Agenda - 10-19-2004-7b - Laserfiche WebLink

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/~ Self Financing Bonds This truly will be a historic year for North Carolinians. Not only will we be given an opportunity to elect a North Carolinian to the Executive Branch of the government, but we in North Carolina will be given an opportunity to vote on another pressing matter: "Self-Financing Bonds," Voters in November will be asked to consider "Amendment One", which, if approved, would give local governments the opportunity to use self-financing bonds (known to many as "tax-increment financing") as an economic development tool. NCAPA strongly supports this measure and urges you to "pass the word" to others on this matter. Here are a couple of key facts to keep in mind: 1. Self-financing bonds (SFB's) can spur private development by helping to finance public improvements such as streets, utilities and other infrastructural improvements-..without raising property taxes. 2. The use of SFB's is entirely voluntary by a local government. 3. Before a SFB project can be put in place by a local government in North Carolina, it must first be approved by the Local Government Commission to ensure its fiscal soundness. 4, SFB's can not be used throughout a jurisdiction.. They can only be used in targeted development districts (i e., Brownfield sites, areas of disinvestment, etc.). 5. SFB's are viewed by many as a "fiscally conservative" economic development tool. They are used to spur economic development. The increase in property taxes resulting from the development pays off the bonds. Thus, they do not have an impact on taxpayers and property owners elsewhere in the jurisdiction. 6. SFB's have been successfully used throughout the nation. Examples from neighboring states include: • The "Red River Development" project in Rock Hill, SC. SFB's amounting to $25 million are anticipated to result in $140 million in private investment.. Annual ad valorem revenues are expected to increase by $2 1 million. The "Manchester Village Redevelopment Project", also in Rock Hill, SC, will use $10 million in SFB's to convert a Brownfield site into a mixed use development that will include townhomes, apartments, office space, a hotel and other retail and institutional uses Smyrna, GA will use $30 million in SFB's to support renovation of a 1950's era shopping center into a mixed use development containing high-end condo's, and street level retail and office space.