11-10-08 Common Council Minutes - Laserfiche WebLink

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REGULAR MEETING NOVEMBER 10, 2008 Mr. Spier reiterated that the original abatement was given to D&H Homebuilders out of Plymouth, Indiana, and since then the lots came up in a tax sale. The bank acquired the lots and then Weiss Homes approached the bank that they would build on those lots. Councilmember Oliver Davis asked how many times a property can be renewed for tax abatement. Kathleen Cekanski-Farrand stated that it is a case by case basis. A Public Hearing was held on the Resolution at this time. There was no one present wishing to speak in favor of this Resolution. The following individual spoke in opposition to the Resolution. Mr. Tom DeLater, 5934 Boxwood Dr., South Bend, Indiana, stated jokingly that he lives in this distressed area. He stated that he is a little concerned about some of the information that was given, because there are 129 lots in Royal Oaks Estates and he has lived there for four years. Eight-Six of those lots are sold, there have been 10 to 15 new homes built in the last two to three years and there is also some question as to whether or not what they are hearing about the property being bought at a tax sale is actually true. He stated that they have been told that D&H Homes the original owner of that development is not out of business and that they are in the process of filing a lawsuit because they felt that this land was taken away from them incorrectly. He stated that as a homeowner in Royal Oak have had several different stories told to him as to what the square footage requirement was going to be. He stated that he is obviously concerned because when he built his home the restrictions were 1,700 square feet and now they are saying 1,800 square feet. He stated that he has been to several meetings where it was said that starting square footage was 1,500 square foot. He stated he would like to know the correct answer. He stated that the city is in such a hurt for money and by offering tax abatements to the 129 lots and 86 lots sold, and with 35 new homes built since 2004, he doesn’t really see that as distressed. Kathleen Cekanski-Farrand advised that the State Form that is required, the Statement of Benefits Form has a certification with regard to the taxpayer and does list a representative of First Federal Savings Bank. Councilmember Varner asked if there is a question on the title holder of the land, does granting an abatement need to be requested by the owner of the land. Kathleen Cekanski-Farrand reiterated that on the Statement of Benefits Form, it is the fee-simple owner of those properties and this is the best information on record. Councilmember Varner asked what would happened if in the event there is court action that would change the ownership Kathleen Cekanski-Farrand stated that it may have a collateral effect on this and then the Council would have to take the affirmative action to repeal at a later time. Councilmember Oliver Davis asked how the Council would be notified if legal action was taking place. Kathleen Cekanski-Farrand stated that Community & Economic Development along with the Office of the City Clerk would be involved if a lawsuit going forward. Mr. Spier stated that as far as the ownership of the lots is concerned they are going by the best information that is available in the County Auditor’s Office. He stated that all of these lots are in the ownership of First Federal. He stated that he was unaware of any lawsuit up to this point. If D&H is claiming that they still have right to this because they lost it in a tax sale, he is not aware of that. As far as square footage on the homes, whoever is building on these homes Weiss or D&H would be restricted to private covenants and restrictions which are recording with the original development. So Weiss 29