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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 18, 2025 <br /> <br />Page | 3 <br /> <br />2,420 new FTEs (3,500+total FTEs) possible over 120 total acres. There <br />are 1.8 million square feet of currently vacant space in this area. <br /> <br />The agreement would be between the State of Indiana via the IEDC, and <br />the City of South Bend governing local retention of state income and <br />state sales tax in the downtown area. A cap of $15 million of state sales <br />and income tax increment annually over a 30-year term. IEDC <br />coordination required for utilization of funds above $7.5 million per <br />year. With a state maximum contribution of $225 million over term, with <br />the ability to propose an amendment in the future regarding future <br />projects. <br /> <br />One requirement for the IDD is that we must have an established TIF <br />allocation area that is current with the state’s expectations. That <br />allocation area must be in place before the IDD is officially established— <br />before March 15. In coordination with the state, they are aware that our <br />intent is to establish new allocation areas and begin a new 25-year <br />property-tax clock as part of setting this new base rate. As increment <br />grows, we’ll be able to pair that property-tax increment with the state’s <br />increment. <br /> <br />Based on an analysis from Baker Tilly, the completed scope at Colfax <br />Corner would add more than $1.1 billion to Indiana’s annual GDP and <br />would expect to generate more than $600 million in state and local tax <br />increment. State incentives would not exceed 20% of any single project <br />and add 2,420 new net (3,500 total) jobs in South Bend, with another <br />1,898 in indirect and 1,432 in induced jobs. This will support the creation <br />of a true innovation hub that enables the University of Notre Dame to <br />continue its transformative applied research expansion. The value of this <br />project will generate more than $45 million annually in state taxes, with <br />only 33% necessary to be captured by IDD for projects to be actualized. <br /> <br />You’ll see in the first agreement how that pairing works. The state has <br />made clear that they do not want us to use the state-permitted <br />increment while also directing our property-tax increment toward <br />unrelated purposes. They expect to see genuine partnership, where the <br />city contributes its property-tax increment and then uses state <br />increment only as needed to make an agreement feasible. <br /> <br />Item 5A1 is a Resolution establishing new TIF allocation areas. The <br />boundaries remain the same as shown on this color-coded map, though <br />we’ve updated the naming system to be less tied to specific projects. <br />Establishing eight allocation areas allows us to begin eight separate <br />25-year clocks. These clocks start when we issue financing in a given <br />area.