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South Bend Redevelopment Commission <br /> Regular Meeting—December 13, 2011 <br /> 6. NEW BUSINESS (CONT.) <br /> B. South Bend Central Development Area <br /> (2) continued... <br /> expanding and presents a plan. To <br /> accomplish their plan, they ask us for <br /> participation, generally through some kind of <br /> infrastructure. Those resources are regulated <br /> by state law on how we can participate, but <br /> we participate frequently. The TIF funds <br /> pledged to a project are actually taxes <br /> collected from businesses within that district. <br /> So this is truly a business-helping-business <br /> scenario. That is what TIF is built on. After <br /> the project is completed, the new and <br /> increased taxes are created by the project are <br /> then added back into the TIF to increase that <br /> TIF and it becomes available for the next <br /> project. <br /> In the matter before us today, it's proposed <br /> that we fund the project by taking cash <br /> reserves from the city's budget and then <br /> replacing or repaying them by the <br /> incremented TIF funds generated by the new <br /> project. Not only does she see two serious <br /> risks with this proposal, the length of the <br /> time horizon for the payment of the debt or <br /> the possibility of no repayment of debt if the <br /> project doesn't go forward and is not <br /> successful long term. But she doesn't believe <br /> this scenario is the spirit of TIF. It's not <br /> intended to be a repayment program. Also, <br /> if the Commission proceeds with this <br /> proposal, she feels it would be setting a <br /> precedent that would not only be onerous, <br /> but quite dangerous. <br /> The second issue that concerns her is one of <br /> timing. We are a body of five volunteers, <br /> 11 <br />