RM 08-23-85 - Laserfiche WebLink

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South Bend Regular Me 6. NEW BU a. Co col and all is val out Ci and to The Aft, wil mil val wil are elopment Commission - August 23, 1985 (Cont.) ty in a normal manner. There is no rate tax levy for the bond issue. A ion of the taxes which are currently ected are diverted to pay for principal interest on the bonds. The theory behind this is, if it weren't for the money being t in this redevelopment area, you wouldn't the increases in assessed valuation. For s collected in 1985 the estimated revenue 305,000 from the $2.3 million increase in ation. Each year, while the bonds are tanding, this same base valuation, and the s from the valuation from the TIF district h were in existarce prior to the velopment Commission's activities, inues to flow to the schools, TRANSPO, the and the County. What happens is this as the abatements are reduced, falls out at the end of ten years all of this esents dollars which are available for ng principal and interest. Each year you more and more dollars from existing lopment which was created to be available ay principal and interest on the bonds. bonds can then be paid fairly quickly. r these bonds are paid off, all of this lopment falls to the tax base and is .ributed in a normal ratio. This is for lopment which has been created to date. _ngsted is very excited about selling the is and being able to tell the bond :baser of the economic vitality of the i. In 1985, on top of existing �lopment, $10 -13 million in development _ be taking place and an additional $10 _ion in 1986. Increases in assessed nation due to these projects have not been i in calculating the amount of increment _lable to pay for the bonds. Some of these jects will receive tax abatement and some not. The graph shows how, as abatements given as an incentive for development, 3e abatements fall off and generate Ltional income which can be used to pay off 3e bonds, which in turn causes more �lopment to occur. -7-