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HomeMy WebLinkAbout2023 TIF Report_Council_2024-04-08Department of Community Investment TIF Management Report April 8, 2024 CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Agenda •South Bend Redevelopment Commission Overview •Tax Increment Financing (TIF) Overview •South Bend TIF Districts •TIF Fund Balances •2023 Revenues & Expenditures •2023 Expenditure Breakdown •2019-2023 Assessed Values South Bend Redevelopment Commission Overview CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend Redevelopment Commission Commissioners: Created in 1956 pursuant to the Redevelopment of Cities and Towns Act of 1953, as amended (IC 36-7-14 et seq.) General duties include: •Investigate, survey, and study areas in the unit that need redevelopment. •Study and combat the factors causing an area to need redevelopment. •Select and acquire areas needing redevelopment or economic development areas. •Marcia Jones, President •Troy Warner, Vice President •Vivian Sallie, Secretary •Eli Wax •David Relos •Leslie Wesley, School Board Appointee (non-voting) Tax Increment Financing (TIF) Overview CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Tax Increment Financing (TIF) •TIF is a financing tool used to fund economic development and investment in infrastructure and other public improvements •Allows the “capture” of “incremental” or future increased tax dollars that are generated due to development in a “Tax Increment Financing Allocation Area” •Base Assessed Value: Assessed value of a parcel in the TIF District at the time the District was created or when the parcel was added to a TIF District •Incremental Assessed Value: Most recent assessed value minus the Base Assessed Value •Taxes on the Incremental Assessed Value are captured and can be dedicated to eligible projects in the Economic Development Area in which the TIF District lies CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Tax Increment Financing (TIF) CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT Tax Increment Financing (TIF) Example: The ACME company is in the River West Development Area. •In 1990, the assessed value was $8 million •In 2023, the total assessed value was $14 million •Incremental assessed value is $6 million Total taxes for 2023: $420,000 Taxes “captured” based on incremental assessed value is $180,000 South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts River West •7,416 parcels; Established 1990; Expires 2037 Douglas Road •10 parcels; Established 2005; Expires 2036 West Washington •1,153 parcels; Established 1987; Expires 2025 River East •2,965 parcels; Established 2003; Expires 2033 River East Residential •343 parcels; Established 2003; Expires 2037 South Side •1,615 parcels; Established 2002; Expires 2032 13,502 total parcels CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts Douglas Road Development Area South Bend TIF Districts Fund Balances CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts South Bend TIF Districts Revenues & Expenses CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts Expenses - All Districts Category Description Amount Capital Outlays Buildings Building Purchase & Improvements $ 3,908,437 Infrastructure Streets & Alleys 9,659,249 Sewers 23,746 Land Land Purchase & Improvements 8,538,030 Debt Service Payments on Bonds and Other Debt Principal Bond Principal 4,339,497 Bond Interest 669,492 Bond Agent Fees 2,100 Services & Charges Other Services and Charges Interfund Transfers 8,904,875 Professional Services Engineering & Architectural 1,371,476 Legal Services 254,784 Other Professional Services 75,941 Rentals Building Rental 225,000 $ 37,972,627 South Bend TIF Districts Assessed Values CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts CITY OF SOUTH BEND DEPARTMENT OF COMMUNITY INVESTMENT South Bend TIF Districts