Making Connections with Making Connections with Community - - PowerPoint PPT Presentation
Making Connections with Making Connections with Community Improvement Districts Community Improvement Districts in Missouri in Missouri Presented October 22, 2008 by Presented October 22, 2008 by Joe Lauber Joe Lauber 200 NE Missouri Road,
Presented October 22, 2008 by Presented October 22, 2008 by Joe Lauber Joe Lauber 200 NE Missouri Road, Suite 200 200 NE Missouri Road, Suite 200 Lee Lee’ ’s Summit, MO 64086 s Summit, MO 64086 (816) 251 (816) 251-
4646
ROVIDING L
EGAL S
OLUTIONS FOR FOR L
OCAL G
OVERNMENTS
Tools in Missouri’ ’s economic development s economic development “ “toolbox toolbox” ”
CID Concepts
CID Improvements & Services
CID Funding Mechanisms
CID Act Requirements
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Setting the stage Setting the stage
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Timeline Timeline
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Petition preparation Petition preparation
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Public hearing Public hearing
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CID Board Meeting CID Board Meeting
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Sales Tax Election Sales Tax Election
Ongoing CID Responsibilities
Case Study-
Historic Downtown Branson CID
Chapter 100
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Can issue industrial development bonds to finance Can issue industrial development bonds to finance the costs of warehouses, distribution or R&D the costs of warehouses, distribution or R&D facilities, and office industries facilities, and office industries— —property financed property financed by IDD bonds is tax exempt while the bonds are by IDD bonds is tax exempt while the bonds are
Chapter 353
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Up to 25 years of tax abatement Up to 25 years of tax abatement
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To remedy blight that creates economic and social To remedy blight that creates economic and social liability, pursuant to a redevelopment plan liability, pursuant to a redevelopment plan
TIF
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Blight remediation costs reimbursed by incremental Blight remediation costs reimbursed by incremental increases in property and economic activity taxes increases in property and economic activity taxes achieved through development achieved through development
MODESA
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Missouri Downtown Economic Stimulus Act Missouri Downtown Economic Stimulus Act
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Basically an enhanced version of TIF Basically an enhanced version of TIF
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Applicable only in a blighted central business Applicable only in a blighted central business district of a city. district of a city.
NID
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A specified area in which the A specified area in which the city is authorized to impose city is authorized to impose special assessments to pay for special assessments to pay for public improvements that confer public improvements that confer a benefit on property that is a benefit on property that is located within the district located within the district
TDD
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Special taxing district authorized Special taxing district authorized to levy sales tax, special to levy sales tax, special assessments and/or property tax assessments and/or property tax to pay for transportation to pay for transportation projects projects
CID
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Special taxing district authorized Special taxing district authorized to levy sales tax, special to levy sales tax, special assessments and/or property tax assessments and/or property tax to pay for a wide variety of to pay for a wide variety of improvements and services improvements and services within the boundaries of the within the boundaries of the district district
Improvements Improvements
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Pedestrian or shopping malls and Pedestrian or shopping malls and plazas. plazas.
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Parks, lawns, trees and any other Parks, lawns, trees and any other landscape. landscape.
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Convention centers, arenas, Convention centers, arenas, aquariums, aviaries and meeting aquariums, aviaries and meeting facilities. facilities.
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Sidewalks, streets, alleys, bridges, Sidewalks, streets, alleys, bridges, ramps tunnels, overpasses and ramps tunnels, overpasses and underpasses, traffic signs and underpasses, traffic signs and signals, utilities, drainage, water, signals, utilities, drainage, water, storm and sewer systems and other storm and sewer systems and other site improvements. site improvements.
– – Parking lots, garages or other
Parking lots, garages or other facilities. facilities.
– – Music, news and child
Music, news and child-
care facilities. facilities.
– – Any other useful, necessary or
Any other useful, necessary or desired improvement. desired improvement.
– – In addition, within a
In addition, within a “ “blighted blighted area area” ”, the district may pay costs , the district may pay costs
rehabilitating structures. rehabilitating structures.
Services Services
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With the municipality With the municipality’ ’s consent, s consent, prohibiting or restricting vehicular and prohibiting or restricting vehicular and pedestrian traffic and vendors on pedestrian traffic and vendors on streets. streets.
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Operating or contracting for the Operating or contracting for the provision of music, news, child provision of music, news, child-
care or parking facilities, and buses, mini parking facilities, and buses, mini-
buses
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Leasing space for sidewalk caf Leasing space for sidewalk café é tables tables and chairs. and chairs.
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Providing or contracting for the Providing or contracting for the provision of security personnel, provision of security personnel, equipment or facilities for the equipment or facilities for the protection of property and persons. protection of property and persons.
Services Services
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Providing or contracting for cleaning, Providing or contracting for cleaning, maintenance and other services to maintenance and other services to public and private property. public and private property.
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Promoting tourism, recreational or Promoting tourism, recreational or cultural activities or special events. cultural activities or special events.
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Promoting business activity, Promoting business activity, development and retention. development and retention.
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Providing refuse collection and Providing refuse collection and disposal services. disposal services.
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Contracting for or conducting Contracting for or conducting economic, planning, marketing or economic, planning, marketing or
Sales Tax
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1/8% increments up to 1% on all retail sales made 1/8% increments up to 1% on all retail sales made within the boundaries of the district within the boundaries of the district
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Available only to political subdivision CIDs Available only to political subdivision CIDs
Property Tax
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Available only to political subdivision CIDs Available only to political subdivision CIDs
Special Assessments
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Available to all CIDs Available to all CIDs
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May not assess exempt property, unless the owner May not assess exempt property, unless the owner voluntarily consents voluntarily consents
User Fees
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May charge for use of the CID May charge for use of the CID’ ’s real or personal s real or personal property (other than public right of way) property (other than public right of way)
Business license taxes
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Only in Springfield Only in Springfield
Contact your local municipal officials to determine their familiarity with CIDs determine their familiarity with CIDs
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Community Development Department Community Development Department
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Elected officials Elected officials
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City Administrator City Administrator
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City Clerk City Clerk
Application fees and/or forms
Policy requirements
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Ratio of private investment Ratio of private investment
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Encouraged/discouraged practices Encouraged/discouraged practices
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Funding agreement requirement Funding agreement requirement
Prepare Petition
File petition
Provide mailed and published notice of public hearing notice of public hearing
Public hearing
Adopt ordinance establishing district district
Enter into cooperative agreement
Hold first CID Board meeting
Adopt resolution to impose funding mechanism mechanism
Hold election to approve funding mechanism mechanism
Collection of funds begins
1. 1. Signed by owners of more than 50% per capita and by assessed val Signed by owners of more than 50% per capita and by assessed value of ue of land within proposed district land within proposed district
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Tax records of the county clerk Tax records of the county clerk
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As of the As of the “ “last completed assessment last completed assessment” ”
2. 2. Legal description and map Legal description and map
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Need to work with GIS department of City or County or a surveyor Need to work with GIS department of City or County or a surveyor
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Must include all possible targets of CID funds Must include all possible targets of CID funds
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Cross reference tax parcels and tax maps Cross reference tax parcels and tax maps
3. 3. Type of District Type of District
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Political subdivision Political subdivision
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Not Not-
for-
profit corporation
4. 4. Name of District Name of District
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Must include the words Must include the words “ “community improvement district community improvement district” ” in the title in the title
5. 5. Notice that the signatures of the signers may not be withdrawn l Notice that the signatures of the signers may not be withdrawn later ater than seven days after the petition is filed with the municipal c than seven days after the petition is filed with the municipal clerk lerk
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if it is to be a not for profit corporation, the name of the not if it is to be a not for profit corporation, the name of the not for for profit corporation; profit corporation;
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Not for profit corporations are subject to Chapter 355, RSMo. Not for profit corporations are subject to Chapter 355, RSMo.
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Political subdivision CIDs only Political subdivision CIDs only
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If Board will be elected, petition can state the names and terms If Board will be elected, petition can state the names and terms of
the initial board members the initial board members
– – 5 5-
30 permitted – – Political subdivision CIDs only (not Political subdivision CIDs only (not-
for-
profits governed by Ch. 355)
– – Can be maximum, minimum or definite number of years Can be maximum, minimum or definite number of years
– – Springfield CIDs can do business license taxes Springfield CIDs can do business license taxes
Adopt bylaws
Appoint CID officers
Ratify organization of the CID, past actions and authorize reimbursement of formation costs reimbursement of formation costs
Adopt Sunshine Law Policy
Resolution to adopt funding mechanism
Resolution to adopt cooperative agreement with city
– – Is Is “ “reduced reduced” ” notice notice necessary necessary
90 Property Owners
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58% signed the petition 58% signed the petition
$6.9 Million in assessed value
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68% of owners by assessed value 68% of owners by assessed value signed the petition signed the petition
Political subdivision CID
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Because sales tax was the desired Because sales tax was the desired funding mechanism funding mechanism
District boundaries
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Must cover all areas where CID Must cover all areas where CID money will be spent money will be spent
1% Sales tax
20 year term
Over 66 acres in area
– – Coordination and education
Coordination and education
having $6.9 million in having $6.9 million in assessed value assessed value
– – Basis of authority of signers
Basis of authority of signers
Trusts
LLCs
Transfers of property
– – Obtaining a list of all
Obtaining a list of all
to determine valid petition to determine valid petition
– – Timing important due to
Timing important due to holiday sales bubble holiday sales bubble
– – Notification of election
Notification of election authority authority
Required court order
– – Voters
Voters
– – Election procedures
Election procedures
– – Delay in CID funds
Delay in CID funds reaching district treasury reaching district treasury
– – $140,000 credit line
$140,000 credit line
– – Fixed 3 year Tax
Fixed 3 year Tax Anticipation Note ( Anticipation Note (“ “TAN TAN” ”) )
– – Constitutional limits on
Constitutional limits on governmental credit governmental credit
Success! Success!
All involved are pleased with the
Sales tax is producing enough revenue to adequately cover costs revenue to adequately cover costs
Fares were never needed as a funding source funding source
The trolleys have become an attraction on their own attraction on their own
CID and DBMA have formed a critical partnership for promoting critical partnership for promoting the downtown area the downtown area
Bridge financing was paid off nearly 18 months early nearly 18 months early