Agenda - 05-18-2010 - 8b - Laserfiche WebLink

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Levengood 7 For one, the question of "but for' would be easily arguable. Although part of a major metropolitan area, Orange County has not experienced typical suburban growth because of restrictive land use policy and high taxes; therefore, as private investment has routinely chosen neighboring jurisdictions, Orange County could argue that "but for" a TIF district, development will not locate in the area. Additionally, as the county is part of a highly productive region, demand for goods and services is present, and the supportive institutions throughout the Research Triangle assure that a Roanoke Rapids -style outcome is unlikely. Finally, given the county's perceived "anti- growth" culture, TIF designation would be advantageous because it does not require voter referendum and could be an apolitical process. On the other hand, bypassing the process of civic engagement could lead to TIF abuse, and if the districts promote urban sprawl, a political backlash, similar to what occurred in New Mexico, might result. Nevertheless, when used aside a comprehensive and innovative economic development strategy, TIF remains a viable option for Orange County, as long as the following recommendations are considered: 1) Orange County must identify developer interest and have a specific project /plan in mind: TIFs in North Carolina require a private component. Orange County could not merely use the financing mechanism to develop infrastructure in its EDDs and then hope that developers then express interest Q. Morgan, personal communication, December 4, 2009). Having a private developer or specific firm signed on to the project as well as a concrete plan makes the TIF legally viable and increases the likelihood of success. 2) Development must not contribute to urban sprawl: Malls, strip shopping centers, and traditional single- family subdivisions should be avoided. To address this concern, North Carolina's enabling legislation has already set forth the requirement that "within a TIF district itself that is located outside a city's central business district, no more than 20% of the square footage maybe given over to commercial uses other than office space" (Blocher 6). 3) New Urban developmen t should be considered as a potential TIF use: New Urban communities have been popular and successful in Orange County and could be financed through TIP. As they include both residential and commercial components, a New Urban development would contribute broadly to the county's tax base in a manner compatible with established community values.