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HomeMy WebLinkAbout5D2 Resolution No. 3624 (Confirming TIF Expansion SSDA) - SignedSouth Bend Redevelopment Commission 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana Redevelopment Commission Agenda Item DATE : December 9, 2024 FROM: Tim Corcoran, Chris Dressel SUBJECT: Amendment of South Side Development Area - Resolution No. 3624 Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res. * Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the authorization of the expenditure of such funds shall be void and of no effect. PURPOSE OF REQUEST: Confirming Resolution to amend the South Side Development Area (SSDA) SPECIFICS: This Confirming Resolution finalizes the process of amending the Development Plan and boundary for the SSDA. By amending this plan to realign the boundary with an updated legal description and add properties to the acquisition list: all reflected in the updated development area plan, the Commission will be able to strategically focus its resources on current priorities. The proposed amendment to the Plan is consistent with the inter-related goals of: Fiscal stewardship; Economic development; and a Plan-driven redevelopment agenda. By amending the plan and realigning its boundaries, the Commission will be able to strategically focus its resources on current priorities. •On October 24, 2024, the Commission approved Declaratory Resolution No. 3613 beginning the process of amending the SSDA. •On November 18, 2024, the South Bend Plan Commission approved Resolution No. 2024-3, issuing a Written Order which approved, ratified, and confirmed the Commission’s Declaratory Resolution and found it conforms to the plan of development for the City. •On November 25, 2024, the Common Council approved Resolution No. 24-41, which approved, ratified, and confirmed the Area Plan Commission’s Written Order. Staff requests approval of Resolution No. 3624 to conclude the process of amending the Plans for the SSDA. _________________________Pres/V-Pres ATTEST: __________________Secretary Date: ____________________ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION 12-12-2024  RESOLUTION NO. 3624 RESOLUTION OF THE CITY OF SOUTH BEND REDEVELOPMENT COMMISSION CONFIRMING A DECLARATORY RESOLUTION AND MODIFYING AND APPROVING AN AMENDED AND RESTATED DEVELOPMENT PLAN FOR THE SOUTH SIDE DEVELOPMENT AREA WHEREAS, the South Bend Redevelopment Commission (the “Commission”), governing body of the City of South Bend (the “City”) Department of Redevelopment (the “Department”) and the Redevelopment District of the City of South Bend, Indiana (the “Redevelopment District”), exists and operates under the provisions of the Redevelopment of Cities and Towns Act of 1953 which has been codified in Indiana Code 36-7-14, as amended from time to time (the “Act”); and WHEREAS, the Commission previously adopted and confirmed a declaratory resolution in 2014 (i) designating and declaring a certain area within the City to be a redevelopment area and an allocation area for purposes of tax increment financing to expand the South Side Development Area (the “Existing Area”) to include the former Scottsdale Community Center in the Existing Area; (ii) adding the Scottsdale Community Center to the property acquisition list for the Existing Area; and (iii) approving an amendment to the development plan for the Existing Area; and WHEREAS, in 2019, the Commission, adopted and confirmed a declaratory resolution (i) transferring territory from the South Side Development Area to the Existing Area; (ii) amending the boundaries of the Existing Area to add certain territory (the “First Expansion Area”); and (iii) approving an amendment to the development plan for the Existing Area; and WHEREAS, the Commission on October 24, 2024, approved and adopted its Resolution No. 3613 entitled “Resolution of the South Bend Redevelopment Commission Amending the Boundaries of the South Side Development Area and the South Side Development Area Allocation Area No. 1, Amending and Restating the Development Plan for Said Area and Regarding Related Matters” (the “South Side Declaratory Resolution”), a copy of which is attached hereto as Exhibit A; and WHEREAS, the South Side Declaratory Resolution (i) designated and declared certain areas within the City to be redevelopment areas and an allocation area for purpose of tax increment financing to expand the First Expansion area (collectively, the Second Expansion Area”) and with the First Expansion Area, the “South Side Area”); (ii) added certain parcels of property to the South Side Area property acquisition list; and (iii) approved a second amended and restated development plan for the South Side Area (the “South Side Plan”); and WHEREAS, the City of South Bend Plan Commission, on November 18, 2024, approved and adopted an Order (the “Plan Commission Order”) determining that the South Side Declaratory Resolution and the South Side Plan conform to the plan of development for the City and approved the South Side Declaratory Resolution and the South Side Plan; and 2 WHEREAS, pursuant to Section 16 of the Act, the Common Council of the City (the “Common Council”), on November 25, 2024, adopted a resolution which approved the South Side Declaratory Resolution, the South Side Plan and the Plan Commission Order; and WHEREAS, the Commission caused to be published and delivered the notices required by Section 17 and 17.5 of the Act, concerning the South Side Declaratory Resolution and the South Side Plan; and WHEREAS, at the hearing (the “Public Hearing”) held by the Commission on December 12, 2024 the Commission heard all persons interested in the proceedings and received _________ written remonstrances that had filed and considered those written remonstrances that were filed, if any, and all evidence presented; and WHEREAS, subsequent to the adoption of the South Side Declaratory Resolution and prior to the approval of the Common Council, minor modifications to the language of the South Side Plan were made which modifications did not substantively change the activities described therein; and WHEREAS, the Commission now desires to take final action determining the public utility and benefit of the South Side Plan and the proposed development activities for the South Side Area, modifying and approving the South Side Plan, and confirming the South Side Declaratory Resolution, in accordance with Section 17 of the Act; NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission, as follows: 1.After considering the evidence presented at the Public Hearing, the Commission hereby confirms the findings and determinations, designations and approving and adopting actions contained in the South Side Declaratory Resolution. 2.After considering the evidence presented at the Public Hearing, the Commission hereby finds and determines that it will be of public utility and benefit to proceed with the proposed activities set forth in the South Side Plan, and the South Side Plan, as modified as described above, is hereby approved in all respects. 3.The Commission hereby specifically finds and determines, based on its review of the South Side Area and its reasonable expectations relating to expected growth of assessed value in the South Side Area, that the adoption of the allocation provision with respect to the Expansion Area will result in new property taxes in the South Side Area that would not have been generated but for the adoption of the allocation provision. 4.The South Side Declaratory Resolution is hereby confirmed. 5.This Resolution constitutes final action, pursuant to Section 17(d) of the Act, by the Commission determining the public utility and benefit of the South Side Plan and the proposed activities and confirming the South Side Declaratory Resolution pertaining to the South Side Area. 6.The Clerk of the Commission is directed to record and file the final action taken by the Commission pursuant to the requirements of Sections 17(d) of the Act. 3 ADOPTED AND APPROVED at a meeting of the South Bend Redevelopment Commission held on the 12th day of December 2024. SOUTH BEND REDEVELOPMENT COMMISSION David Relos, Vice President ATTEST: Vivian G. Sallie, Secretary 4 EXHIBIT A SOUTH SIDE DECLARATORY RESOLUTION (See attached) DMS 14573430v1 NOTICE OF PUBLIC HEARING ON DESIGNATING AND AMENDING THE BOUNDARIES OF THE SOUTH SIDE DEVELOPMENT AREA AND THE SOUTH SIDE DEVELOPMENT AREA ALLOCATION AREA NO. 1 AND AMENDING AND RESTATING THE SOUTH SIDE DEVELOPMENT PLAN Notice is hereby given that the South Bend Redevelopment Commission (the "Commission") approved and adopted a declaratory resolution (the “Resolution”) on October 24, 2024, which Resolution (i) designates and declares certain areas within the City to be redevelopment areas and an allocation area for purposes of tax increment financing to expand the existing South Side Development Area (the “South Side Area”); (ii) adds certain parcels of property to the South Side Area property acquisition list; and (iii) approves an amended and restated development plan for the South Side Area (the “South Side Plan”). Notice is further given that the Commission will conduct a public hearing on Thursday, December 12, 2024, at 9:30 a.m. (local time), 227 West Jefferson Boulevard, Room 1308, South Bend, Indiana, at which time the Commission will hear all persons interested in the proceedings and consider the objections of any person who has filed a written remonstrance to the proposed amendments within the filing period and will consider taking final action on the Resolution. This public hearing will also be live streamed at the following link: https://tinyurl.com/RDC-Meeting-2T Written remonstrances to the Resolution and the actions provided for therein must be filed with the Commission at the County-City Building, Room 1400 S, 227 West Jefferson Boulevard, South Bend, Indiana 46601 by 9:00 a.m. (local time) on Wednesday, December 11, 2024. Notice is further given that maps and plats of the South Side Area showing the amendments have been prepared and can be inspected along with the Resolution and the South Side Plan at the office of the Commission at the County-City Building, Room 1400 S, 227 West Jefferson Boulevard, South Bend, Indiana 46601. Troy Warner, President City of South Bend Redevelopment Commission To be published in the South Bend Tribune on November 29, 2024. DMS 14419978v1 SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION STATEMENT DISCLOSING THE IMPACT OF AMENDING THE SOUTHSIDE DEVELOPMENT AREA AND SOUTHSIDE ALLOCATION AREA 1 The City of South Bend (the “City”) Redevelopment Commission (the “Commission”) is required by Indiana Code 36-7-14, as amended (the “Act”), to provide a statement disclosing the impact of amending a tax allocation provision on the overlapping taxing units. This impact statement discloses and explains the impact on the overlapping taxing units caused by amending the development area and allocation area and capturing Tax Increment (as hereinafter defined). AMENDMENT OF THE AREA, ALLOCATION AREA, AND THE PLAN The Commission adopted Declaratory Resolution No. 1914 on November 1, 2002 (as amended, the “Declaratory Resolution”) establishing the Southside Development Area (the “Original Area”) and a coterminous allocation area (“Original Allocation Area”) and approving an economic development plan for the Original Area (the “Original Plan”). On August 28, 2014, the Commission adopted Resolution No. 3227 amending the Declaratory Resolution to expand the Original Area (as amended, the “Existing Area”) and the Original Allocation Area (as amended, the “Existing Allocation Area”) and to amend the Original Plan (as amended, the “Existing Plan”). The Existing Area is located within the southern portion of the City's corporate limits, specifically, South Bend - Centre Township and South Bend - Portage Township. On June 13, 2019, the Commission adopted Resolution No. 3480 further amending the Original Declaratory Resolution (the “Amending Resolution”) to (1) transfer territory from the River West Development Area to the Existing Area (the “Transferred Area”), (2) designate the Transferred Area as a part of the Existing Allocation Area (collectively, the “Allocation Area”), (3) add certain territory to the Existing Area (the “Expansion Area” and with the Existing Area and the Transferred Area, the “Area”), (4) designate the Expansion Area as an allocation area (the “Expansion Allocation Area”), and (5) amend and restate the Existing Plan (the Existing Plan as amended and restated, the “Amended and Restated Plan”). The Allocation Area and Expansion Allocation Area are referred to collectively as the “Southside Allocation Area”. On October 10, 2024, the Commission adopted Resolution No. 3608 to further amend the Declaratory Resolution (the “2024 Amending Resolution”) to (1) add certain territory to the Area (the “Expansion Areas” and with the Area, the “Amended Area”), (2) designate the Expansion Areas as an allocation area (the “Expansion Allocation Area” and with the Southside Allocation Area, the “Amended Southside Allocation Area”), and (3) amend and restate the Plan (the “Amended and Restated Plan”). The Expansion Areas are located within the South Bend – Portage Township taxing district. The Declaratory Resolution, as amended, allows for the capture of Tax Increment (defined herein) resulting from the growth in all non-residential real property assessed value within the Southside Allocation Area in excess of the base assessed value defined in the Act. In the 2024 Amending Resolution, the Commission finds that the Expansion Areas need redevelopment to an extent that cannot be corrected by regulatory processes or by the ordinary operations of private enterprise without resort to the powers allowed under the Act, and that the public health and welfare will be benefitted by the redevelopment of the Expansion Areas. The Commission also finds that the Amended and Restated Plan conforms to other development and redevelopment plans of the City. The 2024 Amending Resolution allows for the capture of real property taxes generated from incremental assessed value in the Expansion Allocation Area. Tax Increment consists of all property tax proceeds from the assessed valuation of non-single-family residential real property in the Expansion Allocation Area as of the assessment date in excess of the base assessed valuation described in Section 39(b)(1) of the Act, multiplied by the current property tax rate, excluding any rate established by a post-2009 referendum and, any post December 31, 2022 Fire Territory rate established (referred to throughout as “Tax Increment”). The base assessed value means the net assessed value of all the property in an allocation area as finally determined for the assessment date immediately preceding the effective date of a declaratory resolution establishing the allocation area pursuant to Section 39 of the Act. The Expansion Allocation Area will have a base assessment date of January 1, 2024 and the base assessment dates of the Southside Allocation Area is unchanged. The Expansion Allocation Area will expire no later than 25 years after the date on which the first obligation is incurred to pay principal and interest on SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION STATEMENT DISCLOSING THE IMPACT OF AMENDING THE SOUTHSIDE DEVELOPMENT AREA AND SOUTHSIDE ALLOCATION AREA 2 AMENDMENT OF THE AREA, ALLOCATION AREA, AND THE PLAN (Cont’d) bonds or lease rentals on leases payable from Tax Increment, or as otherwise required by law. The expiration dates of the other components of the Amended Allocation Area will be unchanged. PROJECT SUMMARY In order to accomplish the Amended and Restated Plan, the Commission plans to undertake certain public infrastructure projects listed in the Amended and Restated Plan that are in, serving or benefiting the Amended Area (the “Projects”). The Commission intends to utilize the Tax Increment generated by Future Development (defined herein), along with Tax Increment currently being generated within the Southside Allocation Area to fund the Projects in order to facilitate future development within the Expansion Allocation Area that would not occur without the use of Tax Increment to fund the Projects (the “Future Development). The Commission may issue bonds or enter into leases payable from Tax Increment to fund the Projects. ESTIMATED TAX INCREMENT The Commission currently captures the Tax Increment in the Southside Allocation Area, which is located within three taxing districts: South Bend – Portage Township, South Bend – Centre Township, and South Bend – Penn Township. Per the St. Joseph County Auditor’s office, the total existing incremental assessed value in the Southside Allocation Area is $100,027,891. The incremental assessed value for the South Bend – Portage Township and South Bend – Centre Township are each multiplied by their respective certified 2024 tax rates, less the combined South Bend Community School Corporation (the "School Corporation") referendum rates of $0.3840. The incremental assessed value for the South Bend – Penn Township is multiplied by the respective certified 2024 tax rate. After multiplying by the respective net tax rates and after the application of the Circuit Breaker Tax Credit, the estimated annual real property net Tax Increment generated in the Allocation Area is $3,494,120. The Expansion Allocation Area is located within the South Bend – Portage Township taxing district. The Commission intends to capture the real property Tax Increment from Future Development in the Expansion Allocation Area. For the purposes of this analysis, the estimated Tax Increment from the Future Development is based on an illustrative incremental real property assessed value of $10,000,000 in the South Bend - Portage Township taxing district. Holding all else constant, the increase in the assessed value of the overlapping taxing units due to the Future Development results in an estimated tax rate decrease in the School Corporation's Debt Referendum tax rate of $0.0001. The estimated incremental assessed value is multiplied by their respective tax rates, net of the School Corporation's post-2009 referendum rates of $4.9708 for South Bend - Portage Township. The estimated annual real property Tax Increment generated in South Bend - Portage Township is $361,480, after the application of the Circuit Breaker Tax Credit and accounting for the impact of LIT PTRC. The actual assessed value of the Future Development will be determined by the St. Joseph County Assessor upon completion and the actual assessed value may be materially different from the values used in this analysis. No adjustment for future statewide reassessments or trending was made in this analysis. Future tax rates and assessed values may differ from the tax rates and assessed values used in this analysis, and the differences could have a material impact on the actual Tax Increment but should not change the impact of the Expansion Allocation Area on the overlapping taxing units. See the sections below for additional information about the recent legislative changes as they relate to property tax changes. The calculation of Tax Increment may not include a tax rate that is imposed as a result of a referendum passed after 2009, nor may it include a tax rate associated with a fire territory if the fire territory is established after December 31, 2022. Currently, a post-2009 referendum tax rate is in place in the South Bend - Portage Township and the South Bend – Centre Township taxing districts. Assuming no change in law, any future referendum- approved tax rates will not be included in the calculation of Tax Increment in the Expansion Allocation Area. The incremental assessed value that will result from the Future Development or any additional development will be included in the tax base of the applicable taxing unit for the purposes of calculating the property tax levy associated with a referendum-approved tax rate. SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION STATEMENT DISCLOSING THE IMPACT OF AMENDING THE SOUTHSIDE DEVELOPMENT AREA AND SOUTHSIDE ALLOCATION AREA 3 ESTIMATED TAX INCREMENT (Cont’d) Circuit Breaker Tax Credits (Property Tax Caps) Article 10, Section 1 of the Constitution of the State of Indiana (the “Constitutional Provision”) provides that, for property taxes first due and payable in 2012 and thereafter, the Indiana General Assembly shall, by law, limit a taxpayer’s property tax liability to a specified percentage of the gross assessed value of the taxpayer’s real and personal property. Indiana Code 6-1.1-20.6 (the “Statute”) authorizes such limits in the form of a tax credit for all property taxes in an amount that exceeds the gross assessed value of real and personal property eligible for the credit (the “Circuit Breaker Tax Credit”). For property assessed as a homestead (as defined in Indiana Code 6-1.1-12-37), the Circuit Breaker Tax Credit is equal to the amount by which the property taxes attributable to the homestead exceed 1% of the gross assessed value of the homestead. Property taxes attributable to the gross assessed value of other residential property, agricultural property, and long-term care facilities are limited to 2% of the gross assessed value, property taxes attributable to other non-residential real property and personal property are limited to 3% of the gross assessed value. The Statute provides additional property tax limits for property taxes paid by certain senior citizens. If applicable, the Circuit Breaker Tax Credit will result in a reduction of property tax collections for each political subdivision in which the Circuit Breaker Tax Credit is applied. Political subdivisions may not increase their property tax levy or borrow money to make up for any property tax revenue shortfall due to the application of the Circuit Breaker Tax Credit. The Constitutional Provision excludes from the application of the Circuit Breaker Tax Credit property taxes first due and payable in 2012, and thereafter, that are imposed after being approved by the voters in a referendum. The Statute codifies this exception, providing that, with respect to property taxes first due and payable in 2012 and thereafter, property taxes imposed after being approved by the voters in a referendum will not be considered for purposes of calculating the limits to property tax liability under the provisions of the Statute. In this analysis, the Circuit Breaker Tax Credit is estimated to reduce the total Tax Increment for the Southside Allocation Area, due to the fact that the estimated Tax Increment, based on certified pay 2024 tax rate for the South Bend - Portage Township, South Bend – Centre Township, and South Bend – Penn Township taxing districts, is above the maximum threshold of 3% for commercial properties. There can be no assurance that the levies and tax rates of the South Bend - Portage Township, South Bend – Centre Township, and the South Bend - Penn Township and the overlapping taxing units will not increase in some future year to the point of causing the Circuit Breaker Tax Credit to be further applied to taxpayers’ tax bills. ESTIMATED IMPACT OF AMENDING THE AREA, THE SOUTHSIDE ALLOCATION AREA, AND THE PLAN The schedules entitled “Estimated Impact of Amending the Area and Southside Allocation Area on the Overlapping Taxing Units” provide an estimate of the effects of amending the Area, Southside Allocation Area, and the Plan on the tax rates and tax levies of the overlapping taxing units (holding all other factors constant). Scenario I: Present Situation (Prior to Amending the Area, the Southside Allocation Area, and the Plan) Scenario I represents the current situation prior to amending the Area, the Southside Allocation Area, and the Plan. Scenario I presents the payable 2024 assessed values, property tax levies, and tax rates for the overlapping taxing units. The incremental assessed value of the South Bend – Portage Township taxing district portion of the Southside Allocation Area is $22,480,371 is multiplied by the certified 2024 tax rate for the South Bend – Portage Township taxing district, less the combined South Bend Community School Corporation referendum rates of $0.3840, for a net tax rate of $4.9708 (the “Net South Bend – Portage Township Tax Rate”) (per $100 of assessed value), to generate an estimated annual real property Tax Increment of $686,340, after the application of the Circuit Breaker Tax Credits. The incremental assessed value of the South Bend – Centre Township taxing district portion of the Allocation Area is $77,268,418, multiplied by the certified 2024 tax rate for the South Bend – Centre Township taxing district, less the combined South Bend Community School Corporation Referendum Rates of $0.3840, for a net tax rate of $4.9387 (the “Net South Bend – Centre Township Tax Rate”) (per $100 of SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION STATEMENT DISCLOSING THE IMPACT OF AMENDING THE SOUTHSIDE DEVELOPMENT AREA AND SOUTHSIDE ALLOCATION AREA 4 ESTIMATED IMPACT OF AMENDING THE AREA, THE SOUTHSIDE ALLOCATION AREA, AND THE PLAN Scenario I: Present Situation (Prior to Amending the Area, the Southside Allocation Area, and the Plan) (Cont’d) assessed value), to generate an estimated annual real property Tax Increment of $2,797,740, after the application of the Circuit Breaker Tax Credits. The incremental assessed value of the South Bend – Penn Township taxing district portion of the Allocation Area is $279,102, multiplied by the certified 2024 tax rate for the South Bend – Penn Township taxing district of $4.8493 (the “Total South Bend – Penn Township Tax Rate”) (per $100 of assessed value), to generate an estimated annual real property Tax Increment of $10,040, after the application of the Circuit Breaker Tax Credits. Scenario II: Assumes the Area, Southside Allocation Area, and the Plan are Amended Scenario II depicts the impact on the overlapping taxing units (holding all other factors constant) if the Area, Southside Allocation Area, and Plan are amended, and assumes that the incremental assessed value from the Future Development is captured, and the net assessed value of the Future Development is added to the assessed value of the overlapping taxing units. The Commission intends to capture an illustrative $10,000,000 of incremental assessed value from the Future Development in the Expansion Allocation Area located within the South Bend – Portage Township taxing district. Multiplied by the Net South Bend – Portage Township Tax Rate, net of the application of the Circuit Breaker Tax Credit, and LIT PTRC, the incremental assessed value is estimated to generate $361,480 of annual net Tax Increment in the South Bend – Portage Township taxing district. Scenario II also depicts the impact on the School Corporation’s Referendum tax rates, which may not be included in the Tax Increment calculation. It is estimated that the Future Development would reduce the School Corporation’s Debt Referendum tax rate by $0.0001 and increases the School Corporation's Operating Referendum levy by $33,340. This Scenario does not show any other impacts on the taxing units within the South Bend - Portage Township taxing district as a result of the Expansion Allocation Area. Scenario III: Assumes the Area, Southside Allocation Area, and the Plan are NOT Amended Scenario III represents the impact on the overlapping taxing units if the Area, Southside Allocation Area, and the Plan are not amended, assumes the Expansion Areas and Expansion Allocation Area are not established, and therefore, assumes the Future Development does not occur as a result of the Projects not being funded. Impact Summary In the 2024 Amending Resolution, the Commission finds that the amendment of the Area and Southside Allocation Area will result in new property taxes that would not have been generated without this new allocation provision. The Commission cannot finance the Projects without the Tax Increment from the Future Development. Therefore, the Commission has determined that the capture of increase in assessed value from the Future Development will not have a negative impact on anticipated revenues or the tax rates of the taxing units that are wholly or partially located in the Expansion Allocation Area. Without the Tax Increment, the Projects would not be funded, and therefore, the Future Development would not occur, the property would remain undeveloped, and the tax base would remain unchanged. During the period of the Tax Increment capture, the tax base of the overlapping taxing units would materially remain the same (holding other factors constant). After the expiration of the Expansion Allocation Area, the additional assessed value will increase the property tax base of all the overlapping taxing units. Please note that for purposes of estimating the impact of Tax Increment financing, certain factors were held constant in this analysis. No other growth in real property assessed value was assumed to take place anywhere in the City or within the Amended Southside Allocation Area. No increases in the budgets of the overlapping taxing units were assumed for purposes of this analysis. Potential impacts from future statewide reassessments or trending were not included in this analysis. SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION STATEMENT DISCLOSING THE IMPACT OF AMENDING THE SOUTHSIDE DEVELOPMENT AREA AND SOUTHSIDE ALLOCATION AREA 5 NON-PROPERTY TAX IMPACTS Additional local income taxes could be generated from any new jobs associated with the Future Development and possible redevelopment of the Expansion Areas, assuming the new employees will be new residents of St. Joseph County or from incremental growth in wages and income of current and new employees. Increases in employees and wages, would, in turn, increase local spending and commercial activity. Additional revenue sources, which would potentially increase as a result of new business enterprises which locate in the Amended Area include food and beverage revenues, motor vehicle highway funds, local road and street funds, and excise taxes. SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION ESTIMATED IMPACT OF AMENDING THE AREA AND SOUTHSIDE ALLOCATION AREA ON OVERLAPPING TAXING UNITS - PORTAGE TOWNSHIP TAXING DISTRICT (1) Net Assessed Estimated South Bend - Portage Township Tax Value of Property Taxing Unit Rate Taxing Unit Tax Levy SCENARIO I:PRESENT SITUATION Represents 2023 taxes payable 2024 property tax levies, assessed valuation, and tax rates. St. Joseph County $0.5593 $12,462,483,560 $69,702,670 St. Joseph County Major Bridge (2)0.0333 12,462,483,560 4,150,007 St. Joseph County Cumulative Capital Development (2)0.0333 12,462,483,560 4,150,007 Portage Township 0.0440 2,619,977,095 1,152,790 South Bend Civil City 2.9583 3,645,470,284 107,843,947 South Bend Civil City Cumulative Capital Development (2)0.0282 3,645,470,284 1,028,023 South Bend Community School Corporation 0.8982 6,706,293,024 60,235,924 South Bend Comm. School Corp. Exempt Debt Service - Operating Ref. Rate (2)0.3334 8,398,074,650 27,999,181 South Bend Comm. School Corp. Exempt Debt Service - Debt Ref. Rate 0.0506 8,398,074,650 4,249,426 St. Joseph County Public Library 0.2725 7,176,427,526 19,555,765 St. Joseph County Airport Authority 0.0271 12,462,483,560 3,377,333 St. Joseph County Airport Authority Cumulative Building Fund (2)0.0130 12,462,483,560 1,620,123 South Bend Public Transportation Corporation 0.1036 5,491,024,935 5,688,702 St. Joseph County Solid Waste Management 0.0000 12,462,483,560 0 Total Tax Rate (per $100 AV)$5.3548 Less: South Bend Community School Corporation Referendum Rates (3)(0.3840) Net Tax Rate (per $100 AV)$4.9708 Tax Incremental Estimated Circuit Net TIF Allocation Fund Rate Assessed Value Tax Increment Breaker Tax Increment Southside Allocation Area (4)$4.9708 $22,480,371 $1,117,450 ($431,110)$686,340 SCENARIO II:ASSUMES THE AREA, SOUTHSIDE ALLOCATION AREA, AND THE PLAN ARE AMENDED Rate Levy Represents the estimated tax impact of amending and expanding the Area and Southside Allocation Area.Difference Difference Assumes the incremental assessed value from the Future Development is captured.From Scenario I From Scenario I St. Joseph County $0.5593 $12,462,483,560 $69,702,670 $0.0000 $0 St. Joseph County Major Bridge (2)0.0333 12,462,483,560 4,150,007 0.0000 0 St. Joseph County Cumulative Capital Development (2)0.0333 12,462,483,560 4,150,007 0.0000 0 Portage Township 0.0440 2,619,977,095 1,152,790 0.0000 0 South Bend Civil City 2.9583 3,645,470,284 107,843,947 0.0000 0 South Bend Civil City Cumulative Capital Development (2)0.0282 3,645,470,284 1,028,023 0.0000 0 South Bend Community School Corporation 0.8982 6,706,293,024 60,235,924 0.0000 0 South Bend Comm. School Corp. Exempt Debt Service - Operating Ref. Rate (2)0.3334 8,408,074,650 28,032,521 0.0000 33,340 South Bend Comm. School Corp. Exempt Debt Service - Debt Ref. Rate 0.0505 8,408,074,650 4,249,426 (0.0001)0 St. Joseph County Public Library 0.2725 7,176,427,526 19,555,765 0.0000 0 St. Joseph County Airport Authority 0.0271 12,462,483,560 3,377,333 0.0000 0 St. Joseph County Airport Authority Cumulative Building Fund (2)0.0130 12,462,483,560 1,620,123 0.0000 0 South Bend Public Transportation Corporation 0.1036 5,491,024,935 5,688,702 0.0000 0 St. Joseph County Solid Waste Management 0.0000 12,462,483,560 0 0.0000 0 Total Tax Rate (per $100 AV)$5.3547 ($0.0001)$33,340 Less: South Bend Community School Corporation Referendum Rates (3)(0.3839) Net Tax Rate (per $100 AV)$4.9708 Tax Incremental Estimated Circuit Net TIF Allocation Fund Rate Assessed Value Tax Increment Breaker Tax Increment Southside Allocation Area (4)$4.9708 $22,480,371 $1,117,450 ($431,110)$686,340 Expansion Allocation Area - Future Development 4.9708 10,000,000 497,080 (135,600)361,480 SCENARIO III:ASSUMES THE AREA, SOUTHSIDE ALLOCATION AREA, AND THE PLAN ARE NOT AMENDED Rate Levy Assumes the Area and Southside Allocation Area are not amended and therefore, the Expansion Areas and Expansion Difference Difference Allocation Area are not established. Assumes the Projects cannot be funded and the Future Development does not occur. From Scenario I From Scenario I St. Joseph County $0.5593 $12,462,483,560 $69,702,670 $0.0000 $0 St. Joseph County Major Bridge (2)0.0333 12,462,483,560 4,150,007 0.0000 0 St. Joseph County Cumulative Capital Development (2)0.0333 12,462,483,560 4,150,007 0.0000 0 Portage Township 0.0440 2,619,977,095 1,152,790 0.0000 0 South Bend Civil City 2.9583 3,645,470,284 107,843,947 0.0000 0 South Bend Civil City Cumulative Capital Development (2)0.0282 3,645,470,284 1,028,023 0.0000 0 South Bend Community School Corporation 0.8982 6,706,293,024 60,235,924 0.0000 0 South Bend Comm. School Corp. Exempt Debt Service - Operating Ref. Rate (2)0.3334 8,398,074,650 27,999,181 0.0000 0 South Bend Comm. School Corp. Exempt Debt Service - Debt Ref. Rate 0.0506 8,398,074,650 4,249,426 0.0000 0 St. Joseph County Public Library 0.2725 7,176,427,526 19,555,765 0.0000 0 St. Joseph County Airport Authority 0.0271 12,462,483,560 3,377,333 0.0000 0 St. Joseph County Airport Authority Cumulative Building Fund (2)0.0130 12,462,483,560 1,620,123 0.0000 0 South Bend Public Transportation Corporation 0.1036 5,491,024,935 5,688,702 0.0000 0 St. Joseph County Solid Waste Management 0.0000 12,462,483,560 0 0.0000 0 Total Tax Rate (per $100 AV)$5.3548 $0.0000 $0 Less: South Bend Community School Corporation Referendum Rates (3)(0.3840) Net Tax Rate (per $100 AV)$4.9708 Tax Incremental Estimated Circuit Net TIF Allocation Fund Rate Assessed Value Tax Increment Breaker Tax Increment Southside Allocation Area (4)$4.9708 $22,480,371 $1,117,450 ($431,110)$686,340 (1) Based on information provided from the 2024 Budget Order. (2) Tax rates are not adjusted for rate-driven funds. Assumes these funds are maintained at their current rates. (3) Referendum rates established after 2009 cannot be captured by a TIF Allocation Area. (4) Assessed value and Circuit Breaker Tax Credit information per the St. Joseph County Auditor's office. 6 (Subject to the attached Impact Statement dated November 25, 2024 of Baker Tilly Municipal Advisors, LLC) SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION ESTIMATED IMPACT OF AMENDING THE AREA AND SOUTHSIDE ALLOCATION AREA ON OVERLAPPING TAXING UNITS - CENTRE TOWNSHIP TAXING DISTRICT (1) Net Assessed Estimated South Bend - Centre Township Tax Value of Property Taxing Unit Rate Taxing Unit Tax Levy SCENARIO I:PRESENT SITUATION Represents 2023 taxes payable 2024 property tax levies, assessed valuation, and tax rates. St. Joseph County $0.5593 $12,462,483,560 $69,702,670 St. Joseph County Major Bridge (2)0.0333 12,462,483,560 4,150,007 St. Joseph County Cumulative Capital Development (2)0.0333 12,462,483,560 4,150,007 Centre Township 0.0119 758,319,794 90,240 South Bend Civil City 2.9583 3,645,470,284 107,843,947 South Bend Civil City Cumulative Capital Development (2)0.0282 3,645,470,284 1,028,023 South Bend Community School Corporation 0.8982 6,706,293,024 60,235,924 South Bend Comm. School Corp. Exempt Debt Service - Operating Ref. Rate (2)0.3334 8,398,074,650 27,999,181 South Bend Comm. School Corp. Exempt Debt Service - Debt Ref. Rate 0.0506 8,398,074,650 4,249,426 St. Joseph County Public Library 0.2725 7,176,427,526 19,555,765 St. Joseph County Airport Authority 0.0271 12,462,483,560 3,377,333 St. Joseph County Airport Authority Cumulative Building Fund (2)0.0130 12,462,483,560 1,620,123 South Bend Public Transportation Corporation 0.1036 5,491,024,935 5,688,702 St. Joseph County Solid Waste Management 0.0000 12,462,483,560 0 Total Tax Rate (per $100 AV)$5.3227 Less: South Bend Community School Corporation Referendum Rates (3)(0.3840) Net Tax Rate (per $100 AV)$4.9387 Tax Incremental Estimated Circuit Net TIF Allocation Fund Rate Assessed Value Tax Increment Breaker Tax Increment Southside Allocation Area (4)$4.9387 $77,268,418 $3,816,060 ($1,018,320)$2,797,740 SCENARIO II:ASSUMES THE AREA, SOUTHSIDE ALLOCATION AREA, AND THE PLAN ARE AMENDED Rate Levy Represents the estimated tax impact of amending and expanding the Area and Southside Allocation Area.Difference Difference Assumes the incremental assessed value from the Future Development is captured.From Scenario I From Scenario I St. Joseph County $0.5593 $12,462,483,560 $69,702,670 $0.0000 $0 St. Joseph County Major Bridge (2)0.0333 12,462,483,560 4,150,007 0.0000 0 St. Joseph County Cumulative Capital Development (2)0.0333 12,462,483,560 4,150,007 0.0000 0 Centre Township 0.0119 758,319,794 90,240 0.0000 0 South Bend Civil City 2.9583 3,645,470,284 107,843,947 0.0000 0 South Bend Civil City Cumulative Capital Development (2)0.0282 3,645,470,284 1,028,023 0.0000 0 South Bend Community School Corporation 0.8982 6,706,293,024 60,235,924 0.0000 0 South Bend Comm. School Corp. Exempt Debt Service - Operating Ref. Rate (2)0.3334 8,398,074,650 27,999,181 0.0000 0 South Bend Comm. School Corp. Exempt Debt Service - Debt Ref. Rate 0.0506 8,398,074,650 4,249,426 0.0000 0 St. Joseph County Public Library 0.2725 7,176,427,526 19,555,765 0.0000 0 St. Joseph County Airport Authority 0.0271 12,462,483,560 3,377,333 0.0000 0 St. Joseph County Airport Authority Cumulative Building Fund (2)0.0130 12,462,483,560 1,620,123 0.0000 0 South Bend Public Transportation Corporation 0.1036 5,491,024,935 5,688,702 0.0000 0 St. Joseph County Solid Waste Management 0.0000 12,462,483,560 0 0.0000 0 Total Tax Rate (per $100 AV)$5.3227 $0.0000 $0 Less: South Bend Community School Corporation Referendum Rates (3)(0.3840) Net Tax Rate (per $100 AV)$4.9387 Tax Incremental Estimated Circuit Net TIF Allocation Fund Rate Assessed Value Tax Increment Breaker Tax Increment Southside Allocation Area (4)$4.9387 $77,268,418 $3,816,060 ($1,018,320)$2,797,740 SCENARIO III:ASSUMES THE AREA, SOUTHSIDE ALLOCATION AREA, AND THE PLAN ARE NOT AMENDED Rate Levy Assumes the Area and Southside Allocation Area are not amended and therefore, the Expansion Areas and Expansion Difference Difference Allocation Area are not established. Assumes the Projects cannot be funded and the Future Development does not occur. From Scenario I From Scenario I St. Joseph County $0.5593 $12,462,483,560 $69,702,670 $0.0000 $0 St. Joseph County Major Bridge (2)0.0333 12,462,483,560 4,150,007 0.0000 0 St. Joseph County Cumulative Capital Development (2)0.0333 12,462,483,560 4,150,007 0.0000 0 Centre Township 0.0119 758,319,794 90,240 0.0000 0 South Bend Civil City 2.9583 3,645,470,284 107,843,947 0.0000 0 South Bend Civil City Cumulative Capital Development (2)0.0282 3,645,470,284 1,028,023 0.0000 0 South Bend Community School Corporation 0.8982 6,706,293,024 60,235,924 0.0000 0 South Bend Comm. School Corp. Exempt Debt Service - Operating Ref. Rate (2)0.3334 8,398,074,650 27,999,181 0.0000 0 South Bend Comm. School Corp. Exempt Debt Service - Debt Ref. Rate 0.0506 8,398,074,650 4,249,426 0.0000 0 St. Joseph County Public Library 0.2725 7,176,427,526 19,555,765 0.0000 0 St. Joseph County Airport Authority 0.0271 12,462,483,560 3,377,333 0.0000 0 St. Joseph County Airport Authority Cumulative Building Fund (2)0.0130 12,462,483,560 1,620,123 0.0000 0 South Bend Public Transportation Corporation 0.1036 5,491,024,935 5,688,702 0.0000 0 St. Joseph County Solid Waste Management 0.0000 12,462,483,560 0 0.0000 0 Total Tax Rate (per $100 AV)$5.3227 $0.0000 $0 Less: South Bend Community School Corporation Referendum Rates (3)(0.3840) Net Tax Rate (per $100 AV)$4.9387 Tax Incremental Estimated Circuit Net TIF Allocation Fund Rate Assessed Value Tax Increment Breaker Tax Increment Southside Allocation Area (4)$4.9387 $77,268,418 $3,816,060 ($1,018,320)$2,797,740 (1) Based on information provided from the 2024 Budget Order. (2) Tax rates are not adjusted for rate-driven funds. Assumes these funds are maintained at their current rates. (3) Referendum rates established after 2009 cannot be captured by a TIF Allocation Area. (4) Assessed value and Circuit Breaker Tax Credit information per the St. Joseph County Auditor's office. (Subject to the attached Impact Statement dated November 25, 2024 of Baker Tilly Municipal Advisors, LLC) 7 SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION ESTIMATED IMPACT OF AMENDING THE AREA AND SOUTHSIDE ALLOCATION AREA ON OVERLAPPING TAXING UNITS - PENN TOWNSHIP TAXING DISTRICT (1) Net Assessed Estimated South Bend - Penn Township Tax Value of Property Taxing Unit Rate Taxing Unit Tax Levy SCENARIO I:PRESENT SITUATION Represents 2023 taxes payable 2024 property tax levies, assessed valuation, and tax rates. St. Joseph County $0.5593 $12,462,483,560 $69,702,670 St. Joseph County Major Bridge (2)0.0333 12,462,483,560 4,150,007 St. Joseph County Cumulative Capital Development (2)0.0333 12,462,483,560 4,150,007 Penn Township 0.0320 2,895,800,015 926,656 South Bend Civil City 2.9583 3,645,470,284 107,843,947 South Bend Civil City Cumulative Capital Development (2)0.0282 3,645,470,284 1,028,023 Penn-Harris-Madison School Corporation 0.9275 3,768,092,417 34,949,057 Mishawaka County Public Library 0.1337 4,577,519,905 6,120,144 St. Joseph County Airport Authority 0.0271 12,462,483,560 3,377,333 St. Joseph County Airport Authority Cumulative Building Fund (2)0.0130 12,462,483,560 1,620,123 South Bend Public Transportation Corporation 0.1036 5,491,024,935 5,688,702 St. Joseph County Solid Waste Management 0.0000 12,462,483,560 0 Total Tax Rate (per $100 AV)$4.8493 Tax Incremental Estimated Circuit Net TIF Allocation Fund Rate Assessed Value Tax Increment Breaker Tax Increment Southside Allocation Area (3)$4.8493 $279,102 $13,530 ($3,490)$10,040 SCENARIO II:ASSUMES THE AREA, SOUTHSIDE ALLOCATION AREA, AND THE PLAN ARE AMENDED Rate Levy Represents the estimated tax impact of amending and expanding the Area and Southside Allocation Area.Difference Difference Assumes the incremental assessed value from the Future Development is captured.From Scenario I From Scenario I St. Joseph County $0.5593 $12,462,483,560 $69,702,670 $0.0000 $0 St. Joseph County Major Bridge (2)0.0333 12,462,483,560 4,150,007 0.0000 0 St. Joseph County Cumulative Capital Development (2)0.0333 12,462,483,560 4,150,007 0.0000 0 Penn Township 0.0320 2,895,800,015 926,656 0.0000 0 South Bend Civil City 2.9583 3,645,470,284 107,843,947 0.0000 0 South Bend Civil City Cumulative Capital Development (2)0.0282 3,645,470,284 1,028,023 0.0000 0 Penn-Harris-Madison School Corporation 0.9275 3,768,092,417 34,949,057 0.0000 0 Mishawaka County Public Library 0.1337 4,577,519,905 6,120,144 0.0000 0 St. Joseph County Airport Authority 0.0271 12,462,483,560 3,377,333 0.0000 0 St. Joseph County Airport Authority Cumulative Building Fund (2)0.0130 12,462,483,560 1,620,123 0.0000 0 South Bend Public Transportation Corporation 0.1036 5,491,024,935 5,688,702 0.0000 0 St. Joseph County Solid Waste Management 0.0000 12,462,483,560 0 0.0000 0 Total Tax Rate (per $100 AV)$4.8493 $0.0000 $0 Tax Incremental Estimated Circuit Net TIF Allocation Fund Rate Assessed Value Tax Increment Breaker Tax Increment Southside Allocation Area (3)$4.8493 $279,102 $13,530 ($3,490)$10,040 SCENARIO III:ASSUMES THE AREA, SOUTHSIDE ALLOCATION AREA, AND THE PLAN ARE NOT AMENDED Rate Levy Assumes the Area and Southside Allocation Area are not amended and therefore, the Expansion Areas and Expansion Difference Difference Allocation Area are not established. Assumes the Projects cannot be funded and the Future Development does not occur. From Scenario I From Scenario I St. Joseph County $0.5593 $12,462,483,560 $69,702,670 $0.0000 $0 St. Joseph County Major Bridge (2)0.0333 12,462,483,560 4,150,007 0.0000 0 St. Joseph County Cumulative Capital Development (2)0.0333 12,462,483,560 4,150,007 0.0000 0 Penn Township 0.0320 2,895,800,015 926,656 0.0000 0 South Bend Civil City 2.9583 3,645,470,284 107,843,947 0.0000 0 South Bend Civil City Cumulative Capital Development (2)0.0282 3,645,470,284 1,028,023 0.0000 0 Penn-Harris-Madison School Corporation 0.9275 3,768,092,417 34,949,057 0.0000 0 Mishawaka County Public Library 0.1337 4,577,519,905 6,120,144 0.0000 0 St. Joseph County Airport Authority 0.0271 12,462,483,560 3,377,333 0.0000 0 St. Joseph County Airport Authority Cumulative Building Fund (2)0.0130 12,462,483,560 1,620,123 0.0000 0 South Bend Public Transportation Corporation 0.1036 5,491,024,935 5,688,702 0.0000 0 St. Joseph County Solid Waste Management 0.0000 12,462,483,560 0 0.0000 0 Total Tax Rate (per $100 AV)$4.8493 $0.0000 $0 Tax Incremental Estimated Circuit Net TIF Allocation Fund Rate Assessed Value Tax Increment Breaker Tax Increment Southside Allocation Area (3)$4.8493 $279,102 $13,530 ($3,490)$10,040 (1) Based on information provided from the 2024 Budget Order. (2) Tax rates are not adjusted for rate-driven funds. Assumes these funds are maintained at their current rates. (3) Assessed value and Circuit Breaker Tax Credit information per the St. Joseph County Auditor's office. (Subject to the attached Impact Statement dated November 25, 2024 of Baker Tilly Municipal Advisors, LLC) 8