11-25-2024 South Bend Common Council Meeting Minutes

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REGULAR MEETING November 25, 2024 Councilmember Bolden-Simpson inquired if there were any pending developments in the proposed TIF districts and what type of developments were anticipated. Chris Dressel stated that any development would be consistent with the zoning regulations in each area, and they were trying to seek opportunities to get ahead of any developments to record the increment as soon as possible. Councilmember Bolden-Simpson inquired about benefits for residents in the proposed TIF districts and asked if residential properties would be acquired. Chris Dressel stated that residential properties would not be acquired and stated that the tax increment would allow more concentrated improvements typically in the form of infrastructure, community and public facilities, and partnerships with developers. Councilmember Warner clarified a TIF district would only capture commercial and industrial gains and not residential. Councilmember Warner inquired about the Portage Manor Property. Chris Dressel stated they would not be acquiring Portage Manor property and reemphasized that the reason they wanted to create the TIF district early was to capture the incremental gain if that area were to have new development. Councilmember Warner stated that businesses within the Riverfront Liquor License Area must also be within a TIF district to obtain the license. The impetus for starting this project was to ensure the business within the Riverfront Liquor License Area is also within a TIF area. Council President McBride held the public hearing. Jorden Giger, 302 S. Falcon Street, South Bend, IN 46619, spoke in opposition to the Bill, expressing concern that the tax revenue generated from the TIF would stay in that area and not support the general fund. He inquired about the downsides of TIF districts, if the new tax revenue would support schools, and if the tax revenue would be controlled by the Redevelopment Commission and not the Common Council. Chris Dressel confirmed the revenue would go to the Redevelopment Commission. Erik Glavich, Director of Growth and Opportunity Office, with offices on the 14th floor of the County-City building, stated this is a modest expansion of the existing TIF districts and not creating any new TIF districts.TIF districts give the flexibility to support neighborhoods that might be overlooked. Many projects, such as the Dream Center that might not get support through traditional funding mechanisms in the River West Development area are supported through TIF funding. Jorden Giger inquired about borrowing against the TIF as well as TIF revenue for schools. Matt Eckerle, Baker Tilly Municipal Advisors, LLC, 8365 Keystone Crossing Suite 300, Indianapolis, IN 46240, stated new developments do not necessarily generate new property tax revenue for local government units due to maximum levy limitations. TIF captures incremental revenues based on the assessed value of the new development directly for the local Redevelopment Commission. Since South Bend Community School does not have referendum rates, they would see direct benefit from increased assessed values of new developments driven using TIF. Jorden Giger enquired about the levy and money for the general fund. Matt Eckerle explained how the levy is calculated. Council President McBride closed the public hearing. Councilmember Tomas Morgan motioned for the adoption of Bill No. 24-41, seconded by Councilmember White, and carried by a vote of eight (8) ayes and one(1) aye. Council President Sharon McBride—Aye Council Vice President Sheila Niezgodski—Aye Councilmember Canneth Lee—Aye Councilmember Ophelia Gooden-Rodgers—Aye Councilmember Troy Warner—Aye Councilmember Sherry Bolden-Simpson—Nay Councilmember Dr. Oliver Davis—Aye Councilmember Karen L. White—Aye Councilmember Rachel Tomas Morgan—Aye 13