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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