INNOVATE INDIANA
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Exhibit B-4<br />
Project Impact Project Budget & Funding<br />
Description of Ongoing<br />
Expenditures<br />
Local public funding $8,000,000.00<br />
Private funding $37,333,333.00<br />
Non-profit funding $0.00<br />
Other funding $80,000.00<br />
RCI funding required? Yes<br />
RCI funding needed $8,000,000.00<br />
RCI funding proportion of<br />
cap ex 15%<br />
Total funding $53,413,333.00<br />
Variance between budget &<br />
funding $3,333.00<br />
Private/public/other funding<br />
ratio 70 / 30 / 0<br />
Project impact and<br />
alignment with local or<br />
regional plans<br />
Anticipated return on<br />
investment (%) 11.7<br />
Description of anticipated<br />
return on investment<br />
ADDITIONAL SUPPORT | SECTION 19<br />
Calculated as 1% of loan fund for contracting to staff for credit analysis, loan processing and any<br />
necessary compliance associated with the loan portfolio. South Bend's IRF staff or the Business<br />
Development Corporation could be contracted to handled the loan administration duties.<br />
- Aligns with City of South Bend's downtown residential market study (one of the background<br />
documents for RCNI project). Study revealed a calculated unmet demand in excess of 500 units of<br />
urban housing for downtown South Bend alone.<br />
- Existing and forecasted regional demand for downtown/urban housing<br />
- Mezzanine level of funding would help support small- to moderate-sized projects (whereas federal<br />
funding such as New<br />
Market Tax Credits is available for larger projects, and associated legal fees/requirements are<br />
expensive)<br />
- Urban housing development projects are already lined up around the region<br />
- Existing buildings could be redeveloped - vacant sites are available to be developed<br />
- Note: access to grocery stores seen as an existing impediment to urban living<br />
- Downtown South Bend currently doing a project to convert one-way streets to two-way streets -<br />
this effort would<br />
complement efforts to re-vitalize downtown with housing and amenities<br />
The $53M in mixed-use developments projects associated with this fund are estimated to add at<br />
least $43 million to the local property tax base. The resulting property tax revenue is estimated to<br />
be at least $938,667 annually. Based on the property tax revenues alone, the project would recoup<br />
its initial investment in 8.5 years. Moreover, as this is a revolving loan fund, the fund would accrue<br />
principal through repayment and after 5 years the second round of loans would commence.<br />
The total economic impact from this project is estimated to exceed $83 million, with potential sales<br />
tax generation in excess of $1.5 million.<br />
Annual sales or other nontax<br />
revenue generated ($) $1,561,779.00<br />
Description of annual sales<br />
or other non-tax revenue<br />
generated<br />
Jobs created (if applicable)<br />
Description of jobs created<br />
(if applicable)<br />
State and local sales tax figures calculated via Ball State's CBER Data Economic Impact<br />
calculator. Using the per unit basis of the NAHB, the total sales tax generation associated with 367<br />
units would be $1,855,951.<br />
414<br />
165 (non construction)<br />
250 (construction related)<br />
Job creation per National Association of Home Builders 2014 National Economic Impact Report.<br />
Multiplier of 1.13 per multi-family unit.<br />
EXECUTIVE SUMMARY THE REGION ENGAGED CURRENT TRENDS<br />
STATE OF THE REGION<br />
& QUALITY OF PLACE<br />
VISION & STRATEGY PROJECTS<br />
STAKEHOLDERS, EXECUTION<br />
& STRUCTURAL CHANGES<br />
BENCHMARKING<br />
& MEASUREMENT<br />
REGIONALCITIESOFNORTHERN<strong>INDIANA</strong>.ORG |<br />
256<br />
ADDITIONAL SUPPORT
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