07-12-11 TIF used to redevelop Scottsdale Mall will release value

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04 SOU T11 � x U d W PE�AACCE;� '� a 1865 Office of the Mayor NEWS RELEASE July 12,2011 5 p.m. TIF used to redevelop Scottsdale Mall will release value Contact: For media contacts this evening, contact Don Inks, Director of Economic Development at(574) 485-3054 Mikki Dobski, Director of Communications&Special Projects, (574) 876-1564 The Erskine Village tax increment financing area, created in 2004 to fund demolition and redevelopment of the former Scottsdale Mall site, has reached its intended goals, enabling the potential release of tax revenue in 2012 and possibly beyond. The South Bend Redevelopment Commission today (July 12, 2011) approved release of the full increment of assessed value for one year for taxes scheduled to be paid in 2012. The Erskine Village TIF area, also known as South Side Development Allocation Area No. 3, has one outstanding bond, but city officials anticipate by the end of 2011 there may be sufficient resources in hand to cover the long-term costs of annual bond payments until the February 2017 early payoff date. The normal termination date for the Erskine Village TIE area is 2034. This is the second south-side TIE area that has completed its planned improvements ahead of schedule. In 2010,the Redevelopment Commission terminated the South Side Development Allocation Area No. 2, the Tax Increment Financing allocation area created in December 2002 to develop Erskine Commons. Together, these TIF areas will make available $5.3 million for use by other units of local government in 2012. "The City of South Bend used these TIE proceeds to demolish a failing mall and fund infrastructure improvements that made it possible for developers to create Erskine Village, retaining existing businesses like Target and Hacienda while bringing in new retailers, such as Kohl's, Bed Bath &Beyond and several restaurants," said Mayor Stephen J. Luecke. "In just seven years, economic growth in this area has raised sufficient revenue that we anticipate already having the resources to pay off our bonds 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."