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South Bend Redevelopment Commission Regular Meeting — August 28, 2014 6. NEW BUSINESS (CONT.) B. Northeast Neighborhood Development Area (1) continued in 2014). Part of the value of TIF is its ability to be responsive to business opportunities as they present themselves. Mr. Inks concurred but wondered if there would be value in deciding up front that the first "x" amount would be used by Redevelopment, but the remainder be released to other jurisdictions. Mr. Ford agreed that this issue should be part of the conversation on City finances—cannot think of TIF in isolation. So, if there are ways we can address all City needs together particularly items relating to economic development —such as infrastructure costs —we certainly are willing to do so in the name of fiscal stewardship. Mr. Rompola added the AV which is created can sometimes be used as an incentive for creating the AV in the first place —as was done in the South Side Development Area. Dr. Varner stated this is the kind of discussion needed. To the administration's credit, we are currently using a benchmark of approximately 15% for the maximum City investment in projects. An additional discussion needs to include items such as: should we use TIF to support a project that's in the pipeline or use TIF to drive projects which are not there yet. One is a direct benefit, the other is speculative in nature. Historically, cities do not seem to be too good at speculation. And, if we decide we are using the funds exclusively for the direct benefit project then we could look at capping the TIF as suggested by Mr. Inks. Initially, Redevelopment was set up to spend bond proceeds as approved by Council or grant money, etc., not necessarily to approve speculative projects. All these issues are part of the discussion which needs to occur —which is why he believes the proposed timeline is constrained. Consideration of Resolution No. 3228 — Upon motion by Mr. Downes, seconded by Mr. Inks and a majority approval, the Commission approved Resolution No. 3228 designating and declaring certain areas as redevelopment areas and adding certain territory from the South Bend Central Development Area for the purpose of amending the boundaries of the Northeast Neighborhood Development Area and the Northeast Neighborhood Development Area Allocation Area No. 1 and approving an amendment to the Development Plan for said area. Ms. Schey cast a dissenting vote stating that it is because the geographic area of the TIF has increased. She looks forward to the continuing discussion on the matter and may change her mind at her later opportunities to vote on the issue.