5D2 Resolution No. 3624 (Confirming TIF Expansion SSDA) - Signed

Home Browse Search

SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION STATEMENT DISCLOSING THE IMPACT OF AMENDING THE SOUTHSIDE DEVELOPMENT AREA AND SOUTHSIDE ALLOCATION AREA 2 AMENDMENT OF THE AREA, ALLOCATION AREA, AND THE PLAN (Cont’d) bonds or lease rentals on leases payable from Tax Increment, or as otherwise required by law. The expiration dates of the other components of the Amended Allocation Area will be unchanged. PROJECT SUMMARY In order to accomplish the Amended and Restated Plan, the Commission plans to undertake certain public infrastructure projects listed in the Amended and Restated Plan that are in, serving or benefiting the Amended Area (the “Projects”). The Commission intends to utilize the Tax Increment generated by Future Development (defined herein), along with Tax Increment currently being generated within the Southside Allocation Area to fund the Projects in order to facilitate future development within the Expansion Allocation Area that would not occur without the use of Tax Increment to fund the Projects (the “Future Development). The Commission may issue bonds or enter into leases payable from Tax Increment to fund the Projects. ESTIMATED TAX INCREMENT The Commission currently captures the Tax Increment in the Southside Allocation Area, which is located within three taxing districts: South Bend – Portage Township, South Bend – Centre Township, and South Bend – Penn Township. Per the St. Joseph County Auditor’s office, the total existing incremental assessed value in the Southside Allocation Area is $100,027,891. The incremental assessed value for the South Bend – Portage Township and South Bend – Centre Township are each multiplied by their respective certified 2024 tax rates, less the combined South Bend Community School Corporation (the "School Corporation") referendum rates of $0.3840. The incremental assessed value for the South Bend – Penn Township is multiplied by the respective certified 2024 tax rate. After multiplying by the respective net tax rates and after the application of the Circuit Breaker Tax Credit, the estimated annual real property net Tax Increment generated in the Allocation Area is $3,494,120. The Expansion Allocation Area is located within the South Bend – Portage Township taxing district. The Commission intends to capture the real property Tax Increment from Future Development in the Expansion Allocation Area. For the purposes of this analysis, the estimated Tax Increment from the Future Development is based on an illustrative incremental real property assessed value of $10,000,000 in the South Bend - Portage Township taxing district. Holding all else constant, the increase in the assessed value of the overlapping taxing units due to the Future Development results in an estimated tax rate decrease in the School Corporation's Debt Referendum tax rate of $0.0001. The estimated incremental assessed value is multiplied by their respective tax rates, net of the School Corporation's post-2009 referendum rates of $4.9708 for South Bend - Portage Township. The estimated annual real property Tax Increment generated in South Bend - Portage Township is $361,480, after the application of the Circuit Breaker Tax Credit and accounting for the impact of LIT PTRC. The actual assessed value of the Future Development will be determined by the St. Joseph County Assessor upon completion and the actual assessed value may be materially different from the values used in this analysis. No adjustment for future statewide reassessments or trending was made in this analysis. Future tax rates and assessed values may differ from the tax rates and assessed values used in this analysis, and the differences could have a material impact on the actual Tax Increment but should not change the impact of the Expansion Allocation Area on the overlapping taxing units. See the sections below for additional information about the recent legislative changes as they relate to property tax changes. The calculation of Tax Increment may not include a tax rate that is imposed as a result of a referendum passed after 2009, nor may it include a tax rate associated with a fire territory if the fire territory is established after December 31, 2022. Currently, a post-2009 referendum tax rate is in place in the South Bend - Portage Township and the South Bend – Centre Township taxing districts. Assuming no change in law, any future referendum- approved tax rates will not be included in the calculation of Tax Increment in the Expansion Allocation Area. The incremental assessed value that will result from the Future Development or any additional development will be included in the tax base of the applicable taxing unit for the purposes of calculating the property tax levy associated with a referendum-approved tax rate.