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TH.,ee N. 6 sou WBENJ,� A111:11ST 211111 Letter from the Mayor Investing in job growth through TIF This Month Mayor's Letter Civil Right's Heritage Museum Triad Pill Drop Events Schedule City government doesn't create private- sector jobs. But through focused economic Green tips development strategies and companion targeted infrastructure investment with Tax Increment Financing (TIF), local government can facilitate projects that make it easy for South Bend Dear Friends and Neighbors, private investors to choose Six years ago, a 50 -acre site near Michigan Street and Ireland Road was home to a former landfill in need of environmental remediation. The site contained a variety of underused properties. We believed that this property, near U.S. 31 and U.S. 20, could become a viable commercial location. Today, this site is home to Erskine Commons, which includes Wal -Mart, Lowe's and Gates Toyota. More than $56.5 million in private and public investment has created 740 new jobs and almost 500,000 square feet of new commercial space. Erskine Commons has succeeded at a faster pace than we had projected, even during these difficult economic times. Not only did the private sector meet goals for jobs and development, but the economic growth generated more than four times the tax revenue than was originally projected. This has enabled us to pay off the bonds that funded the environmental cleanup and road improvements 15 years ahead of schedule. Erskine Commons is but the latest example of the benefits of Tax Increment Financing (TIF). TIF has been used to marshal public resources to jump start private economic development throughout South Bend, including the: • Redevelopment of the former Scottsdale Mall area into Erskine Village. • Creation of more than 3,000 jobs and assisting 400 businesses in Blackthorn and the airport industrial area. • Development of the $215- million Eddy Street Commons near the University of Notre Dame. • Expansion of the West Washington Street museum campus, most recently with the conversion of the former Engman Natatorium into the Indiana University South Bend Civil Rights Heritage Center. • Renaissance of downtown South Bend through more than a score of projects, including the expanded South Bend Chocolate Cafe, the innovative American Trust Place and the new home for the WNIT Center for Public Media. As many families struggle with unemployment, I know that City government doesn't create private- sector jobs. However, targeted investment with TIF funds is the primary tool to support private investment in South Bend. Here's how TIF works: 1. A TIF area is established by the city council, and the redevelopment commission. 2. Property taxes on buildings and equipment that already exist in the area prior to the TIF designation continue to be collected and distributed to cities, libraries, schools and other governmental units. 3. Additional property taxes, paid on new development in the area, are captured to fund public improvements or land acquisition. This allows financing long -term bonds to provide up front investment in infrastructure, as was the case at Erskine Commons. During these challenging times, the City of South Bend must continue to invest in economic development and enhancing quality of life. Tax Increment Financing is our primary resource to support these initiatives. It is vital to transforming our local economy, supporting focused development strategies that create jobs and raise median household income - such as the creation of Ignition Park to capture new jobs and investment from Innovation Park and research at Notre Dame. We will use TIF strategically to spur economic development when the private sector considers South Bend for new jobs, industries and investment. Sincerely, P.S. Keep up to date on the economic development in South Bend with our e -mail newsletter at www.SouthBendON.com and while you're there you can subscribe to future issues. Art in the Heart rte of South Bend NIZ August 28, 2010 11 am to 6 pm