Columbus Consolidated Government
Council Memorandum
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TO: Mayor and Councilors
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Date: 7/29/2008 12:00:00 AM
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TO: Mayor and Councilors
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Date: 7/29/2008 12:00:00 AM
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Created:
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7/15/2008 3:52:00 PM
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THRU: Isaiah Hugley, City Manager
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FROM: Rick Jones, AICP Planning Director
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Subject: Infrastructure \n \n Development Districts (IDD's)
This memo is in response to a request for additional information on Industrial
Development Districts (IDD's).
As Georgia continues to grow rapidly, there exists a concurrent need for local
governments to expedite crucial infrastructure which can support development.
To meet the future needs of this state, it is to local governments? advantage
to partner with developers and builders. Such partnerships can streamline the
infrastructure ?planning and building? process while also providing a framework
for financing necessary public infrastructure.
This year, the Georgia General Assembly recognized the need for a new financing
tool to help fund infrastructure at the local level by passing the Georgia
Smart Infrastructure Growth Act -- Senate Bill (SB) 200 and Senate Resolution
(SR) 309. SB 200 lays out the framework for creating and utilizing
?Infrastructure Development Districts? (IDDs, or district), while SR 309 calls
for a statewide referendum to set up the necessary legal structure in our state
Constitution to allow utilization of this financing tool in Georgia. If
approved in the November 2008 statewide referendum, the provisions outlined in
SB 200 would become available January 1, 2009.
What is an IDD?
An IDD is an independent, special-purpose district with the power to sell
tax-exempt bonds to finance public infrastructure. This includes water, sewer,
stormwater, solid waste, environmental remediation, roads, bridges, street
lights, transit, public safety facilities, schools, parks and greenspace. The
bonds are backed by assessments proportionately allocated to each parcel of
property within the district. In addition to building infrastructure, the
districts may be given the authority to provide for the maintenance of the
infrastructure.
How is an IDD different from a TAD?
The financing associated with an IDD differs significantly from the financing
used for Tax Allocation Districts (TADs) or Community Improvement Districts
(CIDs). With TADs, the bonds are backed by future property tax collections
derived from the increased value of the property within the district. With
CIDs, the bonds are backed by an additional property tax levy on commercial
property within the district and can only be used in areas of commercial
development. IDD bonds are backed by special assessments on the properties
within the district and are not tied to the property tax. These bonds can
support public projects for residential and commercial areas.
Approval
The use of IDD's must be approved by 1)100 percent of the all the property
owners within the proposed IDD district; and 2) it requires the approval of the
City Council.
Conclusion
While the IDD does create a more predictable schedule of infrastructure
installation, it does not supplant traditional development standards. IDDs are
simply another public infrastructure financing option that when appropriately
used will provide additional benefits to local governments and their taxpayers,
as well as the developers, builders and landowners within the district.
Additional information on IDD's may be found within the attached presentations.