TAX INCREMENT FINANCING PLAN (TIF) Port of Port Royal Redevelopment
Explanation of How a Tax Increment Financing District Works 1. A TIF district is created. It includes a list of properties and a map of those properties. Only those properties, and potential subdivisions within those properties, pay taxes towards the capital improvement plan. 2. The increment is the portion of the taxes collected that can be used to pay for the projects. 3. The increment is defined as that increase in value above the original base value that generates additional tax dollars. 4. The taxes paid by those properties to the Town, County, and School District are used to fund a predetermined list of publicly owned capital projects. 5. The funds are typically borrowed for terms of anywhere from 10 to 20 years. The taxes collected pay the debt service.
Definition of Blighted Area "Blighted area" means any improved or vacant area within the boundaries of a redevelopment project area located within the territorial limits of the municipality where the following characteristics exist: � Age � Dilapidation � Obsolescence � Excessive vacancies � Deleterious land use or layout � Depreciation of physical maintenance � Lack of necessary transportation infrastructure � Static or declining land values
Current State of the Port
Eligible Projects for TIF Funding � “Redevelopment project" means: � Buildings , Water, Sewer, Storm Drainage Facilities � Street and Road Construction, Parking facilities, � Tourism and recreation ‐ related facilities � Any project or undertaking authorized under Section 6 ‐ 21 ‐ 50 also may qualify as a redevelopment project � All the projects are to be publicly owned. � Redevelopment Projects may be located outside of the redevelopment area: � Provided the municipality makes specific findings of benefit to the redevelopment project area and; � The project area is located within the municipal limits.
Expenditures Covered in the Law Eligible Redevelopment Project Costs include: � The total of all reasonable or necessary costs incurred or estimated to be incurred � Any costs incidental to a redevelopment project. The costs include, without limitation: � Costs of studies and surveys, plans, and specifications � Professional service costs including, but not limited to, • Architectural, engineering, legal, marketing, financial, planning, or special services � Property assembly costs including, but not limited to, • Acquisition of land and other property, real or personal rights or interest therein • Demolition of buildings, and the clearing and grading of land.
Expenditures Covered in the Law � Costs of rehabilitation, reconstruction, repair, or remodeling of a redevelopment project. � Costs of the construction and long ‐ term maintenance of a redevelopment project. � Financing costs including all necessary and incidental expenses related to the issuance of obligations and which may include payment of interest on any obligations during the estimated period of construction of any redevelopment project for which the obligations are issued and including reasonable reserves related thereto. � Relocation costs including relocation or removal costs of federal, state, or local government facilities or activities, to the extent that a municipality determines that relocation costs must be paid or required by federal or state law.
TIF Boundary Map Highland Marsh Town Parcels Marsh Sands Marsh
Port of Port Royal Redevelopment Plan (All Phases ‐ 20 Year Plan) Redevelopment Project Infrastructure Estimated Costs(All Phases) Roads $4,140,000 • Water $865,000 • Sewer $587,500 • Storm water $1,130,000 • Curbing $160,000 • Trees, Landscaping, and Pocket Parks $1,085,000 • Sidewalks, signs, and lights $500,000 • London Park (9.7 acres) $27,500 • Paris Park (1 acre) $500,000 • Waterfront promenade $750,000 • Existing wooden pier $70,000 • Shrimp/day dock rehabilitation (Dockside Village) $185,000 • Total estimated cost • of the Redevelopment Projects $10,000,000
To Ribaut Road Overall TIF Development Plan – Port Redevelopment Roadway & Sidewalks Stormwater System Shrimp/Day Dock Rehab Pocket Parks/Open Space London Ave. Park Waterfront Promenade Paris Ave. Park Existing Wooden Pier Repair
Phase I TIF Projects and Financing Plan
Phase I Proposed Public Infrastructure Projects Redevelopment Project Infrastructure Estimated Costs(Phase 1) Roads $2,200,000 • Water $27,500 • Storm water $181,500 • Curbing $49,500 • Trees, Landscaping, and Pocket Parks $220,000 • Sidewalks, signs, and lights $149,000 • London Park (9.7 acres) $27,500 • Paris Park (1 acre) $480,000 • Waterfront promenade $220,000 • Existing wooden pier $70,000 • Total estimated cost • of Phase I Redevelopment Projects $3,625,000
Phase 1 ‐ TIF Development Plan – Port Redevelopment Roadways & Sidewalks Stormwater System Pocket Parks/Open Space London Ave. Park Waterfront Promenade Paris Ave. Park Existing Wooden Pier Repair
PHASE 1 IMPROVEMENTS Road Improvements ‐ $2,200,000 • Estimated at 3,200 linear feet of new roads. • Road improvements include all phases of road construction • Road improvements will stretch from the corner of 15 th and Edinburgh, extending down through Bluff Neighborhood, Marina Village and into the Port Village. Curbing ‐ $49,500 • Phase One curb improvements is estimated at 3400 feet. Curbing will done at the entrance of Edinburgh and 15 th , and also expand the entire length of the Marina Village.
PHASE 1 IMPROVEMENTS Stormwater ‐ $181,500 • Storm water improvements include all aspects of storm water infrastructure, including but not limited to earth work, silt fences, clearing and grubbing, curb inlets, and sub grade drains. Phase One storm water improvements are mostly for the Marina Village Water ‐ $27,500 • Phase One water improvements will consist of approximately 5 ten inch sleeves under the road right away for future expansion and development
PHASE 1 IMPROVEMENTS Paris Avenue Park ‐ $480,000 • The Paris Avenue Park shall include a +/ ‐ 1.0 acre civic open space. The Park may include but not be limited to plazas, fountains, landscape, pavilions, gazebos, shelters, boardwalks/promenades and open lawn for community events, parking and other recreational facilities London Avenue Park ‐ $27,500 • Initial site cleanup. Take the existing stockpile material on site, clean, spread and grass area behind the OCRM Critical Line.
PHASE 1 IMPROVEMENTS Waterfront Promenade ‐ $220,000 • Phase One waterfront promenade will be approximately 1500 linear feet. Sidewalks, Signs and Lights ‐ $149,000 • Phase One will have approximately 4000 feet of sidewalk including both sides of the street. This area will include from Edinburgh down through Marina Village to the beginning of the Port Village Rehab on existing wooden pier ‐ $70,000 • Work will involve removing existing dilapidated cross members on support piles for the existing Sands Beach Boardwalk and replacing them
PHASE 1 IMPROVEMENTS Tree Improvements / Pocket Parks / Landscaping ‐ $220,000 • Tree improvements include the movement and replanting of existing trees and the acquisition and planting of additional trees (min. 4” DBH) on public real property. Phase One tree improvements includes approximately 20 new trees planted throughout the Redevelop site, mostly dispersed along the promenade in the Port Village. Total Estimated Project Costs: $3,625,000
Phase I Proposed TIF Financing Plan � Phase 1 of the Redevelopment Projects will be funded from a tax increment borrowing � Borrowing will not to exceed $4,000,000 in net proceeds for Redevelopment Projects � Yearly Debt Service Costs will not exceed the projected current yearly Tax Revenues generated by the property
Next Steps in the Process � Determine the best means to obtain financing � Determine: • Interest Rate, Term and Conditions • Available Tax Revenues • Maximum amount to borrow • Revisions to Phase I Project List if needed � Gain Beaufort County and Beaufort County School Board agreement on TIF participation � Prepare Financing Ordinance for first reading in January 2012 � Set schedule for Public Hearings on TIF and Financing Plans
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