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MEMORANDUM
TO: Redevelopment Commission
FROM: Beth Leonard Inks
RE: Resolution # 3056 — Determination of No Excess Assessed Value
DATE: July 5, 2012
Attached is Resolution #3056 which determines there is no excess assessed value in our
TIF areas for tax year 2012 pay 2013. Also attached is information regarding the
projected need for improvements in the various areas. Staff recommends, and
respectfully requests, Commission approval. Please let Don or me know if you have any
questions. Thank you.
RESOLUTION NO. 3056
RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION
DETERMINING THAT THE TAX INCREMENT WHICH MAY BE COLLECTED IN
THE YEAR 2013 IS NEEDED TO SATISFY OBLIGATONS OF THE COMMISSION
AND THAT NO EXCESS ASSESSED VALUE MAY BE ALLOCATED TO THE
RESPECTIVE TAXING UNITS AND OTHER RELATED MATTERS
WHEREAS, the South Bend Redevelopment Commission (the "Commission "), the
governing body of the South Bend, Indiana, Department of Redevelopment (the "Department ")
and of the Redevelopment District of the City of South Bend, Indiana (the "Redevelopment
District "), exists and operates under the provisions of IC 36 -7 -14, as amended from time to time
(the "Act "); and
WHEREAS, the Commission has previously adopted resolutions, which have been
amended from time to time, declaring the South Bend Central Development Area, the Northeast
Neighborhood Development Area, the South Side Development Area, the West Washington -
Chapin Development Area, the Airport Economic Development Area, and the Douglas Road
Economic Development Area to be economic development areas or redevelopment areas within
the meaning of the Act (the "Areas ") and designated territory within such Areas as allocation
areas (the "Allocation Areas ") under Section 39 of the Act which Allocation Areas are listed at
Exhibit A attached hereto; and
WHEREAS, the Commission, in accordance with the Act, has previously established an
allocation fund for each of the Allocation Areas (the "Allocation Funds "); and
WHEREAS, 50 IAC 8 contains rules adopted by the Indiana State Board of Tax
Commissioners concerning tax increment finance (the "Regulations "); and
WHEREAS, Section 39 of the Act and 50 IAC 8 -2 -4 require the Commission to
determine before July 15 of each year, whether the sum of the balance in the Allocation Funds
plus estimated future investment earnings on that balance is sufficient to satisfy obligations of
the Commission over the terms of those obligations, and whether the capture of less than all of
the Potential Captured Assessment (as defined in the Regulations) will result in a balance in the
Allocation Funds in the following year that, when combined with future investment earnings on
that balance and the resultant tax increment to be collected in the following year, will be
sufficient to satisfy the obligations of the Commission over the term of those obligations; and
WHEREAS, Section 39 of the Act requires the Commission to provide to the St. Joseph
County Auditor, the Common Council, and the fiscal officers for each taxing unit located wholly
or partly within the respective Allocation Areas before July 15 of each year written notice of the
following: (i) the amount, if any, of excess assessed value that the Commission has determined
may be allocated to the respective taxing units, or (ii) state that the Commission has determined
that there is no excess assessed value that may be allocated to the respective taxing units in the
manner prescribed in Section 39 of the Act;
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment
Commission as follows:
1. The Commission hereby determines that there is no excess assessed value that
may be allocated to the respective taxing units in the manner prescribed in Section 39 of the Act
because the Commission hereby finds that the sum of the balances in the respective Allocation
Funds, when combined with future investment earnings on such balances and the resultant tax
increment to be collected for tax year payable 2013, will be necessary to satisfy the obligations
of the Commission over the term or terms of those obligations, and that therefore the Potential
Captured Assessment for the respective Allocation Areas in 2013 shall be treated as Captured
Assessment (as defined in the Regulations). In making this determination, the Commission has
considered the effect that such determination will have on the property tax rate in the
Redevelopment District.
2. This determination for 2013 shall not be construed to affect any future
determination of the Commission with respect to the capture of Potential Captured Assessment
in the years following 2013.
3. The form of the letter, attached hereto as Exhibit B, is hereby approved by the
Commission and the President or Vice President of the Commission is hereby authorized and
directed to immediately notify or cause to be notified the St. Joseph County Auditor, the
Common Council and the officers who are authorized to fix budgets, tax rates, and tax levies
under Indiana Code 6- 1.1 -17 -5 for each of the other taxing units wholly or partly located within
the Allocation Areas of the determinations made herein by the Commission, through the use of
said letter in substantially the form presented at this meeting with such changes in form or
substance as the President or Vice President of the Commission shall approve, upon the
recommendation of legal counsel, such approval to be conclusively evidenced by the execution
of said letter.
ADOPTED AND APPROVED at a meeting of the South Bend Redevelopment
Commission held on the 12th day of July, 2012.
SOUTH BEND
REDEVELOPMENT COMMISSION
Marcia Jones, President
ATTEST:
Donald Alford, Secretary
EXHIBIT A
Allocation Areas
1) Central Development Area
2) Central Medical District
3) West Washington Development Area
4) Northeast Neighborhood Development Area Allocation Area #1
5) Northeast Neighborhood Development Area Allocation Area #2
6) Southside General Development Area
7) Southside Development Area #3 — Erskine Village
8) Airport Economic Development Area
9) Douglas Road Economic Development Area
EXHIBIT B
(Form of Letter)
Date
Mr. /Ms. [Name]
Taxing Unit
Address
Subject: Request Regarding Capture of Incremental Assessed Value for the City of South Bend
Dear Mr. /Ms. [Name]:
In accordance with the provisions of IC 36- 7- 14 -39, the Redevelopment Commission of the City
of South Bend, Indiana, has determined (by Resolution #3056, passed 7/12/12) that there is no
excess assessed value that may be allocated to the respective taxing units in the manner
prescribed in subdivision (1) of IC 36- 7- 14 -39.
The Allocation Areas of the City of South Bend are as follows:
1) Central Development Area
2) Central Medical District
3) West Washington Development Area
4) Northeast Neighborhood Development Area #1
5) Northeast Neighborhood Development Area #2
6) Southside General Development Area
7) Southside Development Area #3 — Erskine Village
8) Airport Economic Development Area
9) Douglas Road Economic Development Area
Very truly yours,
Marcia Jones
President
South Bend Redevelopment Commission