Bill No. 23-24 Professional Sports Convention Development Tax Area

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ark's a c '?0,?3 May 17, 2023 Honorable Sharon McBride, President City of South Bend Common Council 227 W. Jefferson Boulevard, 4th Floor South Bend, Indiana 46601 N RE: Resolution for Professional Sports Convention Development (PSCD) Tax Area Expansion Dear Council President McBride, On October 27, 1997, the South Bend Common Council approved Resolution No. 2519-97, which applied then existing statutory authority to establish a Professional Sports Convention Development Area ("PSCD Tax Area") within the boundaries of the City of South Bend (the "City"). This PSCD Tax Area lapsed in 2017. During the 2021 Legislative Session, with backing from local leaders and community members, the Indiana General Assembly amended the enabling statute (Indiana Code 36-7-31.3) to allow the South Bend Common Council to reestablish the Tax Area and expand it to include additional properties which it did on June 14, 2021 through Resolution no. 4917-21. During the 2023 Legislative Session SEA 326 was passed and signed by the Governor on May 4, 2023. SEA 326 (i) increases the current cap of revenues to be paid to the City from $ 2,000,000.00 to $ 5,000,000.00 (ii) increases the PSCDA Tax Area to include City owned facilities such as the new City Hall purchased from the South Bend Community School Corporation; Police Station; all Fire Stations Waste Water Treatment Plant; and the Municipal Water Works Facility in downtown South Bend, and (iii) extends the enabling legislation until July 1, 2044. The attached resolution aligns with the newly passed legislation. This resolution does not increase taxes or impose new taxes. Rather, the PSCD Tax Area allows the City to capture certain sales tax revenues and income tax revenues (from the list of properties included in the Tax Area) that would otherwise be remitted to the state. This capture of revenue is estimated to bring to the City up to $5,000,000.00 on an annual basis for twenty years amounting to $100,000.00. These revenues must be used in accordance with the terms of this resolution and Indiana Code § 36-7-31.3 and as amended by SEA 326 (which limits spending primarily to capital improvements for City -owned professional sports and convention facilities).