 ELIZABf:TFl LEONARD FAx: 574/235-9697 574/235-9371 South Bend Redevelopment Commission RE: South Bend Heritage foundation, Inc. September 14, 2009 Page 2 Total taxes to be abated for the two houses during the (5) five-year abatement period are estimated at $16,827.76. Total taxes to be paid for the two houses during the (5) five-year abatement period are estimated at $3,896.70. ABATEMENT QUALIFICATION 1. A review of the tax abatements previously granted, finds that the petitioner has been associated with or granted the following previous abatements: Term/Type Resolution No. Date 10 year real property 1967-92 8/20/1992 10 year real property 2210-95 1/09/1995 10 year real property 2383-96 7/08/1996 10 year real property 2465-97 6/09/1997 5 year real property 2504-97 8/25/1997 10 year real property 2519-97 10/10/1997 5 year real property 2515-97 10/13/1997 5 year real property 2655-98 8/07/1998 10 year real property 2726-99 4/28/1999 5 year real property 2727-99 4/28/1999 5 year real property 2748-99 6/14/1999 5 year real property 2936-00 10/9/2000 10 year real property 3084-02 4/22/2002 5 year real property 3160-03 2/10/2003 5 year real property 3179-03 4/14/2003 5 year real property 3473-OS 6/13/2005 5 year real property 3474-OS 6/13/2005 The petitioner is in compliance with the reporting requirements for the previous 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 West Washington/Chapin Development Area, which is a Tax Incremental Allocation Area; therefore, approval of the tax abatement petition by the South Bend Redevelopment 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 14-Sep-09 South Bend Heritage Foundation, Inc. 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 $180,000.00 Total Taxes Tax Abated` Tax Paid*~ 153, 000.00 153, 000.00 153, 000.00 10,000.00 N/A N/A 163, 000.00 153, 000.00 153, 000.00 (3,000.00) (3,000.00) (3,000.00) (45,000.00) (45,000.00) (45,000.00) (40,250.00) (40,250.00) (40,250.00) 74,750.00 64,750.00 64,750.00 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 (64,750.00) N/A 0.00 N/A N/A N/A 10,000.00 74,750.00 64,750.00 10,000.00 4.3592% 4.3592% 4.3592% Gross Tax (tax rate x net assessed value) 3,258.50 2,822.58 435.92 Less State & County Homestead Credit: 0.4625% (345.72) (299.47) (46.25) Tax Due Before Circuit Breaker 2,912.78 2,523.11 389.67 Less Circuit Breaker Credit (840.34) (840.34) 0.00 Net Tax 2,072.45 1,682.78 389.67 Circuit Breaker Cap Circuit Breaker 1.0000% 1,630.00 1,530.00 1,630.00 Debt Service 0.5919% 442.45 383.26 59.19 Circuit Braker Cap 2,072.45 1,913.26 1,689.19 Net Total Assessed Taxes Tax Tax Year Value Due Abated Paid 1 74,750.00 2,072.45 1,682.78 389.67 2 74,750.00 2,072.45 1,682.78 389.67 3 74,750.00 2,072.45 1,682.78 389.67 4 74,750.00 2,072.45 1,682.78 389.67 5 74,750.00 2,072.45 1,682.78 389.67 5 year totals: 10,362.23 8,413.88 1,948.35 '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 SOUTH BEND HERITAGE FOUNDATION, INC. V/L Between 1016 and 1032 W. Washington St. LAND* BUILDING** TOTAL Year1 $874 $779 $1,653 Year 2 $874 $779 1,653 Year 3 $874 $779 1,653 Year 4 $874 $779 1,653 Year 5 $874 $779 1,653 Total $4,370 $3,895 $8,265 "Current tax levy "Additional tax revenue from new investment