HomeMy WebLinkAbout08-30-10 City to build on positive economic growth initiatives
Office of the Mayor
NEWS RELEASE
August 30, 2010
3:30 p.m.
City to build on positive economic growth initiatives
Contact:
Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564, Gregg
Zientara, City Controller, 235-9216, or Jeff Gibney, Executive Director of Community and Economic
Development, 235-9371
For the second year in a row, not a penny of the City’s property-tax-supported General Fund,
which pays for most governmental operating expenses, funds South Bend’s economic-
development efforts.
Instead of relying on property taxes, local Economic Development Income Taxes (EDIT) fund
day-to-day operations while the continuing growth of South Bend commerce and industry
realized through Tax Increment Financing revenue (TIF) is fueling tens of millions of dollars of
new investment in economic growth.
These financial changes are less visible than the dramatic changes at Eddy Street Commons –
one of the projects supported by the department. Residents also might have missed Community
and Economic Development’s other 2010 investments, which are stimulating growth in the
community.
Targeted City incentives from the department led to the creation of 55 new jobs so far in 2010
and the retention of another 823 in the community. With most occurring through the expansion
of existing businesses, supported by nine tax phase-ins or three loans through the Industrial
Revolving Loan Fund, few of the projects made headlines.
Yet, in 2010, all sectors of the community have been touched by activity supported by the
Department of Community and Economic Development:
?South – The success of the Erskine Commons shopping center means that the bonds, which
funded new infrastructure, will be paid off 15 years ahead of schedule. Habitat for Humanity
is preparing to open a larger Re-Store at Main Street and Ewing Avenue. The relocation
enabled Ivy Tech Community College to respond to burgeoning student enrollment by
expanding its campus along Sample Street.
?Southwest – At the development site of Ignition Park in the former Studebaker Corridor,
demolition of the final two Studebaker-related buildings is weeks away from beginning.
Ignition Park is expanding from its original 89 acres to as much as 140 acres as officials
finalize a larger overlay district to specify uses around the technology park site. Meanwhile,
Transpo is completing the first building at Ignition Park’s southeast edge – a transportation
center that is expected to be the nation’s first LEED Platinum-certified transit facility. Two
existing businesses in the area are relocating elsewhere in South Bend: Underground Pipe &
Valve to nearby Oliver Industrial Park and Ziolkowski Construction Co. to the Toll Road
Industrial Park.
?West – Site work is progressing at Western Avenue and Chapin Street for the construction of
a more than $30-million Kroc Community Center for the St. Joseph County Salvation Army.
At LaSalle Square, land acquisition is proceeding for a proposed senior housing facility,
while operations began at the Bendix Family Physicians. Nearby, construction will begin
later this year on a rehabilitated and expanded facility for a new South Bend Animal Care
and Control shelter. Investments also are helping realign Mayflower Road and support the
Project Impact job-training program targeting “at-risk” and formerly incarcerated residents.
?Northeast – Infrastructure work was completed at Eddy Street Commons and is anticipated
for the new Eddy Knolls neighborhood, which contains a mix of market-rate and affordable
housing.
?Downtown – In the heart of the city, renovation was completed on the new WNIT Center for
Public Media and site-development work is nearing completion for the construction of new
condominiums on the East Bank of the St. Joseph River across from the Morris Performing
Arts Center. Investments are supporting downtown business recruitment and retention
efforts, including an adaptive reuse of the College Football Hall of Fame and renovations at
Coveleski Stadium. Work is expected to begin this year on infrastructure upgrades around
Memorial Hospital, funded by economic growth in the hospital’s district.
Most of these investments are made possible in specially designated areas through Tax
Increment Financing, or TIF. Once a TIF area is designated, the growth in taxes related to new
economic development (known as the increment) is set aside for reinvestment in redevelopment
efforts. Within the TIF district’s boundary, it can fund new infrastructure, such as curbs,
sidewalks, streets, landscaping or other public improvements.
The department also secures federal funds to assist neighborhoods. With federal funding, the
City provided counseling to nearly 100 homeowners facing foreclosure or prospective
homebuyers and supported the rehabilitation of 58 homes. Working through nonprofit partners,
the City contracted for the rehabbing of another 88 homes, the acquisition/renovation of 12
vacant properties, the construction of eight affordable homes and improvements to 113 rental
units. The department also has formed a collaborative partnership with nearly 50 South Bend-
certified Realtors to sell market-rate housing in core-city neighborhoods, but that effort is not
federally supported.
In 2011, expanded activity will lead to the addition of one specialist to assist in general economic
development efforts as well as a special initiative to encourage minority recruitment in
employment, job training and procurement opportunities in both the public and private sectors.
The department also is looking to create a “one-stop” process to streamline the governmental
approval process for developers. With a fee-based service, developers would receive special
assistance in navigating proposed projects through various approval steps, including by zoning,
planning, building and redevelopment entities as well as with the Common Council.
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