RM 08-23-85 - Laserfiche WebLink

Home Browse Search

South Bend Regular Mei 6. NEW BUS elopment Commission - August 23, 1985 a. C ssion a royal r ested for Resolution No. 747 authorizing the issuance of tax revenue bonds for the ition in the South Area. of Mr.�Hunt noted that 6a and 6b are related it and will be presented together. Mr. Hunt stated that the proposed Tax Incremental Financing revenue bond is the first in the State of Indiana which is a historic occasion in terns of development financing. In the late 1970's the Redevelopment Coranission took the position that federal funds would be declining and there has already been evidence of that. The Co fission took the direction that they wcrld have to look for other financing mechanisms. The last bond issue by the Redevelopment Comnission was in 1972. Since then we have relied on the federal government_ in terms of UDA s, Section 108 loan guarantee funds, Co unity Development Block Grant Funds, and old bona money. In terms of moving into the next stage of revitalization of the downtown and recogniz ±ng the limitation of the present funding sources, the Commission pushed for the estiblishment of new State legislation to form a Tax Inurement Financing (TIF) law for the State of Indiana. The next step the Comnission took was a test case in court with TRAiSPO to test the constitutionality of TIF. In 1980 the Commission established the first allocation area in the City of South Bend, and sine then several other allocation areas have bee established throughout the State. The first step to selling a TIF bond is the public recognition of all the developmersts that have happened in the downtown area bec use of actions the Con - mission has taken. We would not be able to proceed with the TIF bon' if development had not occurred in do town South Bend. Three years ago the -3-