03-08-2011 TIF for Erskine Commons, city’s 3rd largest, will end

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Office of the Mayor NEWS RELEASE March 8, 2011 9:45 a.m. rd TIF for Erskine Commons, city’s 3 largest, will end Contact: Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564 or Don Inks, Director of Economic Development, 235-9371 The South Bend Redevelopment Commission on Tuesday will consider the termination of the South Side Development Allocation Area No. 2, the Tax Increment Financing allocation area created in December 2002 to develop Erskine Commons. Beginning in 2012, property taxes that have been generated by private investment in this area will be distributed to South Bend’s general fund and other units of local government rather than be retained for public improvement. This is the first time that South Bend has terminated a Tax Increment Financing area. “The City of South Bend used the TIF proceeds to assemble property and remediate a former landfill to make it possible for developers to create Erskine Commons, bringing in retailers like Wal-Mart, Lowe’s and Gates Toyota. We’ve improved major roadways in the vicinity and have plans to complete infrastructure improvements with our remaining resources,” said Mayor Stephen J. Luecke. “Over nine years, economic growth in this area enabled us to pay off our bonds 15 years ahead of schedule. With today’s action by the Redevelopment Commission, the increased assessed value of the property and the tax revenue, which it generates, will be available to support public safety, parks and code enforcement, as well as other units of local government.” “This is a great success story for TIF,” Luecke added. When a TIF area is established, any increase in the assessed value of property that results from new investment is assigned to that TIF area. The taxes generated by the increased assessed value, known as the TIF increment, are deposited into a TIF allocation fund, which is overseen by the Redevelopment Commission and used for public improvements in the area. Taxes generated from the “base assessed value,” the property values at the time of the TIF’s establishment, continue to go to local taxing units.