Council approves River West IDD allocation areas and several finance resolutions; staff outline potential $225M state cap over 30 years

Caleb Bauer, executive director of community investment, presented a proposal to create eight new IDD allocation areas within the River West development area. Bauer said an Innovation Development District (IDD) can allow a municipality to retain state sales and income tax increment within the district, similar to tax increment financing but including state taxes. Key terms presented: a $15,000,000 annual cap on state sales and income tax retention within the district (the first $7,500,000 of that amount remitted to the municipality and the second $7,500,000 subject to IEDC coordination), and a $225,000,000 state maximum over a 30‑year term.

Bauer said the city has negotiated an agreement with the Indiana Economic Development Corporation (IEDC) governing the IDD and that the tool overlays existing TIF allocation areas. He described potential projects that could use IDD revenues, including the Colfax Corner project (a University of Notre Dame/Ancora partnership to redevelop the former South Bend Tribune building) that Bauer characterized as potentially creating about 400 full‑time equivalent jobs and more than $150,000,000 in total investment.

During council Q&A, members asked whether IEDC could deny use of the second $7.5M tranche; Bauer confirmed IEDC review and authorization would be required for commitments beyond the remitted municipal share. Public speaker Steve Francis (founder, Center for Responsible Environmental and Economic Development) expressed support for the IDD and urged the city to consider environmental remediation and climate measures in project planning.

Council voted to adopt resolution 26‑03 establishing the eight allocation areas for the River West IDD (roll call recorded seven ayes). The meeting also approved: resolution 26‑01 (adopting the city investment policy for 2026), resolution 26‑02 (authorizing a city controller signatory for the State Revolving Loan Program) and substitute resolution 26‑04 (appointing three members to the Community Police Review Board). Each of these passed on recorded roll calls with unanimous ayes as indicated in the meeting record.

Next steps: adoption of the allocation areas triggers an accounting and administrative process; the action returns to the Redevelopment Commission for a confirming resolution and the city will bring related economic development agreements back to council for third reading and approval.