5D2 Resolution No. 3624 (Confirming TIF Expansion SSDA) - Signed

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SOUTH BEND (INDIANA) REDEVELOPMENT COMMISSION STATEMENT DISCLOSING THE IMPACT OF AMENDING THE SOUTHSIDE DEVELOPMENT AREA AND SOUTHSIDE ALLOCATION AREA 4 ESTIMATED IMPACT OF AMENDING THE AREA, THE SOUTHSIDE ALLOCATION AREA, AND THE PLAN Scenario I: Present Situation (Prior to Amending the Area, the Southside Allocation Area, and the Plan) (Cont’d) assessed value), to generate an estimated annual real property Tax Increment of $2,797,740, after the application of the Circuit Breaker Tax Credits. The incremental assessed value of the South Bend – Penn Township taxing district portion of the Allocation Area is $279,102, multiplied by the certified 2024 tax rate for the South Bend – Penn Township taxing district of $4.8493 (the “Total South Bend – Penn Township Tax Rate”) (per $100 of assessed value), to generate an estimated annual real property Tax Increment of $10,040, after the application of the Circuit Breaker Tax Credits. Scenario II: Assumes the Area, Southside Allocation Area, and the Plan are Amended Scenario II depicts the impact on the overlapping taxing units (holding all other factors constant) if the Area, Southside Allocation Area, and Plan are amended, and assumes that the incremental assessed value from the Future Development is captured, and the net assessed value of the Future Development is added to the assessed value of the overlapping taxing units. The Commission intends to capture an illustrative $10,000,000 of incremental assessed value from the Future Development in the Expansion Allocation Area located within the South Bend – Portage Township taxing district. Multiplied by the Net South Bend – Portage Township Tax Rate, net of the application of the Circuit Breaker Tax Credit, and LIT PTRC, the incremental assessed value is estimated to generate $361,480 of annual net Tax Increment in the South Bend – Portage Township taxing district. Scenario II also depicts the impact on the School Corporation’s Referendum tax rates, which may not be included in the Tax Increment calculation. It is estimated that the Future Development would reduce the School Corporation’s Debt Referendum tax rate by $0.0001 and increases the School Corporation's Operating Referendum levy by $33,340. This Scenario does not show any other impacts on the taxing units within the South Bend - Portage Township taxing district as a result of the Expansion Allocation Area. Scenario III: Assumes the Area, Southside Allocation Area, and the Plan are NOT Amended Scenario III represents the impact on the overlapping taxing units if the Area, Southside Allocation Area, and the Plan are not amended, assumes the Expansion Areas and Expansion Allocation Area are not established, and therefore, assumes the Future Development does not occur as a result of the Projects not being funded. Impact Summary In the 2024 Amending Resolution, the Commission finds that the amendment of the Area and Southside Allocation Area will result in new property taxes that would not have been generated without this new allocation provision. The Commission cannot finance the Projects without the Tax Increment from the Future Development. Therefore, the Commission has determined that the capture of increase in assessed value from the Future Development will not have a negative impact on anticipated revenues or the tax rates of the taxing units that are wholly or partially located in the Expansion Allocation Area. Without the Tax Increment, the Projects would not be funded, and therefore, the Future Development would not occur, the property would remain undeveloped, and the tax base would remain unchanged. During the period of the Tax Increment capture, the tax base of the overlapping taxing units would materially remain the same (holding other factors constant). After the expiration of the Expansion Allocation Area, the additional assessed value will increase the property tax base of all the overlapping taxing units. Please note that for purposes of estimating the impact of Tax Increment financing, certain factors were held constant in this analysis. No other growth in real property assessed value was assumed to take place anywhere in the City or within the Amended Southside Allocation Area. No increases in the budgets of the overlapping taxing units were assumed for purposes of this analysis. Potential impacts from future statewide reassessments or trending were not included in this analysis.