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South Bend Redevelopment Commission <br /> Regular Meeting–August 28, 2014 <br /> • 6. NEW BUSINESS (CONT.) <br /> B. Northeast Neighborhood Development Area <br /> (1) continued... <br /> Mr. Rompola clarified that the Airport is an Economic Development Area so is more focused <br /> on jobs, but the existing Downtown TIF area was designated as a Redevelopment area—a <br /> blighted area—when it was established. The statute has changed and no longer talks about <br /> blight, but rather an area needing redevelopment. The inclusion of the Lincolnway West and <br /> Western Corridors is in some part trying to be proactive and anticipating future changes to <br /> the TIF legislation. Whereas, under current law, we could possibly make expenditure along <br /> the corridors without having them actually included in the TIF boundaries (but serving the <br /> TIF), it is anticipated the Legislature may change that provision to exclude the option of <br /> serving the greater TIF area. Several cities are using this rationale when declaring or <br /> expanding their TIF districts. <br /> Mr. Inks asked whether the Downtown TIF (aka SBCDA) is being released. Mr. Ford <br /> answered no,the Central Medical is being released, but not the Downtown. Mr. Relos added <br /> that the portion of the SBCDA west of the River is being transferred AEDA and the SBCDA <br /> portion east of the River is being transferred to the NNDA. <br /> • Mr. Inks asked how these changes affect the life of each of the TIFs under current legislation. <br /> Mr. Rompola answered the existing areas which are being transferred are under the new <br /> statutory amendment so that the"legacy TIF"of the Downtown and Airport(or any which <br /> did not originally have an expiration date)would have an expiration date of 2025 or after any <br /> supported debt is retired—whichever is later. The new expansion areas would have a 25 year <br /> limitation. However, some of the TIFs were expanded over the years and some of those <br /> pockets may have their own termination dates. So, essentially everything which is being <br /> transferred will keep their existing termination dates and nothing will be extended unless new <br /> debt is added. <br /> Mr. Inks also asked for clarity on the percentage of assessed value (AV) for the area. As <br /> presented,AV is going up slightly but wouldn't that be total AV for the area---wouldn't <br /> Increment AV be going down because there are some areas which are being released? Also, <br /> has staff given any thought to capping the annual amount of TIF that is used by <br /> Redevelopment? This would allow at least a partial sharing of AV from new development <br /> with the other taxing units. <br /> Mr. Ford answered that this geographic change allows for a more plan-driven agenda such as <br /> the Corridor Plan's specific cost of services. In addition,because we have gone through a <br /> parcel-by-parcel analysis we have a better understanding of what we should receive and can <br /> follow up more effectively. There is also a direct correlation between TIF expenditure and <br /> • job creation—this year it is about$17,000/job created (almost 1300 jobs announced to date <br /> 7 <br />