No. 2951 expanding the boundaries of the SBCDA, expanding the allocation area for purposes of TIF and amending the development plan for the SBCDA

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