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

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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. So,this action by the Redevelopment Commission will release the TIF increment from the Erskine Village area for 2012. This increased tax value will benefit other units of local government, including the County,the South Bend Community Schools, the St. Joseph County Public Library and other entities, including the City of South Bend, where it will support operational expenses in the City's general fund and Parks Department. If tax receipts by year's end aren't sufficient to cover the remaining bond,then the Redevelopment Commission would need to collect at least part of the increment for taxes payable in 2013. But if outstanding obligations are covered,the Commission can consider whether to terminate the Erskine Village TIF (as it did in 2010 with Erskine Commons) or to release the tax increment back to the larger, 1,100-acre South Side Development Area. Covering 65 acres,the Erskine Village area has seen the creation of more than 510,000 square feet of new commercial space since its opening in 2005 with private investment exceeding $75 million. The Commission's action today was scheduled ahead of the July 15 statewide deadline for Redevelopment Commissions to notify county fiscal officials whether there is excess assessed value related to plans for any TIF area. "This is another great success story for TIF and our redevelopment strategy as overseen by the South Bend Redevelopment Commission," Luecke said. "Not only did the private sector meet its targets, but we are generating more tax revenue than was originally projected."