Resolution No. 3623 (Confirming TIF Expansion REDA) - Signed

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SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION STATEMENT DISCLOSING THE IMPACT OF AMENDING THE RIVER EAST DEVELOPMENT AREA AND RIVER EAST ALLOCATION AREA NO. 1 2 AMENDMENT OF THE AREA, ALLOCATION AREA NO. 1, AND THE PLAN (Cont’d) assessment date in excess of the base assessed valuation described in Section 39(b)(1) of the Act, multiplied by the current property tax rate, excluding any rate established by a post-2009 referendum and, any post December 31, 2022 Fire Territory rate established (referred to throughout as “Tax Increment”). The base assessed value means the net assessed value of all the property in an allocation area as finally determined for the assessment date immediately preceding the effective date of a declaratory resolution establishing the allocation area pursuant to Section 39 of the Act. The Expansion Allocation Area will have a base assessment date of January 1, 2024 and the base assessment dates of the Allocation Area No. 1 is unchanged. The Expansion Allocation Area will expire no later than 25 years after the date on which the first obligation is incurred to pay principal and interest on 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 No. 1 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 Allocation Area No. 1 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 Allocation Area No. 1, which is located within two taxing districts: South Bend - Portage Township and South Bend – Clay Township. Per the St. Joseph County Auditor’s office, the total existing incremental assessed value in the Allocation Area No. 1 is $283,927,063. The incremental assessed value for the South Bend - Portage Township and South Bend – Clay 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. 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 No. 1 is $8,116,800. The Expansion Allocation Area is located within the South Bend – Portage Township and South Bend – Clay Township taxing districts. 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 each taxing district of the Amended Allocation Area No. 1. 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 and $4.9544 for South Bend - Clay Township. The estimated annual real property Tax Increment generated in South Bend - Portage Township is $361,480 and the estimated annual real property Tax Increment generated in South Bend - Clay Township is $361,280, after the application of the Circuit Breaker Tax Credit and accounting for the impact of the Local Income Tax Property Tax Replacement Credit (the "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.