10-13-14 Council Agenda & Packet

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RESOLUTION NO. l A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, PROPOSING THAT A STUDY COMMISSION BE ESTABLISHED TO .STITIIV rl Tnvl IUT mic 6)%C e the South Bend Common Council recognizes that tax increment financing (TIF) is a financig mechanism established by the Indiana General Assembly which authorizes the capturing of property tax n attributable to increases in assessed value, with such capture monies then being used to fund improvements an es d development in designated TIF areas; and W) the Common Council further recognizes that in the City of South Bend 39.5% of the land is currently in one of nine (9) TIF allocation areas, namely: Airport Economic Development Area Douglas Road Economic Development Area Northeast Neighborhood Development Area South Bend Central Development Area Southside Development Area West Washington Development Area; and the City Administration is proposing that the percentage of the City of South Bend covered in a TIF be increased from 39.5% to 42% through a TIF realignment; and the Common Council recognizes that on March 5, 2012, the City County Council of the City of Indianapolis and of Marion County, Indiana, adopted Resolution No. 36, 2012. That Resolution established an eight (8) member Tax Increment Financing (TIF) Study Commission to "examine and investigate current economic development policies and procedures relating to the use of tax increment financing (TIF)...; and y the Tax Increment Financing (TIF) Study Commission in Indianapolis and Marion County was assisted by the Chief Financial Officer and General Counsel and was charged with reviewing and making recommendations on their economic development policies and procedures related to TIF and was to share information and issue a report of its preliminary findings within approximately 45 -days of its creation and a final report within approximately 90 -days of the creation of the special Study Commission; and the Tax Increment Financing (TIF) Study Commission in Indianapolis and Marion County Report presented very comprehensive data which included among other things exhibits which addressed the City of Indianapolis TIF Funded Projects; Standard & Poor's Criteria as well as Moody's criteria and ratings data; TIF Peer Cities Case Study Research; which noted among other things that there the creation of a TIF district could have an adverse impact in three (3) circumstances which the Indianapolis Study identified when circumstances reveal that it was: • "Poorly Conceived Project or TIF District" • "Bad Investment" • "Unmanaged AV Capture" [Indianapolis -Marion County Council Tax Increment Financing Study Commission Appendix 3: Supporting Documents] 4 the Common Council recognizes that TIF provides a mechanism so that redevelopment is self - financed and that TIF shifts the risk of redevelopment from the City's taxpayers to bondholders.