HomeMy WebLinkAbout04-14-2025 TIF Management ReportCity of South Bend
Tax Increment Financing (TIF)
Management Report
April 14, 2025
City of South Bend
Indiana
• South Bend Redevelopment Commission Overview
• Tax Increment Financing (TIF) Overview
South Bend TIF Districts
• TIF Fund Balances
• 2024 Revenues & Expenditures
• 2024 Expenditure Breakdown
• 2019-2024 Assessed Values
"" . City Ci of South Bend
Indiana
Commissioners:
• Troy Warner, President,
Council Appointee
• David Relos,
Vice President, Mayoral
Appointee
• Eli Wax, Secretary, Mayoral
Appointee
• Ophelia Gooden-Rodgers,
Council Appointee
• Gillian Shaw, Mayoral
Appointee
• Marcus Ellison
School Board Appointee (non-
voting)
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.
City of South bend
Indiana
Ift
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" on
commercial or multi -family residential properties (does not capture residential
property tax increment except in specific cases)
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
Indiana
Example: The ACME company is in the River West Development Area
• In 1990, the assessed value (AV) was $8 million
• In 2024, the total AV was $14 million
• Incremental AV is $6 million
Total taxes for 2024: $420,000
Taxes "captured" taxes based on incremental AV is $180,000
• The "captured" taxes stay in the River West Development Area
• The remaining $240,000 is distributed to the general fund and other relevant taxing
entities
r City of South Bend
Indiana
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
Annual Tax $8,000,000
Revenue
$6,000,000
$4,000,000
$2,000,000
Basic TI F Model
�h 45 A h lb ;• �- lb h A A N�- Nb Nh NA Nq rL� ti� ti� rL1 ti� ^�� „�"� -b
Year ofTIF District
(Negative is before TIF District Established)
■ Existing Tax Base ■ Incremental Tax Base
City of South Bend
wl Indiana
• Publicly owned infrastructure improvements
• Streets, Utilities
• Publicly owned capital projects
• Parks, City -owned facilities
• Professional services
• Engineering, architecture, environmental professionals
• Supervisory expenses (staff to RDC)
• Capital projects of private entities in furtherance of economic
development or redevelopment purposes of the TIF district
$) City of South Bend
Indiana
• Development Agreements
• Appropriate TIF to funds local public improvements as part of a private development project
• Project work procured via the Board of Public Works and governed by City procurement rules
• Clawback provisions for developer failure to meet contract terms
• Budget Requests
• Appropriate TIF funds for publicly -owned projects (infrastructure, parks, etc.
• Work procured via Board of Public Works and governed by City procurement rules
• Project -Based TIF
• Financing tool to provide net proceeds for development
• Development's tax increment used to support financing
• Developer carries risk, obligated to pay difference if property taxes cannot support debt service
obligations
City of South Bend
Indiana
ti 1 River West River West
_ F Development Area 7,385 parcels; Established 1990; Expires 2037
R
Dotqlas Road Douglas Road
Development Area 10 parcels; Established 2005; Expires 2036
West Washington
West Washington 1,152 parcels; Established 1987; Expires 2025
Development Area
River East
River East 3,052 parcels; Established 2003; Expires 2033
Development Area
it River East Residential
• 341 parcels; Established 2003; Expires 2037
River East Residential South Side
Development Area
#_P. I • 1,615 parcels; Established 2002; Expires 2032
South side Riverwalk Development Area
' Development Area 1 parcel; Established 2025; Expires 2045
13,556 total parcels
City of South Bend
Indiana
2024 Fund Balances - $70,883,312 Total
C1 '3da and 54Rn 5'17
$10,131,628
$21,696,392
City of South Bend
V) Indiana
107,758
■ River West Development Area
■ River East Development Area
■ River East Residential Development Area
■ South Side Development Area
■ West Washington Development Area
■ Douglas Road Development Area
Fund Balances -All Districts
$75,000,000
$60, 000,000
$45,000,000
$30,000,000
$15,000,000
2019 2020 2021 2022 2023 2024
End of Year
City of South Bend
�� :F Indiana
■ Douglas Road Development Area
■ West Washington Development Area
■ River East Residential Development Area
■ River East Development Area
■ South Side Development Area
■ River West Development Area
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
1- City of South Bend
Indiana
Fund Balances - River West Development Area
1�
2019 2020 2021 2022 2023 2024
End of Year
Fund Balances - South Side Development Area
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
2019 2020 2021 2022 2023 2024
End of Year
City of South Bend
Indiana
Fund Balances - River East Development Area
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
2019 2020 2021 2022 2023 2024
End of Year
r
'� City of South Bend
Indiana
Fund Balances - River East Residential Development Area
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
2019 2020 2021 2022 2023 2024
End of Year
City of South Bend
Indiana
Fund Balances - West Washington Development Area
$2,000,000
$1, 800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
2019 2020 2021 2022 2023 )1,,
End of Year
s City of South Bend
-`-~ Indiana
Fund Balances - Douglas Road Development Area
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$- m m
2019 2020 2021 2022 2023 2024
End of Year
City of South Bend
Indiana
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
% City of South Bend
Indiana
Revenue & Expenses - All Districts
$40,049,531
az7 071 a37
2023
■ Revenue ■ Expenses
$60,657,558
2024
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
s' City of South Bend
Indiana
2024 Revenue & Expenses
am M
River West Development Area River East Development Area River East Residential
Deve.oprnent Area
■ Revenue S Expenses
MM
South Side Development Area
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
jW, City of South Bend
i Indiana
2024 Revenue & Expenses
West Washington Development Area
Douglas Road Development Area
■ Revenue a Expenses
$16,346,383
0 City of South Bend
Indiana Fa
2024 Expenditures -All Districts
$4,665,139
$60, 657, 558
$39,646,035
■ Capital Outlays
■ Services & Charges
■ Debt Service
Expenses - All Districts
Category-
Capital Outlays
Buildings
Q 0 O
Building Purchase & Improvements
q
$ 21,932,040
Infrastructure
Streets & Alleys
3,350,719
Land
Land Purchase & Improvements
14,304,227
Machinery & Equipment
Other Equipment
59,050
Debt Service
Payments on Bonds and
Other Debt Principal
Bond Principal
4,180,744
Bond Interest
482,296
Bond Agent Fees
2,100
Services & Charges
Other Services and Charges
Interfund Transfers
8,869,375
Professional Services
Demolition & Clearance
2,974,340
Other Professional Services
2,872,982
Engineering & Architectural
=Legal
1,189,674
Services
190,012
Rentals
Building Rental
250,000
.0 57.554
City of South Bend
Indiana
Cumulative Assessed Value -All Districts
$2,000,000,000
$1,800,000,000
$1,600,000,000
$1,400,000,000
$1,200,000,000
$1,000.000,000
$800,000,000
$600,000.000
$400,000,000
$200,000,000
2019 2020 2021 2022 2023 2024
Pay Year
■ Base Assessed Value ■ Incremental Assessed Value
City of South Bend
Indiana
Cumulative Assessed Value - River West Development Area
$900,000,000
$800,000,000
$700,000,000
$600,000,000
$500,000.000
$400,000,000
$300,000,000
$200,000,000
$100,000,000
2019 2020 2021 2022 20z3
Pay Year
■ Base Assessed Value ■ 1 ncremental Assessed Value
City of South Bend
Indiana
2024
Cumulative Assessed Value - South Side Development Area
$160,000,000
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
2019 2020 2021 2022 2023 2024
Pay Year
a Base Assessed Value ■ Incremental Assessed Value
City of South Bend
Indiana
Cumulative Assessed Value - River East Development Area
$500,000,000
$450,000,000
$400,000,000
$350,000,000
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
2019 2020 2021 2022 2023 2024
Pay Year
■ Base Assessed Value ■ Incremental Assessed Value
"S City of South Bend
Indiana
Cumulative Assessed Value - River East Residential
Development Area
$350,000,000
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
2019 2020 2021 2022 2023 2024
Pay Year
■ Base Assessed Value ■ Incremental Assessed Value
City of South Bend
,
1 Indiana
Cumulative Assessed Value - West Washington Development Area
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,006
$15,000,000
$In npn nor
$5,000,000
2019
.� City of South Bend
Indiana
2021 2022 2023 202
Pay Year
■ Base AssP-�sed Value ■ Incremental Assessed Value
Cumulative Assessed Value - Douglas Road Development Area
$10,000,000
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
2019 2020 2021 2022 2023 2024
Pay Year
■ Base Assessed Value ■ Incremental Assessed Value
City of South Bend
Indiana