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Downtown CREED

FOR IMMEDIATE RELEASE
May 25, 2004

For more information, contact:
Mayor Mark Kruzan (via Penni Sims), 349-3569
Ron Walker, Economic Development Director, 349-3406


Downtown CREED

Mayor Mark Kruzan announced today that plans to establish a Downtown Community Revitalization Enhancement District (CREED) are back on track. Since January, the Mayor's Office has worked with state officials, local organizations, local businesses and city staff to address concerns that the district was too large.

"We believe the revised district is more manageable and stands a really good chance of being approved by the State Budget Agency," said Kruzan. "The establishment a Downtown CREED provides us with a great tool to help us keep and create jobs downtown."

The Downtown CREED would allow the city and the Bloomington Industrial Development Advisory Commission (BIDAC) to capture increases in sales tax and state and local income tax revenues to invest in downtown improvements and redevelopment incentives. It would also give businesses in the district an opportunity to apply for a 25% credit against their state tax liabilities for investments in new or rehabilitated buildings.

Economic Development Director Ron Walker said the new CREED district provides a strong incentive for investment and gives the city a new source of revenue to pay for improvements to public infrastructure. "We can use the revenue to improve sidewalks and streetscapes as well as for the conversion of the rail line to a multi-use path," he said.

CREED districts are similar to Tax Increment Financing (TIF) Districts in that they capture new revenues generated after an established baseline period. Unlike a TIF district, which captures property tax revenues, a CREED district captures state sales tax, local income tax and state income tax revenues. If the Downtown CREED is approved, it would capture increases in those revenues above the baseline of the state's fiscal year ending June 30, 2003. Baseline revenues would continue to be distributed as they previously had. The amount of revenue above the baseline the district can capture is limited to $750,000 per year.

The City Council votes June 2, 2004 on a resolution authorizing the mayor to submit an application to the Bloomington Industrial Development Advisory Commission (BIDAC) requesting CREED designation. BIDAC votes on the application during a special meeting on June 8, 2004. The State Budget Committee will take final action on the measure on June 18, 2004.

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