TAX INCREMENT FINANCING PLAN (TIF) Port of Port Royal Redevelopment - - PowerPoint PPT Presentation

TAX INCREMENT FINANCING PLAN (TIF)

Port of Port Royal Redevelopment

Explanation of How a Tax Increment Financing District Works

1. A TIF district is created. It includes a list of properties and a map

• f those properties. Only those properties, and potential

subdivisions within those properties, pay taxes towards the capital improvement plan. 2. The increment is the portion of the taxes collected that can be used to pay for the projects. 3. The increment is defined as that increase in value above the

• riginal base value that generates additional tax dollars.

4. The taxes paid by those properties to the Town, County, and School District are used to fund a predetermined list of publicly

• wned capital projects.

5. The funds are typically borrowed for terms of anywhere from 10 to 20 years. The taxes collected pay the debt service.

Definition of Blighted Area

"Blighted area" means any improved or vacant area within the boundaries of a redevelopment project area located within the territorial limits of the municipality where the following characteristics exist: Age Dilapidation Obsolescence Excessive vacancies Deleterious land use or layout Depreciation of physical maintenance Lack of necessary transportation infrastructure Static or declining land values

Current State of the Port

Eligible Projects for TIF Funding

“Redevelopment project" means: Buildings , Water, Sewer, Storm Drainage Facilities Street and Road Construction, Parking facilities, Tourism and recreation‐related facilities Any project or undertaking authorized under Section 6‐21‐ 50 also may qualify as a redevelopment project All the projects are to be publicly owned. Redevelopment Projects may be located outside of the redevelopment area: Provided the municipality makes specific findings of benefit to the redevelopment project area and; The project area is located within the municipal limits.

Expenditures Covered in the Law

Eligible Redevelopment Project Costs include:

The total of all reasonable or necessary costs incurred or estimated to be incurred Any costs incidental to a redevelopment project. The costs include, without limitation:

Costs of studies and surveys, plans, and specifications Professional service costs including, but not limited to,

• Architectural, engineering, legal, marketing, financial,

planning, or special services Property assembly costs including, but not limited to,

• Acquisition of land and other property, real or personal

rights or interest therein

• Demolition of buildings, and the clearing and grading of

land.

Expenditures Covered in the Law

Costs of rehabilitation, reconstruction, repair, or remodeling of a redevelopment project. Costs of the construction and long‐term maintenance of a redevelopment project. Financing costs including all necessary and incidental expenses related to the issuance of obligations and which may include payment of interest on any obligations during the estimated period of construction

• f any redevelopment project for which the obligations are issued and

including reasonable reserves related thereto. Relocation costs including relocation or removal costs of federal, state,

• r local government facilities or activities, to the extent that a

municipality determines that relocation costs must be paid or required by federal or state law.

TIF Boundary Map

Marsh Marsh Marsh Sands Highland Town Parcels

Port of Port Royal Redevelopment Plan

(All Phases ‐ 20 Year Plan)

Redevelopment Project Infrastructure Estimated Costs(All Phases)

• Roads

$4,140,000

• Water

$865,000

• Sewer

$587,500

• Storm water

$1,130,000

• Curbing

$160,000

• Trees, Landscaping, and Pocket Parks

$1,085,000

• Sidewalks, signs, and lights

$500,000

• London Park (9.7 acres)

$27,500

• Paris Park (1 acre)

$500,000

• Waterfront promenade

$750,000

• Existing wooden pier

$70,000

• Shrimp/day dock rehabilitation (Dockside Village)

$185,000

• Total estimated cost
• f the Redevelopment Projects

$10,000,000

Overall TIF Development Plan – Port Redevelopment

To Ribaut Road Pocket Parks/Open Space Shrimp/Day Dock Rehab Waterfront Promenade Existing Wooden Pier Repair London Ave. Park Paris Ave. Park Roadway & Sidewalks Stormwater System

Phase I TIF Projects and Financing Plan

Phase I Proposed Public Infrastructure Projects

Redevelopment Project Infrastructure Estimated Costs(Phase 1)

• Roads

$2,200,000

• Water

$27,500

• Storm water

$181,500

• Curbing

$49,500

• Trees, Landscaping, and Pocket Parks

$220,000

• Sidewalks, signs, and lights

$149,000

• London Park (9.7 acres)

$27,500

• Paris Park (1 acre)

$480,000

• Waterfront promenade

$220,000

• Existing wooden pier

$70,000

• Total estimated cost
• f Phase I Redevelopment Projects

$3,625,000

Phase 1‐ TIF Development Plan – Port Redevelopment

Pocket Parks/Open Space Waterfront Promenade Existing Wooden Pier Repair London Ave. Park Paris Ave. Park Roadways & Sidewalks Stormwater System

PHASE 1 IMPROVEMENTS

Road Improvements ‐ $2,200,000

• Estimated at 3,200 linear feet of new roads.
• Road improvements include all phases of road

construction

• Road improvements will stretch from the corner
• f 15th and Edinburgh, extending down through

Bluff Neighborhood, Marina Village and into the Port Village. Curbing ‐ $49,500

• Phase One curb improvements is estimated at

3400 feet. Curbing will done at the entrance of Edinburgh and 15th, and also expand the entire length of the Marina Village.

PHASE 1 IMPROVEMENTS

Stormwater ‐ $181,500

• Storm water improvements include all aspects of

storm water infrastructure, including but not limited to earth work, silt fences, clearing and grubbing, curb inlets, and sub grade drains. Phase One storm water improvements are mostly for the Marina Village Water ‐ $27,500

• Phase One water improvements will consist of

approximately 5 ten inch sleeves under the road right away for future expansion and development

PHASE 1 IMPROVEMENTS

Paris Avenue Park ‐ $480,000

• The Paris Avenue Park shall include a +/‐ 1.0 acre

civic open space. The Park may include but not be limited to plazas, fountains, landscape, pavilions, gazebos, shelters, boardwalks/promenades and

• pen lawn for community events, parking and
• ther recreational facilities

London Avenue Park ‐ $27,500

• Initial site cleanup. Take the existing stockpile

material on site, clean, spread and grass area behind the OCRM Critical Line.

PHASE 1 IMPROVEMENTS

Waterfront Promenade ‐ $220,000

• Phase One waterfront promenade will be

approximately 1500 linear feet. Sidewalks, Signs and Lights ‐ $149,000

• Phase One will have approximately 4000 feet of

sidewalk including both sides of the street. This area will include from Edinburgh down through Marina Village to the beginning of the Port Village Rehab on existing wooden pier ‐ $70,000

• Work will involve removing existing dilapidated

cross members on support piles for the existing Sands Beach Boardwalk and replacing them

PHASE 1 IMPROVEMENTS

Tree Improvements / Pocket Parks / Landscaping ‐ $220,000

• Tree improvements include the movement and

replanting of existing trees and the acquisition and planting of additional trees (min. 4” DBH) on public real property. Phase One tree improvements includes approximately 20 new trees planted throughout the Redevelop site, mostly dispersed along the promenade in the Port Village. Total Estimated Project Costs: $3,625,000

Phase I Proposed TIF Financing Plan

Phase 1 of the Redevelopment Projects will be funded from a tax increment borrowing Borrowing will not to exceed $4,000,000 in net proceeds for Redevelopment Projects Yearly Debt Service Costs will not exceed the projected current yearly Tax Revenues generated by the property

Next Steps in the Process

Determine the best means to obtain financing Determine:

• Interest Rate, Term and Conditions
• Available Tax Revenues
• Maximum amount to borrow
• Revisions to Phase I Project List if needed

Gain Beaufort County and Beaufort County School Board agreement on TIF participation Prepare Financing Ordinance for first reading in January 2012 Set schedule for Public Hearings on TIF and Financing Plans