Agenda - 01-27-2015 - 1 - Laserfiche WebLink

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RW • The City of Durham has used a synthetic TIFF to finance the public parking deck that supports the adjacent Durham Bulls Athletic Park, the now renovated (and very successful) American Tobacco campus, and the newly constructed Durham Performing Arts Center (DPAC). • Mr. Shull is not aware of any "regular" TIFFs being used anywhere in North Carolina. They usually involve bonds being issued by the community that plans to take in an entire planning district and census tracts, which often include residential and other privately owned land. Therefore, the "synthetic" TIFF financing option is preferred and occasionally utilized by municipalities due to its focus on a smaller area & different financing structure. http:/ /www.charmeck.org /city/ charlotte /nbs /ed/Pa es /TIFPro ram.as x# Synthetic Tax Increment Financing (TIF) Program —The City uses Synthetic TIF as a public /private partnership tool to advance Economic Development and land use planning goals. Synthetic TIF does not require the establishment of a TIF district, as required by Self Financing Bonds, to utilize locally approved financing, which is repaid by 90% or 45% of the incremental property tax growth generated by the development. The three City funds supported by property tax (General Fund, Debt Service and Pay As You Go) each contribute its pro -rata share to the project. Financing Categories: • Infrastructure Investment - New public infrastructure such as roads, streetscapes, and parking decks that entice development that would not otherwise occur. • Public Asset Purchase - Building or paying for new public buildings or features that becomes a specific asset to the City. Economic Development Grants - Gap funding for projects in business corridors and strategic plan geography that add value and generate growth that would not otherwise occur. Financing Parameters: • Must be on a reimbursement basis (City /County payments not made until property taxes are paid by private sector.) • Private sector guarantees are pledged in the form of Development Agreements. • A "But for" test shall be applied to determine the financing gap. • Financial participation allows the City to influence the type and form of the project in partnership with the private developer. • City priorities and policy goals must be satisfied. • Capacity Policy: Synthetic TIF assistance to all projects is limited to 3% of annual property tax levy in any given year. For more information about the Synthetic TIF Program, contact: A.C. Shull, Neighborhood & Business Services /Economic Development 600 East Trade Street- Suite 300 Charlotte, NC 28202 ashull @charlottenc.gov Office Tel # (704) 336 -2439