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REGULAR MEETING JUNE 8, 2009 <br /> <br /> <br /> <br />subdivision will pay a reduced amount of taxes for a five year time period, there are some <br />homes in the subdivision that are coming out of that abatement and are paying full taxes. <br />Those homes will be there much longer than the five year period that is being discussed. <br />Mr. Feeney stated that he lives in a home that was constructed in 1918 and that home has <br />been generating tax dollars since the day it was built. This home will generate tax dollars <br />since the day it was built and will continue to generate tax dollars for as long as it exists <br />and for as long as it is owned as a home. Mr. Feeney stated that what he is trying to do is <br />to continue through these tough economic times by stimulating the economy by helping <br />Cleland Builders sell this home. If the Council chooses not to grant abatement to this <br />home, these home owners may go elsewhere, be it outside the city into the county. He <br />stated that this is a tool that the Council granted long ago to the City of South Bend for <br />stimulation of home building in this city. It is a tool that he hopes the Council will <br />continue to use to help minimize the effect of future taxes on tax payers like himself, who <br />live within the City. <br /> <br />Councilmember Rouse asked Mr. Feeney if he was aware that back in March of 2008, <br />that the Indiana State Legislature passed a bill called HEA 1001 that gives taxpayers all <br />across the county and state a tremendous amount of reduction in the taxes that they pay. <br />He asked Mr. Feeney is he was aware that municipalities like South Bend are faced with <br />a major crisis on how to provide services to taxpayers such as you. So the picture that <br />has been painting of this wonderful process to where taxes are leveled in has changed as <br />of 2008, which accounts for why the Council could allow tax abatement pretty liberally, <br />prior to the major budget crisis that this Council is confronting right now. Mr. Rouse <br />thanked Mr. Feeney for his in depth presentation and for answering his questions. <br /> <br />Mr. Feeney stated that the City of South Bend is going through a budget crisis the same <br />as builders and developers and even land surveyors are going through as we speak. He <br />stated that they all hope to make it out the other end; they are all working toward that <br />end. It is a painful process that everyone goes through and like it was said earlier that it <br />never becomes easier. He said that he has been through this process before during the <br />recession at least three times since he has been in business. He stated that he truly <br />understands what the Council and City is being faced with, but he sees this as a viable <br />and vibrate tool to use to stimulate real estate, residential real estate at least within the <br />City of South Bend. <br /> <br />Mr. Rouse again thanked Mr. Feeney for his presentation. He again reiterated that no <br />Council in the history of South Bend has ever been faced with the financial crisis that is <br />before this Council right now. <br /> <br />A Public Hearing was held on the Resolution at this time. <br /> <br /> <br />There being no one present wishing to speak to the Council either in favor of or in <br />opposition to this Resolution, Councilmember Puzzello made a motion to adopt Bill No. <br />09-41. No second on the motion, the motion dies. Councilmember Rouse made a motion <br />to defeat Bill No. 09-41. Councilmember Henry Davis seconded the motion. The motion <br />was carried and the Resolution was defeated by a roll call vote of six (6) ayes and two (2) <br />nays (Councilmember’s Puzzello, Dieter.) <br /> <br />Councilmember Puzzello advised that she has always been consistent on her voting on <br />tax abatement resolutions. She believes that Cleland has paid taxes on this particular <br />piece of property and that does not have any bearing on the granting of this abatement. <br />She stated that if this Council is going to not grant tax abatements on residential property, <br />then a meeting of the entire Council needs to be held to discuss this issue. <br /> <br />Councilmember Henry Davis stated that since 2006 and 2007, the Council has had <br />information regarding the Circuit Breaker coming into effect and why he has consistently <br />voted against residential tax abatement because the Council was fully aware of what was <br />going on. He stated that it would behoove the Council now to start looking towards <br />doing a moratorium on tax abatements on residential properties. He stated that the <br />Council needs to be clear on their standings regarding tax abatement. <br /> 16 <br /> <br />