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years. Mrs. Kolata then showed two maps addressing tax <br /> abatement namely one which depicted the "tax abatement <br /> impact areas" and the second one which depicted the "central <br /> and neighborhood business districts in tax abatement areas". <br /> It was further noted that current tax abatement policies are <br /> basically targeted to two components: <br /> 1. Industrial and warehousing projects anywhere <br /> within the City. <br /> 2 . Housing, retail commercial mixed use <br /> g. , <br /> projects within specific geographic areas. <br /> The overall length of the abatement depends on meeting <br /> various criteria set forth in the City ordinance. <br /> Councilman Luecke had several questions with regard to the <br /> "Standard Industrial Classification Manual" and was advised <br /> that if there were questions with regard to whether a <br /> specific petitioner met the major group classification that <br /> this would be proper questioning of the Common Council. <br /> Mrs. Kolata then briefly highlighted some of the 1988 <br /> legislation which is to be signed shortly by the Governor. <br /> Some of the changes include the elimination of the <br /> requirement to calculate the impact of the abatement on the <br /> tax rate; that the Council may limit the dollar amount on <br /> deductions for real property after September 1, 1988; that <br /> there is an adjustment procedure of the deduction following <br /> a general reassessment; and that "residentially distressed <br /> areas" can now be created. The "Statement of Benefits" <br /> formed from the State Board of Tax Commissioners was <br /> reviewed as well as the petition procedure for both real and <br /> personal property tax abatement. <br /> Mrs. Kolata then reviewed Tax Increment Financing and <br /> summarized pages 20 through 29 of her handout. The overall <br /> concept underlying "TIF" legislation is that the public will <br /> ultimately benefit from revitalization of blighted areas and <br /> that the resulting increase will be in assessed valuation. <br /> It was also noted that "TIF" is the reallocation of local <br /> property tax money so that overlapping taxing jurisdictions <br /> would share in the cost of improvements by foregoing taxes <br /> related to those improvements until such time as the public <br /> improvements are paid for. <br /> Mrs. Kolata noted that currently there are four "TIF" areas <br /> within the City namely: South Bend Central Development <br /> Area, the Rum Village Industrial Park, The Studebaker <br /> Corridor Development Area, and The West Washington/Chapin <br /> Development Area. <br /> 2 <br />