Developer Seeks Tax Abatement For Apartments In Mentone

July 28, 2016 at 4:25 p.m.

By DAVID SLONE, Times-Union Staff Writer-

MENTONE - Roy Swartz wants Mentone to give him a tax abatement for his two proposed duplexes at the corner of North Morgan and High streets.

But town attorney Larry Beeson questioned whether apartment complexes qualify for tax abatements. "I don't know if it does or doesn't," Beeson said. If the council approves it, he suggested they approve it on the condition that it is allowed.

"You need to know if that actually qualifies or not," said Barbara Ross, town clerk-treasurer.

According to Kosciusko County Auditor Sue Ann Mitchell today, under Indiana Code 6-1.1-12.1-3E11A, the only way a "residential structure can qualify is if the facility is a multi-family facility that contains at least 20 percent of the units available for use by low- and moderate-income individuals."

Swartz said Monday he was asking for the tax abatement from the town because taxes make building the duplexes impractical. "I'm asking for some relief," he said.

Tim Croy, councilman, said since it was a residential project and did not bring any new jobs to the town, if they approved it, he'd prefer to give Swartz a five-year tax abatement and not a 10-year abatement. Croy made a motion to approve the abatement for a five-year period.

Since the council questioned whether or not a tax abatement was feasible for duplexes, council chairman Mark Hughes said he thought the council should table it until the end-of-year meeting Dec. 27.

Swartz said he was building the two duplexes there for investment purposes.

"I feel better waiting for the end-of-the-month meeting," reiterated Hughes.

Beeson told the council they could go ahead and approve it last night with the qualification that it's allowed so the council could get the first step of the tax abatement process out of the way. A notice in the local newspaper still has to be published regarding the tax abatement and then a public hearing on the abatement must be held, said Ross.

Croy again made a motion to preliminarily approve the abatement for five years and Hughes seconded the motion. It was approved. Councilman Jack Simpson abstained from the vote.

In other business, the town council:

• Held a public hearing on increasing the sewer and water rates. There were no remonstrators. Water rates will rise 25 percent and sewer rates, 50 percent.

Under the new rates, for someone who used an average of 5,000 gallons per month, the new water rate would be about $34.31, sewer $29.73 and trash pickup $5 for an average bill of approximately $69.04. Under the old rates, that same bill for 5,000 gallons would be $47.45.

Ross later told the council the sewer fund is running very, very short again and she hopes the town can squeak by again this year. More money may have to be transferred at the end-of-year meeting.

"It's going to take a while for us to get back up, I think," said Ross.

• Accepted a $1,000 donation toward the town's proposed emergency services building from Midwest Spring.

• Approved for Mentone Cemetery sexton Erik Sechrist to purchase software for $1,121 plus one year's worth of support to keep track of the cemetery lots.

• Approved to have an end-of-year meeting at 6:30 p.m. Dec. 27.

Members of the Mentone town council are Tim Croy, Jack Simpson and Mark Hughes. Their regular meetings are at 7 p.m. in the town hall on the first Monday of every month. [[In-content Ad]]

MENTONE - Roy Swartz wants Mentone to give him a tax abatement for his two proposed duplexes at the corner of North Morgan and High streets.

But town attorney Larry Beeson questioned whether apartment complexes qualify for tax abatements. "I don't know if it does or doesn't," Beeson said. If the council approves it, he suggested they approve it on the condition that it is allowed.

"You need to know if that actually qualifies or not," said Barbara Ross, town clerk-treasurer.

According to Kosciusko County Auditor Sue Ann Mitchell today, under Indiana Code 6-1.1-12.1-3E11A, the only way a "residential structure can qualify is if the facility is a multi-family facility that contains at least 20 percent of the units available for use by low- and moderate-income individuals."

Swartz said Monday he was asking for the tax abatement from the town because taxes make building the duplexes impractical. "I'm asking for some relief," he said.

Tim Croy, councilman, said since it was a residential project and did not bring any new jobs to the town, if they approved it, he'd prefer to give Swartz a five-year tax abatement and not a 10-year abatement. Croy made a motion to approve the abatement for a five-year period.

Since the council questioned whether or not a tax abatement was feasible for duplexes, council chairman Mark Hughes said he thought the council should table it until the end-of-year meeting Dec. 27.

Swartz said he was building the two duplexes there for investment purposes.

"I feel better waiting for the end-of-the-month meeting," reiterated Hughes.

Beeson told the council they could go ahead and approve it last night with the qualification that it's allowed so the council could get the first step of the tax abatement process out of the way. A notice in the local newspaper still has to be published regarding the tax abatement and then a public hearing on the abatement must be held, said Ross.

Croy again made a motion to preliminarily approve the abatement for five years and Hughes seconded the motion. It was approved. Councilman Jack Simpson abstained from the vote.

In other business, the town council:

• Held a public hearing on increasing the sewer and water rates. There were no remonstrators. Water rates will rise 25 percent and sewer rates, 50 percent.

Under the new rates, for someone who used an average of 5,000 gallons per month, the new water rate would be about $34.31, sewer $29.73 and trash pickup $5 for an average bill of approximately $69.04. Under the old rates, that same bill for 5,000 gallons would be $47.45.

Ross later told the council the sewer fund is running very, very short again and she hopes the town can squeak by again this year. More money may have to be transferred at the end-of-year meeting.

"It's going to take a while for us to get back up, I think," said Ross.

• Accepted a $1,000 donation toward the town's proposed emergency services building from Midwest Spring.

• Approved for Mentone Cemetery sexton Erik Sechrist to purchase software for $1,121 plus one year's worth of support to keep track of the cemetery lots.

• Approved to have an end-of-year meeting at 6:30 p.m. Dec. 27.

Members of the Mentone town council are Tim Croy, Jack Simpson and Mark Hughes. Their regular meetings are at 7 p.m. in the town hall on the first Monday of every month. [[In-content Ad]]

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