03-08-2011 TIF for Erskine Commons, city’s 3rd largest, will end

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Should the Redevelopment Commission approve the termination, the TIF increment would be released from the Erskine Commons allocation area. The new investment in this area will enhance benefits to other units of local government, including the County, the South Bend Community Schools, the St. Joseph County Public Library and other entities, including the City of South Bend, where it will support operational expenses in the City’s general fund and Parks Department. Back in 2002, the Redevelopment Commission and the Luecke administration envisioned a development site at the southwest corner of Ireland Road and Michigan Street, featuring 330,000 to 400,000 square feet of retail to anchor the western end of an Erskine Hills Shopping District (stretching along Ireland Road to Ironwood Drive). The development by Anchor Acquisitions Ltd. was jump started by public investment from the sale of two bonds totaling nearly $6 million to be repaid by anticipated increases in property tax revenue resulting from the growth in the assessed value of that site. Since the TIF’s establishment, the creation of Erskine Commons has led to the development of more than 476,000 square feet of new commercial space. More than $56.5 million in private and public investment has included commercial outlets like Wal- Mart, Lowe’s and Gates Toyota, and led to the creation of 740 new jobs. Both the total investment and the number of jobs created surpassed original estimates of what could be accomplished in 20 years. In addition, all of the development occurred without tax abatements or direct financial incentives to developers. “Erskine Commons has succeeded by every measure at a faster pace than we projected,” Luecke said. “Not only did the private sector meet its targets, but we are generating more than four times the tax revenue that originally was projected. That enables us to pay off these bonds 15 years ahead of schedule. “This project highlights the success of redevelopment activities overseen by the South Bend Redevelopment Commission,” Luecke added. The TIF district for Erskine Commons is generating $3.1 million annually in TIF revenue, compared with the original projection of $750,000 annually. In terms of revenue, this TIF area is the city’s third largest, following the Airport Economic Development Area, which extends from Ignition Park past the airport, and the South Bend Central Development Area, which serves downtown. Even after the TIF’s termination, the City will wrap up several improvement projects in the vicinity using proceeds disbursed before the termination date as well as revenue from adjacent southside TIFs. Those projects include:  Curb and sidewalk improvements along Ireland Road.  Completion of an expanded drainage reservoir serving Erskine Plaza.  Re-routing South Main Street to connect with South Lafayette Street with an improved intersection at Ireland Road. # # #