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11-10-08 Common Council Minutes
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11-10-08 Common Council Minutes
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REGULAR MEETING NOVEMBER 10, 2008 <br /> <br /> <br />Mr. Spier reiterated that the original abatement was given to D&H Homebuilders out of <br />Plymouth, Indiana, and since then the lots came up in a tax sale. The bank acquired the <br />lots and then Weiss Homes approached the bank that they would build on those lots. <br /> <br />Councilmember Oliver Davis asked how many times a property can be renewed for tax <br />abatement. <br /> <br />Kathleen Cekanski-Farrand stated that it is a case by case basis. <br /> <br />A Public Hearing was held on the Resolution at this time. <br /> <br />There was no one present wishing to speak in favor of this Resolution. <br /> <br />The following individual spoke in opposition to the Resolution. <br /> <br />Mr. Tom DeLater, 5934 Boxwood Dr., South Bend, Indiana, stated jokingly that he lives <br />in this distressed area. He stated that he is a little concerned about some of the <br />information that was given, because there are 129 lots in Royal Oaks Estates and he has <br />lived there for four years. Eight-Six of those lots are sold, there have been 10 to 15 new <br />homes built in the last two to three years and there is also some question as to whether or <br />not what they are hearing about the property being bought at a tax sale is actually true. <br />He stated that they have been told that D&H Homes the original owner of that <br />development is not out of business and that they are in the process of filing a lawsuit <br />because they felt that this land was taken away from them incorrectly. He stated that as a <br />homeowner in Royal Oak have had several different stories told to him as to what the <br />square footage requirement was going to be. He stated that he is obviously concerned <br />because when he built his home the restrictions were 1,700 square feet and now they are <br />saying 1,800 square feet. He stated that he has been to several meetings where it was <br />said that starting square footage was 1,500 square foot. He stated he would like to know <br />the correct answer. He stated that the city is in such a hurt for money and by offering tax <br />abatements to the 129 lots and 86 lots sold, and with 35 new homes built since 2004, he <br />doesn’t really see that as distressed. <br /> <br />Kathleen Cekanski-Farrand advised that the State Form that is required, the Statement of <br />Benefits Form has a certification with regard to the taxpayer and does list a representative <br />of First Federal Savings Bank. <br /> <br />Councilmember Varner asked if there is a question on the title holder of the land, does <br />granting an abatement need to be requested by the owner of the land. <br /> <br />Kathleen Cekanski-Farrand reiterated that on the Statement of Benefits Form, it is the <br />fee-simple owner of those properties and this is the best information on record. <br /> <br />Councilmember Varner asked what would happened if in the event there is court action <br />that would change the ownership <br /> <br />Kathleen Cekanski-Farrand stated that it may have a collateral effect on this and then the <br />Council would have to take the affirmative action to repeal at a later time. <br /> <br />Councilmember Oliver Davis asked how the Council would be notified if legal action <br />was taking place. <br /> <br />Kathleen Cekanski-Farrand stated that Community & Economic Development along with <br />the Office of the City Clerk would be involved if a lawsuit going forward. <br /> <br />Mr. Spier stated that as far as the ownership of the lots is concerned they are going by the <br />best information that is available in the County Auditor’s Office. He stated that all of <br />these lots are in the ownership of First Federal. He stated that he was unaware of any <br />lawsuit up to this point. If D&H is claiming that they still have right to this because they <br />lost it in a tax sale, he is not aware of that. As far as square footage on the homes, <br />whoever is building on these homes Weiss or D&H would be restricted to private <br />covenants and restrictions which are recording with the original development. So Weiss <br /> 29 <br /> <br />
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