02-05-20 Community Investment - Laserfiche WebLink

Home Browse Search

CITY OF SOUTH BEND OFFICE OF THE CLERK Fund vehicle structured as either a partnership or corporation for the purpose of investing in an OZ census track, whether in real estate or directly in businesses. To participate, essentially a taxpayer must sell an asset and generate a capital gain. The taxpayer then puts the capital gain into a Qualified OZ fund.There is ultimately delay and reduction of taxes owed to the government if you hold your investment in some of these opportunity zones from funds, you essentially pay no tax on your returns.There is no City-controlled incentive,there is no City-designated award or benefit, there is no City contribution. The City is therefore a convener and supporter but not a direct participant except when we can further incentivize development in these census tracts by combining other incentives such as TIF or Tax Abatements. Mr.Buckenmeyer went on to discuss Tax Increment Financing or(TIF),stating that TIF is a public financing method that can be used to support infrastructure, community assets, and development projects by capturing the growth in property taxes generate by increased property value. He also stated that TIF utilization is evaluated and approved by the South Bend Redevelopment Commission, two (2) Council appointed members and the Department of Community Investment is staff to the Redevelopment Commission as well. Mr. Buckenmeyer went on to further discuss other areas that the Community Investment Department is responsible for such as Workforce Development, Industrial Revolving Loan Funds, Facade Improvement Matching Grants, Site Selection and City Owned Land and Buildings, and Tax Abatements. Committee Chair Jake Teshka thanks Mr. Buckenmeyer for his very detailed presentation to the Committee and he opened the meeting to any of the Committee or Councilmembers for any questions or comments. Committeemember Thomas Kurzhal asked a general question regarding Tax Abatements and any possible penalties that a company might incur for not doing a tiered tax abatement and the project does not get completed. Councilmember Karen L. White made a comment giving examples of a couple of former South Bend businesses that are now paying penalty costs for a tax abatement that they received,but those companies have left the City of South Bend. Respectfully Submitted 44'(icald era& Jake Teshka, Committee Chair EXCELLENCE ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f574.235.9173 TfD574.235.5567 www.southbendin.gov 2