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CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – March 27, 2025 <br /> <br />8 <br /> <br />$920,000 annually for the next few years. These projections are not <br />included in the current figures as the bonds have not been issued yet. <br />At the end of the year, we have about $71 million in total balances <br />across the six TIF districts. <br /> <br />Secretary Wax asked about the expenditure increases, which are more <br />pronounced in some districts. He stated the RDC has been aggressive <br />in spurring economic development, but continuing at this spending <br />level is not sustainable. Secretary Wax expressed the need to ensure <br />we can support important projects that drive economic development <br />and increase the city's value. Internal conversations are ongoing about <br />future investments to maintain our ability to support key projects. <br /> <br />Mr. Glavich explained our strategic priorities include spurring economic <br />development and being good stewards of funds. We reviewed <br />expenditures through 2024 and projected similar spending trends <br />moving forward. Revenue projections are modest, with a 1.02% annual <br />increase, avoiding overestimation of assessed values. The 2025 <br />projected revenues are for planning purposes only and not used for <br />budgeting. We manage economic development projects conservatively <br />to avoid significant balance drawdowns. Some expenses, like the $4 <br />million purchase for the Madison Lifestyle District and $2.7 million for <br />the Main/Wayne parking garage, are not reflected in the current figures <br />but will be reimbursed through the READI 2.0 award. In 2024, we were <br />reimbursed over $500,000, and 2025 reimbursements will be reflected <br />in next year's numbers. Despite the 60% increase in expenses, we still <br />have healthy balances. <br /> <br />Mr. Glavich explained, for example, the MLK Dream Center came out <br />of the West Washington TIF district, contributing to a $500,000 <br />decrease in the end-of-year balance. We need to balance spending on <br />impactful projects with maintaining reserves to support future <br />opportunities. In summary, we aim to spur economic development <br />while managing funds conservatively to ensure we can support key <br />projects and maintain healthy balances. <br /> <br />Commissioner Gooden-Rodgers asked, "If there are funds that haven't <br />been included here, at what point will we know about them? Where are <br />they set aside?" Mr. Glavich’s response was that the TIF management <br />report, due on April 15th, will provide a full snapshot of the financial <br />situation as of year-end 2024. <br /> <br />Matt Barrett pointed out a discrepancy in the report, noting that using a <br />multiplier of 1.02 means the tax revenues are projected to increase by <br />2%. Caleb Bauer, Executive Director of Community Investment, <br />confirmed that it is a 2% escalator in our revenue projections. Mr.