11-27-18 Personnel and Finance (TIF)

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.10)CITYOF SOUTH BEND OFFICE OF THE CLERK we have, I think, some of the larger geographic TIF areas. If we didn't and we were all consolidated, the revenue out of that would be nothing. Dr. Mueller replied, That is a growth assumption. There is a lot of analysis that follows this. It depends on indefinite growth. So you are right,we have gotten some from that growth but we can't keep growing and expanding. If we don't keep expanding we suddenly run into a sustainability challenge. I think, I mean, there is obviously an appropriate use on the boundaries for less- developable industrial uses and whatever there may be. But we are about to commission a quick study to look at the net value of properties. We had someone come to look at the value per acre. So we are actually going to try to figure that out across the County and figure out what the net value is per parcel. It will break it down to say we get this much return per acre, but you have this much cost per acre, and then we figure out if we are in the red or in the black. We want to find out which ones are in the red or in the black. Committeemember Voorde clarified,I don't think we ought to invest willy-nilly,which the County may be doing in an area like New Carlisle. They are spending tens of millions of dollars and they have nothing to show for it. I think you have to be careful about what you are doing but it is appropriate and I'm not challenging anything you are saying, really, I'm just recognizing that the investments made in the past are now taking care of the ramifications of how we've changed over time. Dr. Mueller replied, Yeah, I mean, the biggest taxpayer in the River West Development Area is TireRack. We one hundred percent (100%) agree I'm just saying we have to careful about what the sustainability is. Committeemember Voorde clarified, I'm not talking about investing willy-nilly and hoping something happens, I'm talking about not encumbering so much debt so that there is nothing left to invest in the core because the core can't pay for itself. Once you put in seed money, then you are encouraging other investment in there and we will see that and it will address all sorts of issues with both assessed value as well as social issues. Councilmember Broden stated, I have about seven (7) but I'll go through them fast. I don't think you've addressed the adjacency or loans between the TIFs. Can you do that and what are the rules for that? You don't have to answer that now but you can get to it. The other regards me hearing a lot about the dissolution of City property and those being given away. Or,they go formally for less than market value. So what is the strategy? I'm sure it's different per property but what overall is the operating philosophy there? Then three (3), similarly, the debt service to available TIF funds ratio. You're stacking that on over time so what is the thought about that? We can look at it any given year but then you obviously want to be cognizant of what is accumulating. I would like to know the philosophy behind that and if there is a ratio or kind of a guide. Dr. Mueller interjected, I'm going to lose these questions Councilmember Broden followed up, I'll give them into the record. Councilmember Scott stated, We'll have minutes. EXCELLENCE i ACCOUNTABILITY I INNOVATION INCLUSION I EMPOWERMENT 455 County-City Building 227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD574.235.5567 www.southbendin.gov 23