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South Bend Redevelopment Commission <br />Regular Me ting - January 16, 1981 <br />6. NEW BU�INESS <br />f. Mrs McMahon continues... <br />Ba k Plan itself. It allows us to utilize that <br />in cement toward the improvement of various public <br />related items one would normally pursue through the <br />offices of redevelopment. This provides us with a <br />fu ding mechanism by which these items can be ad- <br />dr ssed. I think you are familiar with tax incre <br />me t, this process having been done once with the <br />do ntown area, and I don't know if there has been <br />an change with respect to that process or the <br />im lication for the area over and above the last <br />tine. So we will respectfully ask that the Com- <br />mil&sion adopt this resolution. <br />Mr. Nimtz: Kevin, do you have any comment on this? <br />Mr. Butler: No. I have reviewed the resolution. <br />Mr Nimtz: The proper motion is that Resolution <br />No 626 be amended to read as set out in Resolution <br />No. 632, right? <br />MButler: I think just simply the adoption of <br />olution No. 632 would be sufficient. <br />MrI. Cira: Just what does this mean? <br />Mr. McMahon: The tax increment statute allows a <br />re evelopment commission or a redevelopment entity <br />to utilize directly the increase of taxes that are <br />generated in an area because of redevelopment <br />activity having been there. In the case of the <br />East Bank, if, as a result of our program we have <br />a number of new buildings that are built or build- <br />ings that are improved, the tax that they would be <br />paying increases. That increase can be utilized <br />by the redevelopment commission to offset the debts <br />that are incurred when they go through the district. <br />In other words, you can utilize it to offset the cost <br />of street improvements, parking improvements or any <br />ty e of activity that the redevelopment commission <br />cai legitimately pursue. The costs associated with <br />th m can be offset by this increment. It is one of <br />th most effective tools, I think, that we have as <br />far as our own self -help in redevelopment areas. <br />It allows us to do things without a total reliance <br />on federal dollars. <br />16 <br />