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South Bend Redevelopment Commission <br />Regular Meeting — November 10, 2014 <br />6. NEW BUSINESS (CONT.) <br />A. Public Hearings <br />(1) continued... <br />when a TIF district is established, the net assessed value within that TIF district is calculated <br />and that calculated number becomes the baseline for determining TIF. Any additional <br />assessed value from new development, over and above the baseline assessed value at the <br />time the TIF district was created, becomes the Tax Increment. That new assessed value is <br />multiplied by the same tax rate, but instead of going to the various taxing jurisdictions, those <br />taxes are dedicated to improving the TIF district further to attract new businesses. The taxes <br />on the baseline assessed value continue to be divided between all relevant taxing <br />jurisdictions. The increment is the new assessed value over and above the baseline assessed <br />value. TIF can be used to fund local public improvements such as sewers, curbs, sidewalks, <br />streets, public facilities, as well as to support workforce training programs and encourage <br />job creation. Being part of a TIF district will not affect resident or business taxes. The tax <br />rate remains the same. It does not impact zoning, an individual's ability to buy or sell, or <br />property insurance rates, etc. <br />Mr. Ford explained that the goals of this TIF realignment are: fiscal stewardship, economic <br />development and neighborhood revitalization. In terms of fiscal stewardship, we know that <br />as a city we have a number of set costs. The extent to which TIF can take some pressure off <br />of the general fund by funding things like infrastructure will help the city with its budgeting. <br />Going through this process has also enabled us to clean up the tax record data where there <br />were discrepancies as to whether a property was within a TIF district or not. In terms of <br />economic development, we are forecasting at least 2,020 jobs coming online in the next five <br />years and almost $500M of private investment. In terms of neighborhood revitalization, this <br />TIF realignment will allow implementation of the Main Streets Plan, implementation of <br />Smart Streets, the ability to invest in parks, curbs and sidewalks, and the continued <br />expansion of Light Up South Bend. <br />Mr. Ford noted that the areas that are being added to TIF districts total 666 net acres, of <br />which 60% are on the west side along Lincolnway West and Western Avenue, 20% on the <br />east side of the St. Joseph River, around the Farmers' Market and the north side of the IUSB <br />campus, and another 20% in the Sample Street industrial zone. In addition to the new <br />parcels being added to the Airport and Northeast Neighborhood TIF districts, the South <br />Bend Central Development Area TIF is being divided at the river and added to the newly <br />named River West TIF and River East TIF, respectively. <br />Mr. Ford noted that the amount of taxes collected from TIF has remained level for the last <br />twelve years. This realignment will not significantly increase the taxes collected in TIF <br />areas. Rather, it changes and increases where those funds may be spent. Mr. Ford's <br />presentation was concluded. <br />7 <br />