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Huddleston Road Redevelopment Financing Options

City of Peachtree City

Peachtree City

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Discussion Topics

• Project context

• Report overview

• Option summaries

• Next steps

• Appendix

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Project Objective and Scope

Objective

Explore development approaches that could

fund infrastructure development in Peachtree City’s

Huddleston Road Activity Center

Scope

•Explore Community Improvement Districts and Tax Allocation Districts•Focus on funding sanitary sewer installation

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Peachtree City is reaching build out and needs to be proactive in redevelopment efforts

Industrial (711 ac)

Source: 2010 Peachtree City Undeveloped Property Database

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Huddleston Road Activity Center presents an opportunity for proactive redevelopment

Observations Opportunity

•Area has potential to generate significantly more revenue for the city

•City generates $19,365 in revenue from study area

Source: Fayette County Tax Assessor Property Records, Analysis

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Discussion Topics

• Project context

• Report overview

• Option summaries

• Next steps

• Appendix

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This report represents a summary of the findings from the exploration

Establish BaselineDesign

Development Approaches

Vet Development Approaches

Explore OptionsSelect Option

Detailed Master Plan

Execute Master Plan

Focus of Project

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Discussion Topics

• Project context

• Report overview

• Option summaries

• Next steps

• Appendix

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Overview: Huddleston Road Activity Center

Situation

•Connects major industrial center to SR 54

•36,000 vehicles pass through corridor daily, but do not utilize light industrial and retail along corridor

Challenges

Key Questions

•All (56) parcels use septic tanks

•Total assessed value of 169 acre area is ~8.75M

•How can Peachtree City increase property values in Huddleston Road Activity Center?

Source: Peachtree City Huddleston Road LCI Application, Fayette County Tax Assessor Property Records

Huddleston Road Activity Center

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Potential options: Finance Tools

Description:

Community Improvement District Tax Allocation District

•Property owners in a designated area consent to a self-tax to fund projects within district

•Freezes tax base for jurisdictions and allocates tax increment to pay off bonds issued for redevelopment

Estimated annual value:

•Depends on redevelopment plans

Upfront investment:

Time to implement:

9-12 months

~$250,000•Feasibility study, redevelopment plan, and public education

~12 months

5 mils = $17,500

Source: Fayette County Tax Assessor Property Records, Analysis, Interviews with Gwinnett Place, Gwinnett Village, Buckhead, and Lilburn CID Executive Directors

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Community Improvement District

Description

Benefits Risks/Hurdles

•Designate proposed area for CID•Secure property owner consent•Secure Georgia Legislature bill•Establish board of directors•Identify projects•Set millage rate and administer tax•Evaluate after 6 years

•Focuses tax dollars in district•Enables leveraging of funds against state and federal dollars•Difficult to dissolve

•Lack of proper education can block implementation

Source: Interviews with Gwinnett Village, Gwinnett Place, and Lilburn CID Executive Directors

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Tax Allocation District

Description

Benefits Risks/Hurdles

•Determine project feasibility•Create redevelopment plan•Obtain buy-in from county and school board•Secure TAD approval through county referendum•Set in motion tax increment collection•Manage projects

•Increases economic base of area•Creates halo effect•Does not affect current tax revenue•Self-financing•Expands local tax base•Leverage private investment

•Lack of buy-in from school board will prevent passage of TAD legislation•Development could fail to generate revenue sufficient to cover capital costs•Could increase burden on Peachtree City to provide public services

Source: Georgia Redevelopment Powers Law, Tax Increment Financing: How Public-Private Partnerships are Funding Urban Development by Douglass Selby; Recommended Practices: Effective Tax Increment Finance Program Management, Council of Development Finance Agencies

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Tax increment covers bond repayment through TAD termination

Source: “Tax Increment Financing,” Professor Craig L. Johnson

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• Provides up to $25M in loans to fund water infrastructure development

• Offers 3% interest rate and 2% closing fee

• Policy requires that loan is repaid in 20 years

GEFA Clean Water State Revolving Fund Loan Program

Source: Georgia Environmental Facilities Authority

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Discussion Topics

• Project context

• Report overview

• Option summaries

• Next steps

• Appendix

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Where do we go from here?

• Develop set of guiding principles to vet highest potential options:

• CID – Explore including in CID the three major shopping centers surrounding

Huddleston Road Activity Center

• TAD

• CID/ TAD combination

• GEFA Clean Water State Revolving Fund

Source: Georgia Environmental Facilities Authority

• Project context

• Report overview

• Option summaries

• Next steps

• Appendix

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Discussion Topics

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• Buckhead CID – Jim Durrett, Executive Director (www.buckheadcid.com) • Gwinnett Village CID – Chuck Warbington, Executive Director

(www.gwinnettvillage.com) • Gwinnett Place CID – Joe Allen, Executive Director

(www.gwinnettplacecid.com) • Lilburn CID – Gerald McDowell, Executive Director

(www.lilburncp.com/lilburn_cid) • Perimeter CID – Yvonne Williams, Executive Director

(www.perimetercid.org) • Evermore CID – Jim Brooks, Executive Director (www.evermorecid.org) • Town Center Area CID – T.E. “Skip” Spann, Chairman (678-797-2172)• Cumberland CID – Malaika Rivers, Executive Director

(www.cumberlandcid.org)

Community Improvement Districts in Metro Atlanta

Note: Chuck Warbington has offered to consult with Peachtree City – Contact: 770-449-7515

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Tax Allocation Districts in Metro Atlanta Comparable in Assessed Value

Source: Research Atlanta Incorporated: “Georgia Redevelopment Powers Law: A Policy Guide to the Evaluation and Use of Tax Allocation Districts

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• Atlanta Development Authority

– http://www.atlantada.com/buildDev/taxAllocationDistricts.jsp

• Gwinnett Village CID

– Tax Allocation District #1 (Jimmy Carter Boulevard)

– Tax Allocation District #2 (Indian Trail)

Other Tax Allocation Districts in Metro Atlanta

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• Research Atlanta: Georgia Redevelopment Powers Law: A Policy Guide to the Evaluation and Use of Tax Allocation Districts– http://aysps.gsu.edu/publications/TAD_compiled.pdf

• City of Lilburn: Tax Allocation District Presentation– http://www.cityoflilburn.com/vertical/Sites/%7B27D9A3D2-F0A2-4034-B1A9-

44C8947743DE%7D/uploads/%7B49F6B252-0BE3-41F8-BC71-7CBA33C31C20%7D.PDF

• Livable Communities Coalition: “Survey and Analysis of Tax Allocation Districts in Georgia: A Look at the First Eight Years” – http://www.livablecommunitiescoalition.org/uploads/100012_bodycontentfiles/100578.pdf

• Council for Development Finance Agencies: TIF Resource Library– http://www.cdfa.net/cdfa/cdfaweb.nsf/pages/tifcbuildingresources.html

• Council for Development Finance Agencies: Tax Increment Finance Coalition– http://www.cdfa.net/cdfa/cdfaweb.nsf/tifcnewsletter.html

• Hunton & Williams LLP: Tax Increment Financing: How Public-Private Partnerships Are Financing Urban Development– http://www.hunton.com/files/tbl_s47Details%5CFileUpload265%5C1611%5CTax_Increment_Financi

ng_Selby.pdf

• National Association of Realtors: Tax Increment Financing– http://www.realtor.org/smart_growth.nsf/docfiles/TIFreport.pdf/$FILE/TIFreport.pdf

Tax Allocation District Resources

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• Georgia Environmental Facilities Authority

– http://www.gefa.org/Index.aspx?page=80

• Council of Development Finance Agencies: Revolving Loan Fund Resources

– http://www.cdfa.net/cdfa/cdfaweb.nsf/pages/rlfresourcelibrary.html

GEFA Clean Water State Revolving Loan Fund Resources

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• Tax Allocation District

– Georgia Redevelopment Powers Law: http://www.cdfa.net/cdfa/cdfaweb.nsf/pages/gatadstatute.html/$file/Georgia_TAD_Statute.pdf

• Community Improvement District

– Article IX, Section VII (pp.79-81): http://sos.georgia.gov/ELECTIONS/GAConstitution.pdf

Legislation regarding Tax Allocation Districts and Community Improvement Districts