(A) Any person who has obtained a permit to construct a new single-family dwelling within the corporate limits of the city may apply to the Economic Development Commission to have the real estate upon which the house is to be constructed declared an economic development target area as provided in IC 6-1.1-12.1-7 as amended from time to time.
(B) Any person who wishes to apply to the Economic Development Commission to have their property declared an economic development target area must pay a $100 nonrefundable application fee to the city.
(C) Any person who has had their real estate declared an economic development target area by the Economic Development Commission may then apply to the City Council for residential tax abatement. The applicant must provide a statement of benefits to the City Council who will determine if said deduction will be allowed after it has made the following findings:
(1) Whether the estimate of the value of the redevelopment or rehabilitation is reasonable for projects of that nature.
(2) Whether the estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation.
(3) Whether the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment or rehabilitation.
(4) Whether any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation.
(5) Whether the totality of benefits is sufficient to justify the deduction.
(6) In addition to the findings of this division (C), before the City Council determines that an abatement is appropriate for real property within an economic development target area, after making the findings contained in this section in the affirmative, the City Council shall further make all of the following findings pertaining to said property:
(a) The facility to be constructed consists of new construction intended for human habitation.
(b) That construction of the facility is intended to commence not later than December 31 of the year the application for tax abatement is made.
(c) The facility to be constructed will be an owner- occupied, single-family dwelling. The term "owner-occupied, single- family dwelling" shall include single-family homes and buildings constructed under Indiana's Horizontal Property Law, as amended, but shall not include multifamily units that are constructed for lease purposes.
(d) All occupancy permits shall be issued within 365 days of completion of the structure.
(D) [Reserved].
(E) (1) The applicant must present proof to the City Council that the construction of the new dwelling will be a minimum of 1,250 square feet of living space. The term "living space" will include finished basements and enclosed, finished porches attached to the dwelling. These areas must be suitable for year-round use. The term "living space" does not include decks, garages or any outbuildings. Further, all construction must meet all state and local building codes and restrictions, zoning or otherwise, necessary for occupancy. The tax abatement shall be for a period of three years from the date the structure first becomes tax eligible.
(a) 100% the first year the structure is required to pay taxes.
(b) 66% the second year the structure is required to pay taxes.
(c) 33% the third year the structure is required to pay taxes.
(2) After the abatement periods have expired, all taxes shall be paid at the rate of 100%.
(F) The property owner shall be responsible for filling out the necessary paperwork and applying for the deduction. The property owner shall further be responsible to file the paperwork in the appropriate places in order to receive the abatement.
(G) The abatement authorized by this section shall be on the improvements only and not on the lot where the house is built.
(Ord. 1235, passed 5-15-95; Am. Ord. 1487, passed 2-4-08)