[From the U.S. Government Printing Office, www.gpo.gov]
eveon Oii' t ID pm-.e- L' k" c ax" em n Mon. am ve, o Ra, OP X A .:,c k4 .6 0 HD 268 C L f CS S35 L35 1987 Uni -.,b,@ve@top'.ment"D4@,pdrtmen-t.--. TABLE OF CONTENTS ELM I. GENERAL 3 11. DESCRIPTION OF DEVELOPMENT AREA 5 III. LAND USE 6 A. Existing Land Use 6 B. Future Land Use. 8 C. Rights-of-Way Vacation 10 D. New Facility Installation 10 E. General Design Plan 11 IV. GOALS AND OBJECTIVES 12 A. Statement of Overall Objectives 12 B. Statement of Specific Objectives 13 C. Feasibility and Justification 16 V. REDEVELOPMENT PROJECTS 16 A. -Summary of Projects 19 B. Project Cost Estimates 21 C. Financing Projects 21 D. Project Implementation Schedule 23 VI. TAX INCREMENT FINANCING PLAN 24 VII. RELOCATION 26 VIII. APPENDIXES A. Development Area Boundaries 27 B. Land Use, Ownership, Acreage & Zoning 28 C. Future Land Use 29 D. Development Areas & Projects 30 E. Projected Future Growth- Estimated Increase in Property Values 31 F. Projected Tax Increment Revenue 32 G. Estimated Impact of Tax Plans on Local Taxing Jurisdictions 33 H. Estimated Impact of Tax Increment Plan on Local Taxing Jurisdictions 34 2 LAKEFRONT DEVELOPMENT TAX INCREMENT FINANCING & DFVELOPMENT PLANS ST. JOSEPH, MICHIGAN In 1975 the consulting firm of Barton-Aschman Associates was engaged by the City of St. Joseph to study and prepare a general development plan for the downtown and adjacent waterfront area. In their "Framework Plans and Projects" report, Barton-Aschman expressed the opinion that "the waterfront has significant long-range development potenti al, and- its relationship to the lake.and river, commanding views, natural amenities and proximity to downtown make it a highly attractive site for future development." It was the feeling of Barton-Aschman the "improvement of lakefront and waterfront properties'# was "basic to the long-range development of downtown" and that the area would be "highly appropriate for hotel/motel, convention center, auditoriumV marina and other recreational and entertainment facilities. The report concluded that if the beach area was "strongly connected to activities above the bluff, it would once again allow downtown to open outward to the lake and river.,, Both the Cityl@q Comprehensive Plan, and Parks And Recreation Plan call for a continuation of coordinated public and private development which would be in the best interest of the waterfront area. In addition, the plans provide that the City should take aggresive steps to preserve lake "and riverfront property access, bathing and open space. 3 The, comprehensive plan pointed out the mixed land uses existing in the lakefront area and expressed concern that the potential development of the area would be hindered under the existing zoning. The plan suggested the elimination of industrially zoned land to encourage a more logical development of the lakefront. Mixed and incompatible land use problems have been dealt with through the adoption of a new zoning ordinance as recommended in the comprehensive plan and the area Is now zoned '$water recreational" and "open sp6ce.11 Under these designations,, the City has the prerogative of approving a variety of recreational and commercial development proposals. In order to aid the City in the administration of the new zoning ordinance and to serve as a guide in evaluating development proposals, a detailed study and development concept plan has been prepared for the lakefront area. This study and concept plan was prepared by Robert Teska and has as Its overall goal the enhancement of the attractiveness, vitality and economic value, and public utilization of the lakefriont through a cooperative public/private rede velopment process. The City has initiated and implemented a successful program of central business district redevelopment and beautification. The State Street mall, Office District and Riverfront Arboretum are major elements of these programs. Lakefront development would compliment this ongoing development. It would strengthen the economic base of the City, provide job opportunities, increase the City's tax base and preserve certain unique waterfront sites for public recreational use. 4 The City has limited potential for new development because of' its minimal amount of vacant land. Ihis scenic beach area Is the most valuable resource of the City and offers almost unlimited and Immediate redevelopment potential. It is also one of the most sensitive areas to error in land use decision. It is intended that this plan will establish the basis for projects and describe the necessary steps to achieve the goals and objectives contained in the various plans and studies relating to the City's lakefront development area. Undertaking development of the lakefront area within the context of this plan will allow the City to continue its program of guiding land development in accordance with established policies and toward predetermined goals. In order to implement the plans and achieve these development objectives, it is the Intention of the City to undertake the redevelopment of the lakefront area under the provision of Act 450, Public Acts or 1980. IT. DESCRIPTION OF DEVELOPMENT AREA The boundaries of the development area are the same as the boundaries of the Authority District, which was established pursuant to Act 450 of the Public Acts of 1980. The development area, which fronts on Lake Michigan, is adjacent to the downtown area and the mouth of the St. Joseph River. 5 The bulk of the area is bordered by the St. Joseph River, Lake Michi gan, Lake Boulevard and Elm Street. The-district also includes a strip of beach running parallel to Lake Street between Elm and Park streets. The develop@ment' area consists of approximately 40 acres and includes the same land described as the "Silver Beach Development Area" in the Robert B. Teska Associates study. A legal description of the development area'is as follows: Beginning at a point on the Southerly line of Elm Street at the intersection of the Easterly line of Lake Street; thence Southerly along said line to the Southerly line of Park Street; thence Westerly to the water's edge of Lake Michigan; thence Northerly along the water's edge to the point of intersection with the Southerly line of the St. Joseph River; thence Easterly along the Southerly line of the St. Joseph River to the Easterly line of the C & 0 Railroad; thence Southerly along said line to the point of intersection with the Southerly line of lot #449 original town of Newberry Port (St. Joseph); thence Easterly along said line extended to the Westerly line of Lake Boulevard extended; thence Southerly along said line to the Southerly line of Elm Str@eet; thence Westerly along said line to the point of beginning. 111. LAND USE A. Existina Land Use The accompanying land use map (Appendix B) shows thoroughfares, street rights-of-way, public and other land uses that exist at the time of adoption of this plan. The general character of that portion of the development area bounded by the St. Joseph River, Lake Michigan,, the Bluff and Lake Boulevard is open space with several commercial buildings and residential structures located along Broad Street. 7he area between Lake Street and Lake MichlbTan is open space and is used as a public bathing beach. 6 Most of the land area, which is open and vacant, was formerly occupied by industrial buildings and the Silver Beach Amusement Park. Ownership of this vacant land is concentrated in three local corporations. The area is highly attractive and under-utilized. The lakefront portion consists of'natural sandy beaches which are visible from and within walking distance of downtown. Along the river front, the U.S. Army Corps of Engineers maintains an easement 401 wide and 8001 long. It provides maintenance access to the harbor piers from the river as well as docking facilities for Corps, vessels. Chesapeake & Ohio Railroad tracks run parallel to and near the bluff.on the .extreme eastern edge of the development area. An old historic railroad station is located at the foot of Broad Street in this same general area. A three-acre open space bounded by Vine Street, Elm Street, Lake Street and Broad Street is owned by the Whirlpool Corporation. Presently, it is being leased to the City for use as an unimproved park or playground. It also serves as a buffer between the lakefront residents to the south and the Silver Beach development area. 7hrough agreements with property owners, the public has been allowed access to both Lake Michigan and'the harbor piers. The current zoning of the development area is water recreational development which allows. only certain authorized uses in the form of "special 7 exceptions." They Include planned unit developments, single-family dwellings, restaurants, coffee houses and tea rooms, taverns, bars and saloons, hotels, motels and inns, convention hall (as part of a planned unit development). A 110, wide open space district exists along the lake shore within which no development can take place. B. Future Land Use lbe accompanying future land use map (Appendix C) shows the generalized future use of land in the@development area. Attempts will be made in this development project to maximize areas to be'left as open and public space. Efforts will be made to insure that individual land use acitivities are grouped together in accordance with the degree of compatibility between them. While significant land use changes are anticipated, no zoning changes in the development area should be necessary to achieve the objectives of this development plan. Develop ment within the area will be adequately served.through existing or proposed utility services. Public services such as fire and police protection are adequate to serve the total development area. Future land use in the development area is expe cted to include residential and vacation condominiums, marinas and a resort/conference facility. Land uses will be arranged and designed as "planned functional units" within the larger area, although actual development may be carried out in stages. Land uses not requiring lake or river frontages (e.g. playfields, off-street parking, boat storage, etc.) will be located inland. It is anticipated that higher Intensity activities will be located near the bluff and the downtown area. Attempts will be made to make Lake Michigan frontage available for public access and formal use. Convenient and safe pedestrian access, to, and circulation throughout, the area will be stressed. Vehicular access will be as direct as possible, considering the physical constraints and existing street systems. Access to different functional areas should. be separated to the extent feasible. Vehicular circulation within the area should be discouraged., Adequate off-street parking for major public and private land use should be located at the periphery of functional areas in the vicinity of access routes. Non-residential traffic will be strongly discouraged from utilizing minor residential streets. The bluff area will provide a transitional land use between the development area and downtown St. Joseph. The Robert B. Teska Associates Silver Beach/Libns; Beach P ark Development Study contains specif ic and detail land use objectives and regulations 9 relating to the development area. Ihis document should be referred to and used as a guide in meeting the.objeptives and standards for land use within the development area. C. Riahts-of-Way Vacation Several small portions of unessential and under-utilized rights-of-way will be vacated, abandoned or disposed of in order to achieve the objectives of this development plan. That portion of Water Street extending beyond Vine Street and under the Chesapeake & Ohio Railroad.-will.be made available to.the owner of' the adjacent development site. By combining the right-of-way with, the development site, better utilization can be made of the total area and the former right-of-way can be used as a private entrance into the development. Broad Street, between Lake Street and Lake Michigan, may be vacated in order to eliminate this right-or-way from within a prime development site and allow adjacent land to be combined with it for more effective use. That portion of Lake,Street, between Broad Street and the St. Joseph River, may be combined with the adjacent development sites in a manner that will benefit the overall development of the area, depending upon site plans that are submitted by developers. D. New Facility Installation Water and sanitary sewer lines in the development area have been deemed inadequate to meet the needs of the developmentproposed In this plan. 10 In order to promote and facilitate the development proposed in this plan, it Is the intention of the City to install new water and sanitary lines adjacent to the several development sites in the development area. - In addition, the City will increase the lif .t station capacity serving the at-ea. These improvements are explained in more detail under Section V: "Redevelopment Projects". Utility systems within the individual development sites will be the responsibility of the developers as w Ill be all internal roadways and parking. Storm sewer systems serving the development sites will also be the responsibility of the developer. The City may also make modest improvements to access streets leading into the development area in 'order to enhance the entryway into the projects. 1he constr uction of streets improvements, utilities, public and private parking facilities, and other physical features will be undertaken with quality design,,construction and improvement standards required by the City. E. General Design Plap The general design and concept plans contained in the Robert B. Teska Associates Silver Beach/Lions Beach Park Development Study, dated October- 1978, serves to. illustrate the overall goals and objectives of this redevelopment plan. The Teska study establishes the theme of development for the area and should be followed in all matters relating to land use, design standards and development objectives. IV. GOALS AND OBJECTIVES A. Statement of Overall Goals The City of St. Joseph hag become increasingly aware or the significance of Its lake and riverfro'nt orientation and the importance of these unique areas. During the 197015, the City initiated and.,is implementing a bold and successful program of central area development and beautification. The proximity and relationship of the lakefront to the downtown area make it a logical next step In the City's redevelopment efforts. The combination of land use and zoning changes, availability of land, vitality of the central business district, and uniqueness of the lakefront site suggests that the development- area has a strong and immediate development potential. In order to realize the full development potentials of the area and the ciommunity's goals, an atmosphere of public/private cooperation and trust must be established. In addition, the City must establish an "entrepreneurial" posture: to act aggressively to plan.and implement public improvements, and to promote and expedite private development in the development area. The Silver Beach/Lions Beach Park Pgvelopment Study, this development plan, and the public improvements provided for under this plan, are specific actions.that demonstrate such a posture. It is the goal of the City to enhance the attractiveness, vitality, economic value and utilization of the lakefront area by encouraging development through certain city initiatives listed in this plan under Section V: 12 "Redevelopment Projects". It is also the position of the City that the Silver Beach/Wons Beach Park Develonmient Study establishes the foundation for a good development plan, and that the concepts and reconvW-ndations contained In the study should be implemented in the development area. 9. Statenwent of S cific O@Jectlves The Lakefront Developme tit Area will be developed in such a way as to serve four basic and Important functions. These functions are consistent with the character of the community and its comprehensive plan and ara as follows: attractive, convenient, year-round living; resort, conference and entertainment activity; public water-oriented recreation; and enhancenva- nt of the scenic quality and image of St. Joseph. A variety of attractive, year-round living accomodations and environment should be provided ' for families with and without children, and for individuals to whom a central location in the community fs convenient, and a lakefront setting desirable. Hotel, d1ning, enter,talnn'@_-nt, marina and suppoi-tinV lhusinors ac-tivities should strengthen ttie economy of St. Josepli and its role as a resor-t, conference and entc.-rtainment center-, consistent with the program of' doi@nitown FItiblic watcr-oric@ntvd recreation should take full advantage of the unique quality of this s(-:!gYri-k_,nt of Lake Michigan's shoreline for the benefit of all city residents. 13 All existin g and future activities should be designed, improved, operated and maintained in a manner that not only protects, but also enhances the scenic quality of the area and the image of the entire City of St. Joseph. Blufftop views of Lake Michigan, the St. Joseph River, and the development area should be protected and enhanced; special considera tion should be given to rooftop design. Building height should generally conform to the topography such that the tallest buildings are closer to the bluff; moreover, such buildings should be located and designed to avoid conflict with desired views from the bluff. Building architecture and facilities design should be harmonious throughout the area, and the development near the waterfront should reflect a nautical theme similar to that which has already been established by several properties,in the downtown. The natural landscape environment should be enhanced wherever possible; e.g. along the beach and bluff areas, and floral accents should be introduced elsewhere to provide seasonal color. The design of public improvements, such as street pavements, walkways, lighting fixtures, and signage should be coordinated throughout the entire area, with compatible variations permitted in unique situations. Ihe overall scale of development clusters and individual buildings should be restricted to that which is in character with the natural terrain and the existing residential neighborhood. 14 The visual and physical impact of the existing railroad should be minimized" through sensitive design. Additional information relating to land use arrangements, access, circulation, parking, and design is set forth in Section III of this plan and in t he Silver Beach/Lions Reach Park Development Study. The Chesapeake & Ohio Railroad Station should.be preserved and enhanced as a historic landmark, and maintained for active compatible uses. The direct pedestrian.connection at Broad Street should be retained, but should be redesigned and reconstructed. All parking lots should be landscaped to minimize the negative visual impact of pavement and vehicles, and should be located on sites in a peripheral configuration so as not to encroach on interior devel opable space.. Public areas and rights-of-way should incorporate a coordinated design treatment of pavements, parkways, street lighting.and other special features. Condominiums located near the lakefront should be in the form of clusters of low-rise units set back from the water's edge so that a system of small sand dunes might be created to protect the buildings from the direct force of the wind. Given the sensitive nature of the dune ecology, a boardwalk might be established to allow pedestrian circulation through the dune without*harming vegetation needed to capture blowing sand and stabilize the dune. Condominimums located further inland should be mid-rise buildings located near and relating,to the scale of the bluff. The surr ounding environment should be more formally landscaped than at the lakefront and could include 15 recreation facilities and a clubhouse. Taking advantage of the sitels.proximity to the lake and river, the focal point of recreational activity should be a marina within the development area. It would be oriented parallel to the river, thereby minimizing its intrusion Into the development area. The marina could supply permanent and transient berths, and boaters should be welcomed overnight to make use of hotel, dining, entertainment and lodging facilities in the area. The backbone of the resort/conference facility should be a hotel complex of high quality and special character, containing meeting and recreational facilities. Associated with the hotel complex should be a fine restaurant and limited commercial uses related to the special needs of the complex. Public access to and use of the lake and river should be maintained to the greatest extent possible and consistent with practical utilization of the development sites. It, is especially important that a public beach be retained and access to the south pier be maintained. C. Feasibility and Justification The lakefront development area provides a significant opportunity to the real 'estate development industry. The basis for such an outstanding opportunity is generated by.the development areas location and character, and by St. Joseph's economic program. Observations of market analysts suggest a strong demand for residential and vacation condominiums, and for.a resort/conference/entertainment complex 16 near downtown St. Joseph. 7hey agree"that the lakefront area would offer extraordinary advantages for such a complex, especially if it supplemented the, existing inventory of hotels, motels and related activities in the community, and if it took full advantage of its unique waterfront setting. The competitive market for such a facility is favorable. Presently, there is no similar facility with a lakefront location between Chicago and South Haven. Regional competition would come from facilities in South Bend, and Kalamazoo, but they do not have the advantage of a lakefront orientation. The economic basis for the facility is impressive. Within a two-hour drive of the lakefront area are the commercial and industrial centers of southwest Michigan, northern Indiana, and northeastern Illinois. Chicago's Loop and North Michigan Avenue are only 90 miles (two hours by Interstate) from the lakefront development area. From the Chicago market perspective, a resort hotel at St. Joseph's lakefront could be comparable to resorts at Lake Geneva, Wisconsin. In addition to this primary market area, Milwaukee., Indianapolis, Toledo and Detroit are all within 200 miles of St. Joseph. Locally, there are no comprehensive resort/conference facilities. The Lake Michigan Community Center has large meeting spaces, but no related lodging;' and. while there are a number of lodging facilities in the Twin City area, none have a single meeting room large enough to comfortably accomodate a group meeting of more than 250 to 300 people. In addition to the market characteristics, the real competitve edge for a major resort/conference complex in St. Jospeh is its location on the'eastern shore of Lake Michigan. 17 It is realistic to express considerable optimism and enthusiasm over the Immediate and future opportunities of the development area. The underlying public Interest and enthusiasm which has been expressed in lakefront development since the Silver -Beach/Lions Beach Park Development Study reinforces the 'likelihood of successful redevelopment. Support for the project has ranged from state agencies to private citizens. The adoption of this plan and the public improvements financed under the plans are manifestations'of local support. Opportunities in the development area also exist to satisfy increasing resident desire for water-oriented recreation, leisure access to the lakeshore and riverfront, cultural activity, and overall enhancement of the natural environment. There is perhaps no better nor more central location in the City for satisfying these needs than in the lakefront development area. V. REDEVELOPPENT PROJECTS Redevelopment projects provided for in this plan are intended to facilitate development in, and encourage use of, the lakefront area through the construction of new infrastructure in the form of: 1) Utilities and entryway improvements 2) Public recreation facilities The redevelopment projects have been planned to: 1) Achieve the conceptual designs articulated in the Silver Beach/Lions Beach Park Development-Study .2) Accomodate the immediate and long-term needs of private development proposals 3) Provide opportunities for water-oriented public recreation The extent of the utility Improvements is based on an engineering analysis and recommendations prepared by Wightman & Associates, Inc. Mnstruction of the public recreational facility will be based on, preliminary conceptual site plans and cost estimates prepared by Robert Teska Associates. A. Summary of Pro-lects 1) 6tilities Improvements: Construction and installation of 2LI50 lineal feet of new watermain, 6 fire hydrants, 10 watermain valves and other related work to provide adequate pressure and available flow in the development area.* Instal lation and construction or a 250 gallon per minute lift station, I sanitary manhole, 40 lineal feet of 811 sanitary sewer, 100 lineal feet of 611 force main and other related work to provide adequate waste water collection to the development area. Cleaning, root removal and rehabilitation of 913 lineal feet of 811, 1211 and 1511 sanitary sewer and other related work to provide adequate waste water collection to the development area 2) Entranceway Improvements: Improvements will be made to the entranceway areas into.the development area. These improvements will Include landscaping and pedestrian pathways to physically and visually connect the bluff, adjacent downtown area, and arboretum to the 19 development area. Principal entry streets will be landscaped with large high-crowned trees to soften the visual impact of the railroad. Special lighting and graphics may be added to strengthen pedestrian links between activity centers. Other programs will be undertaken to neutralize the visual impact of unattractive areas. These may include strips of landscaping and other beautification treatment to create buffer zones. 3) Restoration and Preservation of Depot: The City has acquired the building, since it not longerserves a useful purpose to the railroad. Emphasis will, be given to making the building energy efficient with lighting, heating, plumbing, and air conditioning being updated. Other improvements to the inside of the building will include patching, painting, and re-finishing. Exterior improvements will involve a limited amount of repair, painting,,and replacement of some curbs around the platform. No structural changes would be made which would change or destroy the appearance and nature of this traditional depot. 4) Public Recreational Facilities: Construction of improvements to permit access to and use of a portion of the beach area as a public recreational facility. Improvements will include construction of parking areas along Lake Street and Broad Street; construction of a pedestrian boardwalk to permit access to the south pi er and the Lake Michigan shoreline; construction of parking areas and pedestrian boardwalks located in the Broad Street right-of-way west of Lake Street. 20 B. Project Cost Estimates 1. Utilities Improvements: a. Water system Improvements .................... ;..$ 93,000.00 b. Wastewater collection system improvements ....... $134,500.00 c. Wastewater collection system rehabilitation ..... $ 21,000.00 TOTAL $248,500.00 2. Entranceway and Pedestrian 'Improvements: a. Vine Street right-of-way ........................ $273,000.00 b. Broad Street right-of-way ....................... $651,184.00 C. Bluff improvements ................................ $192,876.00 TOTAL $1,117,060.00 3. Restoration and Preservation of Depot ............... $140,000.00 4. Public Recreational Facilities: a. Broad Street Parking Area ....................... $100,000.00 b. Boardwalk to South Pier ......................... $322,440.00 c. Lake Street beachparking ........ .............. $ 60,500.00 TOTAL $482,940.00 C. Financing of Projects The Tax Increment Financing Act, Act 450 of Public Acts of 1980, authorizes a new concept in financing projects undertaken by municipalities. This concept is referred to as "tax increment financing" and is a.method whereby the taxes on the increased value by property which has benefited from development projects become available to finance further development. 21 The City of St. Joseph and the St. Joseph Downtown Development Authority, which has been designated the City's Tax Increment Finance Authority, has determined that in order to finance the projects contained in this plan, a tax incremental financing plan will have to be adopted. The tax increment financing will allow the City and Downtown Development Authority to acquire from the "Captured Assessed Value"-of the development area. The "Captured Assessed Value" means the increase in assessed valuation (State Equalized Values) of the development area in any given year over the value at the time this development plan is adopted. Tax rates levied on property.in the development area, for all units of government, applied to the captured assessed value of the development area will become available to finance the projects described in this plan. The State Equalized Value (SEV) for all property within the development area, which is the initial assessed value for purposes of this plan, is $971,000.00. The estimated captured assessed value is shown on Appendix E, and the estimated tax increment revenues to finance projects is shown on Appendix F. Some assumptions were made regarding Appendixes "Ell and 'IF" and additional comments are needed to-gain a better understanding regarding the figures that have been generated. These are as follows: 1. During the years that the tax increment financing plan is in effect, estimated increases in SEV have been totally based on new construction taking place within the boundaries of the development plan. Future .growth in the development area would have a minimal effect on the SEV 22 without new construction of privately owned development projects. 2. Anticipated annual' increases in SEV within the development area due to new construction are as shown on Appendix E. 3. Total millage applied as property tax in 1985 was 63.970 mills. Since millage generally fluctuates year to year, a 63.9 mill tax levy vras used to estimate annual revenue. In addition to funds provided through the tax increment financing plan, the City and the St. Joseph Downtown Development Authority will seek various grants and solicit contributions as required to supplement and expedite red evelopment. The issuance of either revenue or general revenue bonds, as authorized under Act 450, is not anticipated. D. Project Implementation Schedule An anticipated plan cost in the amount of ten thousand dollars ($10,000.00) will be made available by the City from other city revenues. Upon. receipt of tax increment revenues under this plan, these amounts will be returned to the City for their original intended use. Installation of the utilities will be commenced immediately upon adoption of this plan. Funds to complete the work will be made available on an interim basis, by the City from other city'revenues. Upon receipt or tax increment revenues under this plan, these amounts will, be returned to the City for their original intended use. Entryway improvements, except to the extent that the City might have funds to advance for this purpose, will be undertaken with the first tax increment revenues received in excess of the amounts required to repay the City ror 23 earlier advances made for utility improvements. Restoration of the railroad depot and development of public recreational facilities will be completed as funds are received under this plan and to the extent they become available from year to year. VI, TAX INCRFMFNT FINANCING PLAN The theory of tax increment financing is that greater tax revenue will be generated in an area in which development is taking place., and that it is appropriate to utilize a portion of this lncre@ISEA tax revenue for the purpose of paying for fur ther redevelopment. The ta'x increment finan cing approach provides cities with the means to enhance opportunities for developments, and the system provides a Method of' obtaining funds to undertake projects which will motivate developers and investors. Tax increment financing acknowledges and provides an equitable solution to the manifestation of "value increment" due to a governmental unit's initiative and expenditures. The tax increment financing approach is based on the concept of' "captured assessed value", which refers to the increase in assessed valuation of the project area in any given year over the value at adoption of the development plan. The operational definition of assessed valuation is the assessed value as finally equalized. Tax rates levied on property in the development area for all units of' government - applied to the captured assessed value of the area will become available to finance the development efforts. The.amount of tax increment 24 revenue to lie transmitted to the authority by the Laxing jurisdiction i.,; that portion of their respective tax levied on the CaPtLll-(-@d aSSe0:30(t Vdil-le of real an(' r)ersonal property in the development area. At the present time, totaj millagse levied within the devcl(3j-wrA:!nt area by kill taxings jurisdictions is 63.970 mills. Appendix G presents a brealcdowii oF to ta I millage by the taxing juriSdiCUOIIS and the impact on tht@:;c un i t:3 . Appo n cl i x If also shows the relative value of' the clcvelopuc@nt area a.@; @i percentage of the total SE-V of' the individual taxing juri:-.3diction. For example, the devel opment area rerwesents arvroximately .70)111 pC!l,c(!l1t (.701111%) of the total SEV of. tho City or St. Joseph, but only .0461 perce- lit (.01161%) of the total SFV of' Berrien Onji-ity. Since the tax increment financing plan genoratc:3 reve-nUes ba:iod on cal)tUl'od SEN over and above the 1986 level each taxii-ify Jurisdiction will ,;t.j 11 levy taxes against the 1986 SEV of $971,000. nie sEv w i I i bo 1,1:3ed roc taxing purposes throughout the life of' the tax increment plan. Ille'- Tax Increment Financing Authority -.3hall expend the tax incroment revenues received only in accor-clance With the tax incremorit f,irlancinf-) ellid development plan. It is thc! intention or tha authority to tise the entirc.- captured assessecl vaPue in the development. area for a period of' iio Jon[@(-r didn Five (5) years to finance the redevelopment projects otitlined in LhLt clevelopment Plan.. The Authority shall annually stibipiL a report on the tax illcrellielit, Finii1wiliti, account showings the r evenue received and the awunt and purptxw of' 25 expci-iditures from the account.. . Reports will' al_@o he required showing the i nitial assessed value of the development area and the amount of the captured asses-se-cl value retained by the authority. The report. shall be submitted to the St. Joseph City Commission anti certain such other additional infortrotion a.-, the governing body decim; necessary. An opportunity will be made available to the taxing jurisdiction to fliect with the governing body to discuss the fiscal and econoillic implications of' Lhe proposed financing and development plans. The tax increment financing plan irkiy he modified by the poverning hody upon noLioe and after public hearing3. '11,,e governinL, body May abolish Lhe tax incremenit, financing plan wheri it finds that. tbv pui,pose For which it. waLi establit3hed Js accomplished. VII. UFLOCATION No provision haEs been rikide For the cost, of relocating persons di splaced as a result of Lhis plan, or for providing financial assistance, s i nce no res i dences are designated for acquisition oi- clearance, ai)(I no f.'iakli.lies or individui.:ils will be displaced. 26 10 8 ST do 44644 WhTeft 108 gas 41103o 10a 40 1.3 bR040 a Ar j3. gvr ?a -gy 4v off IF& 14 f" a Yd - -too ad e-IL &A. a go 40 --!41- 40 , , 0 p & 3 Its @ $40 lp, All" )p a 1.0 4441 S 'A14 t. 0 J, 6 -104 is ?a 0 be 03, add P4 ad 3 da APPENDIX A DEVELOPMENT AREA BOUNDARIES 27 Nf I C@41 G,4 N LAND USE: VACANT OWNERSHIP: LABORATOR L A ACREAGE: 13.0 ACRES ZONING: WATER RECR S OPEN SPAC LAND USE! UNIMPROVED BEACH Ld OWNERSHIP: LABORATORY EQUIPMENT Co. LLI LAND USE: SINGLE FAMI ACREAGE: 9-0 ACRES a: RESIDENCES ZONING'@ WATER RECREATIONAL DEVELOPMENT a - OWNERSHIP: PRIVATE OPEN S-PACE to _. ACREAGE: 0.9 ACRES ;-r-- ZONING: WATER- RECREATIONAL DEVELOP LAKE STREET LAND USE: w LAND USE: w w w Lu RECREATION OWNERSHI w w LLJ OWNERSHIP: ACREAGE. cr tr WHIRLPOOL I ZONING: cn ACREAGE@- cn 3.5 ACRES ZONING: WATER- OD RECEREATIONA LIONS PARK DRIVE DEVELOPMENT Cr LAND USE: INDUSTRY OWNERSHIP' LECO M ACREAGE: i.7 ACRES ZONING! WATER RECREATIONAL w DEVELOPMENT I LAND U a: IND 0: < ct JOWNER < w < HORA CL CL DEPOT-, J@CREAG C. 0. R1AILR@OAD VINE ST EET LAND USE: RAILROAD STATI, LAND USE. RAILROAD R/W OWNERSHIP: CHESAPEAKE 5 OWNERSHIP: CHESAPEAKE- LAKE OHIO RAILROAD BLUFF OHIO RAILROAD PA R ZONING: OPEN SPACE LAKE APPENDIX B_ LAND USE, OWNERSHIP ACREAGE a ZONING @A KC CONDOMINIUM/ RECREATIONAL DEVELOPMENT RECREAT16N HOTEL CONFERENCE ENTERTAINMENT CONDOMINIUMS PUBLIC BEACH AREA LAKE STREET F- LLJ Li WATER ww w w cf-I ir RECREATIONAL AND/OR PUBLIC CONDOMINIUM cn CO PARKING DE DEVELOPMENT 0 AREA 9 1 LIONS PARK DRIVE ir I CONDOMINIUM RECREATIONAL DEVELOPMENT w AREA cr < < w DEPOT 0- 0- I 4 VINE S C.90. 9AILROAD T@ E E T- -SECONDARY VEHICULAR ACCESS ARY VEHICULAR ACCES LAKE BLUFF PEDESTRIAN ACCESS PA R LAKE 8 L F__ _7 APPENDIX C FUTURE LAND USE MICHIoAN L.A KE REE r I II I I 7f @, LLI Ld LLI U.1 w w cr cr It V) W a: LIONS PARK DRIVE cn cr ......... It .......... cr 0. ST. EET-: C. a 0. AILROAD PA R LAKE BLUFF B LAKE I UTILITY IM APPENDIX D ENTRANCE DEVELOPMENT AREAS Ek PROJECTS DEPOT RES PUBLIC REC APPENDIX E Annual Prolected Future Growth Tax Increment knancing Plan Estimated Increase In Property Yglues (SEV) Proaram Yeac #1 Projected future growth In project area due to estimated new construction $1,700,000 Total Captured Assessed Value $1,700,000 Proaram Year #2 Projected future growth in project area due to estimated new construction $1,700,000 Total Captured Assessed Value $1,700,000 Proaram Year #3 Projected future growth in project area due to estimated new construction $1,700,000 Total Captured Assessed Value $1,700,000 Proeram ar #4 Projected future growth in project'area due to estimated new construction $1,700,000 Total Captured Assessed Value $1,700,000 Proeram Year #5 Projected future growth in project area due to estimated new construction $1,700,000 Total Captured Assessed Value .$1,700,000 31 APPENDIX F PROJECTED TAX INCREMENT REVENUE P R 0 G @R A. M Y E A R FT REST RFr-aNn THTRD FnuRTH FTFTH Assessed Value of Project Area at Adoption of this Plan 971,000 $ 971,000 $ 971,000 $ 971,000 $ 971,000 Estimated Assessed Value of Project Area at end of Program Year 4.3ZI.@000 6,071,000 7,771,000 9 L.471 000 Captured Assessed Value for Program Year 1,700,000 3,400,000 5,100,000 6,800,000 8,500,000 Estimated Millage Rate of all Units x 63,1 4 63.2 x 6N.9 6N.9 6:S. 9 Estimated TaxIncrement Revenue APPENDIX G ESTIMATED IMPACT-OF TAX PLANS ON LOCAL TAXING JURISDICTIONS (Tax Increment Revenue Source By Local Taxing Jurisdiction) YEAR #1 YEAR #2 YEAR #3 YEAR #4 YEAR #5 Captured SEV from Appendix F $L.70D,= 3-400-000 $6,800,000, .8,500,000 City of St. Joseph 18.5 Mills .31,450 62,900 94,350 125,800 157,250 St. Joseph School District 36.6 Mills 62,220 124,440 186,660 248,880 1 100 Lake Michigan College 1.3 Mills 2,210 4,420 6,630 8,840 11,050 Intermediate School District 1.7 Mills 2,890 5,780 8,670 11,560 14,450 Berrien County 5.8 Mills 9-860 19-720 ?9 -C'%RO 59,440 49-300 TOTAL (63.9 Mills) $ 108,630 $ 217,2_60 $ 325.,890 $ 434,-5_20 $ 543,,150 NOTE: County, School, College and Intermediate School District levy based on 1986 rates. Rates are rounded and zeros omitted.' APPENDIX H Estimated Imact of Tax Increment Plan On Local Taxing Jurisdiction (TIFA District as a Percenta ge of Units Total Tax Base) District as % of Taxina Jurisdictions 1986 SEV 1966 SEV City of St. Joseph $ 137,836,500 ..704% St. Joseph School District $ 238,274,419 .408% Lake Michigan College $2,209,439,5BO .044% Intermediate School Dist $2,164,4 96,094 .045% Berrien County $2,103,415,010 .046% 1986 District SEV $971,000 34. DATE DUE GAYLORD 0. 2333 PRINTED IN LS.A. 10 @2333 GAYLORD 3 6668 1-4107 9 1@ 88 1.@