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

Browse Search

7 money and is largely responsible for maintaining the fiscal health of North C'arolina's municipalities. Traditionally, it takes a conservative approach and conducts in-depth analyses of projects brought before it to ensure a high success rate. The commission will examine the feasibility of all PDF projects, analyze and ensure that the financing method is optimized, and consider the financial strength and standing of the issuing district before issuing approval, Disadvantages of the Current Legislation Wage Standards Required - A growing sentiment among experts is that private industries should not receive state or local government dollars if its workers are not afforded living wages, Businesses should not be subsidized unless the state is prepared to offer additional subsidies to these workers, who will financially qualify for social services programs such as Medicaid.. The 2004 PDF legislation mandates adherence to wage standards by businesses involved in PDF projects.. The proposed amendment allows the Secretary of the Department of Commerce to nullify the requirements on a per project basis, In another notable omission, the PDF amendment includes no requirement that businesses benefiting from PDF investments provide health insurance coverage to employees, "But For"provision -The proposed amendment includes a "But For" provision, which requires that the resulting project or redevelopment would not happen without the PDF process. Though this requirement is loosely written, the intent appears to remain applicable, To approve the plan, the LGC must believe that the private development forecast included in the development financing plan, would "not be likely to occur" without the issuance of this method of financing. Changes Restart Approval Process - An updated financing plan is not required if changes are made, but the wage standards must be reassessed, the environmental review must be conducted again, affected businesses and residents must be informed, a public hearing must be held, and county commissioners must be informed and given the time to disapprove the project, However, the LGC i'iQQS not reissue approvah The initial boundary can be enlarged during the first five years of the project, following this process. Reducing the project size does not require any notification or reauthorization, n addition to the areas for potential improvement noted above, the PDF I amendment has a number of significant shortcomings that beg to be addressed prior to passage and/or implementation. These include: • Definitions are Too Broad - To be approved, a district must meet one of three criteria. The district must be blighted, in need of conservation or rehabilitation, or be "appropriate for the economic development of the community," This language appears to be extraordinarily much too vague and opens the potential for projects loosely defined under the guise of economic development to be placed anywhere in the state, rather than targeted to areas truly in need of redevelopment. For example, using this definition, a Wal-Mart superstore could receive a subsidy if built within city limits. This very problem has occurred in California, Colorado, Iowa, Illinois, Maine, Missouri, Mississippi, Ohio, Oklahoma, Pennsylvahia, South Carolina, and Wisconsin, each of which has subsidized Wal-Mart through TIF projects totaling over $100 million. NC BUDGET E[ TAY CENTER ~ ST(.' REFGQT$ 5