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3. ECONOMIC IMPACT OF PROJECT <br /> The new residential development at the TRANSPO site will generate new tax revenue for <br /> the City in return for the provision of additional infrastructure and services. Residential <br /> developments increase population of a community and have an effect on the schools, <br /> libraries, parks and other community services. The proposed development project will <br /> result in two types of revenue streams: direct and indirect revenue. <br /> 1. Direct Revenue: This revenue will be generated from property taxes, impact fees and <br /> utility fees. <br /> 2. Indirect Revenue: This revenue may not be directly traced back to the development but <br /> is a very important component of the overall fiscal impact. New residents in the <br /> development project will pay sales taxes toward the purchase of goods and income taxes to <br /> their respective employers. The revenue generated will have a positive impact on the <br /> region. The graphic below explains this impact to the region. <br /> Direct vs. Indirect Revenue <br /> Direct Revenue New Residential Development <br /> - I <br /> • <br /> Impact Taxes <br /> Rees <br /> • Utility Charges <br /> Indirect Revenue <br /> New Residents attract <br /> new businesses that pay taxes <br /> I�Crys <br /> New Residents have jobs and <br /> pay€ncgme taxes. Employers <br /> also pay taxes <br /> New residents purchase <br /> goods and services and pay <br /> sales taxes <br /> ImIjact on Municil)al Services <br /> The City of South Bend is financially able to support city services to the proposed project <br /> in the Transpo site. City utilities are currently present in the area so the only additional <br /> cost would be to upgrade the water and sewer connections when the new development <br /> takes place. Additionally, Police and Fire protection is already provided for this area. The <br /> new development is not expected to impact the existing budget of the Police or Fire <br /> Departments with any significance. However, this area, as well as all other areas of the <br /> City, will continually be monitored for level of service demands and other criteria that <br /> would necessitate additional resources through budgetary increases or possibly shifting of <br /> existing resources, such as a beat restructure. <br /> The new development at the TRANSPO site will need new public infrastructure such as <br /> new streets; sidewalks and street lighting. It is estimated that this new infrastructure will be <br /> paid for with SBC,DA TIF revenue. <br />