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HomeMy WebLinkAbout6B (4)Community & Economic Development 1200 County -City Building, 227 West Jefferson, South Bend, Indiana 46601 -1830 Phone 574/235 -9371 Fox 574/235 -9021 To: South Bend Redevelopment Commission From: Don Inks Subject: Proposed Use of Certified Tech Park Funds Date: March 27, 2012 Background • The Certified Technology Park ( "CTP ") is established in December 2008 through an Agreement between the Indiana Economic Development Commission ( "IEDC') and the City of South Bend Redevelopment Commission ( "RDC "). • The area of the CTP is defined to include both Innovation Park at Notre Dame ( "IPND ") and Ignition Park ( "IP "). • IPND boundaries include the site of the current and future IPND park buildings, as well as the retail /office building on the southwest comer of Angela and Eddy Streets ( "Office Building") and Raclin- Carmichael and Harper Halls ( "ND /IU Medical Campus "). • Section 7 of the CTP Agreement defines the CTP Incremental Tax Financing Fund ( "State CTP Funds "), which can be funded with the incremental personal income and sales taxes generated by employment and sales within the CTP. • The base fiscal year used in order to calculate the increment is June 30, 2008. • The first fiscal year for the increment calculation was June 30, 2011 • The maximum aggregate amount of State CTP Funds that can be recaptured is limited to $5 million. Proposed Uses of CTP Funds 3.26.12.doc Whet We Do Todw Makes A Dlffeneneet 4�' (�) Current Status The first Certified Tech Park Funds were received from the State on 12/20/11 in the amount of $812,791. This amount represents income taxes withheld from wages paid to employees located at the "Office Building', IPND and the ND /IU Medical Campus. Use of Funds • State CTP Funds can be used for a limited number of purposes, all of which must be activities within the CTP boundaries. The list of permitted uses includes: • Acquisition, construction, improvement, planning or equipping of facilities • Repayment of debt incurred for financing associated with the above • Establishment or augmenting a debt service reserve associated with debt • Operation of facilities • Notre Dame has immediate uses for the State CTP Funds, including: • Payment of the operating expenses of the IPND facility • Equipping the IPND facility • Planning. /engineering costs of Phase 11 of IPND Proposal The City and ND should share equally in the aggregate $5 million amount of State CTP Funds o On an annual basis, if either party does not have needs to consume 50% of the State CTP Funds received that year, the other party may draw unused funds to the extent they can be spent on permitted uses. o Once either party has drawn an aggregate $2.5 million in State CTP Funds, no additional funds may be drawn by that party without approval of the other party Proposed Uses of CTP Funds 3.26.12.doc What we Do Today Makes A Difference!