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Home My WebLink About6G1� (7 C 1> �4AvTe Department of Community Investment Memorandum Tuesday, July 02, 2013 TO: Redevelopment Commission FROM: Beth Leonard Inks SUBJECT: Resolution No. 3148 - Determination of No Excess Assessed Value Attached is Resolution No. 3148 which determines there is no excess assessed value in our TIF areas for tax year 2013 pay 2014. Also attached is information regarding the projected need for improvements in the various areas. Staff recommends, and respectfully requests, Commission approval. Please note we are not requesting any increment for South Side #3. We are working with the trustee to set aside sufficient funds to pay off outstanding bond in South Side #3 at the earliest available time. We will not have to receive any additional funding to accomplish this task. We intend to close South Side #3 as soon as such closure is allowed. Any funds remaining in the South Side #3 (Fund 432) will be transferred to South Side #1 (Fund 430) for projects in that area. Please let me know if you have any questions. Thank you. 227 W. JEFFERSON BLVD. SOUTH BEND, IN 46601 1 P: 574- 235 -9371 1 FAX: 574- 235 -9021 1 SOUTHBENDIN.GOV RESOLUTION NO. 3148 RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION DETERMINING THAT THE TAX INCREMENT WHICH MAY BE COLLECTED IN THE YEAR 2014 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 2014, 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 2014 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 2014 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 2014. 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 11th day of July, 2013. SOUTH BEND REDEVELOPMENT COMMISSION Marcia Jones, President ATTEST: Valerie Schey, Secretary EXHIBIT A Allocation Areas I ) 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) Airport Economic Development Area 8) Douglas Road Economic Development Area CITY OF SOUTH BEND, INDIANA Department of Community Investment Determination of TIF Need by Reviewing Potential Projects for Calendar Year 2014 Airport Economic Development Area ANTICIPATED TIF REVENUE - 2014 DEBT SERVICE Debt Service Payments Increases in Debt Service Reserves PROJECTS LaSalle Square Ignition Park Blackthorn Corporate Park Marketing Blackthorn Owners Association Dues Commerce Drive Extension Progress Drive Cleveland Road /Dylan Dnve /Brick Road Intersection Trade Drive Olive Road Extension Cotter Street Construction Oliver Industrial Houses Ivy Tech Expansion Acquisitions Portage Prairie Legal Fees Conduit Construction Property Management Job Training Mayflower Trunk Sewer & Road Re- alignment Bendix Drive - Cleveland to Lathrop Commercial Corridors Vacant & Abandoned Demolitions Auten Road Construction Eagle Way Description $13,470,000 Debt Service payments totalling $3,561,979 due this year Funds necessary to keep Debt Services Reserves at appropriate levels Planning, acquisition, and infrastructure improvements to redevelop area Site assemblage, planning & infrastructure to promote new development Marketing costs for Corporate Park Dues to support work of Owners Association Extend Commerce Drive to Sheridan Improve Progress Drive from Sheridan to Airport Improvements to intersection to improve traffic flow Road construction to support new development Engineering and road construction to promote new development Engineering and road construction to promote new development Support development of Oliver Industrial Park Acquisitions to facilitate expansion of Ivy Tech campus Engineering and road construction to promote new development Legal fees to further downtown development Expansion of conduit to support development throughout the area Maintenance of Redevelopment owned property Job training services to increase resident's skill sets Sewer and road construction to support new development Upgrade /improve roadway Upgrades to Lincolnway West and Western Avenue Corridors Demolitions of unsafe structures in neighborhoods Engineering and road construction to promote new development Engineering and road construction to promote new development S: \Comminvest \Management \Financial Working Files \Finance\Budgets \Budget 2014 \Projected TIF need 2014..xls CITY OF SOUTH BEND, INDIANA Department of Community Investment Determination of TIF Need by Reviewing Potential Projects for Calendar Year 2014 South Bend Central Development Area ANTICIPATED TIF REVENUE - 2014 DEBT SERVICE Debt Service Payments Increases in Debt Service Reserves PROJECTS Downtown South Bend, Inc. Downtown Street Improvement East Bank Plan /2 Phases Hall of Fame - Planning LaSalle Hotel Holding Costs Legal Fees Main & Jefferson Parking Lot Main & Western - Site Clean -up Predevelopment St. Joseph & Jefferson Parking Lot Veteran's Clinic Hill & Colfax Pre - development East Jefferson Streelscape Improvements Colfax Avenue Streetscape Improvements 7/2/2013 Description $4,392,328 Debt Service payments of $2,881,966 due this year Funds necessary to keep Debt Services Reserves at appropriate levels On -going commitment to assist in streetscape enhancement Various street improvements to enhance downtown On -going planning for East Bank area Planning for adaptive re -use of Hall of Fame building Costs to hold building until new development project is underway Legal fees to further downtown development Expenses related to operation of parking lot Curb, greenspace and striping improvements Appraisal, title, survey, etc. Management of parking lots Annual payments for acquisition thru 2015 Drainage, etc. improvements to development area Various street improvements to enhance East Bank area Various street improvements to enhance East Bank area S: \Comminvesl \Management \Financial Working Files \Finance \Budgets \Budget 2014 \Projected TIF need 2014..xls CITY OF SOUTH BEND, INDIANA Department of Community Investment Determination of TIF Need by Reviewing Potential Projects for Calendar Year 2014 West Washington Development Area ANTICIPATED TIF REVENUE - 2014 DEBT SERVICE Debt Service Payments Increases in Debt Service Reserves PROJECTS City Cemetery Improvements Housing Authority Maintenance Building Neighborhood Gateway Entrances Property Management Rushton Square Washington & Taylor Description $422,000 None None Infrastructure and landscaping improvements Acquisition /demo to provide for new housing development Create attractive entry points for neighborhood Maintenance of Redevelopment owned property Completion of renovations Prepare land for future development S: \Comminvest \Management \Financial Working Files \Finance\Budgets \Budget 2014 \Projected TIF need 2014..xis CITY OF SOUTH BEND, INDIANA Department of Community Investment Determination of TIF Need by Reviewing Potential Projects for Calendar Year 2014 Central Medical District ANTICIPATED TIF REVENUE - 2014 DEBT SERVICE Debt Service Payments Increases in Debt Service Reserves PROJECTS 2 -Way Street Reconfiguration Bartlett Street Improvements Office Building - West facade Civic Theatre upgrades Fencing improvements Former NIPSCO building improvements Description $1,615,000 None None Reconfigure streets to 2 -way traffic to enhance downtown Establishment of new entrace and parking lot Improvements to west facade of building Upgrades to civic builidng Fencing and landscaping around buildings in area Upgrades to old commercial builidng S: \Comminvest \Management \Financial Working Files \Finance \Budgets \Budget 2014 \Projected TIF need 2014..xis CITY OF SOUTH BEND, INDIANA Department of Community Investment Determination of TIE Need by Reviewing Potential Projects for Calendar Year 2014 Northeast Development Area 111 ANTICIPATED TIE REVENUE - 2014 DEBT SERVICE Debt Service Payments Increases in Debt Service Reserves PROJECTS Predevelopmenl & Planning Public Infrastructure 5- Points Infrastructure South Eddy Streetscape Description $827,000 None None Appraisal, title, survey, etc. Support new residential, medical, educational, and other development consistent with plan Insfrastructure improvements @ 5- points area on Eddy Street Streetscape improvements to Eddy Street between 5- points and Coffax S]Comminvest \Management \Financial Working Files \Finance \Budgets \Budget 2014 \Projected TIE need 2014..xis CITY OF SOUTH BEND, INDIANA Department of Community Investment Determination of TIF Need by Reviewing Potential Projects for Calendar Year 2014 South Side Development Area #1 ANTICIPATED TIF REVENUE - 2014 DEBT SERVICE Debt Service Payments Increases in Debt Service Reserves PROJECTS Ireland & High Intersection & Infrastructure Project Main /Lafayette Crossover Property Management Miami Pedestrian Improvements Fellows /Chippewa Connector Sidewalk along golf Course Walter Street Sidewalks Description $2,515,000 None None Drainage improvements necessitated by changes to Ireland Road Complete street reconfiguration to facilitate traffic flow near Erskine Commons Maintenance of Redevelopment owned property Improvements north of Ireland Roadway improvements Streetscape improvements Streetscape improvements S: \Comminvest\Managemenl \Financial Working Files \Finance \Budgets \Budget 2014 \Projected TIF need 2014..xis CITY OF SOUTH BEND, INDIANA Department of Community Investment Determination of TIF Need by Reviewing Potential Projects for Calendar Year 2014 Douglas Road Economic Development Area ANTICIPATED TIF REVENUE - 2014 DEBT SERVICE Debt Service Payments Increases in Debt Service Reserves PROJECTS Street Improvements Bus Shelters Description $320,750 Payments due for 2013 total $190,463' None Right turn lane at intersection of SR23 Various locations throughout area 'NOTE: Expect to use any additional receipts to accelerate debt service payments. Total outstanding debt @ 7/2/13 = $1,311,458.72 $: \Comminvest \Management \Financial Working Files \Finance \Budgets \Budget 2014 \Projected TIF need 2014..xis CITY OF SOUTH BEND, INDIANA Department of Community Investment Determination of TIF Need by Reviewing Potential Projects for Calendar Year 2014 Northeast Development Area #2 (Residential) ANTICIPATED TIF REVENUE -2014 DEBT SERVICE Debt Service Payments Increases in Debt Service Reserves PROJECTS None Description $2,510,000 Payments totalling $3.321,228 due this year None S: \Comminvesl \Management \Financial Working Files \Finance \Budgets \Budget 2014 \Projected TIF need 2014..xls