RM 04-13-89 - Laserfiche WebLink

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Tax Increrhent Financing (TIF) In Decem er, 1987, the City of South Bend designated the West Washington - Chapin Develop- ment Are (the Near Westside Neighborhood) as a tax allocation area. As part of a TIF program, increases in property tax revenue resulting from new private investment in the desig- nated neighborhood can be used by the South Bend Redevelopment Commission to finance a variety of redevelopment costs related to neighborhood revitalization and other incentives to stimulate private investment in rehabilitation and new construction. The TIF financing tech- nique for the neighborhood uses the total of all assessed values in the area as of March 1, 1987 as the base value from which increases in property tax revenue are calculated each year. Al- though it is not realistic to assume any significant increase in revenues over the next few years, the potent al for tax increment revenue could become an important source of funds in the fu- ture if eff its to encourage and attract new private investment are successful. Preliminary Estimates of Development Project Scope and Costs The scope of redevelopment summarized on the following pages is intended as a preliminary indication of the workloads, cost, and potentials of each of the major development areas iden- tified in the Plan. The actual scope of each redevelopment project will depend on specific development proposals and public /private resources available to support implementation of the development projects. Estimates are based on the following: 2. 3 4 Recommended program actions in the areas of image and identity, safety and security, and general economic development involve the continuation or expan- sion of programs already established by the City and , available to the neigh- borhood. Other than expanded administrative efforts, no new costs are an- ticipated. Estimates for housing program actions are based on surveys conducted by the City and the consultant, and on experience of the City and the consultant on similar projects. Estimates for property acquisition relocation and demolition as part of the recommended development plan for the Washington Street and Chapin Street areas are based on current real estate property assessment records, and City and consultant experience on similar projects. Estimates for community facilities and improvements are based on recent cost experience of the City, and the consultant's review of existing conditions. Estimates shown on the following pages provide an indication of the funding required to under- take all of the neighborhood improvement projects and activities identified as needed. The revitalization and development program will require a long -term, multi -year commitment. Es- timates ard presented to illustrate the annual funding and performance levels to successfully un- dertake arid complete the program within five and ten -year time frames. These estimates should be used as a general guide during the implementation phase, and adjusted to allow for inflation a id for the cost of administration. The five $2,137,00( $835,000 funds tha close to tl though it rear completion schedule would require annual funding estimated at $1,670,000 to A ten -year completion schedule would require annual funding estimated at a $1,069,000. The early commitment of Section 108 Loan funds together with CDBG may be allocated for neighborhood improvement projects, will provide total funding at required for annual performance at a ten -year implementation program pace. Al- nay be desirable to achieve more rapid progress at higher levels of funding, it would 32