HomeMy WebLinkAbout01-15-10 Redevelopment Commission reviews likely TIF projects
Office of the Mayor
NEWS RELEASE
January 15, 2010
4:30 p.m.
Redevelopment Commission reviews likely TIF projects
Contact:
Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564
or Don Inks, Director of Economic Development, 235-9371
The City of South Bend will pump nearly $41.4 million worth of economic-development
and infrastructure investment into the local economy in 2010 as a result of the growth in
its eight tax increment financing, or TIF, districts.
The tax revenue, resulting from the growth in business activity, will allow for key
economic investments, such as support of commercialization efforts growing out of the
Midwest Institute for Nanoelectronics Discovery, or MIND, and for the development of
Ignition Park, part of the City’s two-site state-certified technology park.
It will enable the City to expand the Metronet, extend Commerce Drive, install a trunk
sewer along Mayflower Road, or to acquire property and demolish outdated structures,
making way for new private investment in places like Ignition Park and LaSalle Square.
TIF supplements City capital investment, allowing for possible renovations at Coveleski
Stadium and adaptive re-use of the College Football Hall of Fame facility. And it will
provide a pool of resources for economic-development staff to work with private
developers, whether in potential new office buildings or condominiums downtown or
with the University of Notre Dame’s renovation of the Hansel Center into a Center for
Latino Culture.
These efforts and other projects are tentatively identified for action in 2010, according to
a strategy presented to the South Bend Redevelopment Commission. The Commission
reviewed today approved TIF allocation amounts for each of the TIF districts, based on
anticipated TIF proceeds for 2009 and cash balances from previous years.
“Tax increment financing revenue is the primary tool in the City’s economic-
development engine,” said Jeff Gibney, executive director of the Department of
Community and Economic Development. “Today, we are outlining our strategy for 2010
so the Redevelopment Commission can have a sense of our priorities for financial
investment and work in the coming months.”
Nearly 30 percent of those resources are already committed to outstanding bond
payments across the districts for projects already completed.
More than 60 percent of the TIF revenue is concentrated in one district – the Airport
Economic Development Area, which incorporates Ivy Tech Community College and
Ignition Park in the southeast to LaSalle Square, South Bend Regional Airport and
Portage Prairie in the northwest. More than $25.2 million available in the AEDA will be
allocated for debt service ($4.1 million), completing infrastructure projects already under
way ($5 million) and investing in new infrastructure ($14.4 million).
The Central Development Area, which includes downtown and much of the East Bank
Village, accounts for the second largest share of TIF revenue, about 13 percent.
In a TIF district, the increase in tax revenue generated by the value of development stays
within the boundaries of the district to fund new infrastructure, including curbs,
sidewalks, streets, landscaping and other public improvements.
Here are the allocations and potential projects identified for 2010:
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Airport Economic Development Area: $25.2 million, including $4.1 million in
debt service – Potential projects include property acquisition, demolition and
zoning for Ignition Park; acquisition, relocation and demolition in support of Ivy
Tech Community College; design for U.S. 31/Adams Road interchange and Olive
Road extension to Lincolnway West.
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Central Business District: $5.2 million, including $2.1 million in debt service
payments. Potential projects include East Bank Plan implementation, Coveleski
Stadium investment, assisting in new construction projects and adaptive reuse of
the Hall of Fame facility.
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Central Medical District: $3.3 million – Parking garage façade improvements;
sidewalk, curbs and tree-lawn enhancement; widening of Bartlett Street.
?
Douglas Road: $234,000 – reimbursements for previous road-widening project.
?
Northeast Neighborhood: $60,000 – Continued planning/implementation.
?
Southside-Erksine Village: $3.1 million – Acceleration of debt service payments
on previous investments.
?
Southside-Erskine Commons: $2.5 million – Acceleration of debt service
payments on previous investments.
?
Southside-Ireland Road: $1.2 million – Improvements to Erskine Plaza retention
ponds.
?
West Washington: $582,000 – Match for private contributions toward renovation
of the Hansel Center.
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