5142-25 Resolution to Approve the Plan Commission Order Adopting the Declaratory Resolution to Amend the River West Development Area and Establish the Lincoln and Kennedy Park Residential Housing Development Program Expansion Area

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5. The tax increment revenue available to the Commission may be used for activities to prepare individuals to participate in the global economy as described in I.C. 36-7-25-7; provided, however, that the Commission spends no more than 15%of the annual tax increment revenue it receives; and 6. All other projects and purposes permitted by law. Activities, as well as goals and objectives, may be further detailed in the River West Plan and adopted neighborhood and master plans for areas within the River West Development Area. These plan documents are listed in Appendix D. Tax Increment Financing ("TIF") District The South Bend Redevelopment Commission may implement the use of TIF within a redevelopment area or economic development area pursuant to state law(I.C. 36-7-14). TIF allocation areas target areas needing redevelopment and economic development areas in order to transform them into viable areas making the community more appealing and attractive for economic development, which creates a better quality of life for the districts' residents. TIE allocation areas are powerful and effective tools that may provide financing for infrastructure improvements within redevelopment projects which may, in turn, entice market dollars back into economic development areas and areas needing redevelopment, including abandoned and dilapidated areas. The lifespan of a TIF allocation area varies based upon the time of its creation. TIF creates revenues for improvements without raising taxes, offers incentives for businesses and developers, and builds communities. TIF works by capturing additional property tax revenue due to the revitalization of a designated area. The base assessed value of the year in which the TIF allocation area is established is used as the base year, and tax revenues generated due to the increase in assessed value over the base year assessment of properties within the TIF allocation area are set aside to use for improvements that are located in that TIF allocation area. Thus, no new taxes or increases in tax rates occur, rather TIF funds are generated when property values improve due to the overall improvement of the TIF allocation area. Statutory Findings The Plan, as a component of the River West Plan, meets the following required findings by the Redevelopment Commission pursuant to state law(I.C. 36-7-14-41(b)): 1. The Plan and associated projects will create economic development,job growth, and increase the tax base of the City, meeting purposes outlined in state law (I.C. 36-7-14-2.5, I.C. 36-7-14-41, and I.C. 36-7-14-43); 2. The use of tax increment financing(TIF)from the Allocation Area is necessary to construct various projects within and benefitting the Allocation Area; 5