1993-07-15 Resolution 79 - Laserfiche WebLink

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SOUTH BEND (INDIANA) REDEVELOPMENT AUTHORITY GENERAL COMMENTS Tax Increment Revenue Estimate - Paae B-11 (Cont'd) Cont'd ' ( ) The "Estimated 1993 New Development" column represents estimated Tax Increment from new developments in the EDA that are currently under construction, or anticipated to begin construction in the near future, based on cost and timing information provided by the City of South Bend Department of Economic Development (the "City Staff"). These new developments primarily include light industrial buildings, an apartment complex, a $6 million Meijer's Department Store and a $6 million metal stamping plant for Accuride International Inc. True Tax Value was estimated at 50 % of investment cost for all metal buildings and 70 % for all other types of construction. Estimated assessed value is 33 % of True Tax Value. Tax abatements were assumed if indicated by City Staff. The current 1993 property tax rate and PTRC factor were assumed in calculating the estimated Tax Increment for the estimated 1993 new development. For each year of the "Tax Increment Revenue Estimate", the property tax rate was assumed to remain the same. Neither a decrease in tax rate nor an increase in assessed valuation was included for future general reassessment years. The next general reassessment is scheduled to be effective March 1, 1995 for taxes payable in 1996, and is scheduled to occur every four years thereafter. The State Board of Tax Commissioners is required by law to make an adjustment to the base assessed value to "neutralize" the effect of reassessment within tax allocation areas so that owners of bonds secured by tax increment will not be adversely affected. For each year of the "Tax Increment Revenue Estimate" the Tax Increment was assumed to be reduced by the Additional Credit equal to the 1993 PTRC. B-7 u 1