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

Browse Search

y What is project Development Financing? allowed to issue tax-backed debt without going before local voters as is required under current law. Previous efforts to win voter support have failed as voters resoundingly defeated the effort in bath 1982 and 1993.. This issue of BTC Reports discusses the pros and cons of "Project Develapment Financing'; examines the movement's histary to gain approval, and gives recommendations far changes that should be implemented. (")roject Development Financing (PDF) arid Tax-Increment Financing (T1F) work in 'I the same manner. Both are methods of financing local government projects through the issuance of "self-financing bonds." North Carolina and Arizona are the only states without this financing option.. The process begins with a taxing district (i..e,, city or county) preparing a detailed analysis of the plan to invest in the development or redevelopment of a tract of commercial land. The financing scheme can be used for a variety of purposes. Examples of potential projects include expanding a school, building sidewalks, acquiring land for an office park or shopping center, demolishing or renovating an unused warehouse, or paying for the planning costs associated with site development for a private corporation. If the project is approved, a bond to fund the project is issued. The bond is paid for by reallocating the amount of increase in the "base valuation" of properly tax revenues that occur in the designated district. Once the bond is repaid (they are typically issued for 10 to ZS years); property tax revenues return back to the taxing district 2 BTC REPORTS NC BUDGET Rc TAX CENTER •~ ~ . ~.