Intro
EXECUTIVE ORDER # 06-18
TO: MEMBERS OF THE LEGISLATURE
CLERK OF THE LEGISLATURE
FROM: KATHERYN J. SHIELDS
JACKSON COUNTY EXECUTIVE
DATE: SEPTEMBER 11, 2006
RE: JACKSON COUNTY POLICY FOR SUPPORT OF A
MUNICIPAL TAX INCREMENT FINANCING PROJECT
Title
Tax Increment Financing (TIF) is a statutory mechanism authorized by §§ 99.800 et seq., RSMo, to encourage the redevelopment of “blighted” properties, “conservation areas,” and “economic development areas” as defined in the law. Within a TIF project’s boundaries, the tax “increment” of certain taxes, including real and personal property taxes, sales taxes, and utility taxes, attributable to the increase in assessed valuation and/or collections resulting from the development of the project, are diverted from the taxing entities to a TIF “special allocation fund.” The city or county that established the TIF project then uses this income stream to make infrastructure improvements and pay other costs associated with the project, either on a “pay as you go basis” or through the issuance of TIF bonds or other obligations.
Since tax increments utilized by TIF projects may negatively impact existing tax revenues used by County government to finance essential public services, County representatives on city TIF commissions will thoughtfully apply the following policies and guidelines when considering the approval of city TIF projects utilizing County tax increments.
A County representative on a city TIF commission will consider each TIF project on its own merits. A County representative will supports the use of TIF for a redevelopment or development project which, in the judgement of a city, is in the public’s best interests and in compliance with the state law. Each project should demonstrate a substantial and significant public benefit by constructing public improvements in support of developments that will, by creating new jobs and retaining existing employment, eliminate blight, strengthen the employment and economic base of the city, increase property values and tax revenues, reduce poverty, create economic stability, upgrade older neighborhoods, facilitate economic self-sufficiency, reduce incidents of sprawl consistent with existing County values concerning green space preservation, and represent a commitment to environmental sustainability and community health through coordinated, cooperative efforts.
The County encourages cities to view more favorably those TIF projects that demonstrate sustainability and a clear consideration of the project’s impact on the natural environment, the economy, and the community. Therefore, the County will support TIF projects that meet the needs of the present without compromising the ability of future generations to meet their own needs and offers the following guidelines:
The County will support TIF projects that:
# OUR PLANET (NATURAL ENVIRONMENT)
Design for the local environment by conserving resources, minimizing disturbance, and protecting existing vegetation.
Manage storm water on-site by utilizing vegetative swales, wetlands, rain gardens, and/or water-scaping to maximize infiltration and minimize run-off.
Provide a minimum open “green” space of 30% of gross acreage that is dedicated, deeded, and maintained in perpetuity.
Landscape using native plant species that require little to no irrigation; if irrigation is needed, use of rainwater retained on-site and moisture sensing irrigation controls is preferred.
Aspire to meet at least the equivalent of LEED (Leadership in Energy and Environmental Design) certification level green.
Redevelop existing “blighted” structures and brownfields rather than developing greenfields.
Represent innovation in the area of sustainability; for example, a developer should be encouraged to establish community recycling areas on-site and use solar panels with rechargeable battery back-up or wind technology to light public areas.
# OUR PEOPLE (SOCIAL)
Are for new or expanded industrial, manufacturing, and office projects rather than retail and service commercial projects, unless such projects encourage an inflow of customers from outside the County or will provide services or fill retail markets that are currently unavailable within the County.
Create new jobs with wages that exceed the community average.
Serve the community by re-developing neighborhoods or commercial or industrial areas that have or will likely experience deterioration.
Encourage at least 30% of the TIF project to be occupied by local business owners and products rather than national and international chains.
Create new jobs or retain existing employee in the industrial, manufacturing, and office sectors.
# OUR PROSPERITY (ECONOMIC)
Would not reasonably be developed in the foreseeable future without the benefits of the TIF; this guideline complies with one of the statutory requirements of TIF (development would not occur, “But for………”).
Will serve as a catalyst for further high quality development.
Have shorter terms rather than longer terms; TIF projects should provide for a complete payout in less than twelve (12) years.
Demonstrate that the tax increments generated will be sufficient to provide a debt coverage factor of at least 1.25 times the projected debt service on any requested tax increment bonds or notes.
Do not request more than 15% of the total project costs.
Drafter
______________________ __________________
Date Katheryn J. Shields, County Executive