HomeMy WebLinkAboutAnnual Spending Plan for 2025 0UTH a
South Bend
_. Redevelopment Commission
1865
� 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana
Filed in Clerk's Office
TO: Indiana Department of Local Government Finance NOV 2 7 2024
Mayor James Mueller
South Bend Common Council Bianca Tirado
City Clerk,South Bend, IN
FROM: Troy Warner, President, South Bend Redevelopment Commission
DATE: November 14, 2024
RE: Annual Spending Plan of the South Bend Redevelopment Commission for
Calendar Year 2025 (IC 36-7-14-12.7)
SPENDING PLAN FOR 2025
(Note: The following represent anticipated amounts.)
A. Overview
Under Indiana Code ("IC") 36-7-14-12.7, the South Bend Redevelopment Commission (the
"Redevelopment Commission" or the "Commission") is required to file an annual spending plan
for the upcoming calendar year with the Department of Local Government Finance, Office of the
Mayor, and the Common Council.
The report below describes planned expenditures by the Redevelopment Commission for
calendar year 2025. This spending plan is based on projected incremental revenues for all
development areas to be $42,029,227 and anticipated revenue for the Redevelopment General
Fund to be $1,530,000.
This spending plan has been prepared using information currently available to the
Redevelopment Commission and its staff. Unexpected opportunities or needs may arise in
2025, making it appropriate for the Redevelopment Commission to make expenditures not
anticipated by this spending plan. Such unanticipated expenditures could arise for several
reasons including, but not limited to, the necessity to complete unforeseen projects;
opportunities to modify debt payments; new unanticipated economic development or
redevelopment opportunities; and support from both public and private entities, including grants
or loans.
In the event amendments to this spending plan are needed, the Redevelopment Commission
will comply with the instructions set forth in the Memorandum issued by the Department of Local
Government Finance on August 28, 2024.
EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
1400S County-City Building 227 W.Jefferson Blvd. South Bend,Indiana 46601 p 574.235.9371 www.southbendin.gov
South Bend Redevelopment Commission
B. Debt Payments
Anticipated debt payments in 2025 are provided below.
T71521 -River West Development Area
• Lease Rental Revenue Bonds of 2023, Series A: $1,226,400
• Lease Rental Revenue Bonds of 2024, Series B: $1,505,740
• 200 - Lease Rental Revenue Bonds of 2019 (Double Tracking Project): $1,035,500
• 210 -Taxable Economic Development Tax Increment Revenue Bonds, Series 2020
(Community Ed. Center): $325,615
• South Bend Redevelopment Authority Lease Rental Revenue Refunding Bonds,
Series 2013: $283,500
• 013-2006 City of South Bend Main/Colfax Parking Garage Lease: $45,205
• 169- Redevelopment District Bonds, Series 2018: $990,775
• 135-2015 Redevelopment Authority Lease Rental Revenue Bonds: $1,713,500
T71522-River East Development Area
• Lease Rental Revenue Bonds of 2023, Series A: $817,600
T71523-River East Residential
• 2015 Eddy Street Commons Refunding Revenue Bonds: $2,470,000
• 163-2017 Taxable Economic Development Revenue Bonds, Series 2017 (Eddy
Street Commons Phase II): $1,955,125
As of the date of this report, the total anticipated debt payments in 2025 will be $12,368,960.
The anticipated debt payments described above include permissible reimbursements to the
City of South Bend pursuant to IC 36-7-14-39(b)(4)for debt payments.
The Redevelopment Commission would consider additional debt payments in 2025 as part
of its annual spending plan if the need for such additional expenditures materializes that
would further the goals of the Redevelopment Commission.
C. Payments to Eligible Entities for Educational and Training Programs (e.g., School
Corporation(s)) (pursuant to IC 36-7-25-7)
As of the date of this report, the Redevelopment Commission anticipates payments in 2025
to eligible entities for educational and training programs pursuant to IC 36-7-25-7 will be
$90,976.
The Redevelopment Commission would consider additional payments in 2025 to eligible
entities for educational and training programs (pursuant to IC 36-7-25-7) as part of its annual
spending plan if the need for such an expenditure materializes that would further the goals
of the Redevelopment Commission.
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South Bend Redevelopment Commission
D. Capital Expenditures Contemplated by the Economic Development Plan(s) or
Redevelopment Plan(s), as amended
Commission-controlled funds can be used as capital expenditure allocations in support of
economic development and/or redevelopment. These types of projects include (1)
transportation enhancement projects (e.g., curbs, gutters, shoulders, street paving, street
construction, bridge improvements, sidewalk improvements, pathway improvements, street
lighting, traffic signals, signage, parking lot improvements, site improvements, landscape
buffers, and demolition costs); (2) utility infrastructure projects such as utility relocation,
water lines, water wells, water towers, lift stations, wastewater lines, storm water lines,
retention ponds, ditches, and storm water basin improvements; (3) public park
improvements; (4) recreational improvements and equipment; and (5) projects to enhance
cultural attractiveness.
Capital expenditures can also include the use of funds for real property acquisition and
improvements, as well as for equipment and personal property acquisitions and installation.
Permissible incentives provided through a development agreement or real estate purchase
agreement that support a development or a redevelopment project are also considered
capital expenditures.
As of the date of this report, the Redevelopment Commission anticipates the following
capital expenditures in 2025:
• Real property acquisition and improvements: $19,684,463
• Infrastructure improvements including, but not limited to, transportation enhancement
projects, utility infrastructure projects, and public park improvements: $7,342,226
The Redevelopment Commission would consider additional capital expenditures in 2025 as
part of its annual spending plan if the need for such an expenditure materializes that would
further the goals of the Redevelopment Commission.
E. Expenditures from the Redevelopment General Fund (a.k.a. Pokagon Fund)
Expenditures by the Redevelopment Commission from the Redevelopment General Fund
are to be used in support of initiatives broadly aimed at contributing to the improvement of
educational opportunities in the City of South Bend and addressing poverty and
unemployment in the City.
As of the date of this report, the estimated sum of expenditures in 2025 from the
Redevelopment General Fund not discussed elsewhere in this report will be up to
$4,230,000.
The Redevelopment Commission would consider additional expenditures from the
Redevelopment General Fund in 2025 that contribute to the improvement of educational
opportunities in the City of South Bend or address poverty and unemployment in the City as
part of its annual spending plan if the need for such additional expenditures materializes that
would further the goals of the Redevelopment Commission.
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South Bend Redevelopment Commission
F. Grants and Contributions
1. Contributions to Local Economic Development Organizations and similar organizations
As of the date of this report, the Redevelopment Commission does not anticipate any
contributions in 2025 to Local Economic Development Organizations and similar
organizations. However, the Commission would consider making contributions to Local
Economic Development Organizations and similar organizations in 2025 as part of its
annual spending plan if the need for such a contribution materializes that would further
the goals of the Redevelopment Commission.
2. Contributions to local non-profit organizations
The Redevelopment Commission has in the past supported local non-profit
organizations whose missions, services, and commitments to the community would
further the goals of the Commission. The support of the Commission to these
organizations can be provided through mechanisms such as donation agreements or
contracted services, among other ways.
As of the date of this report, total estimated contributions to local non-profit organizations
in 2025 will be $133,479.
The Redevelopment Commission would consider providing additional contributions to
local non-profit organizations in 2025 as part of its annual spending plan if the need for
such an expenditure materializes that would further the goals of the Redevelopment
Commission.
3. Grants or loans to enable eligible low-income individuals and families to purchase or
lease residential units in a multiple unit residential structure (pursuant to IC 36-7-14-
12.2(a)(24))
As of the date of this report, the Redevelopment Commission does not anticipate any
expenditure in 2025 in the form of a grant or loan to enable eligible low-income
individuals and families to purchase or lease residential units in a multiple unit residential
structure. However, the Commission would consider providing grants or loans in 2025 to
enable eligible low-income individuals and families to purchase or lease residential units
in a multiple unit residential structure as part of its annual spending plan if the need for
such an expenditure materializes that would further the goals of the Redevelopment
Commission.
4. Grants or loans to provide financial assistance to neighborhood development
corporations (pursuant to IC 36-7-14-12.2(a)(25)) to permit them to: (A)provide financial
assistance for the purposes described in paragraph F.3 above; or(B) construct,
rehabilitate, or repair commercial property
As of the date of this report, the Redevelopment Commission does not anticipate
supporting neighborhood development corporations through expenditures that will permit
them to provide financial assistance for the purposes described in paragraph F.3 above
or construct, rehabilitate, or repair commercial property. However, the Commission
would consider providing grants or loans in 2025 to provide financial assistance to
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South Bend Redevelopment Commission
neighborhood development corporations (pursuant to IC 36-7-14-12.2(a)(25)) as part of
its annual spending plan if the need for such an expenditure materializes that would
further the goals of the Redevelopment Commission.
5. Other legally permitted grants or loans
As of the date of this report, the Redevelopment Commission does not anticipate
expenditures in 2025 for any legally permitted grants or loans that have not been
addressed elsewhere in this report.
The Redevelopment Commission would consider providing other legally permitted grants
or loans in 2025 as part of its annual spending plan if the need for such an expenditure
materializes that would further the goals of the Redevelopment Commission.
G. Professional Expenses (e.g., legal, accounting, project supervision expenses, and other)
The Redevelopment Commission provides support for redevelopment projects,
infrastructure projects, and other initiatives through expenditures for professional services
including, but not limited to, legal services, engineering and design services, studies, and
more.
As of the date of this report, the Redevelopment Commission anticipates expenditures for
professional expenses in 2025 will be $2,409,123.
The Redevelopment Commission would consider additional expenditures for permitted
professional expenses in 2025 as part of its annual spending plan if the need for such an
expenditure materializes that would further the goals of the Redevelopment Commission.
H. Expenditures Related to Capital and Operating Expenses for Police or Fire Services
(including such things as salaries and benefits, and acquisition of public safety vehicles and
equipment)
As of the date of this report, the Redevelopment Commission does not anticipate
expenditures in 2025 for expenditures related to capital and operating expenses for police or
fire services. However, the Commission would consider expenditures related to capital and
operating expenses for police or fire services as part of its annual spending plan if the need
for such an expenditure materializes that would further the goals of the Redevelopment
Commission.
I. Expenditures from Proceeds of Bonds (Including Expenditures for Residential
Housing Development Programs), Lease Financings, or Tax Anticipation Warrants
As of the date of this report, the Redevelopment Commission does not anticipate
expenditures in 2025 from proceeds of bonds (including expenditures for residential housing
development programs), lease financings, or tax anticipation warrants that are not discussed
elsewhere in this report.
The Redevelopment Commission would consider expenditures from proceeds of bonds
(including expenditures for residential housing development programs), lease financings, or
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South Bend Redevelopment Commission
tax anticipation warrants as part of its annual spending plan if the need for such an
expenditure materializes that would further the goals of the Redevelopment Commission.
J. Other Anticipated Expenditures
As of the date of this report, the Redevelopment Commission does not anticipate other
expenditures in 2025 that are not discussed elsewhere in this report.
TOTAL OF (B)-(J): $46,259,227
K. Expenditures from State or Federal Grants or Loans, Foundation Grants or Loans, or
Funds Provided to Redevelopment Commission by Other Political Subdivisions
Expenditures from state or federal grants or loans, foundation grants or loans, or funds
provided to the Redevelopment Commission by other political subdivisions have been
included in the estimated expenditure amounts already discussed in this report. This
includes grants the City has received in support of projects, including the following:
• Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant: The
City was awarded this $2,400,000 grant from the U.S. Department of Transportation
in August 2022. The available funding will reimburse the City for expenses incurred
to study needed transportation improvements in the street network around the South
Bend Farmers Market, commonly referred to as the Market District. The City's match
for the grant is $600,000.
• Outdoor Recreation Legacy Partnership Grant: In April 2024, the City was awarded a
$7,500,000 grant from the National Parks Service for the Kennedy Park
Rehabilitation Project, which includes a new outdoor aquatic facility, picnic pavilions,
walking paths, educational naturalized landscaping, playground, athletic fields/courts,
and improved access for the surrounding neighborhood. The City's match for the
grant is $7,500,000.
• Regional Economic Acceleration and Development Initiative (READI) Grant: The
historic redevelopment project in downtown South Bend—the Madison Lifestyle
District—was awarded $11,780,000 in READI funds in October 2022 by the Indiana
Economic Development Corporation. The funds awarded to the developer will
reimburse the City for expenditures associated with the project. The City's
commitment after reimbursement will be $12,220,000.
The City has and will occasionally apply for grants and other sources of funding that would
complement support for projects provided by the Redevelopment Commission. The
Commission may incur additional unforeseen expenditures in 2025 if the City is awarded
financial support for projects that otherwise may not have been included in the discussions
throughout this spending plan. In the event the Commission incurs unplanned spending in
2025, this spending plan will be amended accordingly.
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