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South Bend Redevelopment Commission Regular Meeting – August 28, 2014 6. NEW BUSINESS (CONT.) B. Northeast Neighborhood Development Area (1) continued... Mr. Rompola clarified that the Airport is an Economic Development Area so is more focused on jobs, but the existing Downtown TIF area was designated as a Redevelopment area —a blighted area —when it was established. The statute has changed and no longer talks about blight, but rather an area needing redevelopment. The inclusion of the Lincolnway West and Western Corridors is in some part trying to be proactive and anticipating future changes to the TIF legislation. Whereas, under current law, we could possibly make expenditure along the corridors without having them actually included in the TIF boundaries (but serving the TIF), it is anticipated the Legislature may change that provision to exclude the option of serving the greater TIF area. Several cities are using this rationale when declaring or expanding their TIF districts. Mr. Inks asked whether the Downtown TIF (aka SBCDA) is being released. Mr. Ford answered no, the Central Medical is being released, but not the Downtown. Mr. Relos added that the portion of the SBCDA west of the River is being transferred AEDA and the SBCDA portion east of the River is being transferred to the NNDA. Mr. Inks asked how these changes affect the life of each of the TIFs under current legislation. Mr. Rompola answered the existing areas which are being transferred are under the new statutory amendment so that the "legacy TIF" of the Downtown and Airport (or any which did not originally have an expiration date) would have an expiration date of 2025 or after any supported debt is retired — whichever is later. The new expansion areas would have a 25 year limitation. However, some of the TIFs were expanded over the years and some of those pockets may have their own termination dates. So, essentially everything which is being transferred will keep their existing termination dates and nothing will be extended unless new debt is added. Mr. Inks also asked for clarity on the percentage of assessed value (AV) for the area. As presented, AV is going up slightly but wouldn't that be total AV for the area - -- wouldn't Increment AV be going down because there are some areas which are being released? Also, has staff given any thought to capping the annual amount of TIF that is used by Redevelopment? This would allow at least a partial sharing of AV from new development with the other taxing units. Mr. Ford answered that this geographic change allows for a more plan- driven agenda such as the Corridor Plan's specific cost of services. In addition, because we have gone through a parcel -by- parcel analysis we have a better understanding of what we should receive and can follow up more effectively. There is also a direct correlation between TIF expenditure and job creation —this year it is about $17,000 /job created (almost 1300 jobs announced to date