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27 <br />Synthetic Tax Increment Financing (TIF) Program <br />City of Charlotte & Mecklenburg County <br />ADDENDUM - Verbal Presentation to the Orange County BOCC /Town of Chapel Hill Annual Meeting <br />by Steve Brantley, Director, Orange County Economic Development <br />Nov. 11, 2014 <br />Comments by A.C. Shull — City of Charlotte Economic Developer <br />• Charlotte & Mecklenburg County have only done 13 active synthetic TIFFs over the past 15 <br />years, averaging one (1) project per year. <br />• City & County elected officials cautiously approve moving forward with synthetic TIFF <br />financing for major projects having significant land use issues, on a case -by -case basis. <br />• The process is not open to most developers' proposed development projects requesting <br />public /private participation, when no significant "public purpose" exists. <br />• Charlotte & Mecklenburg County define "public purpose" as major land use projects which <br />allow the County & City to partner and address needed infrastructure improvements in the <br />community, such as transportation improvements, signalization, road coordination with <br />NCDOT, water run -off, anticipated population growth, economic development potential and <br />related planning matters. <br />• The most recent example of an approved synthetic TIFF is in response to Simon Property <br />Group and Tanger Factory Outlet Center constructing a new 400,000 sq. ft. "Charlotte <br />Premium Outlets" indoor shopping facility, with 90 retail stores on 80 acres. The <br />development will create up to 800 full -time and part -time retail sales jobs, and 300 -500 initial <br />construction jobs. The County & City decided to participate in this project because this region <br />of Mecklenburg County (near Steele Creek Road & Interstate 485) is designated to become a <br />new "edge city" for Charlotte with significant growth potential. <br />• According to Mr. Shull, few other regions in North Carolina have ventured into synthetic TIFF <br />financing, probably because of many communities' lack of familiarity with the financial tool's <br />process and administration. He said adjacent Cabarrus County and the City of Concord is <br />currently exploring one synthetic TIFF option to support a segment along the interstate with <br />good retail and hotel growth potential. <br />