11-27-18 Personnel and Finance (TIF)

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CITY OF SOUTH BEND I OFFICE OF THE CLERK Mr. Bognar interjected, Smart Streets would never have happened. Dr. Mueller stated, Well, Smart Streets and we would be facing significant revenue changes in a few years. Committee Chair White stated, We would have lost all that. Dr. Mueller stated, The River West TIF has multiple components, too, if you look at it. There is a very small component that expires a few years prior to the 2037 date. I think that is 2033 and it goes into three (3) parts. I think there are townships. Because the debt was issued, they will continue to 2037. Dr. Mueller continued, So, looking at the River East with the asterisk (referencing a slide in the presentation), we're not looking at the residential component. That pays off the Eddy Street Commons and Phase Two (II) bonds. So this is what we look at from a strategic and operational perspective. We look at what is coming in and where projects can come from. So,in 2018,we had about$8.8 million in cash carried forward. We are expecting,by the end of the year, $3.1 million. Of course we get a December receipt every year which goes into the cash carry next year because we can't spend money in the holidays. So $8.8 million of cash carried forward, part of that is the December receipt from 2017. And then we have roughly $12 million committed whether that be commitments we made in prior years or this year in terms of projects. I think the main ones you are seeing, although some haven't gone out the door, are committed. When you look at the cash balance, you will see them still in there but I think everyone is aware of the Commerce Center Project in which monies were applied. The Cascades Project and other smaller ones have money earmarked. Going forward, our priorities include expanding the boundaries to include the Zoo and the Mishawaka Avenue corridor because we believe that is a critical entry into the City. We are also looking at the northeast corridors and asking how we best connect the progress downtown and in the east bank and the progress happening closer to the University. How do we make sure we have vibrant connections and vibrant mixed-income neighborhoods long-term? There are a lot of separate issues there to try and drive that. We've seen a lot of outside investment and probably more than people would have anticipated, even just a few years ago, into that triangle area. We are trying to get ahold of and make sure that we retain our identity as a City neighborhood that is mixed-income. He went on, By doing the corridor plan, there are different strategies to do that. In the northeast corridors,we soon hope to commission a study to really figure out the costs of the different projects and options. Also, it will help us understand the long-term development potential and payback of those investments. I think, internally, the next stretch of Eddy Street, for example, is anywhere from $6 million to $8 million. If you go down to look at the cloverleaf by Jefferson School, even the lightest option is another $6 million. This is a potentially big transformative project coming down the line. There is probably not enough revenue in the River East development area to accomplish this so there is a thought of that extension and we can get into that later when we go further into the development areas. But briefly, there is a thought that given the Zoo and Fire station debt services, they would be in the new boundary area and we could shift it over into TIF. Then we could use that capacity to fund financing for this (referencing a slide in the presentation) bigger project. That is something we think would be beneficial. It's not happening right away but something that could happen in the next few years that we should consider as a community. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION j EMPOWERMENT 455 County-City Building i 227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 www.southbendin.gov 11