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SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION
<br />STATEMENT DISCLOSING THE IMPACT OF AMENDING THE RIVER WEST
<br />DEVELOPMENT AREA AND RIVER WEST ALLOCATION AREA
<br />1
<br />The City of South Bend (the “City”) Redevelopment Commission (the “Commission”) is required by Indiana Code
<br />36-7-14, as amended (the “Act”), to provide a statement disclosing the impact of amending a tax allocation
<br />provision on the overlapping taxing units. This impact statement discloses and explains the impact on the
<br />overlapping taxing units caused by amending the development area and allocation area and capturing Tax
<br />Increment (as hereinafter defined).
<br />AMENDMENT OF THE AREA, ALLOCATION AREA, AND THE PLAN
<br />The Commission adopted Declaratory Resolution No. 919 on February 23, 1990 (as subsequently amended, the
<br />“Declaratory Resolution”) establishing the Airport Economic Development Area (the “Original Area”) and a
<br />coterminous allocation area (“Original Allocation Area”) and approving an economic development plan for the
<br />Original Area (the “Original Plan”).
<br />On August 28, 2014, the Commission adopted Resolution No. 3229 amending the Declaratory Resolution to
<br />expand, and rename as the River West Development Area, the Original Area, including consolidation with existing
<br />allocation areas and transfer of properties from existing allocation areas, (as amended, the “Existing Area”) and
<br />the Original Allocation Area (as amended, the “Existing Allocation Area”) and to amend the Original Plan (as
<br />amended, the “Existing Plan”). The Existing Area stretches from segments of the northwest and southwest portion
<br />of the City's corporate limits in addition to downtown, specifically, South Bend - German Township, South Bend -
<br />Portage Township, and South Bend - Warren Township.
<br />On June 13, 2019, the Commission adopted Resolution No. 3478 further amending the Original Declaratory
<br />Resolution to (1) remove certain territory from the Existing Area (the “Removed Territory”), (2) transfer territory
<br />from the Existing Area to the South Side Development Area (the “South Side Territory”), (3) transfer territory from
<br />the West Washington Chapin Development Area to the Existing Area (the “Transferred Area”), (4) designate the
<br />Transferred Area as part of the Existing Allocation Area (collectively, the “Allocation Area”), (5) add certain
<br />territory to the Existing Area (collectively, the “2019 Expansion Area” and with the Transferred Territory and the
<br />Existing Area and without the Removed Territory and the South Side Territory, the “Area”), (6) designate the
<br />Expansion Area as an allocation area (the “Expansion Allocation Area”) within the Existing Allocation Area, and
<br />(7) amend and restate the Existing Plan (as amended and restated, the “Plan”). The Allocation Area, as amended,
<br />and Expansion Allocation Area are referred to collectively as the “River West Allocation Area”.
<br />On October 10, 2024, the Commission adopted Resolution No. 3606 to further amend the Declaratory Resolution
<br />(the “2024 Amending Resolution”) to (1) add certain territory to the Area (the “Expansion Areas” and with the
<br />Area, the “Amended Area”), (2) designate the Expansion Areas as an allocation area (the “Expansion Allocation
<br />Area” and with the River West Allocation Area, the “Amended River West Allocation Area”), and (3) amend and
<br />restate the Plan (the “Amended and Restated Plan”). The Expansion Areas are located within the South Bend –
<br />Portage Township and South Bend – German Township taxing districts.
<br />The Declaratory Resolution, as amended, allows for the capture of Tax Increment (defined herein) resulting from
<br />the growth in all non-residential real property and certain residential real property assessed value within the River
<br />West Allocation Area in excess of the base assessed value defined in the Act.
<br />In the 2024 Amending Resolution, the Commission finds that the Expansion Areas need redevelopment to an
<br />extent that cannot be corrected by regulatory processes or by the ordinary operations of private enterprise without
<br />resort to the powers allowed under the Act, and that the public health and welfare will be benefitted by the
<br />redevelopment of the Expansion Areas. The Commission also finds that the Amended and Restated Plan
<br />conforms to other development and redevelopment plans of the City.
<br />The 2024 Amending Resolution allows for the capture of real property taxes generated from incremental
<br />assessed value in the Expansion Allocation Area. Tax Increment consists of all property tax proceeds from the
<br />assessed valuation of non-single-family residential real property in the Expansion Allocation Area as of the
<br />assessment date in excess of the base assessed valuation described in Section 39(b)(1) of the Act, multiplied by
<br />the current property tax rate, excluding any rate established by a post-2009 referendum and, any post December
<br />31, 2022 Fire Territory rate established (referred to throughout as “Tax Increment”). The base assessed value
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