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<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Office of the Mayor <br /> <br />NEWS RELEASE <br />March 8, 2011 <br />9:45 a.m. <br /> <br />rd <br />TIF for Erskine Commons, city’s 3 largest, will end <br /> <br />Contact: <br />Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564 <br /> <br />or Don Inks, Director of Economic Development, 235-9371 <br /> <br />The South Bend Redevelopment Commission on Tuesday will consider the termination <br />of the South Side Development Allocation Area No. 2, the Tax Increment Financing <br />allocation area created in December 2002 to develop Erskine Commons. <br /> <br />Beginning in 2012, property taxes that have been generated by private investment in this <br />area will be distributed to South Bend’s general fund and other units of local government <br />rather than be retained for public improvement. <br /> <br />This is the first time that South Bend has terminated a Tax Increment Financing area. <br /> <br />“The City of South Bend used the TIF proceeds to assemble property and remediate a <br />former landfill to make it possible for developers to create Erskine Commons, bringing in <br />retailers like Wal-Mart, Lowe’s and Gates Toyota. We’ve improved major roadways in <br />the vicinity and have plans to complete infrastructure improvements with our remaining <br />resources,” said Mayor Stephen J. Luecke. “Over nine years, economic growth in this <br />area enabled us to pay off our bonds 15 years ahead of schedule. With today’s action by <br />the Redevelopment Commission, the increased assessed value of the property and the tax <br />revenue, which it generates, will be available to support public safety, parks and code <br />enforcement, as well as other units of local government.” <br /> <br />“This is a great success story for TIF,” Luecke added. <br /> <br />When a TIF area is established, any increase in the assessed value of property that results <br />from new investment is assigned to that TIF area. The taxes generated by the increased <br />assessed value, known as the TIF increment, are deposited into a TIF allocation fund, <br />which is overseen by the Redevelopment Commission and used for public improvements <br />in the area. Taxes generated from the “base assessed value,” the property values at the <br />time of the TIF’s establishment, continue to go to local taxing units. <br /> <br />