04-22-02 Council Meeting Minutes

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REGULAR MEETING APRIL 22, 2002 C. The Petitioner made inquiry into the availability of tax abatement on the increase in assessed value of the Property that will result from its rehabilitation, as early as November of 2001, but was informed erroneously that the Property was not in an area that would qualify for tax abatement or that would be given favorable consideration for tax abatement. D. The Property is in fact located within the East Bank Development Area, an area within the City of South Bend that has been targeted by the Common Council for favorable consideration of tax abatement for redevelopment and rehabilitation of office space, under section 2- 78.1(c)(6) of the South Bend Municipal Code. E. The fact that the Property is located within the East Bank Development Area was not made known to the Petitioner until late January of 2002. The Petitioner contacted the South Bend Department of Community and Economic Development and initiated the completion of the tax abatement petition and statement of benefits promptly upon learning of this status. F. The Petitioner gave express instructions to its contractor not to allow demolition of the interior of the Property to begin until such time as the statement of benefits had been filed with the South Bend City Clerk, as filing agent for the Common Council. G. Notwithstanding these instructions, the contractor began such demolition on February 4, 2002. The statement of benefits and tax abatement petition were first filed with the City Clerk the next day, February 5, 2002. The tax abatement petition was filed again by the South Bend Department of Community and Economic Development on February 19, 2002, as noted in the first prefatory recital of this Resolution. H. Although demolition was initiated on February 4, 2002, without the Petitioner's knowledge or consent, before the statement of benefits was filed, there was no remodeling, repair, betterment, enlargement or extension of the Property (collectively, "Rehabilitation" as defined in section 6 -1.1- 12.1 -1(6) of the Indiana Code) that would have given rise to an increase in assessed valuation of the Property until after February 5, 2002, the date on which the statement of benefits was filed in accordance with the requirements of section 6 -1.1- 12.1 -3 of the Indiana Code. I. The Petitioner acknowledges and respects the long- standing policy of the Common Council to require that the economic revitalization area declaratory resolution be adopted by the Common Council before a building permit is obtained and before rehabilitation begins. J. The Petitioner's contractor obtained a building permit on or about February 8, 2002, and initiated rehabilitation activities soon after demolition of the interior of the Property was completed. The building permit and the initiation of rehabilitation activities took place before the Common Council had adopted a declaratory resolution, in violation of the Common Council's policy. K. If the Petitioner had received correct information concerning the location of the Property within the East Bank Development Area when it first made inquiry in November or December of 2001, there would have been more than adequate time for the Petitioner to have completed the tax abatement petition process, and for the Common Council to have heard the petition and to have acted on the declaratory resolution, well before a building permit had to be obtained and well before any rehabilitation had begun. -13-