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Home My WebLink About192222 11/23/2010 CITY OF CARMEL, INDIANA VENDOR: 353834 Page 1 of 1 ONE CIVIC SQUARE FRANK KELLS REGAN CHECK AMOUNT: $32,200.41 CARMEL, INDIANA 46032 CHECK NUMBER: 192222 CHECK DATE: 1112312010 DEPARTMENT ACCOUNT PO NUMBER INVOICE NUMBER AMOUNT DESCRIPTION 211 4350900 32,200.41 REPAYMENT OF TAXES Neville, Katie From: McBride, Mike T Sent: Monday, November 22, 2010 3:36 PM To: Haney, Douglas C Cc: 'Haney, Tammy'; Neville, Katie Subject: RE: Frank Regan Doug, Shall I have the check delivered to you or to Regan directly? City Engineer City of Carmel, Indiana From: Haney, Douglas C Sent: Monday, November 22, 2010 3:31 PM To: McBride, Mike T Cc: Haney, Tammy Subject: Frank Regan Mike: I settled the Frank Regan tax matter for $32,200.41. This replaces the original claim amount of $27,982.47 which I sent you last week. Please prepare a claim for the higher amount. It is still $7,000 less than he wanted. Finally, I personally paid $157.20 in delinquent taxes on the Regan property, to avoid a sheriff's sale. I need to be re -paid for that. I can provide you with the paperwork. Thanks. Doug i To: Douglas C. Haney Re: Frank Regan Real Estate Taxes Doug: have reviewed the information provided by Mr. Regan with respect to the real estate taxes that continued to accrue on certain property he conveyed to the City because of a significant delay in recording the deeds. The following is a summary of what I have found with more detail set out herein. Summary: As part of the Illinois Street expansion, the City acquired property from Frank Regan on September 13, 2007. Mr. Regan received payment for this property in 2006 pursuant to a Conditional Settlement Agreement. The deeds for the property were not recorded until 2009 and 2010. Because the deeds were not recorded timely, property continued to accrue real estate taxes. Mr. Regan paid these taxes and now seeks reimbursement from the City of $39,340.34. Based on my review of the tax situation, the amount of taxes attributable to the City's ownership of the property is $27,982.47. Background spoke with Mike McBride to get the history of the City's transactions with Mr. Regan. As far back as approximately 2003, the City began working with Mr. Regan to acquire land for a pumping station and to deal with Mr. Regan's assertion that the City's thoroughfare plan, which showed the Illinois Street extension running through property owned by Mr. Regan, was inverse condemnation. In 2004, the City acquired a portion of Mr. Regan's property for a pumping station and entered into an agreement with Mr. Regan regarding the City's acquisition of the property that would eventually be needed for the Illinois Street extension. Over the next few years the City continued negotiating with Mr. Regan and reworking the Illinois Street plans to meet Mr. Regan's request to leave him as much `'usable ground" as possible. The City agreed to acquire certain "remnant parcels" from Mr. Regan and to relocate the Illinois Street extension to accommodate his requests. At one point, the City's agreement with Mr. Regan was that the City would purchase a portion of the property and Mr. Regan would donate a portion of it. All of this is detailed in the Conditional Settlement Agreement. As part of the overall Illinois Street project the City also had to purchase right of way from Mr. Regan's neighbor, Frank Cosmos. The City hoped to swap a portion of Mr. Regan's property to address parking issues on Mr. Cosmos' property. On or about September 13, 2007, Mr. Regan signed two (2) warranty deeds and a dedication of right of way. Between these three (3) documents Mr. Regan conveyed nine (9) separate parcels of property which were carved out of two (2) separate existing tax parcels. Pursuant to the Conditional Settlement Agreement, Mr. Regan was paid $500,000.00 in January 2006 and $1,737,400.90 in October 2006 for this property. Because of the deal the City was trying to put together with Mr. Cosmos, the City put off recording any of the deeds for Mr. Regan's property. Because the deeds weren't recorded, ownership wasn't transferred to the City and real estate taxes continued to accrue. As some of the property deeded to the City was part of a larger tax parcel, Mr. Regan would have had to pay the entire amount of taxes due to avoid penalties, interest and a possible tax sale. Based on the language in two (2) of the deeds, the City took the property subject to real estate taxes as of May 2008. The third deed does not address the real estate tax issue. Mr. Regan's correspondence to the City asserts that he agreed to pay real estate taxes through the May 2008 installment and therefore is only seeking reimbursement for fall 2008, all of 2009 and spring of 2010. According to the acreages in the deeds, the City purchased 10.11 acres of property from Mr. Regan. .71 acres was in a separate tax parcel. As set out below, it does not appear that Mr. Regan paid taxes for this parcel for any of 2008 pay 2009 or 2009 pay 2010. The remaining 9.4 acres was part of the larger 35.75 acre parcel. Mr. Regan has paid taxes on this parcel for the fall, 2008 installment through the May 2010 installment. For the installments due in 2008 and 2009, the City "owned" 9.4 acres of the 35.75 acres. For the 2010 spring installment the City "owned" .915 acres of the revised 27.27 acre parcel (originally 35.75 acres. now reduced by the property included in the two (2) deeds that were recorded in February, 2009). Based on the information we obtained from Hamilton County, the following are the taxes that Mr. Regan has paid on this property: Proration of real estate taxes: 1. Tax Parcel 170926000000300 (originally 35.75 acres, City acquired a total of 9.4 acres, being 8.485 acres through the deeds recorded in 2009 and an additional .915 acres through the deed recorded in 2010.) Tax Year Taxes Payment Amount Payment Date 2007 pay 2008 (fall) $27,736.72 $27,736.62 11/14/08 2008 pay 2009 (spring) $36,634.88 $46,035.86* 07/15/09 2008 pay 2009 (fall) $36,634.88 $36,634.88 11/16/09 2009 pay 2010 (spring) $29,708.76 $29,708.76 05/10/10 The amount includes a penalty of $427.32 and previously unpaid taxes. *The tax parcel has been reduced by the 8.485 acres conveyed to City. It does still include the 915 acres for which the deed was not recorded until August 2010. 2 Real estate taxes attributable to the real estate purchased by the City. Note: I have not taken into account any penalties or interest on unpaid taxes paid with the Fall 2008 taxes, as those are atri'butable to the Spring 2008 taxes and Mr. Regan states lie agreed to pay the Spring 2008 installment. I have taken into account the penalties and interest added to the Spring 2009 installment, as those amounts are applicable to the property the City acquired. I have also not calculated any interest on amounts applicable to property the City acquired. Mr. Regan used an 8% interest rate in calculating his claim. Fall 2008 $27,736.22 35.75 acres $775.85 per acre x 9.4 acres 7,292.99 Spring 2009 $36,634.88 35.75 acres $1,024.75 per acre x 9.4 acres 9,632.67 Spring 2009 Penalty 427.32 Fall 2009 $36,634.88 35.75 acres $1 per acre x 9.4 acres 9,632.67 Spring 2010 $29,70$.76 27.27 acres $1,089.43 per acre x .915 acres 996.82 Total $27,982.47 1Q. Tax Parcel 1709250000001000 (.71 acres City acquired all) Tax Year Taxes, Penalty Interest 2007 pay 2008 $22.50 2008 pay 2009 $20.66 2009 pay 2010 $114.04 (includes $95.00 tax sale fee) Total: S157.20 Payment of $157.20 was made on September 20, 2010 by credit card on behalf of the City. I find no evidence Mr. Regan paid any of the taxes for this parcel after November 2008, accordingly there is no reimbursement due. Final Calculations: 1) Claim by Mr. Regan for real estate taxes, penalties and interest applicable to the property the City acquired $39,340.34 II) Real estate taxes and penalties applicable to the property the City acquired calculated based on information from Hamilton County regarding the amount of taxes and payments $27,982.47 .Please let me know what other information you need. Regards, Tammy 1763965 Prescribed by State Board of Accounts ACCOUNTS PAYABLE VOUCHER City Form No. 201 (Rev. 1995) CITY OF CARMEL An invoice or bill to be properly itemized must show: kind of service, where performed, dates service rendered, by whom, rates per day, number of hours, rate per hour, number of units, price per unit, etc. Payee Frank Regan Purchase Order No. 12223 Castle Ct. Terms Carmel, IN 46033 Date Due Invoice Invoice Description Amount Date Number (or note attached invoice(s) or bill(s)) Na Regan Parcel Taxes; reimbursement $27,982.47 f r Total 1 hereby certify that the attached invoice(s), or bill(s), is (are) true and correct and I have audited same in accordance with IC 5- 11- 10 -1.6. 20 Clerk- Treasurer VOUCHER NO. WARRANT NO. ALLOWED 20 Frank Regan IN SUM OF 12 Ca Ct. Carmel, IN 46033 3�, o7a) ON ACCOUNT OF APPROPRIATION FOR Department Of Engineering Board Members PO# or INVOICE NO. ACCT /TITLE AMOUNT DEPT. I hereby certify that the attached invoice(s), or bill(s) is (are) true and correct and that the n/a n/a materials or services itemized thereon for Zlfo`� which charge is made were ordered and received except 1 2Z1 0 /f 20 Signature Cost distribution ledger classification if Title claim.paid motor vehicle highway fund