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South Bend Redevelopment Commission <br />Rescheduled Regular Meeting -August 25, 2006 <br />6. NEW BUSINESS (CONT.) <br />A. Public Hearing <br />() continued... <br />by the Commission of the specific projects, <br />the nature of such a specific negotiated <br />agreement between Holladay and the City <br />leaves one wondering how the Commission is <br />supposed to incorporate public opinion into <br />its decision-making. <br />In addition, the agreement states that <br />"Developer [Holladay) ...acknowledges <br />that the ~RedevelopmentJ Commission, in <br />accordance with this Agreement, will <br />endorse and support a nine (9) year tax <br />abatement for the [Portage Prairie) <br />Project. " The ag~^eement acknowledges that <br />tcrx abatements are subject to approval by the <br />Commission and by the South Bend Common <br />Council. The tax subsidy for the developeN, if <br />it is successful in its Nequest for 9 year <br />abatement on all buildings, is estimated to be <br />$4, 530, 027. <br />The $2.1 million in TIF tax revenue and the <br />$4.5 million in tax abatements are only for <br />Phase One of the Portage Prairie project. <br />There are nine phases in all, but the City has <br />thus far only agreed to support the first <br />phase. Supporting the remaining phases <br />would obviously imply a much greater tcrx <br />subsidy. <br />Proponents of the Portage Prairie <br />development argue that such large subsidies <br />are justified because of the increase in jobs <br />and assessed property value that would be <br />created. But an important issue is how <br />broadly these benefits would be shared. <br />36 <br />