RM 09-13-85 - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Me ting - September 13, 1985 6. NEW BUSINESS (Cont.) a. CoMinuect... of capturing the increased taxes generated by new development. Once the TIF bonds are paid for, then all that development that has occurred, in part because of the bonds and the initial development, all those increased taxes wo ld be available to the City, the County, th schools, TRANSPO and all those who get oa is of the taxes. . Allen asked why Redevelopment has to get bond with monies that must have been lected over the years. Mr� Hunt explained that this is the first year th Tax Increment has been collected. Mr Hill explained that with the creation of the various allocation areas the statute provides that bonds can be issued or a icipality can reimburse itself for expenditures that were made in advance. In this particular situation, the first money in terms of the actual collected tax proceeds came in June, 1985, in anticipation of the bonds being issued. The Tax Incremental Financing mechanism is something that has to be triggered by action of each local Commission. The tax proceeds do not go into the special fund until the Redevelopment Co ssion passes the appropriate resolution to utilize it. All of the tax proceeds that have been paid in the redevelopment areas have go me to those regular governmental units that would typically get them. It is only the triggering mechanism of this Commission that would cause the fund to temporarily be di erted in terms of those funds that are over th frozen base. Ms Derbeck asked if the concept of the facade program is to buy the facades, fix them up and th lease them back and whether that constitutes an easement? Mr. Hill stated that the mechanism used on the Pa ais Royale was a grant of an easement to the City and then we would lease it back to the owners with a lease payment actually being