The following are brief summaries recent Value Capture applications employed by local governments.
Value Capture Strategy- Transportation Benefit District: City of Kirkland Council, Washington seeks to accelerate investments that will give students, families, and workers safe bicycle and pedestrian routes for getting to school, stores, and offices. To pay for Safer Routes to School and Active Transportation investments, the Kirkland City Council adopted a $20 vehicle licensing fee that will go into effect starting January 1, 2024. The City Council governs Kirkland's existing Transportation Benefit District (TBD) authority. The projected annual revenue is approximately $1.3 million. This new revenue would be used to accelerate the implementation of priority projects identified in the Safer Routes to School Action Plans, the Vision Zero Plan, the Active Transportation Plan, and other transportation projects. The investment would pay for 45 projects that would make walking and bicycling around Kirkland's 15 elementary schools and its business districts a safer and more feasible transportation choice for students, families, and workers It will also pay for a dedicated tree and median maintenance crew, as Council seeks a renewed focus on the maintenance of medians and sidewalks throughout the City, and particularly downtown. Visit the City of Kirkland website for additional information.
Value Capture Strategy-Business Improvement District (BID): City Council passed legislation approved the Pennsylvania North Broad Street BID on Thursday November 17, 2022, designed to improve public safety and quality of life in North Central Philadelphia. A new law established a neighborhood business improvement district in an area bounded roughly from Erie Avenue to Spring Garden Street. The legislation allows the nonprofit to assess taxes from businesses in the district to support street cleaning, beautification and public safety. The costs will be passed on to business owners, renters, and customers. Fees are determined by assessed property owners value to pay an annual fee to fund the BID, which depends on an assessment of the property’s market value. It anticipates raising $816,000 in the first year of the BID while it covers 256 properties, but also expects nearly $100,000 of nonpayment. The median payment for these properties would be assessed at around $400, because some properties will have higher values, but the average assessment would be about $3,200 per year. Additional information can be found at the North Broad Renaissance website, http://northbroad.org/north-broad-bid/
Value Capture Strategy-Tax Increment Finance (TIF): DeKalb County, Georgia Board of Commissioners unanimously approved the creation of the Southwest DeKalb Tax Allocation District (TAD). The boundaries of the Southwest DeKalb TAD consist of two areas connected by Flat Shoals Road. The western portion of the TAD runs along the DeKalb/Fulton county line on Moreland Avenue. It begins south of East Atlanta Village and ends at Interstate 20 while stretching west to Clifton Springs Road. The TAD also dips south of Interstate 20 to include the Sugar Creek area. The eastern portion of the TAD runs along Candler Road—south of city of Decatur—and is concentrated between Glenwood Road and Interstate 285, with portions also stretching north and south of the corridor. The current Southwest DeKalb TAD area property value is appraised at $891 million. Decide DeKalb officials said the potential new redevelopment value is estimated at $1.3 billion and includes additional residential units, retail, general office, and industrial/studio space. Money accumulated through TADs can be used to finance development that otherwise wouldn’t occur. It can also finance public infrastructure improvements to stimulate more activity in the district. TAD is also known as tax increment financing. A TAD is a tool that governments use to help generate new economic development in underdeveloped or distressed areas. Visit the DeKalb County Website for additional information.
Value Capture Strategy-Tax Increment Finance (TIF): The Michigan Traverse City Downtown Development Authority (DDA) voted unanimously Friday to take the next step towards extending downtown’s tax increment financing (TIF) 97 plan for another 30 years – sending it to a citizen council for review before it returns for formal DDA and city commission approval this spring. As part of the extension, the plan would be renamed Moving Downtown Forward and include a new list of projects that could be funded through TIF over the next three decades. Under state law, a Development Area Citizen Council – consisting of nine residents who reside within the TIF district – must review the new plan. DDA board members voted unanimously Friday to send Moving Downtown Forward to the council for review. Once formed, the council will likely review and make a recommendation on the plan in February. Moving Downtown Forward would then come back to the DDA board for formal approval in March, go to the city commission for a first look in April, and then be scheduled for a public hearing and city commission vote in May.
Value Capture Strategy-Tax Increment Finance (TIF): The Ohio Painesville Grand River Walk development approved for up to $6 million in financing. The Port of Cleveland Board of Directors recently authorized a bond issuance for the Grand River Walk development in downtown Painesville.
The approval allows the port agency, also known as the Cleveland-Cuyahoga County Port Authority, to issue up to $6 million in bonds for Marous Development Group’s $33 million project. The decision came after Painesville City Council unanimously approved a cooperative agreement between the city, port agency and Grand River Walk LLC on Dec. 4. City Manager Doug Lewis said at the time that funds raised from the project’s tax increment financing district will be used to pay the project bond.
“TIF districts allow taxes associated with any increased value in property to be used for public improvements like new roads and infrastructure upgrades,” stated the city website.
Value Capture Strategy-Tax Increment Finance (TIF): At the December 11 City of Highland Park, Illinois Council Regular Meeting, the City Council unanimously approved the creation of the Briergate Tax Increment Financing (TIF) District. The Briergate TIF District was created to support the cost of infrastructure improvements for the Briergate Business District (BBD) in order to encourage investment and revitalization. TIF funds will be used in conjunction with revenue from an existing Special Service Area (SSA) which was established in 2014 and will run through 2023 in the BBD. The City collects SSA funds from property owners within the BBD to help share the cost of physical improvements and marketing. Per State Statute, TIF designations run for a 23-year term unless terminated sooner by the designating municipality. TIF funds will cover the cost of improvements that could not otherwise be funded by the SSA. The City worked in collaboration with its sister governments, the Park District of Highland Park and school districts 109, 112 and 113 pertaining to the TIF review and assessment. The City of Highland Park, school districts 109, 112, and 113, and the Park District of Highland Park all unanimously approved an intergovernmental agreement recently at their respective public meetings which memorializes the parties’ support for the Briergate TIF District, sets forth mutual agreement concerning the use of TIF revenues, and establishes a process for reviewing the success of the TIF District. For additional Information, visit the City of Highland Park website.
Value Capture Strategy-Tax Increment Finance (TIF): The Pierre City, South Dakota Commission has approved (Dec. 4, 2023) creation of a new Tax Increment Financing District for the development of an apartment complex in northeast Pierre. A TIF is an economic development tool that allows a portion of the property tax collected within the district to be used for a limited amount of time to help finance the project. Stencil Group, a Sioux Falls-based developer, is requesting the TIF for the 100-plus unit apartment complex they’re building off of Abbey Road, immediately southwest of City Hall. Once completed, the development is estimated to be worth over $20 million. This TIF will end in 20 years, however estimates indicate the debt will be retired in about 12 years, allowing the school, the county and city to benefit from that property tax increase as soon as 2035. The payoff is expected to be fulfilled early because Stencil only anticipates using about $762,000 of the eligible $1.2 million TIF tax deferment. https://drgnews.com/2023/12/22/new-multifamily-housing-development-coming-to-pierre
Value Capture Strategy-Mobility Impact Fees: City of Fort Myers, Florida is seeking new ways to help pay for the impact of new development such as mobility fees. Currently using transportation impact fees through the Lee County’s program, the city is now looking into a mobility fee ordinance.
The impact fee is very strictly regulated on where they can be used and how they can be used. It’s really limited to road improvements, signalizations, intersection improvements, turn lanes, etc. Anything that’s going to improve the capacity and improve the efficiency of that road network. In contrast to the limited uses of impact fees, mobility fees open a new world of possibility beyond just road improvements. They can be used for bicycle/pedestrian facilities, transit-related facilities and adding trails and transit-type systems in addition to road improvements. For additional information, visit the City of Fort Myers website.
Value Capture Strategy-Asset Recycling, Sales Cincinnati Southern Railway. The Cincinnati voters approved the sale of the city-owned Cincinnati Southern Railway (CSR) to Norfolk Southern on November 7, 2023. CSR was created by an Ohio law enacted in 1869. In November 2022, Norfolk Southern agreed to acquire CSR, a 337-mile freight railroad that runs between Cincinnati and Chattanooga, Tennessee for USD 1.6 billion. Norfolk Southern Railway operates the railroad under a lease agreement. Currently, the city makes roughly $25 million annually from leasing the railway. Cincinnati officials plan to use the proceeds of the sale to establish an infrastructure fund. Norfolk Southern will now work with the city to finalize the sale, which is expected to close in the first quarter of next year, the spokesperson said. Visit the city website for additional information.
Value Capture Strategy-Tax Increment Finance (TIF): On October 30, 2023, the Illinois Village Board of Trustees approved a new Northbrook Court II TIF. Prior to October 30th, the required Joint Review Board meeting was held on July 18, 2023, to discuss eligibility requirements and criteria. Subsequently, a required public hearing for establishing the new TIF was held on August 22, 2023. In conjunction with approving a new Northbrook Court II TIF, the Village Board of Trustees also approved a new Business District for the same commercial parcels within the new TIF which will allow for an assessment of a separate 1% business district tax on retail sales. This business district tax will be above and beyond typical sales taxes assessed and be used towards the developer incentives. For Additional Information, please visit the City pf Northbrook website.
Value Capture Strategy-Transit Development District (TDDs): Indiana State Budget Committee endorses three new transit development districts. The State Budget Committee has authorized the establishment of Transit Development Districts (TDDs) near three commuter rail stations along the existing South Shore Line and its under-construction West Lake Corridor.
The Hammond South, Gary Metro Center and Dune Park TDDs designated and approved Oct. 12 by the Northwest Indiana Regional Development Authority (RDA) following multiple opportunities for public input. Within each TDD — which can cover a maximum of 320 acres or 1/2-square mile of territory — the growth in property and local income taxes over the next two decades will be used to promote transit-oriented development in connection with the $1.5 billion expansion of the South Shore Line. The three new TDDs are expected to attract as much development, or more, bringing new residents to the Region and creating thousands of new jobs — especially in downtown Gary where Senate Enrolled Act 434 (2023) also is funding blight elimination and a new transit hub. The TDD is defined by a contiguous boundary drawn around a station area. It must be no more than 0.5 square miles (320 Acres) in area. They provide economic tools and strategies to support local communities to implement high-quality transit-oriented development. They capture the incremental growth in local income and property tax revenue, for use in public investment related to the station area. After consultation with local communities, two public hearings must be held before the RDA approves the TDD boundaries for review and approval by the State Budget Committee. Revenue collected from the district is spent in the district. Local community retains land use and zoning control.
Value Capture Strategy-Transportation Benefits District (TBD): On Tuesday, Oct. 30, 2023, The Washington Spokane Valley City Council voted 6-1 to create a transportation benefit district. Having a transportation benefit district will allow the City Council to implement a sales tax or a fee on license plate tabs, the small stickers people receive every year when they pay to renew their vehicle registration. The City Council will likely discuss its taxation strategy in the near future. The City Council, to some extent, can impose new taxes or fees without voter approval. But if council members want to generate the maximum amount of money possible, they will have to receive direct approval from voters through a ballot measure. State law allows the City Council to impose a fee on license plate tabs up to $50 without voter approval. Voters can authorize a fee up to $100. State law also allows city councils to implement sales taxes to fund road work. The Spokane Valley has the option of implementing a 0.1% sales tax without voter approval. Voters can approve a tax of up to 0.3%. Many Washington cities with transportation benefit districts have either 0.1% or 0.2% sales taxes for road preservation and maintenance. A 0.1% sales tax in the Valley would bring in about $3.8 million annually. Spokane Valley council okays $20 car tab fee to fund new transportation district, Dec 13, 2023
Beginning next summer, owners of vehicles registered within the city of Spokane Valley will pay an extra $20 fee when they renew their annual license tabs.
In a 4-3 vote Tuesday evening, city council members approved the tab fee to fund a new transportation benefit district that will use the dedicated revenues for street repairs and maintenance. Supporters of the measure say it will reduce transfers from the city’s general fund that subsidizes such work, freeing up those monies for other uses such as public safety or hiring police officers. The new vehicle tab fee is scheduled to take effect on July 1, 2024. It’s expected to generate an estimated $2.8 million in revenue during the first full year of collection in 2025, said deputy city manager Erik Lamb.
Value Capture Strategy-Tax Increment Financing (TIF) District: The City Council on Tuesday afternoon approved a Tax Increment Financing (TIF) District that will include both The Bend at the former Alstom site and the Westside, where the current College Hill Courts is set to be replaced with a new residential section. The County Commission on Wednesday morning also voted to approve the sprawling TIF District.
It is set, when fully developed, to bring up to $2.5 billion in new development, including several hotels and a mix of residential and retail development, officials said. It will also include several high-rise buildings near the river. The City Council also passed a resolution in support of the Chattanooga Housing Authority's $50 million application for a federal CHOICE grant needed to make the Westside project a reality. City Council Chair Raquetta Dotley added several amendments that she said were aimed at insuring that all current Westside residents could stay on the property if they wish.
Value Capture Strategy-ROW Agreement, Cleveland Greenlights Citywide Fiber-Optic Internet Expansion. The Cleveland, Ohio City Council on Monday October 3, 2023, approved a 30-year agreement with SiFi Networks to build an ultra-fast fiber network for residences and businesses. SiFi Networks is promising to invest hundreds of millions of dollars laying fiber throughout Cleveland, without subsidies from the city, that could help connect residents and businesses. The city’s development agreement with SiFi Networks smooths the way for the company to lay cable beneath roads and tree lawns. The company plans to spend $500 million on the project without asking for city subsidies, SiFi Networks President Scott Bradshaw told council. The for-profit company plans to recoup its costs by charging internet service providers and others to access the network. Visit the Cleveland City website for additional information.
Value Capture Strategy-Transportation Improvement District (TID), Trumbull County TID, Ohio. The Commissioners voted to approve a five-member Trumbull County Transportation Improvement District (TCTID) that will enable the county to annually apply for transportation-related grants that can range from $250,000 to $500,000. The three commissioners unanimously approved the TCTID which would make Trumbull eligible for state grants designed to promote economic development in terms of job creation, job retention and private sector capital investment.
The state makes available up to $4.5 million per year for areas with qualified TIDs, which allows county governments to submit proposals valued up to $500,000. TID funding can be used on all publicly owned Ohio roads. Districts are permitted to submit multiple applications per round. This money can be used for “preliminary engineering, detailed design, right-of-way or construction of transportation improvements.”
A possible project list for the district would include Educational Highway improvements and signalization, Research Parkway improvement, improvements at the Mines Road and state Route 46 intersection; improvements at the state Route 46 and Howland Springs intersection; resurfacing and upgrades at Deforest and Burton Road; as well as other projects, according to Commissioner Niki Frenchko.
Value Capture Strategy-Development Agreement & Tax Increment Finance (TIF) Overlay District. The city of Cleveland and Bedrock, Ohio have put the framework together for the $3.5 billion Cuyahoga Riverfront development project. On Monday, Cleveland City Council approved a master development agreement (MDA), which the city says aligns with Bedrock's Cuyahoga Riverfront master plan, which was first unveiled in December of 2022. The multi-year plan, "a 15-to-20-year vision," reimagines and transforms 35 acres along the riverfront, including Tower City Center and the surrounding landscape with the core tenets of "accessibility, equity, sustainability, and resilience." The MDA is the first to be established under the city’s new community benefits package. Under the ordinance passed by Council on Sept. 24, Bedrock and the city would enter one or more community benefit agreements to maximize opportunities for minority-owned and female-owned small businesses as well as incorporate the city’s sustainability and affordable housing goals into the project.
The city of Cleveland says it will explore creating a "Shore-to-Core Tax Increment Financing Overlay District" (TIF), a designated area where new taxes generated by an increase in property values contribute to a public improvement fund. This would be the first time it has looked to use a TIF on such a large scale. In addition to riverfront and lakefront infrastructure, some of the dollars generated through the TIF will be spent in neighborhoods across the city, funding upgrades to public spaces and other improvements.
Value Capture Strategy-Public Improvement District (PID). The San Antonio, Texas City Council approved today the reauthorization of the Downtown Public Improvement District (PID) to provide maintenance, beautification, and landscaping; hospitality ambassador services; and programs and other services such as the marketing and promotion of downtown, community events and programs, and economic development for downtown businesses. The Downtown PID term runs October 1, 2023, through September 30, 2033. The assessment is $0.15 per $100 of valuation for commercial properties and $0.045 per $100 of valuation for residential condominiums that have a homestead exemption. To learn more and view a map of the Downtown PID, see the Fiscal Year 2024 Service and Assessment Plan
Value Capture Strategy-ROW Agreement, Google Fiber in Shavano Park City, Texas. On Monday, September 18, the Texas Shavano Park City Council approved a right-of-way access agreement with Google Fiber. Google Fiber has told the City their intentions is to build out to all neighborhoods and residential areas of the City – both HOA and non-HOA. Learn more about Google Fiber’s internet service offerings at https://fiber.google.com/cities/sanantonio/. This agreement covers all non-HOA areas of the City and Shavano Creek (which while being an HOA have public streets). Also, visit the city website for additional information.
Value Capture Strategy-Business Improvement District (BID), The Fourth Street BID. Grand Island, Nebraska City Council unanimously approved the Fourth Street BID on Tuesday September 12, 2023. The district to run on Fourth St. from Eddy St. to Kimball St. The main goals are to beautify Fourth St., attract and support businesses, enhance safety, security, marketing, and promotion. The city would raise $40,000 through a special assessment against the property in the district. The city could get up to $175,000 more through grant funding. The state statutes allow for the creation of business improvement districts, as well as the expenditure of funds to improve facilities and public places in the districts.
Value Capture Strategy-Asset Recycling, Mixed-Use Development. The Chicago City Council has approved the mixed-use development planned at 1649 N. Halsted The long-debated mixed-use development is now fully approved. The project will replace the shuttered Royal George Theater and adjacent four-story structure to the south. The former theater space is now considered obsolete as it has been marketed to other theater companies including Steppenwolf and ultimately the size, capacity, and configuration in a post-COVID era make it undesirable to continue using it as a theater. The Alderman Hopkins officially gave his approval of the project after a contentious two years of negotiations and community meetings that resulted in some of the aforementioned design changes as well as a $300,000 investment that will go towards expanding a city park at the corner of North and Larrabee.
The building will stand eight floors high with a ninth partial floor that will hold amenity space and connect to an outdoor roof deck. Providing 131 rental units, the project’s unit mix will consist of 12 studios, 91 one-beds, 26 two beds and 2 three beds. Out of those units, 20 will be affordable with a mix of 2 studios, 14 one-beds, and 4 two-beds. To satisfy the remaining obligation of 6.2 units, Draper and Kramer will pay a fee in-lieu of $940,000.
Value Capture Strategy-Tax Increment Finance (TIF) Bonds, Rochelle, Illinois TIF District. At its meeting Monday, the Rochelle, IL City Council discussed the option of issuing alternate revenue bonds not to exceed $2.5 million for the purpose of paying the cost of improvements to the city's downtown tax-increment financing (TIF) district and resolved to move forward and look into the issue further. City staff has identified numerous infrastructure projects needed in the area such as site redevelopment, installation of parking lots and sidewalks, moving electric infrastructure underground, street reconstruction and other improvements. Those projects are usually funded by saving funds year over year.
Infrastructure projects have seen large price increases in recent years and those prices are expected to continue to rise in the coming years. City officials look to balance projects that improve public infrastructure and projects that work with developers for improvements to properties within the TIF that add increment. Visit the City of Rochelle website for additional information.
Value Capture Strategy-Brownfield Redevelopment The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is awarding a combined $3 million in brownfield redevelopment funding to 3 projects in the city of Muskegon. These projects are expected to draw $355.4 million in private investment and create more than 700 new housing units in the city.
Adelaide Point, 1204 West Western Avenue, Muskegon. This site on the south shoreline of Muskegon Lake was home to a foundry from the early 1900s until 2015, leaving it contaminated with PFAS, petroleum and solvent compounds, and metals. A $1 million EGLE Brownfield Redevelopment Grant will pay for the treatment of contaminated groundwater and the demolition of a concrete foundation. It will draw $82.40 million in private investment and create 100 full-time jobs. The Michigan Economic Development Corporation, the Michigan Department of Natural Resources, and the city of Muskegon are also providing financial incentives.
Former Shaw Walker, 965 West Western Avenue; 920 & 930 Washington Avenue, Muskegon. The historic former Shaw Walker Furniture Company is going to be turned into 552 units of new condos and apartments, a parking ramp, and more than 17,000 square feet of a new commercial space. The 11-acre site is contaminated with metals, petroleum compounds, solvents, and cyanide. The city of Muskegon says 85% of the buildings on the property are vacant or blighted, have asbestos and lead paint, and are considered a public safety hazard. A $1 million EGLE Brownfield Redevelopment Loan will be used for further investigations, the installation of vapor mitigation systems, abatement of asbestos and lead paint, and removal of wood block flooring. Overall, the project is expected to draw $163 million in private investment. Work paid for by the EGLE loan is expected to be finished by spring 2025..
Harbor 31, Viridian Drive & Terrace Street, Muskegon. A $1 million EGLE Brownfield Redevelopment Loan will help clear the way for new housing, a hotel, marina, boardwalk, and commercial space on Lake Muskegon. Continental Motors and Teledyne built engines on the site from the early 1900s until 1991. A $2.3 million state appropriation in 2021 paid for the removal of contaminated soil and wetlands mitigation. The EGLE loan will pay for further site assessments and the installation of a vapor mitigation system. The city has put $1 million into infrastructure improvements. The city expects the redevelopment to create 154 new housing units, 250 new jobs, and draw $110 million in capital investment. The project is scheduled to be finished by 2029.
Value Capture Strategy-Business Improvement District (BID). The South Dakota Pierre City Commission took the first step to establish Pierre’s third Business Improvement District (BID) by approving boundaries. The proposed hotel site at the old city hall area on Sioux Avenue is part of this district. “State law provides several tools to encourage private development,” said Pierre Mayor Harding. “A BID district is one of those that allows government to facilitate economic growth while holding taxpayers harmless.” A BID works as a self-imposed fee, often levied by the visitor industry. People renting rooms at the new hotel would pay a BID fee. Those fees are then obligated to cover development expenses. “The developers basically agree to set aside part of their room charges – the BID fee – to generate positive development of the community,” said Mayor Harding.
Next, the City Commission will consider a resolution of intent for the BID; it’s part of a two-step process for the formal establishment of the BID. The process involves a public hearing. Construction of the nearly 80-room hotel is scheduled to begin later this year.
Value Capture Strategy-Tax Increment Financing (TIF) District, Buffalo Grove Dundee Road TIF District. On August 21, 2023, the Illinois Village Board approved the establishment of the Buffalo Grove Dundee Road TIF District. The Village Board Agenda can be found here. To help spur private development, the Village is exploring a Tax Increment Financing (TIF) District along the Dundee Road. A TIF is a commonly used economic development tool, which helps municipalities make needed improvements (roads and sewers) or helps attract private development.
TIF generates a pool of money used for reinvestment within the TIF area. When a TIF district is created, the property values of the parcels within the district are set at a base equalized assessed value (EAV). Taxing bodies (Village, county, township, school districts, etc.) continue to collect property taxes based upon the base EAV. Any increase in the EAV generates the TIF increment, which is then available for projects within the TIF district.
TIF is not a new tax. Property owners within the district continue to pay their normal property taxes. At the end of the TIF district's 23-year life, all real estate tax revenues are again shared proportionately by the taxing bodies based on their individual tax rates.
Value Capture Strategy-Transportation Improvement District (TID). Ohio Governor Mike DeWine announced the investment of $3.5 million into 10 projects from Transportation Improvement Districts (TID) with one in each of 10 counties. The funds will cover project development and construction in 2024, 2025, and 2026. “These funds will ensure that our transportation system is keeping pace with Ohio’s growing economic needs,” said Governor DeWine. The Ohio Department of Transportation awards the funding to applications that support job creation and retention, economic development, intergovernmental cooperation, and private capital investment across Ohio. Of the funding, $1 million will fund development of projects while the remaining $2.5 million will fund construction. The projects range from roadway extensions to turn-lanes. The funding provided for each project is limited to $500,000 per fiscal year. This round of funding helps fund projects that will support 16 businesses, creating 809 jobs and retaining another 650. For additional information visit the Ohio State website locates.
Value Capture Strategy-Special Assessment, Clean Energy: The Allegheny County Centre, Pennsylvania City Tower got $5M in upgrades with the help of Commercial Property Assessed Clean Energy (CPACE). Douglas Development Corporation plans to upgrade the elevators and plumbing and install new HVAC units and lighting at the 26-story Centre City Tower at 650 Smithfield St. with the help of the county’s CPACE. Douglas will borrow $5 million from a private firm and pay it back through a voluntary assessment on the property offered through the C-PACE program, administered through the county’s redevelopment authority. Commercial, industrial, and agricultural property owners are eligible to finance energy-saving improvements through C-PACE. Loans are repaid through their annual real estate tax bill. The Centre City Tower improvements first-year energy savings are valued at $74,000.
Value Capture Strategy-Tax Increment Financing (TIF) and Community Improvement District (CID): Governor Laura Kelly has launched the $2 billion redevelopment project at Brookridge, Overland Park, now known as Meridian. Work has started on the long-stalled $2 billion Brookridge redevelopment, nine years after the Overland Park project was proposed. The 20-year tax increment finance (TIF) agreement will redirect increases in property taxes to pay for development costs, and the CID allows for an additional 1.5% sales tax in the district. Governor Laura Kelly joined Curtin Property Company, Johnson County government officials, and business leaders today to celebrate the redevelopment of Brookridge at 103rd Street and Antioch Road in Overland Park. The $2 billion project is one of Kansas’ largest and most ambitious mixed-use developments. In addition to the groundbreaking, there was an unveiling of the property’s new name – Meridian. The first development phase includes infrastructure work, two mixed-use residential/retail buildings, a grocery store, retail and restaurants, and usable green space. The project is the recipient of $10 million in grant funding from the Kansas Department of Commerce’s Building a Stronger Economy program. In addition, an $8 million grant from the Kansas Department of Transportation’s Economic Development Program was awarded to prepare roads, sewer drainage, and other infrastructure. Completion of the infrastructure and utility work is expected in fall 2024. The development will feature 4.8 million square feet of office capacity, high-quality urban living spaces with 2,000 apartments, two hotels, and extensive retail, restaurant, and entertainment venues. The 200-acre property will focus on health and wellness, including more than 100 acres of usable green space featuring fountains, recreational golf, fitness facilities, walking paths, connections to hiking and biking trails, and forested and open lawns. Meridian is anticipated to accommodate more than 16,000 jobs in the office and retail spaces.
Value Capture Strategy-Tax Increment Financing (TIF) District: The Oklahoma City Council voted 7-2 Tuesday August 15, 2023, to allocate up to $200 million in tax increment financing over 25 years and reimbursement of sales tax and use tax generated capped at $5.5 million during construction for a $736 million urban infill project at the southwest corner of Bricktown Boardwalk project.
The proposed two million square foot project is planned for four acres in the district’s southwest corner. It could become one of Oklahoma City's largest tax increment financing agreements. The $736 million development would include housing (900 apartments), a hotel, multiple commercial spaces, as well as two underground parking garages with 890 public parking spaces on three-quarters of one block.
The Bricktown project build is expected to begin next summer, with the first phase completed in about two years, followed by two more phases that could take up to six years to finish.
August 8, 2023
Value Capture Strategy-Community Development District (CDD), Shingle Creek Transit and Utility Community Development District: Universal Studios is asking the Orange County, Florida Commission for a district of its own.
The proposed Shingle Creek Transit and Utility Community Development District (CDD). The CDD would help Universal fund public infrastructure around its upcoming Epic Universe through tax-exempt bonds and special assessments. The new theme park is under construction and — based on corporate information from last year — is expected to open by the summer of 2025. The CDD would cover 719 acres – including about 384 acres of actual development -- south of Sand Lake Road and west of John Young Parkway. Through 2029, it would fund $174 million in capital improvements, like drainage, water reclamation and a transit station. In a memo, Deputy County Administrator Jon V. Weiss, said the improvements will be owned, operated, and maintained by the CDD or, by agreement, other public entities, to include major transit improvements such as station and tracks related to Lynx and the Sunshine Corridor, and certain improvements related to Destination Parkway, Epic Boulevard, and the Southwest Regional Water Reclamation Facility.
Value Capture Strategy-Transportation Mobility Tax: New York law increases the Metropolitan Commuter Transportation Mobility Tax for certain New York counties effective July 1, 2023. On May 3, 2023, New York Governor Kathy Hochul approved Senate Bill 4008 which, effective July 1, 2023, increases the top rate for the Metropolitan Transportation Mobility Tax (MCTMT) from 0.34% to 0.60% for employers and individuals in certain New York counties and clarifies the application of the tax for limited partners.
Value Capture Strategy-Tax Increment Financing (TIF) District: The City Council on Tuesday afternoon approved a Tax Increment Financing (TIF) District that will include both The Bend at the former Alstom site and the Westside, where the current College Hill Courts is set to be replaced with a new residential section. The County Commission on Wednesday morning also voted to approve the sprawling TIF District.
It is set, when fully developed, to bring up to $2.5 billion in new development, including several hotels and a mix of residential and retail development, officials said. It will also include several high-rise buildings near the river. The City Council also passed a resolution in support of the Chattanooga Housing Authority's $50 million application for a federal CHOICE grant needed to make the Westside project a reality. City Council Chair Raquetta Dotley added several amendments that she said were aimed at insuring that all current Westside residents could stay on the property if they wish.
Value Capture Strategy-Development Impact Fees (DIF): On April 20, 2023, the Washington Governor approved the SB 5452 which effective on July 23, 2023. It authorizes cities to use transportation impact fees on bicycle and pedestrian facilities not within road right-of-way. The bill aims to provide increased flexibility, so that cities have the funding and facilities necessary for the continued growth and success of alternative commuting options. Impact fees are local government-assessed charges on developers that are used to pay for the cost of providing public facilities – like roads, schools, and parks – for the new development. Currently, impact fees can only be used to fund bicycle or pedestrian infrastructure that’s part of a street or road. Additional information of Senate Bill 5452 can be found at https://lawfilesext.leg.wa.gov/biennium/2023-24/Pdf/Bills/Senate%20Passed%20Legislature/5452.PL.pdf
Value Capture Strategy-Community Benefit District (CBD), Excelsior CBD, San Francisco, California. The Office of Economic and Workforce Development and the Excelsior Community Benefit District Steering Committee announced the creation and establishment of the Excelsior Community Benefit District (ECBD) on July 11, 2023. With a 63% weighted majority vote, property owners approved the formation of the Excelsior Community Benefit District. The CBD’s objectives will ensure the cleanliness, physical maintenance, and support marketing initiatives in a significant portion of the Excelsior commercial corridor along Mission Street. CBDs are public-private partnerships in which property and/or business owners elect to make a collective contribution to the maintenance, development, and promotion of their mixed-use neighborhood through a special assessment to the property or business. CBD/BIDs are uniquely positioned to address hyper-local, neighborhood-specific needs. The Excelsior CBD will raise approximately $349,500 in annual special assessments to properties to carry out its management plan over the next ten years. For additional information, visit City of San Francisco website.
Value Capture Strategy-Solar Farm on Public Owned Land Leases, Lease granted to solar developer for Youngs Avenue landfill site, NY: The Riverhead Town Board authorized a lease agreement last week with CVE (Changing Visions of Energy) North America, a part of the French solar conglomerate CVE Group, to develop a solar energy facility at the site. The term of the contract is for 25 years after the facility is granted occupancy, or two years after construction has begun. The contract includes the option to extend the contract for five years twice. According to the terms of the contract, the developer is participating in PSEG Long Island’s Community Solar program, which allows a land or building owner to receive credit on their electric bill in exchange for allowing a private developer to build solar panels on their property.
During the “construction period,” the developer will pay the town $3,000 per year. The construction period will be for no more than two years or when the development receives its Certificate of Occupancy. When the construction period ends, the “operating term” will begin, and the town will receive a one-time payment of $10,500 per megawatt. Rent for the developer will be $22,000 per megawatt per year for the first 15 years, with the price increasing $20,000 in the years following. The rent will also increase by 2% annually.
Other rent will be paid on the property to the town’s special districts and through a Payment In Lieu of Taxes (PILOT) agreement along with the Riverhead Central School District, according to the lease agreement. No PILOT agreement was attached to the resolution.
Utility giant NV Energy placed the winning bid for two leases auctioned in the Amargosa Valley Solar Energy Zone, a designated solar leasing area in Southern Nevada with high solar potential and what the Bureau of Land Management in a 2012 analysis characterized as an area of low resource conflict. The utility company, owned by billionaire Warren Buffett’s Berkshire Hathaway Energy, secured 7,226 acres of land across the two parcels for a combined $81.85m. Both parcels are located in Nye County near the California border. The closest towns to the designated solar zone are Beatty, about 11 miles north, and Amargosa Valley, about 12 miles southeast.
Boulevard Associates, a subsidiary of Florida energy supplier NextEra Energy, won a conditional lease for one 10,129-acre parcel with the high bid of $21 million. The remaining 6,320-acre parcel was awarded on a conditional basis to Leeward Renewable Energy subsidiary Silver Star Solar under a $2.3 million bid.
Value Capture Strategy- Transportation Benefit District (TBD): The City of Covington, Washington established a Transportation Benefit District (TBD) effective July 1, 2023. Sales and use tax within the City of Covington will increase one-tenth of one percent (.001). The tax will be used for transportation services. Businesses must collect the appropriate new rate of sales tax for retail sales and services provided within the City of Covington (1712). A Transportation Benefit District is an independent taxing district authorized by state law for the sole purpose of transportation improvements within the district. A TBD is an independent taxing district that can impose specific taxes or fees, either through a vote of the public, or through district board action. TBDs are flexible-they allow cities and counties to work cooperatively or independently to address both local and regional transportation challenges.
Persons or businesses within the City of Covington is subjected to the new rate of use tax on items purchased for their personal or business use if sales tax has not been paid. For additional information, visit the City website.
Value Capture Strategy- Transportation Benefit District (TBD): The City of Napavine, Washington Transportation Benefit District was Effective July 1, 2023. Sales and use tax within the City of Napavine will increase one-tenth of one percent (.001). The tax will be used for transportation services. Businesses must collect the appropriate new rate of sales tax for retail sales and services provided within the City of Napavine (2105). For additional information, visit the City of Napavine website.
Value Capture Strategy- Transportation Benefit District (TBD): The City of Roy, Washington Housing and Related Services Tax Car Dealers and Leasing Companies. Effective July 1, 2023, local sales and use tax within the City of Roy will increase one-tenth of one percent (.001). The tax will be used for housing and related services. Businesses must collect the appropriate new rate of sales tax for retail sales and services provided within the City of Roy.
The three-tenths of one percent (.003) Motor Vehicle Sales/Lease applies to the sale, lease, or rental of motor vehicles. To determine the proper codes and rates of local sales tax you may access Tax Rate Lookup Tool. Please go to dor.wa.gov for additional information.
Value Capture Strategy- Transportation Benefit District (TBD), City of White Salmon, Washington Transportation Benefit District: Effective July 1, 2023, the City of White Salmon will establish a Transportation Benefit District (TBD). Sales and use tax within the City of White Salmon will increase one-tenth of one percent (.001). The tax will be used for transportation services. Businesses must collect the appropriate new rate of sales tax for retail sales and services provided within the City of White Salmon. It is projected than this additional sales tax would generate $72,791 in annual revenue, or nearly $728,000 over the 10 years it can be in effect. The funds can only be used by the TBD on allowed transportation improvements. The .1% sales tax goes into effect July 1, 2023.
To determine the proper codes and rates of local sales tax you may access our Tax Rate Lookup Tool located at dor.wa.gov/TaxRateLookup. This notice is being sent to businesses that have reported local sales or use tax to the City of White Salmon within the last year. If you have any questions or Sales Tax Collection Schedules, please go to web site at dor.wa.gov.
Value Capture Strategy- Transportation Benefit District (TBD), City of Woodland, Washington Transportation Benefit District: Effective July 1, 2023, the City of Woodland will establish a Transportation Benefit District (TBD). Sales and use tax within the City of Woodland will increase one-tenth of one percent (.001). The tax will be used for transportation services. Businesses must collect the appropriate new rate of sales tax for retail sales and services provided within the City of Woodland (0805). Persons or businesses within the City of Woodland will be subject to the new rate of use tax on items purchased for their personal or business use if sales tax has not been paid. Any questions or Sales Tax Collection Schedules, please go to web site at dor.wa.gov.
Value Capture Strategy- Transportation Benefit District (TBD), City of Woodland Transportation Benefit District Car Dealers and Leasing Companies: Effective July 1, 2023, local sales and use tax within the City of Woodland will increase one-tenth of one percent (.001). The tax will be used for transportation services. Businesses must collect the appropriate new rate of sales tax for retail sales and services provided within the City of Woodland. Businesses that report sales or leases of motor vehicles (for up to the first 36 months of the lease) will need to report using the following location code and tax rate. After the first 36 months of motor vehicle leases, the original city code should be used.
The three-tenths of one percent (.003) Motor Vehicle Sales/Lease applies to the sale, lease, or rental of motor vehicles. For additional information or Sales Tax Collection Schedules, please go to web site at dor.wa.gov.
Value Capture Strategy-Urban Renewal District/Tax Increment Financing District: The city of West Linn, Oregon Council adopted a tax increment financing district in 2023, including the Waterfront Planning Area, Historic Willamette Commercial District, and the Commercial District north of I-205. A final TIF Report has been produced by our consulting team, this report includes a detailed analysis of anticipated funding amounts and information on the proposed projects that could be funded using TIF dollars. The process for approval included the following steps, in accordance with ORS 45.
The West Linn Willamette TIF Area Plan Area consists of approximately 333.8 acres, which is composed of 161 individual parcels encompassing 197.41 acres, and an additional 136.30 acres in public rights-of-way. It is anticipated that the West Linn Willamette TIF Area Plan will take thirty years of tax increment collections to implement. The maximum amount of indebtedness that may be issued for the Plan is not to exceed $76,100,000 (Seventy-Six Million One Hundred Thousand dollars).
Value Capture Strategy-Transportation Benefits District (TBD). On June 20, 2023, at the City of Redmond, Washington regular business meeting, the City Council unanimously vote adopted by a 6-1 vote an ordinance imposing a 1/10th of 1% sales tax in the City of Redmond. The TBD will fund maintenance and improvements to city streets, public transportation, strategies to maximize safety and traveling choices, parking facilities, and other transportation projects designed to reduce congestion. Transportation Benefit Districts are independent taxing authorities that can fund specific transportation efforts established by cities and counties. TBDs primarily raise money through sales and use taxes or vehicle license fees, and Redmond’s TBD will impose a 0.1% sales tax on taxable sales within the city limits to raise funds. Learn more about TBDs from the Municipal Research and Services Center
Value Capture Strategy-Tourism Improvement District (TID): Last night’s vote by the Virginia Richmond City Council to approve an ordinance allowing for a hotel assessment marks the final step for passage of a new Tourism Improvement District (TID) in the region. Richmond’s TID is the first in Virginia. Hotels with 41 rooms or more within the TID will charge a 2% fee on nightly rates, which is expected to generate as much as $8.2 million annually to support the promotion of the region as a leisure, conference, and sports tourism destination. The city of Richmond joins the counties of Chesterfield, Hanover, Henrico, and the town of Ashland in approving the TID. Collection of the assessments will begin July 1, 2023. The initial term is 10 years, subject to renewal. The approvals mean the Richmond Region represents the first group of jurisdictions in Virginia to enable a TID. The funds generated through the TID assessment can be used only for specific purposes related to driving visitation and hotel occupancy. The fee will be paid by hotel guests.
Travelers staying at most Richmond-area hotels starting Saturday will be subjected to a new fee that will pay for regional tourism marketing efforts. It is the first such funding arrangement in the state. Officials in Chesterfield, Hanover and Henrico counties and Richmond and Ashland approved charging the 2% fee on nightly rates to support the Tourism Improvement District. The district is projected to add about $8 million annually to the budget of Richmond Region Tourism, the administering nonprofit organization for the program. Funds will go to marketing, bids, and logistics help. The 2% fee on hotel stays will go on top of an 8% transient occupancy tax for localities. The tourism fee would increase the cost of a $150 stay by about $3.
Value Capture Strategy-Solar Farm on Public Owned Land Leases, Nevada Energy adds 7,000 acres to existing Nevada Solar Farm: The utility’s winning bids - giving NV Energy the right to develop on, but not own, the land — totaled $81.9 million for two parcels, encompassing 7,226 acres in Nye County. The parcels, which are controlled by the Bureau of Land Management, are located within the Amargosa Valley solar energy zone, about 11 miles south of the town of Beatty and next to U.S. Highway 95, according to a news release from the U.S. Department of the Interior. The land will help NV Energy meet the state goal of generating 50 percent of its energy from renewable sources by 2030, Meghin Delaney, media relations manager for NV Energy, said. NV Energy would eventually recover the $81.9 million it spent on the parcels from Nevada ratepayers. The utility plans to recover the costs of securing the land once development on the parcels begins, Delaney said.
NextEra Energy Resources paid $21 million to lease a 10,129-acre parcel and Silver Star Solar paid $2.3 million for a 6,320-acre parcel. Since both of these parcels are outside the solar energy zone the winning bidders will need to submit a right-of-way application and development plan to the BLM.
Value Capture Strategy-Tax Increment Reinvestment Zones (TIRZs), Connecting Communities, Paving the Way Uniting Houston through a Shared-Use Path on Allen Parkway: Two Houston-area reinvestment zones, namely the Downtown Redevelopment Authority (DRA) and the Memorial Heights Redevelopment Authority (MHRA), have joined forces to collaborate on the development of a shared-use path along Allen Parkway. The shared-use path over Allen Parkway will be a multi-modal facility, accommodating both pedestrians and cyclists. It will be separated from vehicular traffic, ensuring the safety of those using the path. Additionally, the path will be ADA-compliant, making it accessible to individuals with disabilities. This inclusivity is a crucial aspect of Houston’s efforts in promoting active transportation, as it ensures that everyone can benefit from the city’s infrastructure improvements.
A project to reconstruct Montrose Boulevard could also include work on a new shared-use bridge over Allen Parkway at the Montrose Boulevard intersection. The proposed shared-use path would cross over Allen Parkway on the east side of Montrose Boulevard, according to agenda documents from the June 26 meeting. The bridge will be located in the gap between the Montrose Boulevard main lane bridge and the east-side Allen Parkway U-turn bridge. The proposed bridge would be roughly 95 feet long and, and the bridge clearance would be approximately 13 feet from the deck to Allen Parkway.
Engineering and design services will cost an estimated $267,500. Construction costs are to be determined. The Montrose TIRZ would take on the design and engineering, while the Downtown TIRZ would cover the bulk of the cost of the project, including the $267,000 design bill. The new bridge would be incorporated into the larger Montrose Boulevard project.
Sales tax renewal on November 2023 ballot; Value Capture Strategy- Transportation Benefit District (TBD), Monroe, Washington TBD: On June 6, 2023, the Monroe Transportation Benefit District unanimously approved a resolution (TBD 2023-001) that places a ballot measure to renew a 0.2% sales tax on the Nov. 7 General Election. Transportation Benefit Districts are governed by the rules established in state law (RCW 36.73.) A TBD is an independent taxing district that can raise revenue for specific transportation projects, usually through vehicle license fees or voted sales taxes. For Monroe, its TBD revenue is from sales tax. Funding can support the construction, maintenance, and operation costs associated with projects such as road resurfacing or reconstruction and sidewalk repairs. The 0.2% sales tax generates 2 cents of revenue for the TBD for every 10 dollars spent in the City of Monroe. This program receives approximately $1.4 million per year from sales generated within Monroe city limits.
As a separate taxing district from the city, the Monroe TBD is governed by a Board that meets up to two times a year to review revenues received, set its budget, and approve projects that will be funded by the TBD sales taxes. The Monroe TBD has entered into an interlocal agreement with the City which provides that the City will construct the TBD funded projects.
June 7, 2023
Value Capture Strategy-- Advertisings, Sponsorships, & Naming Rights: On Tuesday, the California Oakland City Council voted 6-0 to allow Becker Boards LLC and Outfront Foster Interstate LLC to remove 50 existing advertising signs throughout Oakland and replace these with 10 new double-sided digital billboards near freeways. Councilmembers Kevin Jenkins and Janani Ramachandran were not present for the vote. Three councilmembers who endorsed the deal when it was first proposed—Noel Gallo, Rebecca Kaplan, and Jenkins-said in a recent report these agreements will generate over $73 million in revenue for the city over 41 years. Becker and Outfront will also pay hundreds of thousands of dollars each year to several community service providers and offer free advertising for local chambers of commerce and community organizations. The city faces a record-breaking $360 million shortfall in its general fund over the next two years. Oakland officials approved a billboard development deal with two companies that will add millions of dollars to the coffers of the city and community organizations over the next four decades.
Value Capture Strategy-Development Impact Fees (DIFs): On March 6, 2023, The City of Commerce City, Colorado Council passed Resolution 2023-019, Ordinance 2391, and Ordinance 2390, revising the Road and Drainage Impact fees. The new fees go into effect May 1, 2023. The development of land creates new or increased demands on city facilities and services, including schools, roads, water, parks and recreation facilities. The costs of providing such additional services and facilities should be borne by those who create the need. Accordingly, developers are required to contribute toward meeting the increased public service needs.
Value Capture Strategy-Community Development District (CDD), Panama City approves nine community development districts in SweetBay: Panama City commissioners on Tuesday approved the final reading of a resolution to establish nine community development districts in the SweetBay area. These districts, which are known as CDDs, will be used to service residents and businesses within the area. The CDDs are being considered as a way to help speed up infrastructure developments in undeveloped portions of SweetBay. CDDs are governed by a board of supervisors, which are initially elected by landowners. Their positions then eventually transition to residents as the area develops. Each CDD would have its own board. The resolution establishes seven residential community development districts and two commercial community development districts. It was proposed as a way to help quickly develop underdeveloped portions of SweetBay. The proposed residential CDDs do not include any of the developed residential properties. The purpose of CDDs are to provide infrastructure, maintenance and services to residents and businesses within the district. The types of services and maintenance offered by CDDs includes stormwater management, water or sewer developments, and the building of new parks, broadways and roads, according to the meeting's agenda. Such projects will be funded by those who live in affected CDD, largely through additional taxes. Those residents also will still have to pay any assessment imposed by the city.
Value Capture Strategy-Tax Increment Financing District (TIF): The City is considering the creation of a new Tax Increment Financing District to support redevelopment of two vacant commercial properties at 7200 and 7250 France Avenue. TIF is being considered to ensure that the redevelopment is designed and built in a manner consistent with the Greater Southdale Plan and other applicable policies and delivers benefits to the general public that would not otherwise be possible at this site. These properties were originally built 1968-1972 as two separate buildings. Over the years, the buildings have become obsolete in the marketplace and the 7250 building was deemed unsafe to be occupied. The buildings were heavily vandalized over the past few years. The buildings were inspected and found to be structurally substandard as defined by MN TIF Statute. The new proposal reimagines the properties as a single site with intentional access routes for drivers, bicyclists and pedestrians. There are also several outdoor areas intended for use by the general public.
Value Capture Strategy-ROW Agreement, Google Fiber: An agreement that will bring Google Fiber and its high-speed, high-bandwidth internet services to Taylorsville. A resolution approving the non-exclusive license agreement between the City of Taylorsville, Utah and Google Fiber was unanimously passed by the City Council at its meeting Wednesday, April 21, 2023. The resolution grants Google Fiber a non-exclusive license from Taylorsville to install and manage fiber optic infrastructure within the city’s public rights-of-way for the purpose of offering broadband internet services. Access to fast, reliable internet service is necessary for life in the 21st century, and Google Fiber is working to connect more residents along the Wasatch Front to work, school, and each other by providing reliable, great internet and customer service. Visit the City website for additional information.
Value Capture Strategy-Development Impact Fees (DIF). The Texas Denison City Council adopted Ordinance No. 5286 adopting Water, Wastewater, and Roadway Impact Fees effective April 3, 2023. Impact Fees are one-time fees on new development or re-development. Impact Fees help offset new development's financial impact on the public water, wastewater, and roadway systems. The fees fund projects to extend, improve, and upgrade Water, Wastewater, and Roadway systems so the systems can serve new development. The amount of each fee is determined by development type and number/size of water meters. For additional information or to find answers to Frequently Asked Questions.
Value Capture Strategy-Public Improvement District (PID): The City of Lubbock, Texas created the Upland Crossing 3 Public Improvement to maintain the public improvements associated with the Upland Crossing 3 planned development and for the benefit of certain property in the PID, all of which is located within the city. The public improvements will be constructed by the developers with no reimbursement from the PID. The cost of the maintenance, operation, and other supplemental services to be funded through assessments on the assessed property is estimated at $10,000 in the first year and increases to $31,524 in the 5th year, and 2 percent annual growth thereafter. A PID is a defined geographical area established to provide certain types of public improvements or maintenance deemed to augment routine City of Lubbock services. The enhancements are financed by assessments against the owners of real property within the designated area so that the costs are allocated to the landowners who receive special benefits from the improvements. A PID can provide a method of funding supplemental services and improvements to meet specific community needs which could not otherwise be delivered. Assessments are usually collected by the Lubbock Central Appraisal District and are deposited into a fund. Additional information can be found city ordinance no. 2023-O0038.
Value Capture Strategy-ROW Agreement, EVC in Public ROW. City of Portland, Oregon approves public electric vehicle chargers in more areas to close equity gaps. On Wednesday, March 1, 2023, the Portland City Council unanimously approved the city Bureau of Transportation (PBOT)’s EV charging in the right of way project. It will allow vehicle charging companies and utilities to install public chargers in areas throughout the city that currently lack the infrastructure. The program is intended to increase charging reliability, affordability, and accessibility for renters and those living in multi-dwelling units without access to chargers. The program will install level 2 chargers which can fuel up a car in about four hours. The PBOT will not own, operate, or maintain the chargers. The chargers would come from the private sector, but PBOT will be working toward receiving funding from the federal Bipartisan Infrastructure Law, which has allocated $7.5 billion to build out a nationwide network of EV chargers by 2030. PBOT plans to work with utilities and private EV charging companies on siting the chargers. PBOT expects to begin issuing permits later this year with the goal of more chargers being available later this year or in early 2024.
Value Capture Strategy-Tax Increment Reinvestment Zones (TIRZs): On March 16, the Kyle City, Texas Council approved with a 5-0 vote the creation of a Tax Increment Reinvestment Zone (TIRZ) to fund infrastructure projects. The TIRZ was proposed by the Kyle Economic Development Corporation, a non-profit organization that works to promote economic growth in the city and will be funded by a portion of the property taxes generated from the development of the LaSalle project. The TIRZ will be funded by a portion of the property taxes generated from the development of the LaSalle project, a mixed-use development located on the east side of Kyle. The LaSalle project is expected to generate over $1 million in property taxes annually. The TIRZ will use a portion of those taxes to fund infrastructure projects in the area, such as road improvements, drainage projects, and public parks.
The approval of the TIRZ was met with opposition from some local landowners, who argued that the project would divert water onto their property and potentially flood adjacent areas. The city has promised to address the concerns of the landowners and has agreed to take steps to mitigate any potential flooding.
Value Capture Strategy-ROW Agreement, Fiber-optic internet The City Sugar Land, Texas Council approved the contract in a 5-2 vote of 30-year deal with fiber-optic internet company SiFi Network to establish fiber optic infrastructure throughout the city. The project is expected to finish design within 12 months and to complete construction after an additional 12 months, for a total build-out time of 48 months, or two years. Officials with SiFi Networks have promised the city a nearly 100% connection rate to residents within the city once the roughly 900 miles of cable is fully built out. The project would be a step toward reducing internet access inequality. The project is entirely privately funded, with zero up-front cost to the city. In exchange, SiFi Networks is asking for a 30-year contract with 10-year extension periods with which to sell their product, as well as for the city to grant easements along public right of ways. For additional information, please visit the city website.
Value Capture Strategy- Reinvestment Zones Abatement: The Commissioners Court on Tuesday, February 28, approved the creation of the Smith County, Texas Reinvestment Zone No. 1 for the area which includes a 412-acre property that will be developed as a new business park and adjacent properties. Tyler Economic Development (TEDC) Council President/CEO Scott Martinez requested that the reinvestment zone be created to encompass an area that includes the new business park planned by TEDC, just south of Interstate 20 and west of Highway 155. Martinez said creating a reinvestment zone would give TEDC a lot of latitude in what it can do with the 412 acres it has bought for an industrial park that will attract new businesses and hundreds of jobs to the community. “We are expecting a lot of growth in the next few years,” he said. “We are expecting lots of industry and lots of jobs being created there from private business, and that’s a good thing.”
In October 2022 the Commissioners Court approved using up to $4.5 of its ARPA (American Rescue Plan Act) funding to build a new county road (CR 3344) going to the business park connecting Highway 155 and CR 336. At that time, Martinez said they already had an interested company wanting to be the park’s anchor tenant. The business will require 150 acres, could bring in more than $40 million in capital investment, and create more than 100 jobs, Martinez said. The Smith County tax abatement agreement is for 80 percent for the first two years, 60 percent for the following two years, and 40 percent for the fifth year. TEDC estimates that Smith County would forego up to $107,000, at the current tax rate, and collect taxes up to $76,000 over the five-year abatement period.
On Tuesday, the Commissioners Court also approved a five-year tax abatement for Averitt Express to construct a new regional logistics hub near TEDC’s planned industrial park.
Martinez said the company currently has a small facility off of Highway 155, but they want to add a 20,000-square-foot regional office facility -- resulting in an estimated $10 million investment -- next to it. The investment would add 25 new jobs over the next three years, with an average salary of $71,000, with benefits. Averitt Express currently has about 20 employees in Smith County, he added. The project is expected to be completed by the first quarter of 2024.
February 2023; https://www.arlingtonwa.gov/462/Transportation-Benefit-Program
Value Capture Strategy- Transportation Benefit District: The Washington Arlington Transportation Benefit District passed with 68%, 3,099 ballots on February 14, 2023. Projects could include transportation safety projects and traffic calming projects in neighborhoods such as: crosswalk repairs, striping and illumination, traffic calming/slowing products such as flashing speed signs, sidewalk improvements. The previous 10-year taxpayer supported program has enabled the city to repave and preserve 18.9 miles / 99,792 linear feet of city streets 2013 through 2022.
January 2023
Value Capture Strategy- Tourism Improvement District, Frisco Tourism Public Improvement District (TPID) Approved to Take Effect January 1, 2023. On October 18, 2022, the Frisco, Texas City Council approved the creation of the Frisco Tourism Public Improvement District (TPID). Area hoteliers alongside the Texas Hotel Lodging Association worked with Visit Frisco, the official Destination Marketing Organization (DMO) for the city, to develop the program designed to expand promotional efforts for the city. The TPID is a 2% assessment on taxable room rates paid by overnight hotel visitors when staying in hotels with 75 rooms or more within the city limits of Frisco. The assessment will be implemented January 1, 2023. Residents will only pay this assessment if they stay overnight in a hotel. The district will be led by the Frisco TPID Board of Directors comprised of local hoteliers.
Value Capture Strategy-Tax Increment Financing (TIF) District fund Darwin Elementary’s $10 Million Renovation: The Chicago, Illinois City Council signed off last summer on allocating $10 million in TIF funding to the neighborhood restoration project, clearing the way for construction. The massive renovation, which is being funded with tax-increment finance dollars, kicked off earlier this summer and is expected to continue through next summer, CPS officials said. Crews are fixing the school’s leaky roof, old plumbing, electrical and mechanical systems, and water-damaged finishes. The project also calls for upgrades to the school’s cornices and windows, among other aging infrastructure. Darwin, 3116 W. Belden Ave., is made up of three buildings: The oldest and second oldest were built in 1900 and 1920, respectively, while the addition went up in 1978 as a temporary solution to overcrowding at the school. The school has long suffered from water leaks and structural problems, Darwin Principal Daniel De Los Reyes said. During heavy storms earlier this month, flooding hit the school’s original coal room where engineer equipment is now stored, De Los Reyes said. Most of the equipment was recovered, but the flood points to larger issues throughout the campus, he said. This is the school’s first major renovation in years.
Value Capture Strategy-Community Benefit District (CBD): City and community form a new Community Benefit District (CBD) in the Excelsior, San Francisco, California. Property owners in Excelsior, San Francisco, CA voted to support special assessments to provide supplemental cleaning and beautification enhancements in the commercial corridor. With a 63% weighted majority vote, property owners approved the formation of the Excelsior Community Benefit District. The CBD’s objectives will ensure the cleanliness, physical maintenance, and support marketing initiatives in a significant portion of the Excelsior commercial corridor along Mission Street. Community Benefit Districts (CBDs) are public-private partnerships in which property and/or business owners elect to make a collective contribution to the maintenance, development, and promotion of their mixed-use neighborhood through a special assessment to the property or business. Community Benefit Districts strive to improve the overall quality of life in targeted commercial districts and mixed-use neighborhoods through a partnership between the City and local communities. Once an area has voted to establish a CBD, local property owners are levied a special assessment to fund improvements to their neighborhood. The funds are administered by a non-profit organization established by the neighborhood. More information on the Excelsior Community Benefit District and the Management District Plan can be found at: oewd.org/community-benefit-districts
Value Capture Strategy-Tourism Business Improvement District: The Pasadena, California City Council unanimously voted in favor of the proposal to renew Pasadena’s Tourism Business Improvement District for a 10-year term and increase collections on hotel and motel stays by 2%. The 10-year term will run from July 2023 to July 2033. A Tourism Business Improvement District is a collection of lodging properties that pay an assessment on individual room night stays. The assessment, a nominal fee passed onto the customer, provides funding for the Convention and Visitors Bureau, which in turn provides marketing and sales efforts to bring more visitors to the city. Currently, the city collects 2.89% TBID room tax on every hotel stay. With the Council’s approval, this increases to 3.89% by the first year of implementation by July 2023 and to 4.89% by July 2024.
Value Capture Strategy-Tourism Business Improvement District (TID): City of Richmond, Virginia Council vote paves the way for new Tourism Improvement District.TID funds will augment Richmond Region Tourism’s promotional efforts focused on attracting large-scale sports tournaments and conventions, as well as boosting leisure marketing strategies. Last night’s vote by the Richmond City, Virginia Council to approve an ordinance allowing for a hotel assessment marks the final step for passage of a new Tourism Improvement District (TID) in the region. Hotels with 41 rooms or more within the TID will charge a 2% fee on nightly rates, which is expected to generate as much as $8.2 million annually to support the promotion of the region as a leisure, conference, and sports tourism destination. The city of Richmond joins the counties of Chesterfield, Hanover, Henrico, and the town of Ashland in approving the TID. Collection of the assessments will begin July 1, 2023. The initial term is 10 years, subject to renewal.
The funds generated through the TID assessment can be used only for specific purposes related to driving visitation and hotel occupancy. The fee will be paid by hotel guests. The TID will be managed by its Governance Committee, a subcommittee of the Richmond Region Tourism Board of Directors, which consists of nine area hotel representatives within the TID localities. Two-thirds of the committee is made of up smaller hotel representatives with fewer than 149 rooms. Tourism is a significant driver of the region’s economy. In 2021, the region hosted 6.6 million overnight visitors who spent $2.9 billion locally. Tourism supports nearly 24,000 jobs in the community.
Value Capture Strategy-Tax Increment Financing (TIF) District: City of Platteville, Wisconsin officials create new tax increment district to spur housing, business growth. The Common Council this week (July 29, 2023) unanimously approved creating the district, which subsequently was approved by the local Joint Review Board. The mixed-use district is made up of about 500 acres on the city’s southeast side. Creating the district lets the city collect all property taxes on the increased property value from new development within the district for its 20-year lifespan instead of splitting the funds with the county, local school district and area colleges. The newly approved overlay district is made up of underutilized land from two existing TIF districts near the city’s industrial park. Those districts are still open but have outlived the period in which the city would invest money for new projects, also known as the project expenditure period.
Value Capture Strategy-Road Impact Fees Pflugerville, Texas City Council approved a credit agreement for roadway impact fees July 25, 2023, making way for an extension of Kenney Fort Boulevard to eventually tie into ongoing infrastructure projects occurring in the region. City Council approved the credit agreement for $2.14 million in roadway impact fees with LRF2 AUS Meister Lane LLC to be used for an extension of Kenney Fort Boulevard. The roadway, part of Pflugerville’s City Transportation Master Plan, will run from the south side of SH 45 to New Meister Lane in Pflugerville. It is meant to provide access for a future connection to the road being constructed in Round Rock. The credit agreement was approved on consent, meaning no discussion was held prior to a vote. A roadway impact fee is a charge assessed on new development to pay for construction of a roadway system considered to be needed or beneficial to that development. It is an additional tool the city used to help build infrastructure and accommodate growth.
Value Capture Strategy-Special Assessment, Vehicle Registration Fee: A new vehicle Local Vehicle Registration Fee (LVRF), is approved in the City of Eau Claire, Wisconsin on July 25, 2023. With limited state aid, a LVRF is one of the few ways that local governments can raise money to fund their transportation programs. During Tuesday’s City Council meeting, Council members passed an ordinance creating a $24 fee on all vehicles registered in the City of Eau Claire. The revenue from the LVRF will be used only for transportation related purposes and, specifically, road improvements throughout the city, which would not be possible beginning in 2024 without the additional revenue of the LVRF. Visit the city website for additional information.
Value Capture Strategy-Tax Increment Financing (TIF) District: The Indianapolis City-County Council this week July 12, 2023 approved incentives for two developments inside the new Near North Mass Economic Development Area. A $12 million mixed-use project calls for 25,000 square feet of office space and first-floor dining. A $33 million 185-unit luxury apartment building with 4,000 square feet of commercial space is also in the works. Both are being developed by Pure Development, Stenz Corporation and Third Street Ventures. The projects are part of a larger plan that could transform an industrial area of vacant buildings into the city's next cool commercial district, while adding needed housing density and jobs. The new economic development area would connect the booming Bottleworks project to the Martindale-Brightwood neighborhood to the north and the trendy Brookside Park area to the east. With I-70 running through the center of it, the area is roughly bounded by the Monon Trail on the west, 16th Street to the north, Brookside Avenue on the east and 10th Street to the south.
Value Capture Strategy-Tax Increment Financing (TIF) District: At its Monday, July 10, 2023, meeting, the Alexandria, Minnesota City Council approved tax increment financing requests from Goodneighbors — 2410 Building LLC. The parcel that’s being developed is located at 2410 42nd Avenue on 4.65 acres of land, northwest of SERVPRO. With TIF, the taxes on the property are frozen at the current amount for a certain period of time, in this case nine years because it is an economic district, not a housing district. The difference between the existing tax and the tax after the development is used to help pay for some of the project’s costs. The city benefits because property is being developed that otherwise would not have been improved. Also, the value of the property will increase, adding to the city’s tax base. The project, according to Goodneighbors, would create nine full-time jobs. The developer will receive an annual TIF payment of $68,000 for nine years.
Value Capture Strategy-Tax Increment Financing (TIF) District: A new $700 million project called the Boardwalk could bring a boost to downtown Oklahoma City that will take it to the next level with entertainment, living spaces, jobs, and parking spaces. The project will begin in June 2024 and take 5 to 7 years to complete. The city's Tax Increment District Review Committee approved (July 7, 2023) the 2 million square foot development that will add three residential towers, more than 900 jobs, nearly 900 parking spaces, a lagoon, a workforce development center, restaurants, and more entertainment to the lower Bricktown District. Funding for the project is from investors and lenders, the city will provide incentives through tax increment financing. The project is expected to add more than 1800 jobs, at least 900 permanent jobs and then 900 temporary jobs.
Value Capture Strategy-Development Impact Fees: Murfreesboro Council Approves Development Impact Fees June 15, 2023. The Murfreesboro, Tennessee City Council voted Thursday, June 15, on 2nd Reading, to implement a Fee Schedule with a newly adopted set of Development Impact Fees to help pay for infrastructure projects as the result of population growth and development in the City. The Fee Schedule sets the Development Impact Fees to be imposed on new development to offset the cost of public capital improvements in four major areas: roads, parks, public safety, and schools. Several other Middle Tennessee cities and counties have long had impact fees to help pay for new development.
The Development Impact Fee becomes effective upon the start of the new Fiscal Year, July 1, 2023. Developers, homebuilders, and stakeholders will notice the Fee Schedule on building permits by land use. Permit applications for single family residential construction received by June 30, 2023, will be exempt from the fee as will projects with Site Plans approved before July 1, 2023. Based on recent building activity, the Development Impact Fee is anticipated to generate approximately $9 million in revenue annually: For Roads & Streets $3.5 million; Parks & Recreation $1.75 million; Public Safety $1.75 million; Schools $1.75 million. For more information on City of Murfreesboro Development Impact Fee, visit the city website.
Value Capture Strategy-Community Improvement District (CID): The Locust Grove City, Georgia Council approved an agreement for the Locust Grove North CID at their July, 6th 2023 meeting, Henry County’s first CID. CIDs allow private business owners to invest in local infrastructure. In the case of Locust Grove North, the property owner will be accessing themselves up to 22 mills in additional property tax. The funds will pay for a road improvement project. Visit City Locust Grove website for additional information.
Value Capture Strategy-Community Improvement District (CID): Hannibal city, Missouri leaders put together a petition for proposed Community Improvement District. An effort is underway in parts of Hannibal to reverse declining property tax returns and promote investment in the area. The plan for Hannibal’s CID would include a sales tax levy up to 1%, which will only apply within the boundaries of the CID district, to fund projects in the specific district, which will be a separate political subdivision. The boundaries will include businesses and properties on Mark Twain Avenue, Third Street, Broadway, and Main Street. The goal is to create a revenue source for improvement in a specific area of Hannibal where they have historically seen property values decline. The City received state approval to create CID. A vote would be taken from residents within the CID regarding whether to establish an additional one-percent sales tax. The tax would only apply within the CID boundaries and could only be reinvested within the district. Visit City of Hannibal Website for update information.
Value Capture Strategy-Development Impact Fees (DIF): On February 23, 2023, the Savannah, Georgia City Council adopted the CIE which amended the 2040 Plan, Development Impact Fee Ordinance, and affordable housing exemptions. The impact fee program goes into effect on July 1, 2023 Impact fees are one-time fees charged to land developers to help defray the costs of expanding capital facilities to serve new growth. DIFA enables local governments to charge new development for a proportionate share of infrastructure capacity it requires.
In January 2022, the City Council appointed seven members to serve on the Development Impact Fee Advisory Committee to assist and advise City Council on the adoption of a development impact fee ordinance. Since the committee was advisory, no action of the committee was considered a necessary prerequisite for municipal or county action in regard to adoption of an ordinance. Visit City of Savannah, Georgia website for additional information
Value Capture Strategy-Special Assessment District: On Tuesday, June 27, 2023, the Independent Oversight and Accountability Commission (IOAC) at the City of Tucson, AZ, approved the Phase 1 neighborhood roadway improvement projects for Proposition 411 – Tucson Delivers: Better Streets | Safe Streets, the voter-approved 10-year half-cent sales tax extension to fund neighborhood street improvements and systemwide street safety projects. The overall program schedule will be divided into three separate phases – Phase 1, Phase 2, and Phase 3. The Phase 1 plan represents $240 million of the total $590 million Prop 411 investment.
The estimated sales tax revenue over this 10-year period is projected to be $740 million. Of that estimated funding, 80 percent, or $590 million, will be dedicated to improving the condition of every city neighborhood street (Better Streets); and 20 percent, or $150 million, will be dedicated to safe street improvements that benefit all users and modes (Safe Streets).
For more information about Tucson Delivers: Better Streets | Safe Streets and an interactive map of the approved projects, visit https://tucsondelivers.tucsonaz.gov/pages/better-streets-safe-streets.
Value Capture Strategy-Sponsorships: The Hawaii DOT's new partnership with GEICO will provide new funding for the department's Freeway Service Patrol program; Freeway Service Patrol’s new truck and equipment displaying its sponsorship with the Geico Gecko and logos.
The Hawaii Department of Transportation marks a first by announcing GEICO as the new sponsor for its Freeway Service Patrol program. The sponsorship will help the 10-vehicle fleet to continue providing an important free service to Oahu commuters and do so with a new look. The FSP patrols about 33 miles of freeways extending from Kunia Road to Ka Uka Boulevard and all the way to the east end of the H-1 Freeway. It focuses on high-traffic areas with the greatest potential for stalls and accidents that could negatively impact traffic. FSP works collaboratively with the City and County of Honolulu’s police, fire, Emergency Medical Services, and the Department of Transportation Services Additional information is available on the FSP and GEICO’s Safety Patrol Program websites
The Hawai'i Freeway Service Patrol (FSP), sponsored by GEICO, program is a totally FREE program operated by the State of Hawai'i Department of Transportation (HDOT) in collaboration with the City and County of Honolulu's Police, Fire, Emergency Medical Services and Department of Transportation Services. The FSP program is a proven traffic congestion relief strategy focused on providing a safer commute while saving motorists time and money. Assisted motorists are encouraged to share about the help they received by filling out a survey on SafetyPatrolinfo.com and posting to social media using #GEICOSafetyPatrol.
Value Capture Strategy-Business Improvement District: Downtown Ventura, California Partners is the property-based improvement district that provides enhanced maintenance and security for the downtown area, in addition to the promotion of the downtown area in general. The organization is partially funded through an annual assessment of properties within the District. The assessment must be confirmed by City Council each year by the adoption of a resolution. Adopt a Resolution approving the Annual Streets & Highway Report readopting the Downtown Ventura Property-Based Improvement District annual assessments, and levying assessments pursuant to the Property and Business Improvement District Law of 1994. The District's improvements and activities include, but are not limited to, the following special benefits: cleaning and safety programs, economic development programs, communication and marketing programs, special projects, and administration/advocacy. Each of the programs is designed to meet the goals of the District, which are to improve the appearance and safety of the District, increase building occupancy and lease rates, encourage new business development, and attract ancillary businesses and services. Visit City of Ventura website for additional information.
June 2023, Columbus, Nebraska; Downtown BID approved
Value Capture Strategy- Business Improvement District (BID): The Downtown Business Improvement District Board is free to proceed after the district was formally approved on June 5th by the Columbus City Council. After an extensive conversation, the Council voted 6-1 in favor of approving the ordinance that allows for the formal creation of the Downtown Business Improvement District and the ability to raise funds to be used for the purposes of providing and maintaining authorized improvements. The BID Board, a volunteer group made of local downtown business/property owners, previously announced after months of collecting public feedback that it was ready to seek final approval from the City Council for its proposed assessment. The assessment that was shared with the public and approved by the City Council is based on a $200 per $100,000 valuation per county records, with a $750 cap per property per year. It would net $45,827.26 in year one, but the City of Columbus would also match that amount, to give the board a first-year budget of approximately $91,654.52.
Value Capture Strategy– Business Improvement District (BID), Wynwood BID: On June 8, 2023, the Miami City Commission passed Resolution R-23-0256 authorizing the re-establishment of the special assessment district area known as the Wynwood Business Improvement District (Wynwood BID) and authorizing the levy and collection of a special assessment for the period of ten (10) years, subject to the approval of a majority of affected property owners for the continued existence of the BID. The Resolution includes the Wynwood BID Plans, Specifications and Preliminary Assessment Roll. The Wynwood BID is conducting an Affidavit Process during the period of June 9, 2023, continuing through August 18, 2023.
The special assessment shall be levied and collected for a ten (10) year period and another petition and affidavit in support of the BID by the affected property owners would be required prior to the termination of such ten (10) year period, to determine whether to continue or discontinue the special assessment, or include additional properties in the BID, or change the boundaries of the BID.
Value Capture Strategy-Tourism Business Improvement District (TID): The Sonoma County, California Board of Supervisors approved a continuation of the county’s Business Improvement Area Assessment. The assessment, which supports marketing activities to increase overnight visitors to the county, is expected to generate $4 million in revenue from businesses in Santa Rosa, Petaluma, Rohnert Park, Sebastopol, Cloverdale, Cotati, Windsor, and unincorporated areas. Currently, 84 lodging establishments are subject to the assessment, which is equal to 2 percent of room revenue, based on annual room revenue of $350,000 or more. For more information about the Sonoma County Economic Development Board visit https://sonomaedb.org/current-initiatives
Value Capture Strategy- Development Impact Fees, New Growth Paying Their Way: The City of Irving, Texas is examining the idea of enacting Impact Fees that will enable new growth to help pay its fair share of city utilities and services. Historically when a new development is constructed, it receives the benefit of the city's existing streets, water delivery, wastewater and storm sewer systems that were installed and paid for by existing taxpayers and water rate payers. New residents and businesses often add additional service demands on these systems. For instance, an industrial manufacturer may use large amounts of water in their process and then have increased truck traffic and employees that may need improved roads. These increases may not have been planned for when funding was set for those services. A more detailed explanation of Impact Fees can be found in the Impact Fee 101 presentation by Freese and Nichols as provided to the Capital Improvement Impact Fee Advisory Committee.
Value Capture Strategy-Transportation Benefit District (TBD): On June 6, 2023, the Washington Monroe Transportation Benefit District unanimously approved a resolution (TBD 2023-001) that places a ballot measure to renew 0.2% sales on the Nov. 7 General Election. Transportation Benefit Districts are governed by the rules established in state law (RCW 36.73.) A TBD is an independent taxing district that can raise revenue for specific transportation projects, usually through vehicle license fees or voted sales taxes. For Monroe, its TBD revenue is from sales tax. Funding can support the construction, maintenance, and operation costs associated with projects such as road resurfacing or reconstruction and sidewalk repairs. As a separate taxing district from the city, the Monroe TBD is governed by a Board that meets up to two times a year to review revenues received, set its budget, and approve projects that will be funded by the TBD sales taxes. The Monroe TBD has entered into an interlocal agreement with the City which provides that the City will construct the TBD funded projects. For more information, please visit https://monroewa.gov/429/Transportation-Benefit-District.
Value Capture Strategy-Transportation Benefit District (TBD): The City of Bellevue, Washington is exploring the creation of a Transportation Benefit District to fund maintenance of transportation infrastructure and ongoing transportation capital programs throughout the city. A Transportation Benefit District is a quasi-municipal corporation with taxing authority. It can be used for acquiring, constructing, improving, providing, and funding transportation improvements within the area of the district. Projects may also include operations, preservation, and maintenance of transportation facilities. Chapter 36.73 RCW allows cities to form Transportation Benefit Districts and contains the rules and regulations for forming and operating the district. Bellevue’s Transportation Benefit District would share the same boundaries as the city, and all funds raised by the district would be used within the city. It would be governed by the Bellevue City Council. Funds collected through a Transportation Benefit District would be used to restore the Transportation Department’s maintenance budget. It would also be used to fund maintenance for new infrastructure that has been added and will continue to be added to our growing city. For example, in the last four years, the city has added 27 traffic signals, 43 enhanced crosswalks and 150 traffic cameras, and had a 33% increase in crosswalks and roadway markings. Additional money collected would be used to fund ongoing capital programs that have extensive backlogs of work to address the needs of our growing city. These include programs such as Neighborhood Traffic Safety, Vision Zero and Neighborhood Sidewalks. Additional information can be found at the City of Bellevue website.
Value Capture Strategy-Asset Recycling: City of Bloomington, Minnesota council approves Washington Street housing development on June 12, 2023. Developers can build an $18.5 million housing development at the former Coachman Motel property, with the Bloomington City Council approving the project Monday night after pausing in May to consider a possible labor agreement. The property that once housed the 1960s-era Coachman Motel has sat vacant for decades. Work is expected to begin this fall on the complex at 402 E. Washington St. that will include razing the City of Refuge Ministries church building. In a few years, 24 upscale townhomes with attached garages and a five-story apartment building with nearly 50 one- and two-bedroom apartments will stand on the property. The Bloomington leaders support having local labor representatives be part of a conversation about boosting apprenticeships, exploring prevailing wage and more. Visit of the city website for more information.
Value Capture Strategy-Business Improvement District: On Tuesday, the Jackson City, Mississippi Council established a special assessment for commercial property owners in the LeFleur East Business Improvement District. The decision comes about 10 months after property owners in the impacted area voted to establish the district. The scope of this business improvement district is going to be primarily a landscape improvement district. We’re looking to keep the grass cut, the curves edged, the trash picked up. The district runs along I-55 from just south of Lakeland Drive to Canton Mart Road, and along Lakeland from the interstate to the Pearl River. Properties on both sides will be impacted. In August, 62 percent of business owners in the area voted to support the BID, slightly more than the 60 percent required for the BID to be established.
Commercial property owners will pay an additional seven cents per square foot along with their annual property taxes, which will go toward beautification. The total amount expected to be brought in will be around $224,363. An initial improvement will likely begin in the first quarter of 2024. Work will include not only mowing and edging but picking up trash and removing weeds from expansion joints along I-55 and Lakeland Drive bridges. For more information, visit the city website.
Value Capture Strategy-Facility Impact Fees: The Clayton County, Florida’s Facility Impact Fees, effective June 1, 2023, will be collected for new commercial and residential development. All fees are applicable to development in the unincorporated areas of the County and certain fees are also applicable in designated municipalities. The Mobility and Impact fees are assessed when a building permit is issued and must be paid before scheduling a final equipment check. Visit the county website for additional information.
Value Capture Strategy-Community Improvement District (CID), Savannah Waterfront CID:Savannah City Council, Georgia approved the resolution at Thursday night’s meeting, June 22, 2023 - creating a district of commercial property owners at Savannah’s Waterfront who now have the ability to tax themselves and use that revenue back in the community. Priorities for the district include improving public safety, infrastructure and beautification of the area surrounding River Street. Next steps will be for the district to elect its Board of Directors. who will then decide how much they’ll tax commercial property owners within the district. The tax is set to be collected this fall. Visit the City of Savanah Website for updates information.
Value Capture Strategy-Development Impact Fees (DIF): The City of Avondale City Council on April 3, 2023, adopted revised development impact fees Per ARS 9-463.05, the revised impact fees will become effective June 17, 2023. If a developer submits a site plan for a development outside the BLVD specific plan on or after June 17, 2023, the development will be subject to the city’s revised development impact fees. If a developer has submitted a site plan for development outside the BLVD specific plan to the city prior to June 17, 2023, the development will be subject to the development impact fees effective August 1, 2019. The development impact fees effective June 17, 2023 are based on the city’s Infrastructure Improvement Plan and Land Use Assumptions adopted on January 9, 2023 and the Development Impact Fees report adopted April 3, 2023. For additional information, visit the City of Avondale website
Value Capture Strategy-Community Development District (CDDs): Panama City, Florida approved nine community development District in SweetBay. The resolution establishes seven residential community development districts and two commercial community development districts. It was proposed that these districts, which are known as CDDs, will be used to service residents and businesses within the area. The resolution establishes seven residential community development districts and two commercial community development districts. It was proposed as a way to help quickly develop underdeveloped portions of SweetBay.
"These districts are not on any portion of (SweetBay) that is not owned by either St. Andrew Bay or one of its subsidiaries," City Attorney Nevin Zimmerman said. "The proposed residential CDDs do not include any of the developed residential properties. The purpose of CDDs are to provide infrastructure, maintenance and services to residents and businesses within the district."
The types of services and maintenance offered by CDDs includes stormwater management, water or sewer developments, and the building of new parks, broadways and roads. Such projects will be funded by those who live in affected CDD, largely through additional taxes. Those residents also will still have to pay any assessment imposed by the city. All management and financial risk are borne by the developer. The developer has prepared construction budgets for each phase, including the costs of the public amenities and utilities that deliver permanent benefit to the general public. After preparing a financial pro forma for the project, the developer has requested that the City use TIF to satisfy a gap in the financing. “But for” the use of TIF, the project will be unable to be constructed.
Value Capture Strategy-Tax Increment Finance District: On Wednesday, May 31, 2023, the Port of Grays Harbor County, Washington Commission designated the first Tax Increment Area (TIA) in Grays Harbor County that will help fund critical infrastructure improvements for the Terminal 4 Expansion and Redevelopment Project which will leverage additional private investment in the community by the Port’s largest customer, AGP. TIF is a new financing tool available to ports, cities, and counties, in which public infrastructure vital to private economic development projects can be funded by allocating some of the property taxes paid by development in the TIA for up to 25 years. Property taxes paid by the new development in the TIA would not occur but for the public infrastructure funded by the TIF. State and local school bonds and levies are not impacted by the use of TIF. For the Port, TIF will be used to pay a portion of the $46.85 million needed to construct the Terminal 4 Expansion and Redevelopment Project necessary to support AGP’s $123 million investment in a second soymeal export facility at Terminal 4B. “TIF is a great new tool for ports, cities, and counties to help growth, pay for growth,” explained Port of Grays Harbor Finance Director Mike Folkers. “Right now, there is no property tax revenue being generated within the TIA, and there wouldn’t be without the Port making the necessary public infrastructure investments for AGP to make their improvements that will ultimately result in jobs, additional investment and increased cargo exports for our entire community. Local taxing authorities, including the City of Aberdeen, will still realize the sales tax generated on the construction of the Port’s projects and AGP’s new facility.” Visit Grays Harbor website for more information.
Value Capture Strategy-Tax Increment Financing (TIF) District: City of Chelan, Washington Council approves TIF District on May 26, 2023 . The City of Chelan held Public Hearings on Proposed TIF District on March 23 and April 18, 2023. The state passed the “TIF Act” back in 2021, allowing local governments to use tax increment financing of public improvements within an area in order to fund private economic development projects. Essentially, the city would borrow against revenue generated from increasing property taxes and funnel it towards public infrastructure projects within the district. The TIF district would sunset after 25 years. City Administrator Wade Farris emphasizes that this new district would not raise property taxes but would capitalize on increased investment within that area. For additional information, please visit the city website.
Value Capture Strategy-Special Assessment: The Detroit Lakes, Michigan City Council approved special assessments for upcoming road projects on Campbell Avenue, Linden Lane, and Summit Avenue during their meeting on Tuesday may 11, 2023. At the May 9 meeting featured presentations from city engineer Jon Pratt, who explained the city’s special assessment policy may be changing in coming months. Under the new cost-sharing arrangement, 77% of the $4.1 million Campbell Avenue and Linden Lane street and utility improvement project will be covered by the city with 23% of the project being assessed to homeowners along the project path. The new cost sharing breakdown will save those homeowners more than $500,000 in costs that would have otherwise been assessable. The special assessments for the Campbell Avenue and Linden Lane project are expected to hit homeowners’ property taxes in 2024.
Residents who are over the age of 65, are permanently disabled, or serving active duty in the military may file for an assessment deferral with the city. The deferral must be submitted annually by Nov. 15.
Value Capture Strategy-Special Assessment District: The Seattle City Council unanimously approved legislation on May 2 renewing and expanding the Metropolitan Improvement District (MID). The legislation will safeguard funding for some programs and services that support downtown Seattle for at least the next 10 years. The legislation was sponsored by Councilmember Sara Nelson and was signed into law by Seattle Mayor Bruce Harrell today, May 18, 2023. “Seattle’s future depends on downtown, and the MID is critical to ensuring that downtown — the economic engine of our region — is safe, clean, and welcoming,” said Councilmember Nelson. “Without the MID, there’d be no free summer concerts, no lights in the trees during the holidays, and so many other services and programs that help our businesses thrive and make downtown such a vibrant place to live, work, and visit.” Funding from property owners within the MID boundaries provides cleaning, safety, and hospitality services in six center city neighborhoods, as well as oversight and activation of multiple urban parks and public spaces. MID-funded ambassadors are on the streets of downtown 362 days a year, ensuring a clean, safe, and welcoming experience for everyone. The MID was renewed by the Seattle City Council in 2023 for another decade. From leaf cleanup to graffiti removal, a few key performance metrics are captured on the website locates https://downtownseattle.org/programs-services/downtown-ambassadors/.
Value Capture Strategy-Transit Development District (TDD), Valparaiso TDD won Senate approval: The Valparaiso provision authorizes the Northwest Indiana Regional Development Authority (RDA) to establish an additional Transit Development District (TDD) centered on Valparaiso's bus station at 260 Brown St. Specifically, the RDA would be permitted to sell bonds to speed construction of TDD property improvements, subject to local planning and zoning ordinances, in a designated area within a half-mile of the bus station. The borrowed funds then would be paid back using the captured growth of state income and local property tax revenues in the TDD. Supporters of the proposal said Valparaiso likewise could benefit from a TDD, since the area around the bus station currently is underdeveloped with a lot of abandoned properties.
Value Capture Strategy-Special Assessment District: Santa Barbara, California City Council votes in favor of $2 per square foot parklet fees per month regardless of the construction of the facility. The motion passed 5-2 adopted a resolution establishing fees for temporary outdoor business facilities within the State Street Promenade and the 400 and 1300 blocks of State Street that will charge $2 per square foot a month beginning May 1. The fees will go towards the city's cost of cleaning and maintaining the Downtown Promenade which is projected to cost $675,000 for the 2024 fiscal year.
Value Capture Strategy-Community Improvement District (CID), Leveraging state fund: Lilburn CID is getting a $1 million grant from the State Road and Tollway Authority awarded from the Georgia Transportation Infrastructure Bank. The grant will help complete the Bryson Park/Hood Road Realignment at Lawrenceville Highway project, realigning the Lilburn School Road and Jennifer Drive, which currently form separate, stop-controlled intersections with Lawrenceville Highway. The goal will be to remove both intersections, allowing the two roads to intersect and form a new roundabout on Bryson Park property. This project will improve mobility and access to Lawrenceville Highway as well as provide significant safety benefits. Currently, LCID has commitments of $3 million in funding, including commitments from the City, the County DOT as well as a $1 million grant from the Georgia Transportation Infrastructure Bank (GTIB). The CID plans to complete the funding effort and begin construction in late 2023. Visit the Lilburn CID website for additional information.
Value Capture Strategy-Tax Incremental Financing District (TIF): The Yankton, South Dakota City Commission unanimously approved a $2.3 million tax increment finance (TIF) district for the Stencil Group of Sioux Falls. The firm has announced its plans for 305 East Second Street, in the B-3 Central Business District east of the Gurney Building. The developer will begin work this summer on a 104-unit apartment complex carrying an estimated value of $18.2 million. Nathan Stencil, representing the Sioux Falls group, said the TIF was necessary to make the project feasible. “If all goes well, we’ll start construction this July, with the opening in fall 2024,” Dave Mingo, Community and Economic Development Director said. The site will feature underground parking for convenience. In addition, the property will feature a dog park, a small playground area and surface parking. The city would not be responsible for any of the funding whatever,” he said. “The developer is paying the property tax over time, which is defined as increments up to a specific amount.”
Value Capture Strategy-Tax Incremental Financing District (TIF), Solar Project: Millard School District (MSD), Utah board of education members decided in a split 2-1 vote on April 13 to move forward with a plan to offer tax increment financing to support the development of a 3,000-megawatt solar project 10 miles north of Delta. The $405 million solar array would be built on 1,729 acres of land leased from Utah School and Institutional Trust Lands Administration in an area designated a community development project area (CDA) by Millard County in 2016. School board members voted to move forward after listening to a thorough presentation by a third-party consultant hired by the district to examine the project and the financing scheme proposed for it, which includes essentially a 50-percent property tax break over a 20-year period in order to finance construction. It allowed the district to generate new, unrestricted revenue on land that is currently tax exempt—and empty.
Value Capture Strategy-Tax Incremental Financing (TIF) District: On April 18, 2023, the City of Edina, Minnesota Council approved the creation of a new Tax Increment Financing District for the 7200 block of France Avenue. The creation of a new Tax Increment Financing District to support redevelopment of two vacant commercial properties at 7200 and 7250 France Avenue. The developer has prepared construction budgets for each phase, including the costs of the public amenities and utilities that deliver permanent benefit to the general public. After preparing a financial pro forma for the project, the developer has requested that the City use TIF to satisfy a gap in the financing. “But for” the use of TIF, the project will be unable to be constructed. The project will be built in two phases. The first phase will consist of a 5-story professional office building with more than 120,000 square feet of space with two levels of underground parking. The second phase is anticipated to be an upscale hotel with onsite restaurant and other amenities. Parking will be below-grade with a drop off/valet area on the street level.
Value Capture Strategy-Special Assessment: On November 8, 2022, voters approved the renewal of the one-cent Special Purpose Local Option Sales Tax for another six years. SPLOST is a Special Purpose Local Option Sales Tax. It is a one-cent sales tax on all retail purchases in Gwinnett County. The penny will be collected for a six-year period, beginning April 1, 2023. Georgia Gwinnett’s sales tax will remain at 6 percent in April 2023 when the new collection begins. It is not a new or additional tax but a continuation of the one-cent tax already being collected on retail sales. Sales tax in Gwinnett is 6 percent, which includes 4 percent for state taxes, 1 percent for schools’ E-SPLOST, and 1 percent for our SPLOST program. The new program is expected to raise $1.35 billion over the next six years. Cities make up a quarter of Gwinnett’s land area and a quarter of our population, and they are expected to receive about a quarter of the SPLOST funds collected during the 2023 SPLOST program. This means that everyone who makes a purchase in Gwinnett County, including visitors, contributes to the support of local government. The funds are used for capital improvement projects, like county and city facilities, acres of greenspace, parks and recreation facilities, new roads and improvements, police and fire stations, and libraries around the county. By law, SPLOST cannot be used for day-to-day operational expenses. Visit Gwinnett County website for additional information.
Value Capture Strategy-Tax Incremental Financing District (TIF), Spur Growth Santa Rosa, California Downtown: The City of Santa Rosa, California is pursuing a new economic development tool that city officials hope will drive more private investment into the city’s urban core. The City Council on Tuesday unanimously adopted a resolution of intention — the first step in a lengthy process — to form a new financing district that would use a portion of property taxes to pay for infrastructure improvements and other projects. It’s the latest initiative in Santa Rosa’s broader strategy to boost redevelopment in the aging downtown and speed new housing construction in the city center. The financing district does not impose any new taxes or result in increased taxes for property owners, Raissa De La Rosa, Santa Rosa’s economic development division director said. Instead, districts use a portion of the property tax increment revenues generated by an increase in the assessed value from properties within the boundary that are redeveloped or sold to pay for infrastructure improvements and other projects. Taxes already committed to schools are protected. The baseline property value is frozen for all properties in the district when the district is formed. Only a portion of taxes beyond that baseline can be set aside for projects, and how much the city and county contribute from the increased revenue is up to elected officials. Assuming a 5% growth in tax revenue from new development, the district could generate as much as $5.9 million over 30 years or $16.3 million over 45 years if the two governments commit 75% of the estimated tax increment to the fund, according to a city analysis.
Value Capture Strategy-Tax Incremental Financing District (TIF), Utilizes TIF Districts to Encourage Developments: At its April 10 meeting, the Rochelle City Council, Illinois unanimously approved a tax increment financing (TIF) agreement with Breakthru Beverage for the development of its new location at Illinois Route 251 and Flagg Road. When a city TIF district is created, a baseline of the property value within is set and any new increment goes into TIF fund, which can be used to pay developers that make agreements with the city. Investment by developers raises the value of the properties, creating increment. The Community Development Director Michelle Pease said. “It's not money that we've taken from a general fund, it's money that is incrementally captured from that development. We have four agreements we’ve made within our downtown TIF district and two in our northern gateway TIF district.” For updates information, visit the city of Rochelle, IL website.
Value Capture Strategy-Transportation System Development Charges (SDCs): On March 21, 2023, City of Gresham, Oregon Council passed resolution establishing Transportation System Development Charges (SDCs), methodology report and project lists. SDCs are a one-time charge for wastewater, water, stormwater, transportation, and parks. SDCs are collected when a development permit is issued. The City uses SDC Revenue to: Construct new public facilities as Gresham grows; pay for debt on already-built public facilities; parks, stormwater, and transportation SDCs are higher in the newer urban growth areas of Pleasant Valley and Springwater, reflecting the higher costs to extend and construct facilities in these areas. For additional information, visit the city website at https://greshamoregon.gov/System-Development-Charges/.
Value Capture Strategy-Transportation Utility Fees (TUFs): The Supreme Court reversed in part, holding (1) the City acted within its discretion in enacting the TUF; but (2) the purpose of the TUF was characteristic of a fee because it was a specific charge for a specific purpose. The Utah Supreme Court reversed a district court determination that Pleasant Grove City’s Transportation Utility Fee (TUF) was an illegal tax, concluding that its purpose qualified it as a service fee, but remanded to determine whether the fee was reasonable. To address deteriorating roads, Pleasant Grove City, Utah adopted an ordinance and resolution which, together, established a Transportation Utility Fee. The TUF charged residential and commercial property owners a monthly fee based on their “intensity of use of the city streets,” dividing property owners into three categories: tier 1 businesses, tier 2 businesses, and residential. Funds generated by the TUF were kept separate from the City’s general fund, and could only be used for the repair and maintenance of city roadways.
The Supreme Court held that the proper analysis of a service fee is a “specific charge” for a “specific service or benefit,” and that in this case, the district court mischaracterized the benefit as an improved road system, when instead, the specific service is better characterized as the use of City roadways. The fact that some people who do not pay the fee may benefit from it does not necessarily transform the fee into a tax. Because those who pay the fee receive the particular benefit of using the road, the TUF is properly characterized as a service fee. The Supreme Court, however, remanded back to district court to next determine whether the fee is “reasonable,” in that it “bears some reasonable relationship to the cost of the benefit [or service].” So, while the purpose of the TUF qualifies it as a service fee, if the TUF is unreasonable, it may lose that status. Visit the City website for additional information.
Value Capture Strategy-Tax Incremental Financing District (TIF): The city of Madison approved the plan for a Tax Increment Financing district in the South Madison area March 20,2023. The TIF district is estimated to provide a total of $115 million in financial support, with $99 million of the funding to be allocated for the development of South Madison, according to a press release from the city of Madison. A TIF district is an area where property tax revenue generated from the increases in value of real estate can be used to fund city developments, TIF expert and University of Illinois Chicago professor David Merriman said. The city will use the funding provided by this district to invest in South Madison housing, small business support and community assistance. The TIF district plans to provide $22 million towards affordable housing, $6 million to small businesses and $34.9 million towards other revitalization and community support projects, according to the press release.
Value Capture Strategy-Transportation Impact Fees (TIF): The City of Georgetown, Texas Impact Fee Advisory Committee has recommended City Council establish an effective date of Oct. 1, 2022. The City Council has directed the effective date for initial collection of fees be March 1, 2023, in order to provide almost two full years of grace period to the development community, which is almost double the minimum required by state law. Any plat for a development submitted on or after March 1, 2023, will be required to provide TIF. Legal lots that do not require platting will be required to submit TIF according to when the building permit application is submitted. TIF will be collected at the time building permits are requested. TIF will be applied to any development within the City limits or developments that have been annexed.
Fees collected must be spent within 10 years within the Service Area collected. If the money is not spent in 10 years, the fees collected must be refunded to the building permit applicant. The study is updated at least every five years. During the update, the existing balance is examined to ensure it is spent before the time limit expires. To learn more about TIF, visit City of Georgetown, Texas website
Value Capture Strategy-Tax Increment Financing (TIF) District: The North Wenatchee, Washington Tax Increment Financing district is now a reality after approval from the city Council Thursday night. The district encompasses the North Wenatchee redevelopment area, which was damaged from the 2015 Sleepy Hollow fire and includes buildings purchased by the city. Executive Services Director Laura Gloria says the city's investment in road projects will spur business taxes, which will increase property taxes.
"Instead of that increase of property values going back to the taxing districts, or to the taxing agencies like the city, the county, the port, that increment we get as a city back into that bucket," said Gloria. "But it's in essence paying back the infrastructure that we've invested in."
The Tax Increment Finance, also known as TIF district, will sunset after 25 years, or even sooner if the city recovers all the money it initially invested. The city plans to use the revenue from increasing property taxes within that district and funnel it towards neighboring public infrastructure projects.
The city's roads and infrastructure investment include the McKittrick/Columbia “Signature Street” project, the massive Confluence Parkway project, and the North Wenatchee “Boulevard Gateway” project. The Wenatchee TIF District was made possible by the state legislature, which in 2021 passed the “TIF Act,” allowing local governments to use tax increment financing of public improvements within an area in order to fund private economic development projects.
Value Capture Strategy-Business Improvement District (BID): Maryland Loyola celebrates approval of York Corridor Business Improvement District. Commercial property owners voted to approve the York Corridor Business Improvement District (BID) on February 28, 2023, a community advocacy and improvement organization intended to provide services that ensure a clean, green, and vibrant corridor. Loyola University Maryland was one of the entities associated with the BID when it was first proposed and has long supported the proposal. The BID vote passed with 80% support among corridor business property owners who voted. The results were announced by 4th district Councilman Mark Conway at a Baltimore City Board of Estimates meeting.
Value Capture Strategy-Tax Increment Financing (TIF) District: The North Wenatchee Tax Increment Financing district is now a reality after approval from the Wenatchee city, Washington Council The city council voted unanimously to establish the TIF District Thursday night on Thursday night, February 24, 2023. The district encompasses the North Wenatchee redevelopment area, which was damaged from the 2015 Sleepy Hollow fire and includes buildings purchased by the city. Executive Services Director Laura Gloria says the city's investment in road projects will spur business taxes, which will increase property taxes. The Tax Increment Finance, also known as TIF district, will sunset after 25 years, or even sooner if the city recovers all the money it initially invested. The city plans to use the revenue from increasing property taxes within that district and funnel it towards neighboring public infrastructure projects. Visit the city Wenatchee website to learn how TIF works.
Value Capture Strategy-Special Assessment District (SAD): Adrian City, Michigan Commission OK's 3 street work special assessment districts. Each of the three special assessment districts were approved by the commission following the public hearings in a 5-1 roll vote on February 20, 2023. The Adrian City Commission moved ahead with confirming the costs associated with three street improvement projects and adding those costs to the city’s special assessment district tax rolls. The cost of each project is:
Special assessment districts are a designated area where a majority of property owners agree to allow a government agency to levy a property tax in exchange for a specific service. In this case, the service that was provided was the improvement of public roads, which consisted of the installation of curb and gutters, resurfacing and base stabilization. With authorization of the assessments by the city commission, costs of the projects levied against those homeowners will be divided into 10 equal installments.
Value Capture Strategy-Special Assessment District (SAD), Carlsbad Tourism Business Improvement District (CTBID): On Feb. 7, 2023, the City Carlsbad, California Council adopted a resolution of intention to form a Tourism Business Improvement District under the Property and Business Improvement Law of 1994. This action would provide a structural change to the CTBID but would NOT result in any assessment increase. The proposed Management District Plan provides information and guidance for the new CTBID. The Carlsbad Tourism Business Improvement District Board is made up of seven members, three from the largest hotel operators in the city, holding permanent seats, and four selected to represent a cross-section of the remaining Carlsbad hotel industry. All members are appointed by the mayor and confirmed by the City Council. Visit the city website to learn about CTBID.
https://www.carlsbadca.gov/city-hall/meetings-agendas/boards-commissions/tourism-bid
Value Capture Strategy-Traffic Impact Fees: Changes to the Traffic Impact Fee program go into effect Feb. 1, 2023. When a person or business develops property in unincorporated Pierce County, they pay traffic impact fees (TIF). The fees are charges on new development that creates higher travel demand. They help pay for transportation system improvements needed by the new development. Fees can only be used to add transportation system capacity required to support new development. They are not used for maintenance or operations work. According to Pierce County, the total cost of roadway and intersection projects to support future transportation needs is $700 million. Traffic Impact Fees are expected to bring in $253 million for these projects. Additional information can be found at the county website.
Value Capture Strategy-Special Assessment Districts, Tourism Business Improvement District: On Feb.7, 2023, the City of Carlsbad Council adopted a resolution of intention to form a Tourism Business Improvement District under the Property and Business Improvement Law of 1994. This action would provide a structural change to the Carlsbad Tourism Business Improvement District (CTBID) but would NOT result in any assessment increaseThe proposed Management District Plan provides information and guidance for the new CTBID. The Carlsbad Tourism Business Improvement District Board is made up of seven members, three from the largest hotel operators in the city, holding permanent seats, and four selected to represent a cross-section of the remaining Carlsbad hotel industry. All members are appointed by the mayor and confirmed by the City Council. For additional Information, visit the City of Carlsbad website, California
Value Capture Strategy-Roadway Impact Fees: Leander City, Texas Council approved the Roadway Impact Fees ordinance after holding a briefing workshop in June 2022 and public hearing in July 2022. The ordinance went into effect on Jan. 7, 2023. Impact fees are a mechanism for funding public infrastructure necessitated by new development such as police and fire facilities, parks, schools, roads, and utilities. However, roadway Impact Fees may not be used to repair or maintain existing facilities, upgrade, or replace existing capital improvements to serve existing development, or pay for administrative or operating costs to impose the fees. This does not preclude inclusion of roadway widenings, however, so long as the cost of that roadway is discounted to account for roadway capacity serving existing demands. If a roadway does not provide capacity for roadway users outside of the development, it cannot be included in the study or paid for with impact fees. Additional information can be found at https://www.leandertx.gov/ds/page/roadway-impact-fees.
Value Capture Strategy-Park Impact Fee: Developers in city of Austin, Texas will pay higher fees to the city for their new projects in 2023. Beginning January 1st, 2023, new commercial developments within the Austin Full Purpose jurisdiction, including office, retail, industrial, and hotel uses, will be required to dedicate parkland, or pay fee-in-lieu of dedication in proportion to their impact on the park level of service. This will ensure that the City’s park system will keep pace with the rapid growth in its workforce, maintaining a high-quality of life for residents and workers alike. When builders construct a new neighborhood of single-family homes, an apartment complex or hotel, they have to provide land for parks, money to buy parks or a mix of both. In roughly 90% of cases, according to the city, developers opt to fulfill this requirement by paying some portion of a fee. (The city exempts some forms of affordable housing from this requirement.) A new development’s impact is based on the number of workers expected to occupy the new commercial space discounted by their relative opportunity to access parkland, representing the full-time equivalent population of the new development, and referred to as the ‘Functional Population.’ Additional information and resources related to the Commercial Parkland Dedication Ordinance can be found at: https://www.austintexas.gov/new-PLD.
Value Capture Strategy-Business Improvement District (BID): The Stevens Point Common, Wisconsin Council has voted unanimously to adopt the city’s first business improvement district around the historic downtown in December of 2022 and began operations in 2023. This Business Improvement District (BID) was initiated by representatives from the Stevens Point Alliance, downtown property owners, and supported by Community Development staff. The Downtown Business Improvement District is led by 7 board members and supported by Community Development staff. Applications are closed but interested business and property owners may submit a completed application to the Stevens Point City Clerk at 1515 Strong’s Ave for future consideration.
A Business Improvement District (known simply as a BID) is a boundary of a commercial and/or industrial area established with recommendation of the BID Planning Committee. This area, governed by a BID Board of Directors, is able to levy additional property tax on the properties within the boundary to help promote, market, and maintain the BID area. Typically, BIDs are established in downtown areas and neighborhood commercial districts in an attempt to further economic activity of those areas, The board application and downtown BID information can be found on the City of Stevens Point website.
Value Capture Strategy-Community Improvement District: The federal spending bill finalized by Congress and signed into law by President Biden in late December included $750,000 for HUB404 (Funding included in federal omnibus spending bill), a nine-acre “cap park” atop GA 400 initiated by the Buckhead Community Improvement District (BCID). Following Congresswoman Nikema Williams’ request for funding, the U.S. Department of Housing and Urban Development (HUD) announced its appropriations bill allotting funds for this award-winning project in the final measure. This is a significant step toward building HUB404 which will provide safe walkways, greenspaces, and easier access to MARTA for residents and visitors said Jim Durrett, Executive Director of the BCID. HUB404 is an on-structure, nine-acre park that bridges the GA 400 freeway. Reconnecting Atlanta’s Buckhead community through multi-purpose public space, the design incorporates opportunities for diverse programming and uses while also providing access to the Buckhead MARTA station and PATH400, a multi-use trail in Buckhead. Envisioned as an agent of social change, the park will be a destination for the local community, commuters, and visitors alike. To learn more about the B404, visit www.hub404.org.
Value Capture Strategy-Business Improvement District (BID): Center City District Reauthorization Approved For 2023-2027. The Center City District (CCD) was confirmed in City Council on December 15, 2022, by a vote of 16-0 and signed by Mayor Jim Kenney on January 4, 2023, after being overwhelmingly approved by District property owners during the summer of 2022 with only two of 1,676 properties (representing 0.02% of the total assessed value of the CCD) filing objections to the plan. This the eighth CCD reauthorization — a formal process required under Pennsylvania law — since the District was created in 1990. The CCD was established in March 1990 under the Commonwealth of Pennsylvania’s Municipality Authorities Act as a private sector directed municipal authority. With the approval from property owners within its boundaries and from the City of Philadelphia, the CCD was authorized in November 1990 to provide security, cleaning and promotional services that supplement, but do not replace, the basic services provided by the City of Philadelphia and the responsibilities of property owners. Every five years, CCD is required to undergo a reauthorization process and receive City approval to continue its work. CCD’s 2023-2027 Plan and Budget is available to read and download at: centercityphila.org/research-reports/2023-2027-plan-and-budget-for-the-center-city-district.
Value Capture Strategy-Business Improvement District (BID)/ Everett Station District Business Improvement Area: In December 2022, the City of Everett, Washington Council adopted an ordinance establishing the Everett Station District Business Improvement Area (ESDA BIA) from January 1, 2023, to December 31, 2027. A Business Improvement Area (BIA) is a way for property owners to fairly pool resources to fund services and programs for their mutual benefit. The ESDA BIA will provide funding for safety, cleaning, promotion, and events. A special assessment of 4 cents per square foot of the lot plus 50 cents per $1,000 of property value will be levied on properties within the BIA boundary. For hotels, the assessment is 4 cents per square foot of the lot plus 6 cents per square foot of the building. In addition to private properties, City-owned properties are also subject to the assessment.
An Ordinance establishing an Everett Station District Business Improvement Area ( BIA); providing for the levy of a special assessment upon real property (and the owners thereof) within the area; the deposit of revenues in a special account and expenditures therefrom; and providing for an implementing agreement with an Everett Station District property owners association or similar organization can be found at the City of Everett website.
Value Capture Strategy-Transportation Benefit District (TBD): The City of Airway Heights, Washington voters approved a sales tax increase on goods and services to pay for road construction to take effect in January 2023. The proposal provides for new or increased transportation benefit district (TBD) sales taxes in Airway Heights (0.3%) and Lake Stevens (0.2%), plus renewals of existing sales taxes in Lynden and Stanwood. New legislation this year allows TBDs to increase their sales tax rate to 0.3% and to adopt 0.1% of that authority council manically (without voter approval). Several cities have councilmanic TBD sales taxes taking effect January 1, 2023, including Auburn, Battle Ground, East Wenatchee, Port Orchard, and Wenatchee. The increase is expected to raise about $935,000 per year, which will be used as a match for state and federal grants to improve east-west transportation systems. The funding also helped to pay for a pedestrian safety crossing on busy Hayford Road, which fronts the Northern Quest Casino and Hotel. Additional information can be found at the Airway Heights City website
Value Capture Strategy-Special Assessments, Transportation Sales Tax: Dorchester County, South Carolina voted in favor of continuing the Transportation Sales Tax by a 59 percent to 41 percent vote. Sales tax, including the one percent sales and use tax, is paid by all - not just residents, but tourists and visitors. Everyone who uses roads, facilities, and services while in Dorchester County should help to pay their share. The one percent sales and use tax generates one cent for each dollar spent and is therefore sometimes referred to as the "one cent sales and use tax." This will allow continued investments for financing the costs of highways, roads, streets, bridges, and other transportation-related facilities as well as drainage facilities and mass transit systems. The one percent sales and use tax will continue for a period not to exceed more than 15 years or exceed $735,000,000 in revenue. Visit the Dorchester County website for additional information.
Value Capture Strategy-Regional Sales Tax: Voters in all Eagle County municipalities, Colorado (the towns of Avon, Eagle, Minturn, Red Cliff and Vail, and Beaver Creek Metro District) with the exception of Gypsum voted in favor of a new regional transit authority with a new half-cent sales tax. The 0.5-cent sales tax increase will fund a new transit authority in Eagle County. The ballot measure asked residents in the eight communities to form the new Eagle Valley Regional Transportation Authority with a half-cent sales tax. This half-cent sales tax would be combined with the existing half-cent Eagle County sales tax — which currently supports ECO Transit — to fund the new authority and would go into effect on Jan. 1, 2023. The new sales tax is expected to bring over $15 million in the first year, allowing the authority to bring a slew of transit enhancements and upgrades to the region. Visit Eagle Valley Regional Transportation Authority website for additional information. https://eaglecountyrta.org/eagle-valley-rta
Value Capture Strategy-Regional Sales Tax: On January 1, 2023, the City of Englewood, Colorado local sales and use tax rate will increase from 3.5% to 3.8%. This change will affect all taxable transactions in January 2023 and thereafter. The City of Englewood taxes be increased not more than $1,957,596 annually beginning January 1, 2023, and by such amounts as are raised annually thereafter by an additional sales and use tax of 0.2 percent, excluding the sale of food for domestic home consumption, to fund repaving, repairing, maintaining, and improving city streets and roads. For additional information, visit City of Englewood website at
Value Capture Strategies-Tourism Public Improvement District (PID): Frisco City Council, Texas approves Tourism Public Improvement District (TPID) to Take Effect January 1, 2023. On October 18, 2022, the Frisco City Council approved the creation of the Frisco Tourism Public Improvement District (TPID). The TPID is a 2% assessment on taxable room rates paid by overnight hotel visitors when staying in hotels with 75 rooms or more within the city limits of Frisco. The assessment will be implemented January 1, 2023. Residents will only pay this assessment if they stay overnight in a hotel. The district will be led by the Frisco TPID Board of Directors comprised of local hoteliers. The economic benefits to cities that established TPIDs have been phenomenal; tourism public improvement districts promote economic development citywide,” said Scott Joslove, president and CEO of Texas Hotel and Lodging Association. “When you have additional incentive and marketing of hotel activity, restaurant and retail activity goes up, as well as sales tax revenue.” The TPID does not create a new taxing authority or a new tax. The district can’t be created until over 60 percent of the hotel property owners in that district sign a petition asking the city to create a district. Visit the City of Frisco website for additional information.
Value Capture Strategy-Development Impact Fees (DIFs): On November 8, 2022, the City Council San Bruno, California adopted an Ordinance adding Chapter 12.265 (Bayhill Specific Plan Area Development Impact Fees), which imposes fees upon development projects collected and used by the City to cover the cost of capital facilities and infrastructure needed to serve new development in the Bayhill Specific Plan Area. The Ordinance also amended portions of Chapter 12.260 (Development Impact Fees) of the San Bruno Municipal Code. The fees will be imposed upon the developer of each development project in the Bayhill Specific Plan area as a requirement that must be met prior to building permit issuance. The initial fees were effective on December 24, 2022.
Value Capture Strategy-Tourism Business Improvement District (TID), Providence tourism district;
Rhode Island City Council voted on Dec. 15 on the proposed Providence Tourism Improvement District, which would use 2% of future lodging revenue from hotels such as the Hotel Providence toward an expansion of marketing efforts. The city finance committee on Monday unanimously supported creation of a Providence Tourism Improvement District to generate additional revenue to boost the hospitality industry. If approved by the City Council, which is scheduled to vote on the measure Dec. 15, the district could launch as early as Feb. 1 and would dedicate 2%.
On December 15, 2022, the Council approved a resolution authorizing the creation of the Providence Tourism Improvement District. In the wake of COVID-related staffing shortages and supply chain concerns, this legislation seeks to boost the tourism industry here in Providence.
All hotels with fifty rooms or more within the district will be assessed 2% of gross short-term room rental revenue. Those funds will be collected by the City and used to support events inside the district such as meetings, conventions, games, and marketing events. In year one, the budget for the district will be around $1.6 million.
Value Capture Strategy-Tax Incremental Financing (TIF) District: At the December 11 City Council Regular Meeting, the City Council unanimously approved the creation of the Briergate Tax Increment Financing (TIF) District. The Briergate TIF District was created to support the cost of infrastructure improvements for the Briergate Business District (BBD) in order to encourage investment and revitalization. TIF funds will be used in conjunction with revenue from an existing Special Service Area (SSA) which was established in 2014 and will run through 2023 in the BBD. The Briergate TIF District was created in response to Briergate Business Association District (BBAD) business and property owner desires to advance improvements within the district before 2025 resulting in revitalization of the BBD. The City plans to use TIF funds for infrastructure improvements in the BBD to increase safety in the area, including replacement of the roadway; and installation of curb and gutter, sidewalks, parking bays and lighting which presently do not exist in the district. The Briergate Business District is located along US 41, along Deerfield Road, Old Deerfield Road, and Old Skokie Road.
Value Capture Strategy-Tax Increment Financing (TIF): The Brooklyn Park City Council, New York voted unanimously to approve the plan December 12, 2022, to use $440,000 in extra tax increment financing revenue to support private development or redevelopment projects in the city. Recently approved state statute allowed the city to utilize extra TIF funds for development beyond the original TIF district. The state Legislature passed special legislation allowing cities to use eligible unobligated tax increment financing revenue if a spending plan was approved by the end of 2022. If not used for development projects, the TIF funds would be returned to their taxing jurisdictions. The deadline to spend the funds is December 31, 2025.
The funds may be used to assist in financing construction of affordable housing. The tax increment financing was collected on the former Knox hardware store property located at County Road 81 and Northland Circle North. The property is now home to a multi-tenant industrial property. The tax increment financing district was created to help fund the “extraordinary costs associated with the redevelopment” of the property. Additional information can be found in the Development Agreement
Value Capture Strategy-Neighborhood Improvement Districts (NID), Lindsay Heights Neighborhood Improvement District Approved 12/28/2022: With strong support from local leaders and residents, the Lindsay Heights Neighborhood Improvement District (NID) was approved by Mayor Cavalier Johnson and the Milwaukee Common Council, Wisconsin to advance the growth of this vibrant community. NIDs are a critical partner in developing stronger areas throughout Milwaukee by supporting housing efforts and promoting a higher quality of life. NIDs are funded and operated by property owners and community residents located within each district’s defined boundaries. The formation of the Lindsay Heights NID was driven by local residents to revitalize and improve this area on Milwaukee’s near north side. The NID will be bounded by North 20th Street to the west, North 6th Street to the east, West Locust Street to the north and West Walnut Street to the south, excluding properties included in the North Avenue Market Place BID 32, in the 15th Aldermanic District. Learn more at City of Milwaukee website
Value Capture Strategy-Tax Increment Reinvestment Zone (TIRZ), Texas Medical Center: Houston City Council on December 14, 2022 approved the creation of the new Tax Increment Reinvestment Zone (TIRZ) in the Texas Medical Center to take advantage of the ongoing development of a sprawling biomedical research campus. Under a TIRZ, property tax revenues are frozen. As development occurs and property tax revenues rise, the revenue generated above the set level — known as the increment — is invested back into the zone to pay for public improvements and infrastructure in an effort to attract more development. The plan entails approximately 1,332 acres and will allow for the repair of public infrastructure, including water retention for the area and parking and transit solutions at the nearby Hermann Park. The newly approved 2.1-square-mile zone consists mainly of untaxable properties owned by the government and nonprofits. The Texas Medical Center, however, is investing billions into the 37-acre life science campus known as TMC3 that is expected to generate a windfall of tax revenue in the coming years. With a 30-year lifespan, the TIRZ will pour millions of tax dollars into upgrading the medical center, surrounding streets, and the neighboring Hermann Park. Visit the City of Houston website for additional information.
Value Capture Strategy-Tax Increment Reinvestment Zone (TIRZ), Montrose area: The Houston City Council unanimously voted on Wednesday, December 9th to create a Tax Increment Reinvestment Zone, commonly known as TIRZ, for the Montrose area. The funds the TIRZ will generate will help Montrose repair and enhance its currently failing infrastructure. The Montrose TIRZ will facilitate completion of infrastructure projects much more quickly than the City's Capital Improvement Plan and, ultimately, this Montrose TIRZ will lead to more City funds being freed up for the CIP projects to be prioritized/completed elsewhere. This is a net gain. The goals of the Montrose TIRZ include projects around:
Visit the City of Houston website for additional information.
Visit City of Corpus Christi website for additional information.
Value Capture Strategy-Transportation Benefit District: White Salmon City Councilors, Washington unanimously approved an ordinance establishing a transportation benefit district, the first step towards a potential implementation of a sales tax and/or a vehicle licensing fee. The council is set to consider either absorbing the Transportation Benefit District formally into the duties of the council or establishing a separate entity entirely at the Jan. 18 meeting, and on Feb. 1 will consider whether to adopt a 0.1% sales tax on all goods and services rendered within the city, a vehicle licensing fee of up to $50, the latter of which would be increased incrementally starting with a $20 fee in the first year, or a combination of both. The funds generated by the transportation benefit district shall be used for transportation improvements that construct, reconstruct, preserve, maintain, and operate the existing transportation infrastructure of the City, consistent with the requirements of Chapter 36.73 RCW and as contained in the city’s transportation plan. For additional information on TBD, visit the City of White Salmon website
Value Capture Strategies-Tax Increment Finance (TIF): The Chicago City Council voted Wednesday December 14, 2022, to approve a new Transit TIF district to support the funding of the Red Line Extension. The proposal championed by Mayor Lori Lightfoot to use property tax revenue generated downtown to help fund the $3.6 billion extension of the CTA's Red Line from 95th Street to the city's southern border near 130th Street. The Chicago Transit Authority (CTA) President Dorval Carter has said extension will benefit the entire city – not just the Far South Side — by allowing people to get to work in the Loop 30 minutes faster while reducing carbon emissions from cars. The project would be the largest in the history of the CTA, and would create 6,000 jobs — earning the support of the politically powerful Chicago Federation of Labor.
As part of the $3.6 billion price tag, the CTA needs to contribute a "local match" to secure the federal funding through the Federal New Starts funding program. The Red Line Extension's Transit TIF will raise $950 million in increment to provide that necessary local funding. Similar to a traditional TIF district, the Transit TIF allows for the increment raised to more directly benefit transit projects. For additional information, visit the CTA website
Value Capture Strategies-Tax Allocation District (TAD): Georgia DeKalb County commissioners on Tuesday, December 13, 2022, unanimously approved the creation of Market Square Tax Allocation District, or TAD, , which encompasses the mall property and nearby areas along North Druid Hills Road and Lawrenceville Highway. Redevelopment costs are financed through the pledge of future incremental increases in property taxes generated by the resulting new development. The TAD will fund transportation and mobility upgrades, as well as affordable housing, parks, landscaping and lighting. The project includes a robust pedestrian network including a multi-use regional trail segment and connections to surrounding commercial uses, residential neighborhoods, and open space. The TAD has a potential appraised redevelopment value of $625 million on the mall site, which is currently appraised at $16.2 million. In conjunction with other redevelopment projects in the TAD area, officials say the TAD could spell $806 million in new property value — nearly 20 times the current valuation.
Value Capture Strategies-Tax Increment Finance: The Omaha City Council approved $440 million worth of bonds on Tuesday, December 13, 2022, with the city aiming to pay those off with new development. $80 million of those bonds are lease-purchase bonds and will be backed by the taxpayers. However, the streetcar project will not use taxpayer money. The city is implementing a creative use of tax-increment financing to fund the project, with new development within three blocks of the streetcar line, in the city's urban core. The streetcar is planned to largely go along Farnam Street from Midtown to Downtown. Tax-increment financing, or TIF, is essential to the financial plan, which calls for the issuance of $80 million in lease purchasing bonds and $360 million in redevelopment bonds to pay the initial costs of building the streetcar system — including the purchase of vehicles, construction of the tracks and price of a vehicle maintenance building. Under TIF, the developer of a city-approved project takes out a loan to help cover eligible redevelopment expenses. The loan is paid back, generally over a 15-year period, by using the increased property taxes that are generated on the new development. During the TIF period, the property owner continues to pay a portion of property taxes to local governments based on the valuation that existed before the improvements. After the TIF loan is repaid, property taxes collected on the higher-value, improved property then start flowing to local governments. For additional information, visits the City of Omaha Website.
Dover considers TIF districts for its future: DOVER — The Dover City, Maine Council is set to vote on an ordinance that would enable the city to create tax increment financing (TIF) districts on Monday. Dover's City Council voted on Monday December 12, 2022, to allow the city to use a new financial instrument to subsidize redevelopment efforts — the latest bid to draw private development to the capital's struggling downtown. City Manager David Hugg says that the new financing tool could be "the most important step" in drawing new investment to downtown Dover. Because of an exception in state law written specifically for Dover, if the city doesn't secure the increase in property tax revenue needed to pay back the bonds the city's credit rating won't be impacted. "Because they aren't supported by the credit or assets of the city, the city isn't obligated to repay those bonds," he told the Council in a meeting in late November. "The risk is on the developer or redeveloper for the amount of money that's obligated to the bonds." Visit City of Dover website for additional information.
Value Capture Strategies-Tax Increment Finance (TIF): The Dallas City Council, Texas approved a 20-year, $390 million master plan for redeveloping Hensley Field half of which will be spent on new roads and utilities. The master plan calls for turning the city-owned, 738-acre site of a closed naval air station into a new mixed-use neighborhood. The work to be done in three phases and suggests tax-increment financing as a way to pay for public infrastructure and other improvement costs. Tax-increment financing estimated to raise between $198 million to $243 million in property tax revenue over 20 years. A combination of bond money, federal infrastructure grants, American Rescue Plan Act money and other financing methods are suggested as ways to make up the rest of the cost. The redevelopment could lead to a diverse mix of commercial, institutional, and residential uses that could accommodate 12,000 jobs and offer living space for 12,000 residents. The plan calls for 185 acres of open public space, including an interconnected network of community and neighborhood parks, greenways, natural preserves, and over 7.5 miles of on-site trails oriented to Mountain Creek Lake
Value Capture Strategy-Special Assessment District (SAD): The Four Lakes Special Assessment District (SAD), Michigan Operations and Maintenance Assessment start in December 2022. The funding mechanism for operations and maintenance costs, which are estimated to be $1.56 million per year. This assessment will be used for administration, operations, and management of the lakes during the transition to their normal levels; for the development of operational plans; and for long-term, ongoing operations. Special assessments provide an opportunity for townships to finance projects and improvements that might otherwise be impossible to provide. The process involves many details and a great deal of public input and great deal of work involved to establish a district and impose a special assessment to pay for a service or improvement. For additional information on recommendation from Four Lakes Special Assessment Taskforce visits the website.
Value Capture Strategy- Sidewalk Improvement Districts. On November 14, 2022, the City Minnesota Council adopted the Sidewalk Improvement District program that reassigns the cost of sidewalk repairs and replacement from the adjacent property owner to a distribution among a greater portion of the community, as sidewalks are a benefit to, and are available for use, by all.
Pedestrian safety is a high priority of the City of Rochester, Minnesota. With over 600 miles of sidewalk and 9,000 pedestrian ramps, the City performs annual maintenance projects on pedestrian facilities. This is to keep them accessible and safe for users and to efficiently extend the lives of these facilities through routine and preventative efforts.
The implementation of the program will include formal approval of the 2023 project area and associated assessment rates for District 1 in the winter of 2022/2023. Construction on the first project area will occur in Spring 2023. In Fall 2023, sidewalk inspections will occur in the second District, ahead of the formal adoption of the project area and associated rates for 2024. To learn the City Sidewalk Improvement District Policy Click here
https://www.sandiegouniontribune.com/communities/north-county/oceanside/story/2022-11-20/transit-district-to-sell-naming-rights-for-stations-trains-buses
Value Capture Strategy-Naming Right, North Carolina Transit District (NCTD). Naming rights soon could be sold for North County Transit District trains, stations and transit centers under a proposal being developed for the agency. Transit district to sell naming rights for stations, trains & buses. Advertising program could bring NCTD millions of dollars in revenue, boosting budget for general operations.
NCTD’s board of directors approved a contract to develop its program earlier this year with Superlative, Inc., the firm that handles the San Diego MTS naming rights. Based in Cleveland, Ohio, Superlative also has contracts with the Los Angeles Metro, San Francisco’s BART, and other transit agencies across the United States, Canada, and the United Kingdom. So far, Superlative has created a list of NCTD’s assets most likely to be named and set a range of values for each one, the firm’s Chief Operating Officer Kyle Canter said in a Zoom presentation Thursday to the NCTD board. Sales are expected to begin in early 2023. All naming rights deals will be subject to the NCTD board’s approval.
Value Capture Strategy- Transportation Benefit District (TBD), Lake Stevens, Washington TBD: The community approved the Transportation Benefit District (TBD) funding in the November 8 State General Election. The law allows voters to approve a sales tax increase up to 0.3% (three-tenths of one percent) to fund a TBD. The Lake Stevens City Council is asking voters for a sales tax increase of 0.2% (two-tenths of one percent) or two cents on a $10 purchase. The TBD is funded through a 0.2 percent sales tax or two cents on a $10 purchase. This funding method means visitors who shop, dine, or recreate in Lake Stevens also help pay for city sidewalks, roads, and trails they use. The TBD is projected to raise approximately $1.5 million per year for projects and matching funds for larger grants. TBD-funded improvements include traffic congestion relief, sidewalk connections and repairs, street and road maintenance, and multi-use pathways or trails. Revenue also can be used as matching funds to access larger grants.
Sales tax applies to both residents and visitors to Lake Stevens who come for shopping, dining, or recreation. Many people feel that sales tax is a fair way for visitors to contribute and maintain the sidewalks, streets, and trails they use, as well as traffic congestion relief projects. The TBD is expected to raise $1.5 million a year for transportation projects in our community.
Value Capture Strategy– Special Assessment, Sidewalk Improvement District: On November 14, 2022, the City Council adopted the Sidewalk Improvement District program that reassigns the cost of sidewalk repairs and replacement from the adjacent property owner to a distribution among a greater portion of the community, as sidewalks are a benefit to, and are available for use, by all. Benefits of the Sidewalk Improvement District (SID) program include:
The implementation of the program will include formal approval of the 2023 project area and associated assessment rates for District 1 in the winter of 2022/2023. Construction on the first project area will occur in Spring 2023. In Fall 2023, sidewalk inspections will occur in the second District, ahead of the formal adoption of the project area and associated rates for 2024. https://www.rochestermn.gov/government/departments/public-works/sidewalks-paths/sidewalk-replacement-maintenance/sidewalk-improvement-districts
Value Capture Strategy-Special Assessment District/Tourism District, Dallas Voters Approve Hotel Tax for New $1.5B for Convention Center: Voters in Dallas overwhelmingly said yes to upgrades at Fair Park and in Downtown Dallas. The ballot initiative called for a 2% increase in the city’s hotel occupancy tax. But it won’t raise taxes for people who live in the city. Dallas Proposition A: About 70% of Dallas voters approved adding 2% to the hotel occupancy tax to pay for bonds to build a new downtown convention center and make sweeping updates to Fair Park. The developer requested a TIF redevelopment agreement with the city to close “their potential funding gap” and to assist with property redevelopment including, but not limited to, a new loading dock on the south side of the facility, site/infrastructure improvements and façade and landscaping improvements. The agreement consists of reimbursement of $700,000 of $1.7 million of TIF-eligible expenses and 85 percent of the increment created by the site redevelopment. Voters favored of a $2 billion plan to build a new convention center west of Lamar Street. An additional $2.2 billion would be spent on redevelopment projects in and around the convention center.
Value Capture Strategy-Tax Increment Reinvestment Zone (TIRZ), Project Northwest New Hope: The Cedar Park City Council unanimously approved a Tax Increment Reinvestment Zone (TIRZ) that will fund public infrastructure and other site improvements to support a future $400 million mixed-used development at its November 10 meeting. Called Project Northwest New Hope, the site will be a super-regional destination center that will include a convention center and hotel as well as a NFM retail store, according to the city. The new TIRZ includes 117 acres purchased by CPM as well as the 32-acre H-E-B center site and the 2-acre detention pond site. the 117-acre parcel will be used for revenue-collection purposes. The revenue collected from that site, including sales taxes, hotel occupancy taxes and mixed-use beverage taxes as well as 50% of the property tax revenue, will pay for public infrastructure and site improvements at the development. Visit the City of Cedar Park website for additional Information.
Value Capture Strategy-Regional Sales Tax: On November 8, 2022, voters reauthorized of the 0.1% countywide transportation sales tax in Boulder County, Colorado aimed in part at supporting people who walk, bike, or take the bus. Sales tax in Boulder County has included 0.1% for multimodal transportation for more than 20 years and is scheduled to expire on June 30, 2024. The county is asking voters to extend that tax, with the future funding used to provide safe, sustainable, and affordable transportation choices for people throughout the county for today and into the future. These funds are used in transit services, such as on-demand transit between Boulder, Lyons, Gold Hill, and Fort Collins. The funds are also used to build regional trails and commuter bikeways, to make roads safer and resilient to natural disasters, and to fund community mobility programs, such as Mobility for All. The funds are also used to focus on regional corridors, providing multimodal connections between communities using transit, bike, and pedestrian facilities. An important purpose of the funds from this tax is to provide matching funds for federal, state, and regional projects. This is a requirement for most transportation grants. Visit the Boulder County website for additional information
Value Capture Strategy-Regional Sales Tax: Voters at El Paso County, Colorado Springs approved a 10-year extension of a portion of a 1% sales tax to support major regional road projects. The vote was split almost 80% to 20% in favor of extending 55% of the Pikes Peak Rural Transportation Authority's 1% tax. This portion of the tax pays for some of the community's largest road extensions and expansions while permanent portions pay for maintenance and transit. The tax revenues benefit Colorado Springs, El Paso County, Manitou Springs, Green Mountain Falls, Ramah and Calhan. The new funding will start in 2025 and end 2034. The tax extension is expected to raise about $1 billion for all member governments and $592 million for the city's highest priority projects over ten years. To learn Sales and Use Tax, visit El Paso County website
Value Capture Strategy-Regional Sales Tax: San Francisco voters in November 2022 approved Proposition L, the Sales Tax for Transportation Projects measure that will direct $2.6 billion in half-cent sales tax funds over 30 years to help deliver safer, smoother streets, more reliable transit, continue paratransit services for seniors and persons with disabilities, reduce congestion, and improve air quality. Learn more about Proposition L and Sales Tax stories, visit San Francisco County Transportation Authority
Value Capture Strategy-Special Assessments: City of Alma, Michigan voters approved a 3.5-mill, six-year neighborhood street reconstruction millage in Tuesday’s general election, November 8, 2022. A 1-mill hike from the 2.5-mill levy that had been in place for the past 35 years. During the next six-year cycle the city plans to reconstruct Richmond Street between Pine Avenue and Euclid Street, Moyer Street from Hawthorn to Hubbell Street, Charles Avenue from Vassar Street to the Fred Meijer Heartland Trail head, and Riverside Drive between Marshall and South State Street. The additional mill will be used for repair and maintenance, including seal coating, crack sealing and chip sealing roadways, as well as using hot mix asphalt patches and mill and overlay techniques to fix others. The full 3.5-mill levy will cost the owner of a home $3.50 for every $10,000 of taxable value rather than the $2.50 they are now paying.
Value Capture Strategy-Private Sector Contributions: Lowndes County, Georgia announced the start Monday November 14, 2022 of a $40 million multiyear project to bring high-speed fiber optic internet service to thousands of the county’s rural residents. Of the $40 million price tag, Windstream is putting up $18 million while state grants will cover the remaining $22 million, said Michael Force, who oversees Windstream operations in Georgia. The project aims to provide broadband internet access to 18,000 homes in rural Lowndes County that are “unserved or underserved.” Work on the fiber optic system is slated to start in 2023 with a deadline set by Gov. Brian Kemp of 2026. The project consists of some 900 miles of fiber-optic lines.
Pricing will be "consistent with market pricing" and installation will involve both above-ground and below-ground work.
Value Capture Strategy-Business Improvement District (Southwest BID): Mayor Muriel Bowser, the Office of the Deputy Mayor for Planning and Economic Development (DMPED), the Southwest Business Improvement District (Southwest BID), and community leaders launched DC’s first-ever Mobility Innovation District (The MID). This new, multi-year mobility project will improve equitable access to transportation for residents and visitors in Southwest and create a global innovation hub to show how mobility innovation can make a city more equitable, sustainable, safe, and prosperous. DMPED provided a $3 million grant to the Southwest BID to support the creation of The MID.
“Through the activation of our beautiful waterfront, we have brought more jobs, opportunities, retail, restaurants, and entertainment to Southwest DC. In turn, that means more people coming to and through the community,” said Mayor Bowser. “By creating the Mobility Innovation District, we can reduce congestion, ensure more neighbors are benefiting from new opportunities, and build a greener, more sustainable DC.”
City Council Authorizes Financing Package for $40 million of Broadmoor Area Improvements Value Capture Strategy-Tax Increment Finance: The City of Pasco, Washington is the first city in Washington State to take advantage of the TIF program to continue improving the quality of community life in Pasco. The City expects improvements to begin construction in 2023. In a Special Meeting on October 31, 2023, the Pasco City Council approved the formation of a Tax Increment Financing (TIF) package to fund nearly $40 million in road improvements for the Broadmoor area. The Tax Increment Financing program, recently authorized by the State Legislature, allows municipalities to use the increased property tax from development for infrastructure projects. The Broadmoor area, slated for significant retail and housing developments, makes for an excellent candidate for TIF. The project reduces congestion at the I-182 eastbound exit ramp and intersection on Broadmoor Blvd; Improve traffic safety on the I-182 exit ramps and intersections at Broadmoor Blvd.; and Improve the active transportation facilities along Broadmoor Blvd. through the I-182 interchange which currently is a critical gap in the City’s bicycle and pedestrian network. Visit the City of Pasco website for additional information.
Value Capture Strategy-Development Impact Fees (DIF): Effective October 21, 2022, three new San Diego Citywide DIFs, California for Fire-Rescue, Library, and Mobility were updated to replace the community specific DIFs: Citywide Fire-Rescue DIF, Citywide Library DIF, & Citywide Mobility DIF
Properties and land being developed in the City of San Diego are assessed a fee for public facilities. The fee is determined by the type, size, and location of the development for the building permit being issued. Monies collected are placed in a City special fund by community, to be used solely for those public facilities specifically defined or generally described in the Development Impact Fee Plan for each community. To learn more about DIF, visit City of San Diego website
Value Capture Strategy-Special Assessment Districts, Community Facilities Districts: The City of Oxnard, California uses 1911 Act and 1913 Act Assessment Districts, Community Facilities Districts and Landscape Maintenance Districts to finance public improvements and services throughout the City of Oxnard. Property owners within these districts are levied an annual special assessment/special tax on their Ventura County property tax bills to pay for their portion of debt service for bonded districts and/or to fund their share of the annual cost of services provided by district. Proceeds from the special assessments/special taxes are used to ensure that the public improvements are constructed and/or acquired and that public improvements are properly maintained. The Ventura County Superior Court issued a tentative decision regarding funding of special district service level community engagement (available here) in the matter of Moving Oxnard Forward vs. the City of Oxnard. October 12, 2022, The Court determined that the use of Landscape Maintenance District (LMD) funds for community outreach services does not fall within the use of incidental expenses as defined in the Landscape and Lighting Act of 1972. Additional information can be found at the City website
Value Capture Strategy-Development Impact Fees: The Ada County Highway District (ACHD), Idaho Commission approved changes to the Impact Fee Ordinance and related Capital Improvements Plan on July 27, 2022. The ordinance covers fees charged to development to help compensate for the new roadway infrastructure needed to promote and accommodate orderly growth and development in Ada County. The ordinance, No. 246A, took effect on October 1, 2022. Visit Ada County Website for additional information.
Value Capture Strategies-Community Improvement District (CID) and Transportation Development District (TDD): The Community Improvement District (CID) was approved at the Taney County Commission meeting followed by the approval of the creation for the Transportation Development District (TDD)in the circuit court Tuesday afternoon, October 11, 2022. The Missouri Big Cedar CID and the Big Cedar TDD will move forward, after a public hearing in the Taney County Circuit Court on Tuesday a need for infrastructure improvements in the affected area. In the collection of this sale tax that will be invested in these infrastructure improvements, virtually all of that sales tax revenue that is generated, is from visitors that come here to the county. In assessing a 1% sales tax through the CID., that taxable revenue is only generated through Big Cedar or related property entities. The proposed C.I.D. would be 27 years, which would allow for the creation of the bonding structure that would be needed in order to address current needs, and to allow for the continuance to invest in infrastructure as the Big Cedar campus grows. TDD to be formed for the purpose of developing transportation projects include the widening of stretches of Highway 86 from two lanes to four lanes, constructing a new underpass for entry to Thunder Ridge, adding duel drop lanes on stretches of Highway 65, constructing an interchange at Highway 65 and Highway 86, constructing a roadway from the interchange to Buffalo Ridge Blvd. and the Branson Airport, and constructing a two-lane roadway with shoulders and a bridge over Turkey Creek and the Missouri Northern Arkansas Railroad. Additional information, visit the Big Cedar website
https://www.njtransit.com/press-releases/nj-transit-partners-betmgm-naming-rights-meadowlands-rail-line
Value Capture Strategy-- Advertisings, Sponsorships, & Naming Rights, NJ Transit Partners with BETMGM on Naming Rights for Meadowlands Rail Line: The three-Year Sponsorship Creates Newly Branded “BetMGM Meadowlands Rail Line”. NJ Transit and BetMGM today unveiled a new three-year sponsorship that renames NJ TRANSIT’s Meadowlands Rail Line as the BetMGM Meadowlands Rail Line. The agreement on the naming rights is a first of its kind for NJ TRANSIT and will add additional non-farebox revenue over the course of the three-year agreement. NJ Transit’s rail line to MetLife Stadium and the Meadowlands sports complex now carries the name of the Jersey City-based sports betting company under a three-year, $3 million deal announced in the Secaucus Junction rail station Wednesday. The agreement pays $1 million annually for three years in what NJ Transit calls non-farebox revenue, which will help keep fares stable, said Kevin Corbett, NJ Transit CEO. NJ Transit has had stable fares for five years. Additional information can be found at the NJ Transit website.
https://www.nj.com/news/2022/09/betmgm-signs-3m-deal-to-sponsor-nj-transits-metlife-stadium-rail-line.html
Value Capture Strategy-Naming Right: NJ Transit Partners with BETMGM on Naming Rights for MEADOWLANDS Rail Line. A three-Year Sponsorship Creates Newly Branded “BetMGM Meadowlands Rail Line”. New Jersey Transit last week announced the Meadowlands Rail Line has been renamed the BetMGM Meadowlands Rail Line through a three-year sponsorship agreement. The naming-rights deal is the first of its kind for NJ Transit. The comprehensive, multiyear advertising program includes print and digital advertising throughout the transit system, agency officials said in a press release.
“This unique advertising partnership represents a significant new source of revenue for NJ TRANSIT,” said NJ TRANSIT President & CEO Kevin S. Corbett. “This new and innovative partnership is part of our continued commitment to leverage NJ TRANSIT assets to maximize non-farebox revenue and help keep fares stable for our customers.”
NJ TRANSIT, through its advertising partner Intersection, entered into a comprehensive, multi-year advertising program with BetMGM. This program includes extensive print & digital advertising throughout the NJ TRANSIT system, as well as renaming the Meadowlands Rail Line, which operates between Secaucus Junction and the Meadowlands Station adjacent to MetLife Stadium for select events. The newly branded BetMGM Meadowlands Rail Line is now appearing on the latest version of the NJ TRANSIT rail system maps which began deployment throughout the system last month and is available at njtransit.com by clicking HERE.
Value Capture Strategy-Public Improvement District (PID): On June 22, 2021, the City Council of the City of Fort Worth, Texas authorized the establishment of Public Improvement District Las Vegas Trail for a nine-year term, expiring on September 30, 2029, and includes commercial and multi-family properties. The assessment rate is $0.10 per $100 of assessed value to pay for the costs of a portion of a public improvement or services project. The City Council approved and adopted the Service and Assessment Plan and Assessment Roll to be kept on file with the City Secretary. The Ordinance takes effect and will be in full force and effect from and after the date of its passage September 13, 2022.
Value Capture Strategy-System Development Fees: Sanford City Council, North Carolina approves System Development Fees at regular meeting for all newly connecting water and wastewater customers, effective September 1, 2022. System development fees are one-time charges assessed to residential or commercial customers, developers, or builders for each new connection to the City’s water and/or wastewater system. These fees allow the City to recover a proportional share of capital costs incurred to provide service availability and capacity for new infrastructure users. System development fees are charged at the time the user applies for a new connection. The amount of the fee is based on the size of the water meter. Additional information, visit the City of Sanford website
Value Capture Strategy-Tax Increment Finance (TIF). On Massachusetts on September 23, 2022, the Commonwealth’s Economic Assistance Coordinating Council (EACC) approved five projects for participation in the Economic Development Incentive Program (EDIP). These projects are expected to create 373 net new jobs and retain 1,401 jobs throughout Massachusetts, while leveraging approximately $300 million in private investment. Of the applicants this quarter, four are manufacturers and two are located in Gateway Cities. Additionally, one new Vacant Storefront District was approved.
Value Capture Strategy-Tax Increment Finance (TIF). The Bonne Terre City, Missouri Council moves forward with Bonneville TIF, Sep 16, 2022. The City Council on Monday gave the green light to proceed with forming a TIF district to revamp the mostly vacant, 50-year-old Bonneville Plaza strip mall, and heard about various infrastructural initiatives and grant applications that would benefit the city. Community Development Block Grant project is paying for a number of paving projects around town. The aldermen authorized City Administrator Shawn Kay to coordinate a contract with Southeast Missouri Regional Planning & Economic Development Commission to prepare a TIF redevelopment plan for the plaza that was purchased by Hubbard Enterprises earlier this year. In addition to economic development services, the commission helps municipalities in Bollinger, Cape Girardeau, Iron, Madison, Perry, St. Francois, and Ste. Genevieve counties navigate some of the more complicated and legal processes involved in redevelopment tools like Tax Increment Financing (TIF). Kay said new sidewalks, lighting and ADA compliance are part of a grant the city was awarded for Long Street to Division Street along School Street. The project was awarded $388,000 in federal money and the rest of it will come from the city, the total estimated at $530,000.
Value Capture Strategy-ROW Agreements, Solar ROW Projects. In August 2022, the Maine Department of Transportation (DOT) began construction on three solar ROW projects in Augusta. Completed in June 2023, the three projects have a solar capacity of 8.5 MW that powers the Capitol complex and additional facilities. In addition to providing renewable energy for state facilities, these solar projects will help reduce state carbon emissions by 2,000 metric tons annually and reduce state electricity costs by at least $7.2 million over the next 20 years, according to Maine DOT. In addition to the solar deployment, Maine DOT planted pollinator-friendly plants in the ground surrounding the panels, supporting the robust pollinator population.
August 21, 2022
Value Capture Strategy– Advertisings, Sponsorships, & Naming Rights: SEPTA Pennsylvania’s newest Regional Rail station - located at 1490 W. Baltimore Pike - will bear the name of a hometown institution thanks to a naming rights agreement announced today. The new Wawa Station will officially open for service on Sunday, August 21, 2022.
This announcement represents an important milestone for SEPTA’s multi-year project to restore more than 3.5 miles of Regional Rail service west of Elwyn to the new Wawa Station. SEPTA trains last served this area in 1986. The Media/Elwyn Regional Rail Line will now be called the Media/Wawa Line to reflect the new terminus of service.
It is also the first new SEPTA Regional Rail service extension since the Airport Line began operating in 1985. The partnership with Wawa is SEPTA’s fifth major naming rights agreement since 2010. As with the other agreements, this collaboration will further SEPTA’s commitment to generating new sources of revenue, which is critical to ensure the Authority can continue to recover from the pandemic.
Value Capture Strategy-Tax Increment Reinvestment Zone (TIRZ): In August 2022, the City of Port Arthur Council, Texas unanimously approved the Port of Port Arthur Navigation District to participate as a taxing entity in TIRZ #1 and expanded the geographical boundaries of the zone to include additional properties that will expedite the redevelopment of the downtown area. A Tax Increment Reinvestment Zone (TIRZ) is a special zone that was created by the Port Arthur City Council to attract new investments in an area. These zones help finance costs of redevelopment and promote growth in areas that would otherwise not attract sufficient market development in a timely manner. Taxes attributable to new improvements (tax increments) are set-aside in a fund to finance public improvements within the boundaries of the zone. Downtown TIRZ #1 offers a wide range of incentives to businesses and commercial property owners throughout the city looking to redevelop, re-use, or preserve vacant land or existing buildings. For more information, visit City of Port Arthur website.
Value Capture Strategy-Transit Development Districts (TDDs): The Board of Directors of the Northwest Indiana Regional Development Authority (RDA) on August 11, 2022, passed resolutions establishing the boundaries of seven Transit Development Districts (TDDs) in Northwest Indiana. The 320-acre districts will be located around the existing stations in East Chicago and Portage/Ogden Dunes and around new stations in north Hammond, Munster, Michigan City, and Gary. The boundaries approved were the Munster/Dyer Main Street boundary, the Munster Ridge Road boundary, the Hammond Gateway Downtown boundary, the East Chicago boundary, the Gary Miller boundary, the Portage/Ogden Dunes boundary, and the Michigan City boundary.
These districts will enable the RDA to accelerate development and support public infrastructure investment around commuter rail stations in Northwest Indiana. Regional TIF districts are focused on transit-oriented development. TDDs collect income tax revenue along with property tax revenue used for investment. It is important to note that the local community retains land use and zoning control and revenue collected from the district is spent in the district. For more information on TDDs, visit www.nwitdd.com. Learn more about the RDA. Maps of, and the resolutions establishing, the boundaries are available at https://www.in.gov/rda/documents/.
The additional funds are expected to generate $200,000 starting in January 2024. Of those funds, 55% will go toward landscaping, 35% will go toward public safety and the rest will go toward marketing, administration and a special contingency fund. The new district’s boundaries extend from north of Hanging Moss Creek to south of Lakeland Drive and LeFleur’s Bluff Education and Tourism Complex and east to west from the Pearl River to Interstate 55 North. The District at Eastover, Highland Village, Maywood Mart, Banner Hall, The Quarter and businesses along Lakeland Drive are included in the new district. See more about LeFleur East click here.
Value Capture Strategy-Signature Tax Increment Finance (TIF): The Bellevue City, Kentucky Council approved a disposition of property and development agreement with Cincinnati-based Neyer Properties during a public meeting on Wednesday night, August 10, 2022 for a project whose investment is estimated at around $115 million of private funds and $17.5 million in infrastructure improvements. The project will be built on a seven-acre, city-owned property on the Ohio River that is bounded by Fairfield Avenue to the south, Lafayette Avenue to the east and Berry Avenue to the west. The developers plan to break ground by late 2023 and construction is expected to be finished within three years. Neyer will be solely responsible for the payment of all of the costs of the Project, which includes the infrastructure improvements. However, tax increment financing and industrial revenue bonds will be used to help fund the project. The city will receive $2.5 million as part of the real estate closing that will go toward paying off existing bond debt, the city administrator said. When the project is finished, Neyer anticipates that 190 jobs would be created through the hotel, apartment community, and retail/restaurant/office opportunities. The plan calls for 239 market-rate multi-family housing units (apartments), a 104-room hotel, 21 single-family homes and approximately 15,500 sq. ft. of office and retail space. Parking infrastructure plans include 250 structured parking spaces in one area, 143 structured parking spaces in another for the housing units and retail component, and 32 structured parking spaces to serve the hotel. For additional information, visit the Bellevue City Website.
Value Capture Strategy-Enhanced Infrastructure Financing District (EIFD), City of Sanger, California: Following the establishment of the Sanger North Academy Corridor Enhanced Infrastructure Financing District (Sanger EIFD) on August 23, 2022, the Public Financing Authority will be evaluating strategic approaches for the utilization of the future tax increment revenue stream for specific infrastructure projects, in accordance with the approved Infrastructure Financing Plan. The purpose of the EIFD is to establish a funding mechanism that can facilitate the construction of infrastructure improvements in the North Academy Corridor. The establishment of the EIFD will not result in any new taxes or fees to the property owners. The City commits 100% of its future property tax increment within the boundary for approximately 50 years – may be revised / reduced by PFA in the future. Funding totals approximately $67M in nominal dollars ($27M in present-value dollars). The Strategy is to generate sufficient EIFD funding capacity while still delivering significant positive net fiscal impact (“return on investment”) to the General Fund. Additional information can be found at City of Sanger website.
Value Capture Strategy-Tax Increment Financing District. Chattanooga’s City Council on Tuesday gave final approval for the revitalization of the South Broad District, kicking off a renewal effort that will generate tens of millions of dollars in new money for schools, roads and infrastructure across Chattanooga and Hamilton County, while transforming a blighted brownfield into a vast, vibrant live-work-play district. The catalyst for the project is a new stadium, owned by a city-county sports authority, that will ignite surrounding revitalization and breathe new life into the city’s western gateway, while also keeping the Lookouts in Chattanooga. The promise of such a catalyst has already attracted world-class master developer Jim Irwin, as well as $100 million in planned office space and $170 million in new housing commitments. The project is expected to swiftly exceed conservative projections of $350 million in development needed to break even, and eventually peak beyond $1 billion in new homes, offices, and stores.
The City and County leveraged tax increment financing for the project, with each committing just $1.4 million of non-property tax revenues up front toward the $72 million cost of the multi-use stadium. The land for the stadium will be donated by Perimeter Properties, which has also donated approximately 14 acres of land to allow the Riverwalk to bisect the site.
Value Capture Strategy-Community Improvement District (CID), The Metcalf 108 CID: On July 18, 2022 the Overland Park City Council, Kansas approved a redevelopment plan for the construction of a seven-story mixed-use development to be built at the corner of 108th Street and Metcalf Avenue. The council also approved the creation of a Community Improvement District (CID) on the property. The new CID will collect an additional 1% sales tax on purchases made within the district to reimburse the developer up to $ 1,052,000 for improvements. Rent at the proposed apartment complex would not be subject to the 1% sales tax. Also authorizes to issue special obligation notes or bonds payable from such community improvement district sales tax and/or provide pay-as-you go financing.
The proposed CID Project consists of redevelopment of certain privately-owned property located at the northeast corner of I-435 and Metcalf Avenue within the City. The general nature of the proposed CID Project is to promote economic development within the Metcalf 108 CID, which shall all be accomplished by providing community improvement district financing in accordance with the Petition, the Act, and City of Overland Park policy to finance construction within the Metcalf 108 CID. The Ordinance No. CID-3372 can be found here. https://www2.opkansas.org/files/dw/api/Docs/11963
Value Capture Strategy-Transportation Benefit District: Washington State Chapter 36.73 RCW authorizes cities (see also RCW 35.21.225) and counties to form transportation benefit districts (TBDs), quasi-municipal corporations and independent taxing districts that can raise revenue for specific transportation projects, usually through vehicle license fees or sales taxes. Effective July 1, 2022, Sec. 406-407 of ESSB 5974 increases the maximum transportation benefit district (TBD) sales tax authority from 0.2% to 0.3% and authorizes indefinite renewals of up to 10 years with voter approval. In addition, for TBDs that include all of the territory within the boundaries of the jurisdiction(s) that established the TBD, the legislation authorizes the governing board to impose 0.1% of the sales tax council manically (without voter approval) up to 10 years at a time. Transportation benefit district revenue may be used for transportation improvements included in a local, regional, or state transportation plan (RCW 36.73.015(6)). Improvements can range from roads and transit service to sidewalks and transportation demand management. Construction, maintenance, and operation costs are eligible.
Value Capture Strategy-Special Assessments, Parking Climate and Equitable Mobility Transaction Fee: Effective July 1, 2022, a 20-cent fee on parking meter transactions to send an initial price signal about the costs of driving. It will be collected through Parking Kitty and Portland Parking Meters as part of driver transaction of paying for parking. The parking climate and equitable mobility transaction fee will send a price signal about the externalized costs of driving (including greenhouse gas emissions, traffic congestion, and use of roadway space) and support investments that advance climate and equity goals. Funds generated will support investments in transportation affordability and access, in alignment with Pricing Options for Equitable Mobility (POEM) recommendations. Investments will include:
This Parking Climate and Equitable Mobility Transaction Fee is the initial strategy to send a price signal about the cost of driving and using the funds to support investments in transportation affordability and access. Additional information can be found at City of Portland, Oregon Website
Value Capture Strategy-Development Impact Fees: Idaho Canyon Highway District 4 (CHD4) has partnered with Canyon County and the Cities of Star and Middleton to establish development impact fees to fund transportation system improvements necessary to accommodate new growth and development. Impact fees are authorized by Idaho Code Title 67 Chapter 82 for public infrastructure such as roadways. They are collected from each new development (residential, commercial or industrial) at the time of access permit or building permit issuance, and in proportion to the traffic impact resulting from the new construction. City of Star enacted an ordinance September 13, 2021, and Canyon County enacted an ordinance July 20, 2022 authorizing the collection of transportation impact fees within the Mid-Star Service Area. By agreement with the County, CHD4 will collect, track, and expend these fees for specific transportation improvements within this area. The Cities of Star and Middleton will collect impact fees for developments within their city limits. CHD4, Star, and Middleton will work cooperatively to fund and construct intersection and roadway improvements within the service area. To view Canyon County Code- See Chapter 12 Highway District Impact Fees, click here
Value Capture Strategy-Enhanced Infrastructure Financing District (EIFD): The City of Rancho Cucamonga (RC), California has initiated the process of establishing an Enhanced Infrastructure Financing District (EIFD) to facilitate the construction of public facilities and infrastructure in the City.
The proposed RC EIFD encompasses approximately 1,500 acres of land, representing approximately 6% of the total 25,677 acres of land in the City limits. The purpose of the RC EIFD is to help provide funding for the provision of public capital facilities of community-wide significance that provide significant benefits and promote economic development within the boundaries of the RC EIFD or the surrounding community, and for those facilities located outside the RC EIFD boundaries which also have a tangible connection to the work of the RC EIFD. Anticipated $6 billion future private development within the Rancho Cucamonga EIFD. EIFD is NOT a developer subsidy. The proposed district is NOT funding infrastructure that would otherwise be a developer/private sector obligation. EIFD is funding regionally beneficial public infrastructure of community-wide significance, that is necessary to catalyze private sector investment that would otherwise not occur until decades later, if at all. Visit City of Rancho Cucamonga website for additional information.
Value Capture Strategy-Enhanced Infrastructure Financing District (EIFD), City of NAPA California: The Napa EIFD encompasses approximately 837 acres of land, representing approximately 7. 2% of the total approximately 11,616 acres within the City limits. The Napa EIFD includes much of the City' s Downtown and Oxbow neighborhoods, the Jefferson Street Corridor, the Napa Pipe area, and multiple other Napa River-adjacent and development opportunity site areas. These areas were chosen based on their capacity to benefit from catalytic infrastructure improvements with communitywide significance and regional benefit. EIFDs are not funded by a new tax but rather by capturing all or a portion of the future property tax increment revenue (i.e., the difference in property taxes owed prior to and post establishment of the EIFD) generated within the boundaries of the district. The EIFD may finance projects through the issuance of bonds or under a “pay-go” model where money is spent as it is collected.
Napa EIFD is not a new tax; it uses future incremental City revenue from existing property tax rates to fund public capital facilities and infrastructure. It allows the City to invest in and improve the quality of life in communities, sites, and neighborhoods in order to attract private investments and revitalize that community! These improvements will offer numerous benefits to current residents including: 1,161 new housing units, 189 affordable housing units, more than 2,290 permanent jobs, and more than 12,000 temporary construction-related jobs. Learn more about what this means for the community atwww.cityofnapa.org/NapaEIFD.
Value Capture Strategy-Tax Allocation District (TAD): Both the Dalton School Board and the Dalton City Council, Georgia voted Monday, July 25, 2022, to approve an agreement that will provide almost $1 million in tax increment financing for a hotel. The school board vote was 5-0. The council voted 3-0 to approve the deal. The property, which is now an empty lot, is currently assessed at $90,000. But if the hotel project is completed its estimated assessed value would be $9.7 million. Because the project is in the downtown tax allocation district (TAD), it is eligible for tax increment financing. TADs freeze the value at which a property can be taxed for general revenue. Taxes collected on additional value created by improvements to the property are dedicated to pay for infrastructure, public artwork or other amenities to attract a developer or developers to that area. To learn Dalton City TADs, visit the Dalton City Website.
Value Capture Strategy-Transportation Benefit District (TBD). The Washington State Lake Stevens City Council approved the ballot resolution at its July 12, 2022, meeting. The TBD measure will be on the November 8, 2022, General Election ballot. The City Council is asking voters to approve a Transportation Benefit District. The TBDs are funded by a small sales tax increase with revenue going to sidewalks, streets/roads, and multi-use pathways. Revenue also can be used as matching dollars to qualify for larger grants. Earlier this year, the City of Lake Stevens asked residents to identify funding priorities for the TBD. There were more than 900 surveys from residents ranking sidewalk connections, street maintenance, and pathways in order of priority. Almost 61% of those surveyed liked the idea of a sales tax option. The reason is that visitors who shop, dine, or recreate in Lake Stevens also would help pay for city sidewalks, roads, and trails they use. The TBD would raise approximately $1.5 million per year for projects and matching funds for larger grants. For update information, visit the Lake Steven website.
Value Capture Strategy-Enhanced Infrastructure Financing District (EIFD). The La Verne City Council adopts resolution to finance enhanced infrastructure financing district projects. The City successfully closed a privately placed lease financing that provides the first financing to an Enhanced Infrastructure Financing District (EIFD). One of the first formed EIFDs, the La Verne EIFD is using Tax Increment Financing to pay for the cost of installing various public improvements in the City's Old Town Area in advance of opening Metro's Foothill Gold (L) Line station. Kosmont Transactions Services served as Municipal Advisor and assisted the City with formation of the EIFD.
The City will loan the lease proceeds to the EIFD which in turn repays the loan with the Tax Increment generated by the private projects, making this the first Tax Increment based EIFD financing since the dissolution of RDAs (redevelopment agencies) 10 years ago.
Value Capture Strategy-Transportation Utility Fees (TUFs): The Wisconsin Rapids City Council on Thursday June 30, 2022, approved creating a new transportation utility to manage a portion of the city's roads and end the use of special assessment on a 7-0 vote. The Common Council recently approved the transportation utility to fund $500,000 in operating and maintenance expenses for streets and sidewalks. Transportation utility fees will be charged through the Water Works and Lighting Commission utility bills. Billing may start as soon as July 2022. The transportation utility is a mechanism to raise revenue, similar to other utilities, and is based on a customer's relative use of the road system (or the property's 'trip generation'). Trip generation for each property within the City is determined using the Institute of Transportation Engineers' Trip Generation Manual. The trip generation manual is derived from hundreds or thousands of studies across the nation for many different land uses. The data is analyzed and characterized in a way that can be compared across similar land uses with similar characteristics.
Value Capture Strategy-Highway Safety Patrol Sponsorships: The Ohio Department of Transportation (ODOT) offers the free Freeway Safety Patrol, sponsored by GEICO, as a good Samaritan program to assist stranded motorists on Ohio's interstates. The purpose of the program is to help keep Ohio interstates safe, provide traffic control and medical assistance at crash sites, and offer limited roadside assistance if needed. The ODOT Safety Patrol, sponsored by GEICO, is one of the largest in the country, covering the state's largest metro areas: Akron, Cincinnati, Cleveland, Columbus, Dayton, and Toledo. Official highway signs informing motorists of the patrolled routes will now feature the GEICO logo. Since the program began in 2001, the patrol has come to the aid of hundreds of thousands of motorists. Currently, the patrol clears over 60,000 incidents annually. The collaborative sponsorship with GEICO is designed to create a long-term, supplemental funding source for the program. Click here to learn more about the patrol sponsorship.
Value Capture Strategy-Tax Increment Financing (TIF) District: The city's redevelopment commission passed a resolution Tuesday July 5th, 2022, to appropriate funds generated by Meridiam's new tax increment finance (TIF) district. The City of Bloomington, Indiana took final steps to solidify its agreement for city-wide, high-speed internet. Paris-based Meridiam will now be able to build a fiber optic network to at least 85 percent of residents within three years. Meridiam will invest $50 million in the network but receive almost $11 million in tax breaks through the TIF over 20 years. The City is solving the problem by making high-speed internet accessible and affordable to at least 85 percent of the city through an open-access model. This means a third-party company will lay fiber-optic cable throughout most of the city, and local internet service providers will lease the space. For information on Bloomington high-speed internet agreement to improve digital equity, visit the City of Bloomington, Indiana Website.
Value Capture Strategy-Parking Benefits District (PBDs): Houston City Council approved the creation of a Midtown parking benefits district and related community parking program on April 6, 2022. Creating the Midtown Parking Benefit District (PBD), which would allow the City to split net revenues generated after 6 p.m. and Community Parking Program (CPP) permit revenue in the Midtown area. With the creation of the Parking Benefit District, the city will split net revenue that is made through city parking meters after 6 p.m. as well as CPP permit revenue. The ordinance specifies that 60% of net revenue will go into a PBD fund, and 40% will go to the city's Park Houston special revenue fund. Shared revenue must be used for other infrastructure improvement projects within the district. The Midtown Management District will act as management for the PBD. the permit will be effective in 60 days City Council approval.
Value Capture Strategy-Innovation Development Districts/Tax Increment Financing (TIF) Districts: On March 15, 2022, Indiana Governor Holcomb signed Senate Bill 361 into law, which, among other things, provides for the creation of Innovation Development Districts in the state. Under the new statute, which goes into effect on July 1, the Indiana Economic Development Corporation can establish innovation development districts. Taxes from new development in such a district would be collected similar to the tax increment financing, or TIF, districts that counties, cities and towns use to collect funds for improving areas targeted for commercial and industrial development. The state would not be able to create an innovation development district in an area in which a local tax increment financing district is already established. The creation of Innovation Development Districts will help attract large-scale developments and advanced-industry projects to Indiana. Visit the Indiana Economic Development Corporation Website for additional information.
Value Capture Strategy-Special Service District (SSD), Brookhaven Special Service District, Georgia: On June 28, 2022, the initial millage rate of 4.0 mills was adopted by the Brookhaven, Georgia City Council. The Special Services District (SSD) is a property tax millage rate. The millage rate is dedicated to the specific list of capital improvement projects. The SSD millage rate applies to all commercial and exempt property in the City of Brookhaven. It does not apply to any properties that have or could have homestead exemption. The SSD millage rate is 4.0 mills, applied to all commercial and exempt property in the City of Brookhaven. This is equal to $400 per $100,000 Taxable Assessed Value (not Appraised Value) annually. Visit the Brookhaven SSD Website for updated information.
Value Capture Strategy-ROW Agreement, $27 million in land lease payments for two solar facilities on public land: The Bureau of Land Management has approved a 50-year “right of way” request for 465 MW of solar power in Southern California. The two projects are the first projects deployed in areas identified as suitable for development in California’s Desert Renewable Energy Conservation Plan. The plan has identified 10.8 million acres of public land that attempt to limit the effects on nature of developing large land using wind and solar power deployments. The Notice to Proceed, issued by the Bureau of Land Management Palm Springs South Coast Field Office, authorizes Clearway Energy Group, LLC to begin full construction of the 265-megawatt Arica Solar Project and 200-megawatt Victory Pass Solar Project. The BLM anticipates construction will begin as early as June 13, 2022. The two renewable energy projects will result in a combined infrastructure investment of about $689 million, generate $5.9 million in annual operational economic benefit, provide power to approximately 132,000 homes, and add up to 465 megawatts of clean energy generating capacity and 400 megawatts of battery storage. Additionally, the projects will support up to 1,000 construction jobs during peak activities.
Value Capture Strategy-Special Service District (SSD). On June 28, 2022, the initial millage rate of 4.0 mills was adopted by the Brookhaven, Georgia City Council. The SSD millage rate applies to all commercial and exempt property in the City of Brookhaven. It does not apply to any properties with a residential zoning, so the SSD does not apply to licensed home-based businesses within residential dwellings. This is equal to $400 per $100,000 Taxable Assessed Value (not Appraised Value)annually. The criteria for the project list are: 1) within the boundaries of the SSD; 2) have a time sensitive component for completion; 3) have a potential leveraged funding source; and/or have a direct connection to the City Centre Master Plan. The millage rate is dedicated to the specific list of capital improvement projects on the City of Brookhaven website.
Value Capture Strategy-Tourism Public Improvement District: Corpus Christi City Council approves creation of Tourism Public Improvement District on Tuesday June 28, 2022, to generate funds to promote tourism. More than 60% of hotels with 40 or more rooms within Corpus Christi had to sign a petition before the district was created. The district is expected to generate around $3 million annually. The district will provide a fee assessment of 2% of the taxable room rate at hotels with 40 or more rooms in Corpus Christi. That fee may be charged to the hotel guests, similar to the hotel occupancy tax. Those funds will be used on marketing and tourism promotions by Visit Corpus Christi and the district board of directors.
Value Capture Strategy-Tourism Business Improvement District: The Paso Robles City Council unanimously approved the Paso Robles Tourism Improvement District (PRTID) for 10 years on June 7, 2022. The PRTID is a public-private partnership that uses a lodging assessment to help fund Travel Paso. The city collects the assessment from lodging members and distributes the funds to Travel Paso. Tourists who stay overnight at Paso’s hotels, RV parks, and vacation rentals ultimately fund the assessment. Tourist lodging revenues are gathered through the Transient Occupancy Tax (TOT), which is billed directly to guests at every hotel, RV resort and vacation rental. Transient Occupancy Tax revenues are separate from the PRTID. They supplement the General Fund and are used to support a host of Paso Robles City services, including parks and recreation, the library, road improvements and the police and fire departments. The PRTID is an assessment, not a tax. Unlike TOT, PRTID funds must be used to provide services that directly benefit the lodging located within the District. Funds will be specifically used for marketing the destination and cannot be diverted for government programs. The PRTID will be governed by a governance committee that represents lodging and businesses in the District, giving control of the PRTID to those who benefit from it.
Value Capture Strategy-Neighborhood Improvement District (NID). The House has passed Senate Bill 286 Neighborhood Improvement District Bill by a vote of 37-2-2. It went to the Governor for signature. The bill would allow the New Castle County Government to create Neighborhood Improvement Districts (NIDs), which would be nonprofit corporations capable of collecting fees from homeowners to pay for a variety of services that benefit local residents. NID management associations would be required to provide reports detailing the financial and programmatic activities of the prior year, along with a summary of annual audits required under SB 286. Every NID created by New Castle County Government would sunset after five years unless extended by a vote of County Council.
Value Capture Strategy-Transportation Utility Fees. The Gibraltar Town Board established the “transportation utility” during a special June 23, 2022, unanimously approving both the ordinance that established the utility and the fee schedule that will raise $400,000 annually. The base fee of $58.44 annually will be charged to everyone, whether a residence or a business. The usage fees will differ, however, according to whether the parcel is considered residential or business. The money collected can be used only on expenses related to for the following:
Visit the town of Gibraltar website for additional information
Value Capture Strategy-Economic Development District (EDD), Puerto Rico Welcomes First EDD: Later this year, EDA will officially certify and recognize the Southern Puerto Rico Economic Development District (SPREDD). It will focus on helping small- and medium-sized entrepreneurs develop a favorable business climate for the island's southern region, an area of roughly 15 towns, with an emphasis on health, tourism, and agriculture. Economic Development Districts (EDD) play a vital role in the EDA grant application process. Comprised of multiple jurisdictions that often cross state lines, EDDs leverage the involvement of the public, private, and non-profit sectors to establish a strategic blueprint for economic development. For additional information, visit the Southern Puerto Rico's Pilot Economic Development District
Value Capture Strategy-Tax Increment Financing (TIF) District: The Vermont Economic Progress Council (VEPC) has approved Killington's application for a Tax Increment Financing (TIF) District for Killington Road and the Killington Village area in Vermont. The VEPC board voted on Thursday June 30, 2022, to approve Killington's application, which will allow the town to install new water infrastructure, resolve water contamination, mitigate road hazards, and enhance transportation capacity and accessibility The improvements are anticipated to add over $285 million of new taxable value to Killington's Grand List, yielding over $115 million in new property tax revenues over the 20-year retention period for the TIF District. Over $26 million of those new property tax revenues will go to the Education Fund, $4 million to the Town's General Fund, and the remaining $84 million will be used to service debt taken on by the Town to make the improvements. Improvements along Killington Road are anticipated to be completed in four phases with the first focusing on addressing hazards at the intersection of Killington Road and Route 4, and improvements to the southern end of Killington Road. Visit the Agency of Commerce and Community Development website for additional information.
Value Capture Strategy- Community Benefit Improvement District (CBID): on Tuesday, June 14, 2022, the Santa Barbara, California City Council voted to establish and form the Coast Village Community Benefit Improvement District (CBID) brought forth by the Coast Village Association (CVA). The resolution came after a tallying of votes cast by Coast Village Road property owners, of which the majority voted in support of the CBID, which will allow local control of the street's aesthetics, safety, and marketing ventures, filling the gaps in service from the City of Santa Barbara, which governs Coast Village Road. The CBID will be funded by property owners as an additional tax assessment. Properties on the street were weighted according to parcel size, frontage length, and building size.
The expected assessments to the property owners on Coast Village Road range from a few hundred dollars per year to $19,000 per year, with the average falling around $1,800. For more information about the proposed CBID, visit Coast Village, Montecito, CA
Under TIF, the developer of a city-approved project takes out a loan to help cover eligible redevelopment expenses. The loan is paid back, generally over a 15-year period, by using the increased property taxes that are generated on the new development. Normally, property tax payments go to support schools and other local tax-reliant bodies. The plan calls for roughly 1,000 new units of affordable and workforce housing in the urban core in the next 20 years and aims to bring 30,000 residents and 30,000 jobs to the urban core within the next 30 years. The draft financial plan says the Omaha streetcar could spur $3 billion in development. Visit the City of Omaha, Nebraska Website for additional information
Value Capture Strategy- Advertisings, Sponsorships, & Naming Rights: NCDOT is proud to team up with GEICO, the exclusive sponsor of the of NCDOT’s Incident Management Assistance Patrol Program (IMAP), also known as the Safety Patrol. The sponsorship creates a long-term, supplemental funding source for the Safety Patrol program.
The N.C. Department of Transportation’s Safety Patrol, sponsored by GEICO, is a free service that provides roadway assistance to stranded motorists, regardless of their insurance provider. The Safety Patrol also clears roadways and provides temporary traffic control to help keep major roadways safe and traffic flowing smoothly. Services include changing flat tires, providing gasoline or diesel, and jump-starting batteries. In 2014, more than 70 patrol trucks helped some 100,000 motorists across the state. Drivers who need help in an area covered by the NCDOT Safety Patrol can dial *HP from their mobile phone for assistance.
The NCDOT Safety Patrol program is operated solely by the department’s personnel who are not authorized to contact GEICO on behalf of the motorists or assist in insurance claims. Visit SafetyPatrolInfo.com to learn more about the program and to share your experience with the Safety Patrol.
Value Capture Strategy-Signature Tax Increment Finance (TIF), Sales Taxes, Ad Valorem Property Taxes, and Income Tax. The Kentucky Economic Development Finance Authority, or KEDFA, today gave the City of Covington permission to set up an innovative arrangement called a Signature TIF, or Tax Increment Financing District. State pledges $45.5MM in future tax revenue to IRS project. The City can use up to $45.5 million in future state tax revenue to help develop the 23-acre site downtown where a former IRS data-processing facility is being torn down. The 31.6-acre district – which will consist of the 23-acre site, the adjacent Northern Kentucky Convention Center, and surrounding streets – allows the City in essence to use the growth in revenue from three state taxes collected within the TIF’s borders: sales taxes, ad valorem property taxes, and income tax.
The City will use the revenue to pay back money it borrows to build what’s called the “horizontal infrastructure” on the site, including a restored street grid, sidewalks, parking garages, and utilities. The Project represents a rare and significant opportunity for the City of Covington and Commonwealth of Kentucky to enrich its presence along the Ohio River with a vibrant, mixed-use district.
The TIF is a 30-year arrangement. It’s called a “Signature” district because the total value of private investment is expected to top $200 million. The IRS processing center was once Covington’s largest employer, but the federal government closed the facility in 2019. The City purchased the site and hired Atlanta-based global architecture and design firm Cooper Carry to help it create a conceptual master plan based on City needs, a market review, and extensive public engagement. The plan calls for a mix of land uses, including office space, a hotel, apartments and condominiums; a restored street grid; the possible expansion of the Northern Kentucky Convention Center; plus parking garages, a public plaza, and a levee park. To learn more, see the City’s website at Covington Central Riverfront Development.
Value Capture Strategy-Mobility Fee: The city of St. Augustine commissioners unanimously voted in February to send the city’s mobility plan and mobility fee ordinance to a final reading and vote on Feb. 28 and the fees become effective May 17, 2022. The City is experiencing increasing in-fill and redevelopment activity combined with growth in County residents and visitors to the City, creates a need for mobility solutions. Mobility Fee is a one-time fee for any new residential or non-residential development or redevelopment that requires a building permit, increases the use of the property, and impacts transportation infrastructure in the city. The city of St. Augustine will start charging mobility fees on May 17, 2022. The fees will go toward projects in the city's mobility plan such trails, parking garages, redesigned streets and more. Visit the St Augustine website for additional information.
Value Capture Strategy-Business Improvement District (BID): The New York City Mayor on May 12, 2022 signed legislation to establish two new Business Improvement Districts (BIDs) in the Bronx’s Castle Hill and Manhattan’s West Village. The bill signing will help accelerate the incorporation of these two BIDs so that they will be fully functional by the beginning of Fiscal Year 2023. The creation of these new BIDs – along with today’s release of comprehensive guides for forming and expanding BIDs and Merchant Associations – deliver on Mayor Adams’ commitment to strengthen business support in small and underserved commercial corridors, particularly in low-to-moderate-income (LMI) communities, as outlined in his “Renew, Rebuild, Reinvent: A Blueprint for New York City’s Economic Recovery.”
BIDs represent specific geographical areas where local stakeholders oversee and fund the maintenance, improvement, and promotion of their commercial districts, and are overseen by the New York City Department of Small Business Services (SBS) Ridgefield Transportation Benefit District. Access to the City of New York Website is available for additional information.
CIDs help enhance urban and suburban areas by helping fund landscaping, parks, sidewalks, lighting, security enhancements, infrastructure, and rehabilitation or sale of derelict properties. Legislation requires that a CID plan and funds be managed by a 501(c)(3) nonprofit neighborhood association. CID funds are collected with the property owner’s taxes yearly by the City of Jackson and held in a special fund for the District. CID funds can be used for various projects and also as matching funds for larger projects.
Value Capture Strategy-Tax Increment Financing (TIF) District Extension: The Mayor of the City of Colona, Illinois announced there had been no objection from the other taxing districts to a 12-year extension of the Highway 6 TIF. The city is planning to move forward with the creation of a new downtown Tax Increment Finance (TIF) district from the Dairy Queen on Illinois Route 84 to the Rock River bridge and also to extend the TIF on U.S Highway 6, which is set to expire in 2026 or 2027, for another 12 years. In a TIF, the new property taxes over a base year amount are held in a special trust fund for the municipality or the developers to encourage development. Access to the City of Colona Website is available for additional information.
Value Capture Strategy-Neighborhood Improvement District (NID): On April 13, 2022, the Reno City, Nevada Council adopted a Resolution of the Reno City Council to set the date, time and place for objections to the assessment roll for a City of Reno, Nevada Neighborhood Improvement Project, otherwise known as the Downtown Reno Business Improvement District (BID). BID is a private sector funding mechanism designed to improve the environment of a business district with new services financed by a self-imposed and self-governed property assessment. These services are provided exclusively within the district and are different from – rather than a replacement of – those already provided by the City. It is managed and operated by the Downtown Reno Partnership, a private, non-profit Downtown Management Organization (DMO). They work with businesses, property owners, residents, city and county government to make the core of the city cleaner, safer and friendlier with the ultimate goal of creating a vibrant downtown area. Please visit www.reno.gov for additional information.
Value Capture Strategy-Transportation Benefit District (TBD): Effective April 1, 2022, the City of Snoqualmie, Washington will establish a Transportation Benefit District (TBD). Sales and use tax within the City of Snoqualmie will increase two-tenths of one percent (.002). The tax will be used for transportation services. Businesses must collect the appropriate new rate of sales tax for retail sales and services provided within the City of Snoqualmie (1728). Persons or businesses within the City of Snoqualmie will be subject to the new rate of use tax on items purchased for their personal or business use if sales tax has not been paid. The revenues generated shall be used for transportation improvements that preserve, maintain and operate existing infrastructure of the city consistent with the requirements of Chapter 36.73 RCW. Visit the City of Snoqualmie Website for additional information
Value Capture Strategy-Enhanced Infrastructure Financing District (EIFD): On February 15th, 2022, The Humboldt County Board of Supervisors at Samoa Peninsula, California adopted a resolution approving the Infrastructure Financing Plan (IFP) for the Samoa Peninsula Enhanced Infrastructure Financing District (EIFD). Following three public hearing on the formation of the Samoa Peninsula EIFD the Public Financing Authority (PFA), the governing body of the EIFD, adopted a resolution to establish the Samoa Peninsula EIFD on March 1st, 2022. An EIFD is a special financing district, a governmental entity comprised of both public and private partners distinct from the entity which establishes it. EIFDs can aid communities in funding a wide and diverse variety of public capital improvement projects and other projects of communitywide significance set forth in state law, by capturing and leveraging property tax increment (PTI) generated within the EIFD area. The EIFD does not impose a new tax. Added improvements gained through EIFD funding supports future development and results in increased property values. This generates increased property tax revenues from the “base year” which can then be leveraged for additional improvements. A successful EIFD increases countywide economic growth and stability by utilizing local sustainable assets to contribute to job growth and community health. For more information regarding Samoa Peninsula EIFDs please refer to Humboldt County website.
Value Capture Strategy-Transportation Development District (TDD): in the City of Lake Ozark, Missouri. Voters in Ozark decided to pass a proposition that would restore a levy of thirty-five cents per $100 assessed value on property for the Ozark Special Road District. Voters also passed a new sales tax to pay for street improvements, intersections, pedestrian paths, bridges, and rights-of-way in the Ozark City Limits. The TDD would be responsible for a three-quarters of a cent sales tax increase on all retail sales made in the district, which runs between the Business 54 and Osage Beach Parkway intersection to just before the Bagnell Dam. The tax would also be used for road and bridge repair and other transportation related projects across the city. The 3/8 cent sales tax has generated about $1.6 million a year and the total tax collection will be about $8 million. The city says the renewal won't cost voters any additional money, instead it will continue what they are already paying.
The TTD is a mechanism that cities, citizen groups and counties can use to specifically fund roads and other transportation projects in the future. It's the way that the city of Lake Ozark or another city can leverage a sales tax of a certain percentage, this TDD would have a similar taxing authority," said Assistant City Administrator, Harrison Fry. Visit the City of Lake Ozark website, Missouri for additional information.
Value Capture Strategy-Community Benefit District (CBD): Ordinance Hollywood on the Severn Special Community Benefit District, Maryland introduced by Ms. Rodvien, Chair (by request of the County Executive). The purpose of this legislation is to establish Hollywood on the Severn Special Community Benefit District (SCBD). The district is established for the purpose of maintaining, acquiring, constructing, and improving community real and personal property, including waterfront areas and pier; and providing for the administrative expenses incidental to carrying out these purposes, including insurance costs and the repayment of any loan and interest thereon. The owners of more than two-thirds of the properties have signed the petition in favor of forming the district. The costs that the County will incur administering the Hollywood on the Severn SCBD will be offset by the administrative fee charged when taxes are collected. Visit Anne Arundel County, Maryland Website for additional information
Value Capture Strategy-Tax Increment Financing (TIF) Districts: The Milwaukee Traffic Safety Projects received $8.5 Million in Tax Increment Finance (TIF) funds, February 14, 2022. The City is poised to funnel millions of new dollars towards rebuilding streets as part of an effort to combat a reckless driving 'crisis' with traffic calming, bike lanes, and other projects aimed at improving roadway safety. A total of $8.5 million in property tax revenue from four tax incremental (TIF) districts would be allocated to fund traffic calming and safety improvements including protected bike lanes, curb bump-outs, narrower travel lanes, high-impact paving and new pedestrian infrastructure. The proposed projects are located along N. Van Buren St. in Downtown, near the Midtown Center shopping mall on the city's north side and in the area around Stadium Business Park and Burnham Park on the city's south side. The proposal seeks to address rising traffic deaths and reduce dangerous driving behaviors through a variety of traffic calming and safety projects. Details other TIF-funded projects besides street improvements, including a portion of the Riverwalk and dock wall and local debt relief. Explore additional topics related to Milwaukee's use of Tax Incremental Financing
Value Capture Strategy -Community Improvement District: After eighteen years in the making, Council Member Becton’s introduction of Ordinance 2021-838 establishing the Community Improvement District (CID) was finally adopted by the City Council on February 8, 2022. In a 9-8 vote, the Jacksonville City, Florida Council on Tuesday voted in favor of the establishment of a special assessment district, called the “Baymeadows Community Improvement District (BCID)”. The BCID is a plan to address the needs for publicly used assets and infrastructure that are failing or in need of maintenance and enhancement due to age and decline within the areas covered by the specific geographic boundary of the BCID. Publicly-used infrastructure would include roads, storm water and drainage systems and selective common properties. Visit the City of Jacksonville Website for additional information.
Value Capture Strategy-Local Improvement District (LID): Beginning in 2022, and continuing through 2041 (the 20th anniversary of the end of the Prepayment Period), the City of Seattle Treasury Division of the Finance and Administrative Services Department (FAS) will send a LID assessment payment notice annually to each owner in the LID boundary area to the address shown on the tax rolls of the King County Treasurer. A LID is a funding tool governed by state law, by which property owners pay to help fund the costs of public improvements that directly benefit their property. The Waterfront LID improvements are a multi-year investment in Seattle’s central waterfront totaling approximately $739 million and are anticipated to be completed in 2024. Property owners within the Waterfront LID boundary area are contributing to a portion of the LID improvement costs based on the “special benefit” they receive from those improvements. LID assessment billing will be due on August 10, 2022 and continue annually for 20 years or until the assessment is deemed paid in full. Visit City of Seattle Website for updates on the Waterfront Program.
Value Capture Strategy-Transportation Benefit District (TBD): City of Pateros Sales Tax Rate Increase for New Transportation Benefit District. The City of Pateros established a Transportation Benefit District (TBD) effective January 1, 2022. Sales and use tax within the City of Pateros will increase two-tenths of one percent (.002). The tax will be used for transportation services. Businesses must collect the appropriate new rate of sales tax for retail sales and services provided within the City of Pateros (2409). Persons or businesses within the City of Pateros will be subject to the new rate of use tax on items purchased for their personal or business use if sales tax has not been paid. Taxpayers within the city will be subject to the new rate of use tax on items purchased for their personal or business use if sales tax is not paid. For additional information visit the City website at https://www.pateros.com/.
Value Capture Strategy-Municipal Improvement Districts (MIDs): City of Charleston, South Carolina Council approved on Tuesday January 11, 2022 the creation of King Street Business Improvement District, a type of MID. A MID is an area in which a special fee may be assessed to property owners in addition to their normal property taxes. Money generated by a MID may only be spent within the same MID area on improvements. The program would be a partnership between the City of Charleston and the Charleston Downtown Alliance, a non-profit made up of King Street business owners. The King Street BID would provide funds for items such as enhanced cleaning, security requirements, an ambassador program, improved signage, and street beautification. The project is expected to cost about $11 million over a 10-year period. Visit the City of Charleston, South Carolina Website for additional information.
Value Capture Strategy-Community Development District (CDD): City of Palm Coast, Florida was established The Seminole Palms Community Development District (the "District") by Ordinance 2022-02 adopted by the City Council for the City of Palm Coast, Florida which became effective on January 4th, 2022. The District is an independent local unit of, special-purpose government, created pursuant to, and existing under the provisions of Chapter 190, Florida Statutes for purposes of financing, constructing, operating, and maintaining community-wide infrastructure, improvements, and services for the benefit of the properties within its boundaries. The District currently encompasses approximately two hundred thirty-nine (239.63) acres of land located entirely within the City of Palm Coast, Florida. As a local unit of special-purpose government, the District provides an alternative means for planning, financing, constructing, operating, and maintaining various public improvements and community facilities within its jurisdiction.
Value Capture Strategy-ROW Use Agreement, Land Leases to Advance Development in Arizona Solar Energy Zones: On December 8, 2021, the Bureau of Land Management (BLM) auctioned utility-scale solar energy development leases in each of the three solar energy zones in Arizona. The development from the resulting leases and right-of-way could produce as much as 825 megawatts of solar energy. Heliogen, Inc. placed the high bid of $114,428 for a lease in the Brenda solar energy zone, near Lake Havasu City, and Leeward Renewable Energy, LLC placed a high bid of $78,728 for a lease in the Agua Caliente solar energy zone, east of Yuma. There were no bids for the Gillespie solar energy zone, southwest of Phoenix, so the BLM made the lands available for application for a non-competitive grant and accepted a solar energy right-of-way application for that zone from Candela Renewables. Additional information about the leases and auction can be found on BLM's Offer for Competitive Leasing for three Solar Energy Zones (SEZs) in Arizona project website.
Value Capture Strategy-Tax Increment Reinvestment Zone (TIRZ): The Victoria, Texas City Council on Dec. 14, 2021 unanimously approved an ordinance designating 210.9 acres within the jurisdiction of the City of Victoria as a TIRZ One, a move that is expected to create a cycle of growth and reinvestment that will fuel the implementation of the downtown master plan. Instead of raising taxes or creating a new tax, the program commits a portion of property taxes from within the TIRZ to promote development within the same area. The TIRZ will cover the downtown Victoria area bordered by Main St., Nueces St. and Convent St. "So the funding comes from the tax increment from the property values, once they are assessed every year", said Danielle Williams, Executive Director of the Victoria Main Street program.. "It does not raise taxes, it is not a new tax. It is taking the increased value from property values setting it aside and then using it back into the area in that zone," said Williams. Williams said the money will go toward street repairs, utility repairs and structural repairs. For additional information visit the City of Victoria website.
Value Capture Strategy-Transportation Benefit District (TBD): City Council members signed off on establishing a transportation benefit district Wednesday December 10, 2021, a move that will allow the city to implement a $20 car tab fee that city officials have said would be used to fund improvements to neighborhood streets. Council members approved the measure 6-0. The city has estimated that the transportation benefit district would generate $90,000 a year, and City Council members have said the money would be used to fund work on quieter, residential streets. Fees would apply to vehicles registered within the district, which has the same boundaries as the city of Poulsbo. Visit City of Poulsbo website for additional information.
Value Capture Strategy-ROW Use Agreement: The Lancaster City Council, California approved a solar ground lease with Dimension CA 1 LLC at the Nov. 9 meeting for 20 acres of undeveloped land north of Avenue L between 20th and 30th Streets East that is expected to generate revenues up to $150,000 for the life of the lease. Lancaster will receive an amount equal to $5,000 for every quarter of the development term. Once the facility is developed, the city will receive $750 per acre of the property annually during the 10-year operating term. Dimension intends to build a solar facility which they will own and operate for 10 years. Energy developed onsite will be sold to Southern California Edison. The facility is anticipated to generate about 8.98 million kilowatt hours annually. After 10 years, the city will own the facility and the energy produced onsite. Additional information can be found at the City of Lancaster website
Existing funding is not adequate to maintain pavement conditions and reconstruct failed streets. After more than quadrupling its investment in road maintenance the past five years, the city still faces a $10 million deficit for street maintenance. Proper road maintenance saves taxpayers 71% in road repair expenses over 5 years.
Funding and prioritizing regularly scheduled pavement preservation and maintenance saves taxpayers money and keeps Ridgefield streets in good condition. Visit City of Ridgefield website for additional information.
Value Capture Strategy-Business Improvement District (BID), Business in Downtown Silver Spring: On July 27, 2022, the Council approved Bill 3-21 Special Taxing Area Laws – Silver Spring Business Improvement District – Established, which creates a business improvement district in Silver Spring to provide marketing and promotions for the district. The Council’s support of Bill 3-21 creates a tool to invigorate economic momentum in Silver Spring by responding to the concerns of businesses and residents who want to see Silver Spring achieve its maximum potential.
The bill creates a Business Improvement District that will be focused solely on marketing and promotion efforts for the area, while allowing the Silver Spring Urban District to concentrate on maintaining clean and safe operations. This public-private partnership can serve as a model for other activity centers in the County that have flourishing economic centers that need targeted assistance to help them keep thriving.
The new BID will build upon Silver Spring’s many strengths and focus new energy on marketing and placemaking to support local businesses and ensure Silver Spring remains a premier community to live, work and play in the region. The Council staff report for Bill 3-21 can be found here.
Value Capture Strategy- Tax Increment Reinvestment Zone (TIRZ): The Texas Solterra TIRZ was created in June 2021 for a duration of 50 years, expiring on December 31, 2071. The City is currently the lone jurisdiction participating and will contribute 60% of its ad valorem increment into a tax increment fund to pay the costs of public improvements, pro-grams and other projects benefiting the Zone. The TIRZ encompasses approximately 1,920 acres of land and generally located Southwest of East Cartwright Road and both Northwest and Southeast of Faithon P. Lucas, Sr. Boulevard. The TIRZ includes a Public Improvement District (PID) encompassing 1,424.398 acres of the approximately 1,920-acre TIRZ. The residential development will be within the PID. It is estimated that upon expiration of the term of the Zone, the total appraised value of taxable real property in the Zone will be more than $3.9 billion.
Value Capture Strategy-ROW Use Agreement, Broad Band for Rural: The Public Service Commission (PSC) of West Virginia has approved a plan for a broadband infrastructure project in Logan and Mingo Counties. The PSC also approved cost recovery for the estimated $61.3 million investment, which includes installing 430 miles of middle-mile fiber optic cable infrastructure needed to facilitate broadband access in unserved areas of Logan and Mingo counties. The global pandemic brought a heightened sense of urgency to solving the digital divide, in which rural residents without broadband availability are unable to work, learn or access health services from home. The first-year project costs will add 15 cents each month to the bills of the companies’ West Virginia residential customers using 1,000 kWh/month
Public Improvement Districts (PIDs) are defined geographical areas established to provide specific types of improvements or maintenance, which are financed by assessments against the property owners within the area. PIDs provide the city with a development tool that allocates costs according to the benefits received. A PID can provide funding for supplemental services and improvements that meet the needs of the community, that could not otherwise be constructed or provided. Access the City of Fort Worth Website for additional information.
The Georgia Constitution authorizes CIDs in the state and enumerates their powers in Article IX, Section VII. to provide one or more of the services be provided within the CID's boundaries: Street and road construction and maintenance, including curbs, sidewalks, streetlights and devices to control the flow of traffic on streets and roads; Parks and recreational areas and facilities; Storm water and sewage collection and disposal systems; Development, storage, treatment, purification and distribution of water; Public transportation, Terminal and dock facilities and parking facilities; Such other services and facilities as may be provided for by general law.
Value Capture Strategy-Street Impact Fees: The Austin City Council adopted ordinances creating a Street Impact Fees (SIF) Program on December 10, 2020 to ensure the new development pays for the construction or expansion of roadway facilities needed by and beneficial for the new development. The SIF will generate capital funding for street improvements throughout the City and provide more predictable costs for developers. The ordinances took effect December 21, 2020, however, Council provided an 18-month grace period to allow time for the development community and staff to prepare for the new program. This extension means that any new development building permit issued within 18 months of Dec. 21, 2020 will not pay a street impact fee. In addition, new developments with a transportation impact analysis (TIA) approved by the effective date of December 21, 2020 will not be subject to the impact fee for any building permit validly issued within three years of the effective date. Beginning in June 2022, developments will be charged a fee based on the adopted Collection Rates and calculated according to the standardized trip generation rates and trip length within the project's designated service areas, as authorized under Texas Local Government Code Chapter 395. For additional information, please visit the SIF website.
The Elephant Insurance, a Richmond-based company is the first major sponsor of the program, with a commitment to clean up 100 miles of interstate. Organizations, large and small, can sponsor as little as one mile of litter clean-ups throughout the Commonwealth. All major highways throughout the commonwealth are part of the Beautify Virginia program. Roadside signage is placed on the right shoulder of the highway in every segment of sponsored road, facing traffic, to ensure that travelers see the segment's litter removal sponsor. VDOT operates the nation's third largest state-maintained highway system, managing and maintaining more than 57,000 miles of roadway.
Value Capture Strategy-Roadway Impact Fees: The Midland City Council voted Tuesday August 13, 2019 to establish water, wastewater, and roadway Impact Fees to help pay for projects related to future growth. Impact Fees will not be collected on any building permit issued before October 1, 2020. For single-family home, townhouse, or duplex, Impact Fees will not be collected on any building permit issued before October 1, 2021. The ordinance, according to the city, was based on a recommendation from the Capital Improvements Advisory Committee. Impact fees are expected to help the city execute a capital improvement plan for water, wastewater and roadways that showed $575 million in improvements needed across the city. Of that, almost $215 million are attributable to the potential growth in the next 10 years
Value Capture Strategy-Tax Increment Financing District: A specially convened joint review board from City of Batavia, IL on Thursday October 1, 2020 approved a new 23-year tax-increment financing district redevelopment site which would include the One Washington Place. The incremental tax revenue created by the project will be used to pay bond debt for the construction of the 333-space public parking garage and to reimburse the developer for certain TIF reimbursable costs associated with the private development. The city will then make significant improvements in the TIF area. This could include street, utility, and streetscape repairs as well as land assembly for redevelopment. The City of Batavia TIFs are designed to promote redevelopment of struggling areas. When an area is experiencing declining property values, and the resulting drop in property tax revenue, they may institute a TIF. The TIF freezes the amount of tax revenue each taxing body (School District, Park District, etc) receives to that of the starting year of the TIF.
Value Capture Strategy-Community Improvement District (CID): The City of Lee's Summit, Missouri on September 22, approved the Ordinance approving the Petition for establishment of the Cedar Creek Community Improvement District. (Note: First reading by City Council on September 22, 2020.). Qualified voters of the CID were asked to approve a sales and use tax of up to one percent (1.00%) ("District Sales Tax"), in accordance with the CID Act, to assist in the funding of certain improvements and services that serve the property within the District. Community Improvement District (CID) is a local special taxing district that collects revenue within its designated boundaries to pay for special public facilities, improvements or services. A CID, although approved by the local municipality, is a separate political subdivision with the power to govern itself and impose and collect special assessments, additional property and sales taxes. CIDs may also generate funds by fees, rents or charges for district property or services and through grants, gifts or donations. Additional information can be found in the Petition to the City of Lee's Summit, Missouri.
Value Capture Strategy-Tax Increment Financing (TIF) and Special Assessment District (SAD): The Biddeford City Council voted at their September 17, 2020 meeting to authorize the City Manager to enter into a Joint Development Agreement (JDA) with Treadwell Franklin Infrastructure Capital and James W. Sewall Company ("TFIC Sewall") to build a downtown parking garage as well as complete the next phase the City's RiverWalk. The JDA will outline the project design, costs, cost sharing provisions, revenue projections, support payments, and specific protections for the City. The Biddeford's parking garage will be the first private infrastructure financing project of its kind in the state of Maine. Under the terms of the approved proposal, TFIC Sewall will provide up-front financing to design, build, operate, and maintain a 640± space parking garage on the city-owned 3 Lincoln Street property, as well as complete the next phase of the City's RiverWalk and pedestrian connections. Projections for growth in the downtown show that an additional $16,407,604 in property taxes will be generated in the first 10 years of the garage's operation, with a benefit of $39,772,744 over the 25-year lifetime of the agreement. The project as approved will not use residential property tax dollars or raise the tax rate. Instead, the City will contribute to the project through two sources: annual payments from the City's Tax Increment Financing (TIF) revenues, which do not come from residential property taxpayers, and fee revenues collected from the operation of the parking garage and downtown surface lots.
Value Capture Strategy-Tax Increment Financing (TIF) Funds Transit Improvements: A pair of Chicago Transit Authority (CTA) infrastructure improvements in the Loop project would be assisted with up to $9.1 million in Tax Increment Financing (TIF). The rehabilitation of the CTA elevated tracks at the east and west approach positions to the Lake Street Bridge over the Chicago River would be supported with $7 million in TIF financing. The work would include new rails, switch points, signal systems, and related elements. The project would be coordinated with the Chicago Department of Transportation’s (CDOT) planned replacement of the movable bridge, which carries the CTA’s Pink and Green lines. The bridge was originally constructed in 1916 and last renovated in 1995. The improvements to the Monroe Street subway between Arcade and Marble places would be financed entirely with $2.1 million in TIF funds. The work would include the replacement of street-level vent grates, updating the emergency lighting system, and the addition of new LED tunnel lighting. The station serves approximately 2.3 million Blue Line riders annually. Work on both projects is expected to be completed in 2022. For additional information, please visit the City of Chicago Planning and Development website
Value Capture Strategy-Transportation Impact Fee Study: The City of Surprise is launching a Transportation Impact Fee Study on September 4, 2020, which will determine one-time fees charged to new development to pay for the infrastructure necessary to accommodate the development. The City has experienced tremendous growth in past decades. To ensure new growth will help share its proportionately of infrastructure costs, development impact fees are necessarily collected by the cities and towns to evenly and fairly share the burden of the cost of facility capacity to serve new development. These one-time charges are assessed to new development by local governments to recover the proportional cost of facilities benefiting from new development based on specific calculations using standardized assessment schedules. The study is expected to last 10 months, with formal drafts for discussion and final revisions produced sometime after January and potential consideration and action by City Council on a Transportation Impact Fee ordinance and related fees in June 2021.
Value Capture Strategy-Tax Increment Financing District: The City of Sun Prairie, Wisconsin Council Approved the City’s 14th Tax Increment Finance (TIF) District on September 1st, 2020. The city anticipates roughly $19.1 million in improvements will occur as a result of the TIF. That includes sufficient enough tax increment to pay for all the project costs within 20 of the TIF’s 27 allowable years, according to the draft plan. The plan for TIF District 14 includes expenditures of $5.8 million, including $3 million for public infrastructure, $1.96 million for development incentives, $772,000 in debt service and $62,500 in for administrative, planning and legal expenses.
Value Capture Strategy-Special Assessment/Community Improvement District (Sales Tax): On June 23, 2020 the Missouri 76 Entertainment Community Improvement District (CID) was passed by the Branson Board of Alderman. A petition to add property to the 76 Entertainment Community Improvement District (CID) was filed on Feb. 14, 2020 on behalf of certain owners of property adjacent to the CID. The purpose of the petition is to amend the boundaries and add additional property to the 76 CID to provide CID services to an expanded area of the city’s Hwy 76 entertainment corridor. It is charging a 1% sales tax on sales inside the district, that will be a component of the added property - it’s a substantial amount of real property and a substantial amount of property owners. 76 Entertainment Community Improvement District (76ECID) is a special district formed under RSMo 67.1401-67.1571 to define the improvement area and implement a 1% sales tax to fund its revitalization and upkeep. The transformation of W. 76 Country Boulevard will help ensure Branson remains a prosperous vacation destination for decades to come.
Value Capture Strategy-Transportation Utility Fees: In June of 2020, the City of Clintonville Common Council voted to hire Ehlers to assist with conducting a study on a Transportation Utility to determine whether it is a viable method of funding the City's transportation costs as well as establishing the fee structure, implementation and administration framework, and revenue needs. The City also created a website where residents and other stakeholders can go to get information on this process and on TUFs in general. The State has no laws regarding Transportation Utilities, nor is the specific method of funding transportation needs dictated by the State, and therefore, Home Rule Authority applies. According to the League of Wisconsin Municipalities the Transportation Utility [lwm-info.org] it is a valid use of the Home Rule Authority that essentially provides municipalities with the legal authority to do what they believe is in the best interest of their community provided that it does not conflict with or attempt to regulate something that the State already regulates if the State has not specifically prohibited municipalities from doing it. For updated information on Transportation Utility Fees are available on the website.
Value Capture Strategy-Business Improvement District: In May 18, 2020, the Mayor and City Council of Baltimore City, Maryland approved the establishment of a BID in Port Covington by enacting Ordinance 20-358. This ordinance approved both the creation of the BID district and the Management Authority that will oversee the daily operations of the BID. Legislation requires that a CID plan and funds be managed by a 501(c)(3) nonprofit, like GBF. The funds, a maximum of $6 per every $1000 of assessed value of a parcel, will be collected with property taxes yearly by the City of Jackson and disbursed to GBF. CID proceeds must be maintained separately from other GBF funds, with strict accounting, audit, and public disclosure guidelines.
Value Capture Strategy-Business Improvement District/Special Assessments: On May 27, 2020, the City Council of the City of Reno, Nevada approved the levy of assessments for the Downtown Reno Business Improvement District (BID) for Fiscal Year 2020/2021. The assessments are not in addition to the current BID assessments that were collected through the previous year's property tax bill. The new assessments will replace those values and will be collected as part of your new tax bill. The Downtown Reno BID will encompass a large area of the downtown bounded roughly by Interstate 80/9th Street to the north; Wells Avenue to the east; the Truckee River, California, and Moran Streets to the south; and Keystone Avenue to the west. BID formation requires petition support from property owners representing more than 50% of the assessments to be paid. Petitions are submitted to the City of Reno and the BID is formed by an ordinance of the Reno City Council
Value Capture Strategy-Roadway Impact Fees: The city of Pflugerville is considering implementing roadway impact fees to help offset costs of future development. The City Council on Tuesday February 25, 2020 approved a contract for an engineering firm to conduct a study on the fees, which are assessed to developers for roads and other infrastructure related to infrastructure improvements in the area that is expected to grow over the next 10 years.
Roadway impact fees are imposed by governments onto developers of new developments to help pay for city infrastructure, dependent on the size of the development and its overall impact on city roadways. Money collected through roadway impact fees can be applied to traffic infrastructure, such as traffic signals, bridges, sidewalks, roadways, thoroughfares, land-acquisition costs, surveying and engineering fees.
Value Capture Strategy-Roadway Impact Fees: In January 2020, the Round Rock City Council unanimously approved a roadway impact fee to address traffic demands and the need for increased capacity on major roadways around the city as it continues to grow. The city's most recent master transportation plan identified the need for $1.2 billion in new road capacity to accommodate growth during the next 20 years. Impact fees will be phased into new residential and commercial projects when developers apply for building permits.
Value Capture Strategy-Special Assessment (Sales Tax): The McLeod County, Minnesota Board of Commissioners approved by resolution the establishment of a .50% Transportation Sales Tax effective January 1, 2020 and will continue until December 31, 2049 or until revenues raised are sufficient to finance the identified transportation improvements, whichever occurs first. The Minnesota Department of Revenue will administer this tax. Revenues will fund transportation projects identified in Resolution No. 19-CB-43. This 0.5 percent sales tax applies to retail sales made into McLeod County. It anticipates $1.9 million annually will help the county closie a $3 million annual funding gap from the state aid system to help maintain highways.
Value Capture Strategy-ROW Use Agreement, Legislation Provision of Broadband Capacity to Unserved Area: The Virginia in 2019 Authorized Investor-Owned Utilities (IOUs) to use their additional capacity for broadband service in unserved areas. The statute requires the companies to submit a petition to provide broadband service that identifies the last-mile broadband providers they will lease excess fiber to. It tasks them with obtaining all necessary easements and permits to provide service. Finally, it allows utilities to adjust their service rates to recover costs associated with grid modernization projects that upgrade infrastructure to fiber, but it prohibits them from providing broadband service to commercial or retail end-users. Since the law was enacted, two major power providers, Dominion Energy and Appalachian Power, have developed pilot programs to lease additional fiber capacity to local broadband providers in rural Virginia.
Value Capture Strategy-Impact Fees: On October 30, 2019, The Lakeland City, Florida Commission collaboratively approved by a 5-to-2 vote establishment of impact fees for new construction projects at largely between 50% to 75% of the consultant’s recommended rates. The majority’s stated goal was to ensure future economic growth of Lakeland continues and established impact fees for new construction projects. The objective is the growth should be to pay for itself. The impact fees are funds collected by new construction to help pay for the costs of providing these services to the new development. Impact fees are charges assessed to new homes and businesses that affect municipal services/infrastructure such as police, fire, parks and transportation. The city is currently faced with $182 deficit funding shortfall in transportation and parks because the cost associated with providing this crucial infrastructure has risen sharply over the past few decades, especially in the areas of construction and land acquisition. The calculation is based on daily trips generated, length of trips, new travel estimates, road conditions, new project demands, and other factors. Without the implementation of impact fees this deficit could grow even larger.
Value Capture Strategy-Tax Increment Financing Fund: Reynoldsburg City Council, Ohio on Oct. 14, 2019 unanimously approved a contract for construction of a four-way traffic signal on East Main Street near the entrance to the new Kroger store, 6600 E. Main St. The $223,585 contract is prepared, the intersection construction will begin next month, and the traffic light is expected to be operational early next year. Construction will be paid for by using funds loaned to the city by the Franklin County Infrastructure Bank, a revolving-loan fund providing below-market-rate (the carries interest rate of 1.9%) loans to municipalities for economic-development projects within the county. Reynoldsburg plans to repay the loan using Value Capture Tax Increment Financing Fund.
Value Capture Strategy-Mobility Fees: On September 19, 2019, the City Council from of the Palm Beach Gardens, Florida approved the Ordinance 19, 2019 with an effective date of January 1, 2020. The city revised impact fees to include a new fee for mobility and to replace road impact fees for certain lands in the City. The City’s new Mobility Plan and Mobility Fee provided the basis to implement multi-modal principles to reduce vehicle trips, encourage use of transit and light rail, and increase pedestrian and bicycle activity throughout the City. The Mobility Fee enables the City to collect fees from developers in lieu of paying Road impact fees to the County. These mobility fees are used for multi-modal capital improvements within the City’s boundary, that were typically used for improvement outside the City limits, and within the County through standard County road impact fees.
Value Capture Strategy-Right-of-Way Use Agreements: The City of Hot Springs, Arkansas Board of Directors unanimously approved a largest solar municipal project on Tuesday, September 17, 2019 to provide solar electricity for all city operations. Under a 28-year energy services agreement, the City will purchase power from solar powerplants owned and operated by Scenic Hill Solar, as well as collect the leases on the land where the powerplants are built. The plants are expected to save Hot Springs more than $30 million in electricity costs over 30 years, plus add nearly $20 million of economic development.
Value Capture Strategy-Roadway Impact Fees: The Midland, Texas City Council voted in August to establish a roadway impact fee. Water and wastewater impact fees were also included in the ordinance. The ordinance was based on a recommendation from the Capital Improvements Advisory Committee and will help fund improvements in the City's capital improvement plan. The capital improvement plan indicated $575 million in needed improvements nearly 38% attributable to potential growth over the next 10 years. The fees are anticipated to generate $5 to $10 million annually
Value Capture Strategy-Public Improvement District (PID/Special Assessments: The Fort Worth City Council adopted a resolution authorizing the Fort Worth Public Improvement District (PID) 16 (Walsh Ranch/Quail Valley) on August 20, 2019. The PID was created to finance roadway and landscaping improvements to include erosion control, storm drainage, water, wastewater, and paving. Assessments were used to finance the resolution; which property owners can pay in full or in installments.
Value Capture Strategy-City-Wide Development Impact Fee Program: The City Council of East Palo Alto, California adopted Chapter 13.28 and an accompanying Fee Resolution to collect one-time impact fees from development projects to fund four categories of infrastructure improvements: 1) parks and trails; 2) public facilities; 3) storm drainage and 4) transportation infrastructure. The effective date of these impact fees is July 2, 2019. These impact fees were based the Development Impact Fee Program Nexus Study, which assessed the fair share contribution from projected new development to fund infrastructure improvement needs in the City. For more information visit the City of East Palo Alto Website.
Value Capture Strategy-Tax Increment Financing District: FHWA announced that it will award a $13.01 million INFRA Grant to the South Dakota Department of Transportation for the replacement of the US 14/US 83/SD 34 Missouri River Bridge connecting Pierre and Fort Pierre. The new bridge has an estimated cost of $46.2 million and will provide four 12-foot travel lanes, 3-foot shoulders and a 12-foot pedestrian and bicycle path. The cities of Pierre and Fort Pierre have agreed to split the cost of architectural lighting and belvedere lookouts extending above the water from the pedestrian walkway. The city of Fort Pierre is leveraging the proceeds from an existing tax increment financing district to obtain a $3.0 million loan from the South Dakota State Infrastructure Bank (SIB). It will use the SIB loan to fund its portion of the aesthetic bridge elements and make improvements to local streets near the bridge, create new parking, and enhance bike trails running parallel to the river. The project also features a Memorandum of Understanding between the state DOT and the two cities capturing the spirit of the Community Connections initiative promoted in the fourth cycle of FHWA's Every Day Counts program.
July 25 In the summer of 2019 (07/25/2019) the St. Louis Board of Alderman passed Board Bill 83 to establish the Soulard Community Improvement District (CID). That bill was a direct result of a petition signed by the majority of property owners in the district, followed by a mail-in election in which 78% of people who voted approved the CID. It is funded by a 1% sales tax on retail in the district. Its mission is to support and improve the district for residents, businesses, and visitors. The CID is a political subdivision (similar to the Soulard Special Business District, which provides supplemental security services within its boundaries), with a maximum duration of 25 years. The CID is managed by a 7-person board, which was appointed by the Mayor, and is comprised of: (3) residential owner/occupants living within the CID, (2) commercial property or business owners within the CID, (1) Soulard Restoration Group (SRG) designee living within the CID and (1) Soulard Business Association designee within the CID. For more information, visit the Soulard Community Improvement District website.
Value Capture Strategy-Transportation Reinvestment Zones: Utah passed Senate Bill 136, authorizing funding for transit and local needs, and enhancing transportation coordination, land use, and economic development. The bill created a new state transportation investment fund for transit capital projects and included a 40% match requirement to be supported by local option sales taxes for transportation. Alternative fuel vehicle registration fees increased over a three-year period and state and local preservation funding could be used for transit corridors in addition to roads. The bill authorized transportation reinvestment zones where two or more public agencies could increase property tax revenue with transportation infrastructure projects. The transportation reinvestment zones bill took effect on May 14, 2019. Senate Bill 136 also created a tax review task force to evaluate and advise officials on the use of transportation revenues.
Value Capture Strategy-Special Assessment/Sales Tax: Since 1990, San Bernardino County has relied on a half-cent sales tax to help fund transportation improvements in its Strategic Plan. Voters approved in 2004 extending the original Measure I sales tax into 2040. Within the Strategic Plan's Freeway Projects Program, a 2017 update included the selection of express lanes as the preferred method to upgrading and adding capacity to I-10 between the Los Angeles County line and Redlands. The first phase (Contract 1) of the I-10 Corridor Express Lanes (Contract 1) is now underway with completion of a financing package in May 2019 that includes a $225 million TIFIA loan, backed first by toll revenue from the express lanes and secured by Measure I funds as a backstop. A $135 million contribution from Measure I is also supporting the project directly.
Value Capture Strategy-Special Assessment/Street Maintenance: The City of Fairmont of West Virginia enacted street maintenance and police protection charges for residents and non-residents on May 14, 2019. The street maintenance charge covers improvements to the city's transportation system. Residents pay the fee on their utility bills, while non-resident employees who work within Fairmont's corporate limits pay the fee through a quarterly withholding.
Value Capture Strategy-Transportation Impact Fees: The Transportation Impact Fee in Bryan County, Georgia will go into effect April 1, 2019. The County Commission established transportation impact fees for new residential construction projects and some new non-residential projects in South Bryan County. The fees covers the costs of providing transportation systems needed to support the newly developed properties. Developers who submit building plans apply for and pay the transportation impact fees when they pay building permit fees.
Value Capture Strategy-Tax Increment Financing: The Lyman County, South Dakota Commissioners approved a resolution on March 19 to adopt a tax increment plan and implement the county's first tax increment district. The purpose of the district is to raise revenue to fund road and bridge repairs that accommodate increased truck traffic at the newly constructed Dakota Mill and Grain grain-loading rail terminal and agronomy center in Presho. This facility is located along the upgraded east-west Mitchell to Rapid City branch freight rail line and permits greater market access for local grain farmers by allowing the railroad and shippers to load larger rail shuttle trains. The Lyman County Shuttle Train Access Road is predominantly financed by a state loan backed by the tax increment financing revenue.
Value Capture Strategy-Roadway Impact Fees: On March 14, 2019 the City Council of Round Rock, Texas approved a Roadway Impact Fee ordinance that will take effect on January 1, 2020. The impact fee is intended to recover the incremental cost of new residential and commercial development on transportation infrastructure needs. The fee will be charged when plats (building permits) are issued for residential and commercial development. Per the Roadway Impact Fee Schedule, the city will charge $753 per service unit to issue residential plats and $502 per service unit for non-residential plats. These fees will increase to $1,130 and $628, respectively, on January 1, 2022, and then to $1,507 and $753 on January 1, 2024. A typical single-family home is considered to contain roughly four service units. The fee will provide funding to help support the implementation of $1.2 billion in roadway projects that will be needed to serve Round Rock's ultimate population of 250,000 people. These improvements are detailed in a Transportation Master Plan Update adopted in October 2017.
Value Capture Strategy-Transportation Utility Fees: The Coos Bay City Council of State of Oregon established a transportation utility fee in March 2019 as a means generating revenue to fund road maintenance. The city currently funds road maintenance through a state collected gas tax which have been stagnant. The dedicated fee is to repair and maintenance projects along city streets. To cover the charge, residents pay a flat fee of $10 monthly while businesses pay $20 each month.
Value Capture Strategy-Right-of-Way Use Agreements: On January 28, 2019, the City Council from the Redwood City approved the modification to regulation of Wireless Facilities in the public rights-of-way and the resolution establishing aesthetic standards for Wireless Facilities in the public Rights-of-Way Ordinance. Wireless Facilities are the antennas, support structures and other equipment or apparatus necessary for providing wireless services and information services. With the City properties, including thousands of light poles and privately-owned infrastructure, telecommunication service providers are able to locate their equipment in many areas of the City. With regards to municipal infrastructure, the City desires to assist companies in locating City-owned property sites that will help bring better service to the City. All utility companies who wish to operate within the City must also enter into an Encroachment or Right-of-Way Use Agreement prior to acceptance of encroachment permit application.
Value Capture Strategy-Community Improvement District/Special Assessments: On January 16, 2019, the Century Gardens Community Development District issued $1,733,000 in Special Assessment Bonds. The "Series 2019" bonds were issued in four tranches maturing in 2024, 2029, 2039 and 2049. The bonds will be repaid from an annual special assessment fee levied on 86 townhome units built in a 9.84-acre Expansion Area within the Century Gardens Community Development District. The Special Assessment Bonds will be used to cover a portion of the cost for roadway improvements and a stormwater management system. The interior roadway system improvements in the Expansion Area have been constructed by the Developer and will be acquired by the District. The District will own the roadway system in the Expansion Area and the Homeowners Association will operate and maintain it. The $1,733,000 bond issue produced $1,425,749 in usable construction funds. The remaining $307,251 covers the cost of issuance, debt service reserve fund, and capitalized interest. All property owners within the District are subject to annual assessments covering debt service on the bonds and the operation and management of the District-owned improvements.
Value Capture Strategy-Transportation Utility Fees: In 2019, the City of Abilene began collecting a maintenance fee to manage and care for its streets. Planned repairs included micro-surfacing, asphalt resurfacing, and concrete improvements to work zones and roads. To fund the projects, the fee was collected from utility customers living within city limits, per a monthly municipal account statement.
Value Capture Strategy-Roadway Maintenance Fees: In 2019, the City of Hamilton, Texas established a roadway maintenance fee to help improve the city transportation system. The fee covers costs associated with the operation, administration, planning, engineering, development, inspection, repair, renewal, replacement, and reconstruction of the public street system. Commercial and residential utility customers within the city limits pay the fee as part of their monthly bill.
Value Capture Strategy-Transportation Utility Fees: In December 2018, the Sulphur Springs, Texas City Council established a 10-year street maintenance fee to ensure the quality and safety of the city's transportation system. The fee was added to utility bills beginning on January 1, 2019. The fee covers the costs of inspections, repairs, improvements, and reconstruction projects along city streets, bridges, sidewalks, and storm sewer drainage systems. Residential and commercial utility customers within the city limits are responsible for paying the monthly charge.
