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SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION
<br />STATEMENT DISCLOSING THE IMPACT OF AMENDING THE RIVER EAST
<br />DEVELOPMENT AREA AND RIVER EAST ALLOCATION AREA NO. 1
<br />4
<br />ESTIMATED IMPACT OF AMENDING THE AREA, THE ALLOCATION AREA NO. 1, AND THE PLAN
<br />Scenario I: Present Situation (Prior to Amending the Area, the Allocation Area No. 1, and the Plan)
<br />(Cont’d)
<br />Allocation Area No. 1 is $280,863,535, is multiplied by the certified 2024 tax rate for the South Bend – Portage
<br />Township taxing district, less the combined South Bend Community School Corporation referendum rates of
<br />$0.3840, for a net tax rate of $4.9708 (the “Net South Bend – Portage Township Tax Rate”) (per $100 of
<br />assessed value), to generate an estimated annual real property Tax Increment of $8,015,510, after the application
<br />of the Circuit Breaker Tax Credits. The incremental assessed value of the South Bend – Clay Township taxing
<br />district portion of the Allocation Area No. 1 is $3,063,528, multiplied by the certified 2024 tax rate for the South
<br />Bend – Clay Township taxing district, less the combined South Bend Community School Corporation Referendum
<br />Rates of $0.3840, for a net tax rate of $4.9544 (the “Net South Bend – Clay Township Tax Rate”) (per $100 of
<br />assessed value), to generate an estimated annual real property Tax Increment of $101,290, after the application
<br />of the Circuit Breaker Tax Credits.
<br />Scenario II: Assumes the Area, Allocation Area No. 1, and the Plan are Amended
<br />Scenario II depicts the impact on the overlapping taxing units (holding all other factors constant) if the Area,
<br />Allocation Area No. 1, and Plan are amended, and assumes that the incremental assessed value from the Future
<br />Development is captured, and the net assessed value of the Future Development is added to the assessed value
<br />of the overlapping taxing units.
<br />The Commission intends to capture an illustrative $10,000,000 of incremental assessed value from the Future
<br />Development in the Expansion Allocation Area located within the South Bend – Portage Township taxing district.
<br />Multiplied by the Net South Bend – Portage Township Tax Rate, net of the application of the Circuit Breaker Tax
<br />Credit, and LIT PTRC, the incremental assessed value is estimated to generate $361,480 of annual net Tax
<br />Increment in the South Bend – Portage Township taxing district. The Commission intends to capture an illustrative
<br />$10,000,000 of incremental assessed value from the Future Development in the Expansion Allocation Area
<br />located within the South Bend – Clay Township taxing district. Multiplied by the Net South Bend – Clay Township
<br />Tax Rate, net of the application of the Circuit Breaker Tax Credit, and LIT PTRC, the incremental assessed value
<br />is estimated to generate $361,280 of annual net Tax Increment in the South Bend – Clay Township taxing district.
<br />Scenario II also depicts the impact on the School Corporation’s Referendum tax rates, which may not be included
<br />in the Tax Increment calculation. It is estimated that the Future Development would reduce the School
<br />Corporation’s Debt Referendum tax rate by $0.0001 and increases the School Corporation's Operating
<br />Referendum levy by $66,680. This Scenario does not show any other impacts on the taxing units within the South
<br />Bend - Portage Township taxing district and South Bend - Clay Township taxing district as a result of the
<br />Expansion Allocation Area.
<br />Scenario III: Assumes the Area, Allocation Area No. 1, and the Plan are NOT Amended
<br />Scenario III represents the impact on the overlapping taxing units if the Area, Allocation Area No. 1, and the Plan
<br />are not amended, assumes the Expansion Areas and Expansion Allocation Area are not established, and
<br />therefore, assumes the Future Development does not occur as a result of the Projects not being funded.
<br />Impact Summary
<br />In the 2024 Amending Resolution, the Commission finds that the amendment of the Area and Allocation Area No.
<br />1 will result in new property taxes that would not have been generated without this new allocation provision. The
<br />Commission cannot finance the Projects without the Tax Increment from the Future Development. Therefore, the
<br />Commission has determined that the capture of increase in assessed value from the Future Development will not
<br />have a negative impact on anticipated revenues or the tax rates of the taxing units that are wholly or partially
<br />located in the Expansion Allocation Area. Without the Tax Increment, the Projects would not be funded, and
<br />therefore, the Future Development would not occur, the property would remain undeveloped, and the tax base
<br />would remain unchanged. During the period of the Tax Increment capture, the tax base of the overlapping taxing
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