This document discusses various tools that can be used to invest in and revitalize downtown areas in Arizona, including:
1) Business Improvement Districts (BIDs) that allow property owners in a designated area to collectively fund improvements through additional assessments;
2) Revitalization Districts where a board oversees taxing property owners within the district to fund improvements; and
3) Tax Increment Financing (TIF) districts that designate new tax revenues from a specific area to fund infrastructure and development projects.
This is the 2003 Document creating the Whitmore Lake DDA Tax Increment Financing district. It includes maps of the district and some highly improbable financial projections showing that the DDA would eventually capture over $50 Million in tax revenues. The infamous Territorial Road Bridge project plan (5 Lanes Minimum!) is incorporated as an appendix. That would have put Northfield Township taxpayers on the hook for $28 Million.
This is the 2003 Document creating the Whitmore Lake DDA Tax Increment Financing district. It includes maps of the district and some highly improbable financial projections showing that the DDA would eventually capture over $50 Million in tax revenues. The infamous Territorial Road Bridge project plan (5 Lanes Minimum!) is incorporated as an appendix. That would have put Northfield Township taxpayers on the hook for $28 Million.
"Pattern scaling using ClimGen: users needs, changing precipitation variability, and interaction between global/regional responses" presentation by Tim Osborn and Craig Wallace, NCAR, April 2014
A report by the Citizen Advocacy Center.
Tax Increment Financing, or TIF, is a powerful municipal economic development tool created by the Illinois General Assembly in 1977. Although nearly every state in the nation adopted tax increment financing, each state’s legislation differs. The Illinois Tax Increment Allocation Redevelopment Act is the basis for all the information in this website.
The purpose of TIF is to spur and fund development in areas with declining or stagnant property values through providing incentives to developers. The revenues used to pay for the incentives come from property taxes that the municipality diverts for the duration of the TIF district, typically 23-30 years. The theory is that the TIF designated area will develop due to the assistance of incentives to developers, and the property valuation for the TIF designated area will substantially increase and benefit all taxing bodies in the future.
Public Entrepreneurs and PrivatizationPub.docxwoodruffeloisa
Public Entrepreneurs and Privatization
*
Public entrepreneurism (municipal capitalism): where the public sector takes either a strong partner or even a leading partner role
We will look at:
State and national examples of an entrepreneurial strategy
Local examples
Positive: San Diego’s Ballpark, Victoria Gardens (text), Hospitality Lane (not detailed)
Mixed success: San Bernardino 66ers Stadium
Failure: initial redevelopment of Carousel Mall (2004-2007)
*
Adoption of policies that focus on developing high-growth new firm and technologies
Not a case-by-case strategy (rather it is policy driven)
A “demand-side” approach
Typical tools:
business and innovation assistance centers,
technology and business parks,
venture financing companies,
one-stop business information centers,
micro-enterprise programs,
technology transfer programs,
workforce development programs,
export promotion programs, etc.
*
*
State of Nevada: Gambling – no state tax
States of Delaware: ease of incorporation
Nevada, South Dakota, and Wyoming – no corporate tax
Countries of Malta, Cuba, Brazil – generic pharmaceuticals
CORPORATE CENTERS
Hong Kong: International Financial & Trade Center
Dubai: world business hub (innovative real estate projects, hotels, and sports events)
Cayman Islands: International Financial Center
Bahamas: tourism, a growing foreign corporate center
*
*
When governmental development activities move from managerialism to entrepreneurialism.
Actively partnering with the private sector in launching “homegrown” economic development projects (e.g., public private partnerships)
Frequently being a leading player during the economic development process
Focusing on return-on-investment
Willing to adopt higher levels of risk than in the past
*
*
sports facilitiesconvention centersaquariums festival marketplacesspecialty museums
Opportunities for spillover effects & positive externalities
Potential problems
substitution effects
leakages in the economy
flagship projects are often extremely expensive and “oversold”
*
*
When conversion of unimproved areas and simple land intensification is planned, it is usually called economic development. When the area being developed is blighted, however, it is generally called redevelopment.Normally property that is already of high value is re-purposed without government assistance, and so is not normally considered economic development per se. However, occasionally “good” neighborhoods will be aided by government in upgrading to very good neighborhoods in a process known as gentrification. This is particularly common in historic areas.
Unsafe or unhealthy buildings, e.g., possess serious building code violations, faulty or inadequate utilities, etc.Factors that prevent or substantially hinder the economically viable use of buildings or lots, e.g., lack of parking, inadequate size, etc.Adjacent or nearby uses that are incompatible and prevent economic use.Subdivided lots o ...
"Pattern scaling using ClimGen: users needs, changing precipitation variability, and interaction between global/regional responses" presentation by Tim Osborn and Craig Wallace, NCAR, April 2014
A report by the Citizen Advocacy Center.
Tax Increment Financing, or TIF, is a powerful municipal economic development tool created by the Illinois General Assembly in 1977. Although nearly every state in the nation adopted tax increment financing, each state’s legislation differs. The Illinois Tax Increment Allocation Redevelopment Act is the basis for all the information in this website.
The purpose of TIF is to spur and fund development in areas with declining or stagnant property values through providing incentives to developers. The revenues used to pay for the incentives come from property taxes that the municipality diverts for the duration of the TIF district, typically 23-30 years. The theory is that the TIF designated area will develop due to the assistance of incentives to developers, and the property valuation for the TIF designated area will substantially increase and benefit all taxing bodies in the future.
Public Entrepreneurs and PrivatizationPub.docxwoodruffeloisa
Public Entrepreneurs and Privatization
*
Public entrepreneurism (municipal capitalism): where the public sector takes either a strong partner or even a leading partner role
We will look at:
State and national examples of an entrepreneurial strategy
Local examples
Positive: San Diego’s Ballpark, Victoria Gardens (text), Hospitality Lane (not detailed)
Mixed success: San Bernardino 66ers Stadium
Failure: initial redevelopment of Carousel Mall (2004-2007)
*
Adoption of policies that focus on developing high-growth new firm and technologies
Not a case-by-case strategy (rather it is policy driven)
A “demand-side” approach
Typical tools:
business and innovation assistance centers,
technology and business parks,
venture financing companies,
one-stop business information centers,
micro-enterprise programs,
technology transfer programs,
workforce development programs,
export promotion programs, etc.
*
*
State of Nevada: Gambling – no state tax
States of Delaware: ease of incorporation
Nevada, South Dakota, and Wyoming – no corporate tax
Countries of Malta, Cuba, Brazil – generic pharmaceuticals
CORPORATE CENTERS
Hong Kong: International Financial & Trade Center
Dubai: world business hub (innovative real estate projects, hotels, and sports events)
Cayman Islands: International Financial Center
Bahamas: tourism, a growing foreign corporate center
*
*
When governmental development activities move from managerialism to entrepreneurialism.
Actively partnering with the private sector in launching “homegrown” economic development projects (e.g., public private partnerships)
Frequently being a leading player during the economic development process
Focusing on return-on-investment
Willing to adopt higher levels of risk than in the past
*
*
sports facilitiesconvention centersaquariums festival marketplacesspecialty museums
Opportunities for spillover effects & positive externalities
Potential problems
substitution effects
leakages in the economy
flagship projects are often extremely expensive and “oversold”
*
*
When conversion of unimproved areas and simple land intensification is planned, it is usually called economic development. When the area being developed is blighted, however, it is generally called redevelopment.Normally property that is already of high value is re-purposed without government assistance, and so is not normally considered economic development per se. However, occasionally “good” neighborhoods will be aided by government in upgrading to very good neighborhoods in a process known as gentrification. This is particularly common in historic areas.
Unsafe or unhealthy buildings, e.g., possess serious building code violations, faulty or inadequate utilities, etc.Factors that prevent or substantially hinder the economically viable use of buildings or lots, e.g., lack of parking, inadequate size, etc.Adjacent or nearby uses that are incompatible and prevent economic use.Subdivided lots o ...
(Reporting entity) (Note Exercises E9-39 through E9-41 are based on .pdfkeshavagg1122
(Reporting entity) (Note: Exercises E9-39 through E9-41 are based on material from actual
financial statements. In some instances, we added material to the facts presented in the financial
statements to clarify the issues raised in the Exercises.) Sarasota, Florida operates under a
Commissioner-Manager form of government. Its financial statements refer to an entity called the
Golden Gate Point Special District (GGPSD). Based on the following information, state (1)
whether GGPSD should be reported as a component unit of Sarasota and (2) if so, whether it
should be blended or discretely reported. Give reasons for your answers. GGPSD was created by
the City Commissioners pursuant to Florida statutes. Its purpose is to construct and maintain
enhancements and improvements within the public right of way on Golden Gate Point. The City
Commissioners serve as the governing board of the GGPSD. They approve the adoption of the
annual budget (using tax revenues), the issuance of all debt, the execution of all contracts, and
the payment of all expenditures. B9.40. (Reporting entity) Sarasota, Florida's financial
statements refer to an entity called the Downtown Improvement District (DID). Based on the
following information, state (1) whether DID should be reported as a component unit of Sarasota
and (2) if, so, whether it should be blended or discretely reported. Give reasons for your answers.
DID was created by City ordinance. The physical boundaries include all non-residential parcels
of property within the downtown core of the City of Sarasota. The City refers to DID as a
"dependent taxing authority" because DID has the power to levy up to two mills of property
taxes - with the approval of the City Commissioners - for the purpose of purchasing
supplemental services such as maintenance, security, sanitation, promotions, infrastructure, and
capital improvements. The City Commission appoints DID's entire governing board.
(Reporting entity) Oneida County, New York sponsors the Mohawk Valley Community College
(MVCC). Based on the following information from the County's financial statements for a
previous year, state (1) whether MVCC should be reported as a component unit of Oneida
County and (2) if so, whether it should be blended or discretely reported. Give reasons for your
answers. MVCC is administered by a Board of Trustees consisting of ten voting members. Five
are appointed by the Oneida County Executive and confirmed by the Oneida Legislature, four by
the Govemor of the state, and one student is elected by the student body. MVCC's budget is
subject to the approval of the County Executive and the County Legislature, and the County
provides substantial funding for MVCC's operations..
HR&A worked with the Portland Development Commission to identify and prioritize appropriate funding sources for operations, programs, and capital costs.
Economic development power point presentation on tax increment financing. Presents a plausible setting for municipal administrators to utilize for securing financing without having the need for excessive and unpopular tax increases.
1. Investing in Arizona
Council of Development Financing Agencies/AAED
November 18, 2014
Investing in Downtowns
Pamela K. Sutherland, JD, EDFP
Connecting the Dots
I. Variety of tools available for development
II. This session has focused on some of the underutilized tools, including
Community Facilities Districts and other special districts designated in ARS
title 48
III. Some tools are specifically designed to assist with revitalizing downtowns;
other tools can be adapted:
A. Business Improvement District (BID): ARS 48-575 requires all of the
property owners within the district to consent to the formation of the BID;
BID provides enhanced services for those properties, including enhanced
security, landscaping, promotion, parking, etc. Municipal authority
assesses costs and expenses of enhanced services and proportionately bills
the property owner (tax bill)
BIDs are very popular elsewhere: New York City has a department
dedicated to assisting areas set up BIDs (see,
http://www.nyc.gov/html/sbs/html/neighborhood_development/bids.shtml
)
BIDs bring together private property owners and business owners with the
city to collectively work to improve the maintenance, security and
promotion of their commercial district, which in turn catalyzes other
economic development in the surrounding areas.
B. Revitalization District: ARS 48-6801 et seq requires property owners of
51% of the net assessed value of the property to be included in the district
to consent; a board is selected by the municipality, and thereafter the
board may make decisions on behalf of the district including taxing and
entering into debt on behalf of the district
Relatively new in AZ. Flagstaff adopted a Revitalization District in
February, 2014: $127,000 in seed money from the City of Flagstaff and
then an assessment to be paid by property owners in the area (39 cents per
$100 assessed value). See, http://azdailysun.com/news/local/govt-and-
politics/flagstaff-city-council-approves-downtown-improvement-
district/article_fb73a0fa-8efe-11e3-8c0a-001a4bcf887a.html
2. Other states: Massachusetts (CARD – used by municipalities to channel
private and public investment into targeted areas in order to redress the
economic decline and physical deterioration that accompanies
disinvestment); Baltimore County, Maryland (Commercial Revitalization
Program --
http://www.baltimorecountymd.gov/Agencies/planning/neighborhoodresp
onse/commrevitalization/); Indianapolis
(http://www.indy.gov/egov/city/dmd/ed/new_expanding/revitalization/Pag
es/home.aspx).
C. Tax Increment Financing (TIF): Arizona is the only state to fail to adopt
legislation enabling this tool (see, CDFA’s resource,
http://www.cdfa.net/cdfa/cdfaweb.nsf/ordredirect.html?open&id=tifrc.htm
l). Three municipalities have their own TIF districts tied to sales tax
(Tucson, Apache Junction, and Casa Grande).
TIF can be attached to property tax (freeze assessed value at a certain date,
and then as the property gains value, the delta is collected by the district to
use for infrastructure and other costs of development). TIF can also be
attached to any other taxable item, such as sales tax.
From Tucson’s Rio Nuevo website (http://rionuevo.org):
In 1999 Tucson voters approved the creation of a new TIF district; the Rio
Nuevo Multipurpose Facilities District. This vote authorized the new TIF
district to receive State-shared funds derived from transaction privilege
taxes (i.e. sales tax) collected from within the District’s boundaries under
the authority of the City of Tucson. The taxpayers approved the TIF
district’s $80 million dollar project to revitalize Tucson, however, the City
of Tucson’s controlled Rio Nuevo spent $230 million dollars and
abandoned many of the voter’s projects so the legislature took control.
The Governor and state Legislature took the oversight away from the City
of Tucson, with overwhelming support on a vote of 51-4 in the House and
23-4 in the Senate, after 10 years of mismanagement, incomplete projects,
and millions of dollars by the City of Tucson.
The bill created a newly reconstituted Rio Nuevo District Board under the
State’s authority in March of 2010. The Governor, the President of the
State Senate, and the Speaker of the State House of Representatives now
appoints the members of the Board of Directors of the Rio Nuevo
Multipurpose Facilities Districts. The Board of Directors consists of up to
nine board members and five of the board of directors must reside in the
municipality in which the district is located.
D. Central Business District/GPLET: required to be in a designated
Redevelopment Area (defined in ARS 36-1479 as an area designated by
3. the governing authority as a slum or blighted area), and each city may
have one contiguous “Central Business District” within the
Redevelopment Area within which GPLETs may be offered pursuant to
ARS 42-6201 et seq.
E. New Markets Tax Credits (NMTC): Federal program of tax credits for
commercial development in distressed areas.
http://www.cdfifund.gov/what_we_do/programs_id.asp?programID=5
F. IDAs – Private Activity Bonds (ARS 35-701 et seq, 35-901 et seq):
G. Historic Tax Credits: Federal program of tax credits for the rehabilitation
of historic structures. http://www.nps.gov/tps/tax-incentives.htm
H. Funding options through HUD (CDBG programs): many options through
municipality
The lights are much brighter there
You can forget all your troubles
Forget all your cares and go
Downtown, things'll be great when you're
Downtown, no finer place for sure
Downtown, everything's waiting for you
Downtown