CDFA Financing Roundtable Webcast Georgia vs. Texas: TAD vs. TIRZ: Which Model for Redevelopment is Better? The Broadcast will begin at 1:00pm CST (2:00pm EST). While you’re waiting, check out some upcoming CDFA events… CDFA: Advancing Development Finance Knowledge, Networks & Innovation www.cdfa.net
TAD vs. TIRZ: Which Model for Redevelopment is Better? Kurt Dieringer State Programs Coordinator Council of Development Finance Agencies Columbus, OH Are you a CDFA Member? Members receive exclusive access to thousands of resources in the CDFA Online Resource Database. Join today at www.cdfa.net to set up your unique login. CDFA: Advancing Development Finance Knowledge, Networks & Innovation www.cdfa.net
TAD vs. TIRZ: Which Model for Redevelopment is Better? Using your telephone will give you better audio quality. Submit your questions to the panelists here. Want to watch again? You will find a recording of this webcast, as well as all previous CDFA webcasts, in the Online Resource Database at www.cdfa.net. CDFA: Advancing Development Finance Knowledge, Networks & Innovation www.cdfa.net
Tax Increment Finance Resources Check this out for case studies, state-by-state comparison, reports and analysis, and other resources. Receive up-to-date news and information on TIF by subscribing to the Tax Increment Finance Update. CDFA: Advancing Development Finance Knowledge, Networks & Innovation www.cdfa.net
TAD vs. TIRZ: Which Model for Redevelopment is Better? Speakers Amanda Rhein Metropolitan Atlanta Rapid Transit Authority (MARTA) Sue Hounsel City of Dallas Office of Economic Development CDFA: Advancing Development Finance Knowledge, Networks & Innovation www.cdfa.net
TAD vs. TIRZ: Which Model for Redevelopment is Better? Kurt Dieringer State Programs Coordinator Council of Development Finance Agencies Columbus, OH Are you a CDFA Member? Members receive exclusive access to thousands of resources in the CDFA Online Resource Database. Join today at www.cdfa.net to set-up your unique login. CDFA: Advancing Development Finance Knowledge, Networks & Innovation www.cdfa.net
TAD vs. TIRZ: Which Model for Redevelopment is Better? Amanda Rhein Senior Director of Transit Oriented Development Metropolitan Atlanta Rapid Transit Authority Atlanta, GA Need assistance with your development finance programs? Consider CDFA’s Research & Advisory Services – offering customized and tailored technical assistance for all of your development finance needs. Learn more at www.cdfa.net. CDFA: Advancing Development Finance Knowledge, Networks & Innovation www.cdfa.net
GA vs. TX: TAD vs. TIRZ - Which Model for Redevelopment is Better? March 5, 2014
Our Vision is to make Atlanta the most economically dynamic and competitive city in the world. 2
Invest Atlanta 3
What is a TAD? • One of the City’s most important economic incentive tools • Creates incentive for development that would otherwise not occur • Tax increment financing (TIF) is a tool used to publicly finance certain redevelopment activities in underdeveloped or blighted areas • Locally, TAD creation results from legislation passed by the City, County, and Atlanta Public Schools • The tax base within a specified geographical area is set as of the effective date of the TAD creation • TADs attract private investment which results in increased development, new jobs, reduced crime and greater economic vitality • New development within the TAD increases property values and thereby increases tax revenue
What is a TAD?
City of Atlanta TADs • 10 tax allocation districts • To date, approximately $580 million in TAD bonds have provided gap financing for over $3.5 billion in private development • Assessed property values in TADs have grown 20% since 1998 while City of Atlanta has grown at 5% • Incentivize development in blighted and underdeveloped areas of City
Westside TAD • Established in 1992, expanded in 1998 to leverage momentum from 1996 Olympics to redevelop Downtown – Connect neighborhood assets – Create live-work-play community surrounding Centennial Olympic Park – Redevelop blighted residential neighborhoods west of Downtown • 3 bond issues totaling: $161.3 million – Allocations to Neighborhood Fund and Public Purpose Project Fund • Base Assessed Value: $270,693,404 • 2013 Assessed Value: $606,680,530
Westside TAD: The Ellis Before After
Atlantic Station TAD • Created in 1999 to facilitate environmental remediation and redevelopment of 138-acre brownfield site • Atlantic Station mixed-use community to include: 1.6 million s.f. of retail, 6 million s.f. office and entertainment space, over 4,000 residential units, 1,150 hotel rooms, and create 30,000 new jobs • $76.5 million bond issue in 2001; $166.5 million second funding in 2006 • Base Assessed Value: $7,193,480 • 2013 Assessed Value: $384,558,420
Atlantic Station TAD Before After After
Eastside TAD • Established in 2003 to spur the creation of an attractive, walkable, bustling 24-hour downtown • 2005 Bond Issue ($47.5 million) supported: 1,900 housing units, 150,000 sf of retail, 250,000 sf of office space and over 100 hotel rooms • 20% affordable housing requirement • Base Assessed Value: $299,727,400 • 2013 Assessed Value: $569,024,720
Eastside TAD: Renaissance Walk Before After
Perry Bolton TAD • Established in 2002 to assist in redevelopment of Atlanta Housing Authority’s Perry Homes and revitalization of surrounding area • 2014 Bond Issue ($21 million) supported: the construction of over 650 single-family homes, 700 apartments and new parks and trails • $4 million allocation for construction of Fire Station 28 • 20% affordable housing requirement • Base Assessed Value: $66,022,880 • 2013 Assessed Value: $140,320,780
Perry Bolton TAD: West Highlands Before After
Princeton Lakes TAD • Established in 2002 to support necessary infrastructure improvements • 2006 Bond Issue ($21 million) supported: mixed-use development with 90,000 s.f. of office space, 378,000 s.f. of retail and restaurants, 450 townhomes, 350 apartments and 700 detached single-family homes. • Base Assessed Value: $826,760 • 2013 Assessed Value: $102,695,580
BeltLine TAD • 22 mile loop around City • 6,500 acres: ~8% of total City land area • TAD bonds will fund infrastructure and improvements for public benefit: – Parks: 1,200 new acres of parks and greenways – Paths: 33 miles of trails – Public transportation • The BeltLine TAD functions somewhat differently from Atlanta’s other TADs – Other TAD bond proceeds used primarily as developer incentive – The improved BeltLine public infrastructure will serve as the economic development incentive • Base Assessed Value: $542,867,760 • 2013 Assessed Value: $1,049,311,470
BeltLine TAD: Historic Fourth Ward Park After Before
Commercial TADs • Established in 2005 to attract private investment to spur catalytic mixed-use, Hollowell/ML King economically-viable development and create jobs in key nodes throughout historic commercial corridors • Pay-as-you-go financing Stadium Neighborhoods mechanism: alternative to bonds, which require larger projects (multiple $10M+ projects in a typical Bond Issuance of $50M of Campbellton Road Metropolitan more) Parkway • Developer responsible for providing up-front financing and reimbursed as increment is collected
Metropolitan Parkway TAD: EUE/Screen Gems Before After
Campbellton Road TAD: Everest College Before After
TAD Strategic Review • Methodology and deliverables: – Assessment of historical performance – Examination of best practices among competitor cities – Recommended strategy to focus resources and best reposition program • Goals moving forward: – Collaboration with City and regional stakeholders to maximize TAD impact on economic development – Reinforce City of Atlanta’s emerging economic development strategy
TAD Strategic Review: Findings & Recommendations • Project selection: evaluate projects based on economic development criteria in addition to financial criteria • Funding strategy: utilize a broader range of funding tools more strategically and leverage additional non- TAD funding resources • TAD organizational structure: increase capacity to originate, monitor and assist investments over the long-term
TAD vs. TIRZ: Which Model for Redevelopment is Better? Sue Hounsel Senior Coordinator Dallas Office of Economic Development Dallas, TX What are you reading these days? Your development finance toolbox isn’t complete without a set of CDFA reference guides. CDFA Members save 15% or more on every purchase. Order today at www.cdfa.net. CDFA: Advancing Development Finance Knowledge, Networks & Innovation www.cdfa.net
City of Dallas – a Texas Model for Tax Increment Financing (TIF) Districts CDFA Webcast Georgia vs. Texas TAD vs. TIRZ March 5, 2014 Office of Economic Development 1 WWW.DALLAS-ECODEV.ORG
Overview The purpose of this presentation is to provide: � An overview of Texas procedures for TIF Districts � Comparisons with Georgia (based on Atlanta’s program). � City of Dallas TIF program and creation of proactive policy � Summary of Dallas TIF performance. Office of Economic Development 2 WWW.DALLAS-ECODEV.ORG
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