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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 />the zoning permits, has full authority to build <br />this project. What was mentioned as far as <br />the Development Agreement, in that <br />agreement he consented to us as being the <br />only owner of the property on which we <br />desire to build Dylan Drive, consent to this <br />action by the Commission. He would not <br />oppose it. This allocation area allows the <br />Commission to collect taxes off of increased <br />property values from commercial properties. <br />It can only be used for local public <br />improvements and for bonds to make local <br />public improvements. When you expand an <br />area, what you hope to do is to increase the <br />TIF revenue and what this project does, as an <br />example, is take property with very little <br />assessed value and building a building on it <br />which will create additional increment. The <br />goal is to create new tax revenue to use for <br />improving the infrastructure in the area. <br />Now that's helpful in the sense that if in the <br />future you decide to expand into LaSalle <br />Square, it does provide additional funds for <br />that. So, if you are for using more funds, you <br />need to have more funds to use. Secondly, <br />with the new tax legislation about the 2% <br />circuit breaker, the amount of TIF revenue <br />will likely go down in the area. We have two <br />bonds outstanding, so for the purpose of <br />increasing revenue, it's in the best interest of <br />the City, for the coverage of the bonds, to <br />expand the area. When you expand a TIF <br />area to include land that has buildings, as <br />does LaSalle Square, it has to be thought <br />through very carefully. It has to be done at <br />just the right time, because they currently <br />46 <br />