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the Metronet, extend Commerce Drive, install a trunk sewer along Mayflower Road, or to acquire property and demolish outdated structures, making way for new private investment in places like Ignition Park and LaSalle Square.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:
- 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.
- 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.
- Central Medical District: $3.3 million – Parking garage faade 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.
Contact:
- Mikki Dobski, Director of Communications & Special Projects, 235.5855 or 876.1564
- Don Inks, Director of Economic Development, 235.9371
