Redevelopment Commission Agenda & Packet 01.08.26 - Revised

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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – December 18, 2025 Page | 5 there separate accounts for the IDD? And within this new structure, will each of the eight allocation areas be tracked separately, or are they combined into one account? Additionally, for the IDD-established revenue, will that be managed in its own dedicated revenue and expense account? Mr. Bauer explained. • Separate Accounts: Each new allocation area will likely have its own expense account, allowing revenues and expenditures to be tracked independently. • IDE Funds Cannot Be Cross-Used: State-authorized IDD (Innovation Development District) revenues must stay within the project or allocation area they are tied to and cannot be shifted between areas. • Local TIF Funds Have Limited Flexibility: Cross-utilization may be allowed only when a project clearly benefits more than one allocation area. • Not a General Pool of Shared Funds: You cannot freely use cash from one allocation area to fund an unrelated project in another. • Future Financing Model: With smaller allocation areas and the creation of the IDD fund, the city will rely more on project-specific financing tied to future revenues, rather than moving existing cash balances between areas. Commissioner Relos asked: We’re establishing a new base value as of January 2025. You mentioned that the 25-year life of each allocation area doesn’t actually begin until a financing or bond is issued. So, in practice, some of these areas could extend beyond 25 years— particularly if it takes time before their first financing occurs. Mr. Bauer responded: Yes. As the structure is essentially dual-tracked. When a bond includes both property-tax increment and state increment, each revenue stream follows a different timeline. Property-tax increment can only be captured for twenty-five years, while the state increment can extend for a longer period—potentially up to 30 years. As a result, the amortization schedule would reflect that shift. After year 25 or 26, the portion of debt service tied to property-tax increment will decrease significantly because that revenue expires, but the state increment will continue for the remaining years. In short, the TIF portion and the IDD portion operate on different timelines within a single financing structure.