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Mis
sour
i GFO
ASp
ring
Con
fere
nce
Eco
nom
ic D
evel
opm
ent a
nd R
edev
elop
men
t Inc
entiv
es__
____
____
____
____
____
____
_
Pres
enta
tion
by G
ilmor
e &
Bel
l, P.
C. –
Shan
non
Cre
ight
on &
Ric
k M
cCon
nell
Gilm
ore
& B
ell,
P.C
.
49 L
awye
rs –
Kan
sas C
ity, S
t. Lo
uis,
Wic
hita
, Lin
coln
2010
Mun
icip
al L
ong-
Term
Issu
es -
$7.1
0 B
illio
n
2010
Ran
king
s (ac
cord
ing
to T
hom
pson
Reu
ters
):
171
1D
olla
rV
olum
e:
11
1N
umbe
r of
Issu
es:
Nat
ion
Kan
sas
Mis
sour
i
2
Prim
ary
Eco
nom
ic
Dev
elop
men
t Too
ls
Tax
Aba
tem
ent a
nd R
edire
ctio
nTa
x In
crem
ent F
inan
cing
Cha
pter
353
Cha
pter
100
Sale
s Tax
Reb
ate
Agr
eem
ents
Spec
ial T
axin
g D
istri
cts
Com
mun
ity Im
prov
emen
t Dis
trict
Tran
spor
tatio
n D
evel
opm
ent D
istri
ct
Nei
ghbo
rhoo
d Im
prov
emen
t Dis
trict
Indu
stria
l Rev
enue
Bon
ds
Wha
t is
Tax
Incr
emen
t Fin
anci
ng?
A m
etho
d of
div
ertin
g ta
xes t
o pa
y fo
r cos
ts
asso
ciat
ed w
ith b
uild
ing
the
proj
ect
Paym
ents
in L
ieu
of T
axes
(PIL
OTs
)10
0% o
f PIL
OTs
cap
ture
dEc
onom
ic A
ctiv
ity T
axes
(EA
Ts)
50%
of E
ATs
cap
ture
dSa
les t
axes
, util
ity ta
xes
$$ d
epos
ited
in S
peci
al A
lloca
tion
Fund
cre
ated
fo
r the
TIF
Pla
n
4
Incr
emen
t
-Tot
al A
sses
sed
Val
ue A
fter
Dev
elop
men
t -$1
00,0
00-T
otal
Lev
y -$
5.00
/$10
0 of
A
sses
sed
Val
ue-T
otal
Rev
enue
-$5
,000
-Tot
al In
crem
ent -
$4,9
50
(PIL
OT’
S)
Bas
e
-Pro
perty
Ass
esse
d V
alue
-$1
,000
-Tot
al L
evy
-$5.
00/$
100
of
Ass
esse
d V
alue
-Tot
al T
ax R
even
ue -
$50
$50
Bas
e(r
ecei
ved
by ta
di
stri
cts)
$50
Bas
e(r
ecei
ved
by ta
di
stri
cts)
$4,9
50In
crem
ent
(PIL
OT
’S)
Am
ount
Rem
ains
Con
stan
t
Am
ount
Cha
nges
Bas
ed o
nV
alua
tion
The
Bas
e an
d th
e In
crem
ent (
PIL
OT
S)B
efor
e TI
FD
urin
g TI
F
5
Incr
emen
t
-Add
ition
al E
ATS
ge
nera
ted
from
eco
nom
ic
activ
ities
in th
e re
deve
lopm
ent a
rea
-$1
00,0
00
Bas
e
-EA
TS c
olle
cted
prio
r to
TIF
-$1,
000
$1,0
00B
ase
(rec
eive
d by
ta
dist
rict
s)
$1,0
00B
ase
(rec
eive
d by
ta
dist
rict
s)
$50,
000
Incr
emen
tca
ptur
ed b
y TI
F
Am
ount
Rem
ains
Con
stan
t
Am
ount
Cha
nges
Bas
ed o
n EA
TSG
ener
ated
The
Bas
e an
d th
e In
crem
ent (
EA
TS)
$50,
000
Incr
emen
tco
llect
ed b
y ta
dis
tric
ts
Bef
ore
TIF
Dur
ing
TIF
6
Cha
pter
353
Tax
Aba
tem
ent
Urb
an R
edev
elop
men
t Cor
pora
tion
Form
edPr
oper
ty T
ax A
bate
men
tPr
oper
ty m
ust b
e tra
nsfe
rred
thro
ugh
the
corp
orat
ion
Full
stat
utor
y ab
atem
ent f
or 1
0 ye
ars o
ver v
alue
of l
and
excl
usiv
e of
impr
ovem
ents
50%
stat
utor
y ab
atem
ent f
or a
dditi
onal
15
year
s on
tota
l im
prov
ed v
alue
No
pers
onal
pro
perty
aba
tem
ent
Req
uire
s red
evel
opm
ent p
lan
and
“blig
ht”
findi
ng
7
Sale
s Tax
Reb
ate
Agr
eem
ents
•A
ltern
ativ
e to
TIF
•R
eim
burs
e co
sts o
f pub
lic im
prov
emen
ts
mad
e in
ass
ocia
tion
with
priv
ate
proj
ect
•In
crem
enta
l sal
es ta
x re
venu
es fr
om th
e ne
w p
roje
ct a
re u
sual
sour
ce o
f re
paym
ent
•D
ocum
ente
d by
sim
ple
cont
ract
--no
pl
ans o
r oth
er fo
rmal
ities
8
Cha
pter
100
Tax
Aba
tem
ent
Adv
anta
ges o
ver C
h. 3
53
No
inde
pend
ent c
orpo
ratio
n ne
eded
Aba
tem
ent o
f rea
l and
per
sona
l pro
perty
ava
ilabl
e
No
blig
ht fi
ndin
g
Req
uire
s cos
t/ben
efit
anal
ysis
and
not
ice
to ta
dis
trict
s with
pub
lic h
earin
g
Proj
ects
may
incl
ude:
War
ehou
ses
Off
ice
Indu
stria
l Pla
nts
Com
mer
cial
(Mo.
Con
st. A
rt. V
I, Se
c. 2
7(b)
)
9
Tra
nspo
rtat
ion
Dev
elop
men
t Dis
tric
ts
Wid
ely
used
thro
ugho
ut th
e St
ate
Form
ed a
s a se
para
te p
oliti
cal s
ubdi
visi
on
with
a b
oard
of d
irect
ors
Rev
enue
s can
incl
ude
TDD
impo
sed
prop
erty
tax,
sale
s tax
and
spec
ial
asse
ssm
ents
Proj
ects
mus
t be
trans
porta
tion
impr
ovem
ents
10
Com
mun
ity Im
prov
emen
t Dis
tric
ts
Sepa
rate
pol
itica
l sub
divi
sion
or n
on-p
rofit
co
rpor
atio
n w
ithin
a d
efin
ed g
eogr
aphi
c ar
ea th
at h
as
the
pow
er to
col
lect
reve
nues
and
spen
d on
pub
lic
impr
ovem
ents
and
serv
ices
Cre
ated
by
a ci
ty o
r cou
nty
but o
pera
tes w
ith it
s ow
n go
vern
ing
body
U
sed
to p
ay fo
r im
prov
emen
ts a
nd se
rvic
es w
ith
loca
lized
ben
efit
11
TD
Dsa
nd C
IDs
CID
’s•
Sepa
rate
Leg
al E
ntity
(Pol
itica
l Su
bdiv
isio
n or
Non
prof
it C
orpo
ratio
n) a
nd B
oard
of
Dire
ctor
s•
Cre
ated
by
City
Ord
inan
ce•
Bon
ds a
re n
ot o
blig
atio
ns o
f City
•En
joy
a br
oad
rang
e of
pow
ers
•Pr
ojec
t mus
t be
insi
de o
f Dis
trict
•Sa
les T
ax, P
rope
rty T
ax, S
peci
al
Ass
essm
ents
, Fee
s Ava
ilabl
e
TDD
’s•
Sepa
rate
Pol
itica
l Sub
divi
sion
and
B
oard
of D
irect
ors
•C
reat
ed b
y C
ourt
Ord
er•
Bon
ds a
re n
ot o
blig
atio
ns o
f City
•R
even
ues m
ust b
e us
ed fo
r tra
nspo
rtatio
n im
prov
emen
ts•
Proj
ect n
eed
not b
e in
side
of
Dis
trict
•Sa
les T
ax, P
rope
rty T
ax, S
peci
al
Ass
essm
ents
, Fee
s and
Tol
ls
Ava
ilabl
e
12
Nei
ghbo
rhoo
dIm
prov
emen
t Dis
tric
tA
NID
is a
n ar
ea b
enef
ited
by p
ublic
im
prov
emen
ts a
nd a
sses
sed
to p
ay fo
r tho
se
impr
ovem
ents
.A
NID
is n
ot a
sepa
rate
ent
ity –
its a
n ar
ea
desi
gnat
ed b
y th
e C
ity/C
ount
y pu
rsua
nt to
a
requ
est o
f the
pro
perty
ow
ners
.Th
e C
ity/C
ount
y ho
lds a
pub
lic h
earin
g an
d cr
eate
s the
NID
, and
then
impo
ses a
sses
smen
ts in
th
e N
ID a
rea
to p
ay fo
r the
impr
ovem
ents
13
Indu
stri
al R
even
ue B
onds
Bon
ds is
sued
by
City
, Cou
nty
(Cha
pter
100
) or
IDA
Cre
dit o
f Priv
ate
Sect
or n
ot P
ublic
Ent
ityG
ener
al O
blig
atio
n B
ond
optio
n no
t wid
ely
used
14
Com
pany
City
/Cou
nty
Bon
dTr
uste
e
Leas
eIn
dent
ure
Con
stru
ctio
n Le
nder
Bon
dhol
der/C
ompa
ny
Dee
d
Leas
ePa
ymen
ts
Leas
ePa
ymen
ts
Bon
d Pr
ocee
ds
Mor
tgag
eLo
anPr
ocee
dsC
onst
ruct
ion
Loan
Proc
eeds
Fun
d Pu
rcha
se o
f Bon
ds
Bon
dPr
ocee
dsB
ond
Paym
ents
Cha
pter
100
Dia
gram
15
Sam
ple
Proj
ects
16
Proj
ect E
xam
ple:
Indu
stria
l Par
k–
Aba
te re
al p
rope
rty ta
xes t
hrou
gh C
hapt
er 1
00, C
hapt
er 3
53, e
tc.,
but
requ
ire p
aym
ents
in li
eu o
f tax
es (P
ILO
TS) e
qual
to ta
xes p
aid
in th
e ye
ar p
rior t
o re
deve
lopm
ent.
–C
reat
e a
CID
or T
DD
enc
ompa
ssin
g th
e in
dust
rial p
ark
to le
vy a
sp
ecia
l ass
essm
ent e
qual
to th
e am
ount
of t
axes
aba
ted
less
PIL
OTS
).
–U
se th
e pr
ocee
ds o
f the
spec
ial a
sses
smen
t to
pay
for p
ublic
im
prov
emen
ts w
ithin
indu
stria
l par
k.
Com
bini
ng In
cent
ives
: T
ax A
bate
men
t and
Tax
Add
ition
17
TIF
/TD
D P
roje
ct E
xam
ple
$19,
500,
000
City
of R
ichm
ond
Hei
ghts
, Mis
sour
i
Tax
Incr
emen
t and
T
rans
port
atio
n Sa
les
Tax
Ref
undi
ng a
nd
Impr
ovem
ent R
even
ue
Bon
ds
Seri
es 2
005
(Fra
ncis
Pla
ce
Red
evel
opm
ent P
roje
ct
--R
PA 1
)
18
TD
D/C
ID P
roje
ct E
xam
ple
$39,
470,
000
370/
Mis
sour
i Bot
tom
R
oad/
Tau
ssig
Roa
d T
rans
port
atio
nD
evel
opm
ent D
istr
ict
Tra
nspo
rtat
ion
Rev
enue
Bon
ds
Seri
es 2
002
19
Proj
ect E
xam
ples
Zon
aR
osa
Ret
ail
Proj
ect
-TD
DSa
les T
ax p
ays d
ebt
serv
ice
-Use
d to
fund
par
king
ga
rage
s
-Bon
ds is
sued
by
Cou
nty
IDA
20
Proj
ect E
xam
ples
Jans
sen
Plac
eK
ansa
s City
, M
isso
uri
NID
Use
d to
Fun
d In
stal
latio
n of
R
eplic
as o
fH
isto
ricSt
reet
light
s
21
Proj
ect E
xam
ples
Bra
nson
Lan
ding
Pro
ject
-TIF
, TD
Dan
d C
ity P
roje
ct
Rev
enue
s fun
ded
impr
ovem
ents
-Bon
ds is
sued
by
Mis
sour
i D
evel
opm
ent F
inan
ce B
oard
and
C
ity ID
A
22
Proj
ect E
xam
ples
Sum
mit
Woo
ds
-TIF
and
TDD
Bon
ds is
sued
-Als
o ut
ilize
d N
ID’s
as
back
up se
curit
y
23
Inde
pend
ence
Mul
ti-Pu
rpos
e E
vent
s Cen
ter
CID
24
Inde
pend
ence
Mul
ti-Pu
rpos
e E
vent
s Cen
ter
$50
mill
ion
Even
ts C
ente
r
½¢
CID
sale
s tax
Bond
s iss
ued
by M
DFB
2525
“Sta
te B
udge
t Cri
sis L
arge
st T
hrea
t to
U.S
. Eco
nom
y”
Dec
embe
r 19,
201
0
Cur
rent
Mar
ket I
ssue
s
2626
“The
Wea
k G
et W
eake
r as M
uni B
onds
Are
Sol
d O
ff”
(Dec
embe
r 19,
201
0)
“Bon
dhol
ders
Lef
t in
the
Dar
k –
Con
cern
Gro
ws O
ver L
ack
of F
inan
cial
Dis
clos
ure
by S
tate
, Loc
al G
over
nmen
ts”
(Jan
uary
26, 2
011)
“Mun
i Reg
ulat
or L
ooks
at P
ensi
on-D
iscl
osur
e C
once
rns”
(Jan
uary
31,
201
1)
A M
ount
ain
of B
ad P
ress
2727
“Ban
ks U
rged
to R
eass
ess H
oldi
ngs
of M
uni B
onds
”(F
ebru
ary
23, 2
011)
A M
ount
ain
of B
ad P
ress
2828
Rat
ing
Age
ncie
s & C
ongr
ess o
n th
e “W
ar P
ath”
Rat
ing
Age
ncie
s
“Bon
d R
atin
g D
rop
Igni
tes P
ensi
on
Figh
t”(W
SJ -
Febr
uary
10,
201
1)
2929
Rat
ing
Age
ncie
s & C
ongr
ess o
n th
e “W
ar P
ath”
Con
gres
s
“Con
gres
s to
Tack
le S
tate
, Lo
cal F
isca
l Woe
s”(W
SJ -
Febr
uary
8, 2
011)
3030
Mar
ket f
or M
unic
ipal
Bon
ds S
hrin
ks
“Ban
ks G
et T
ough
With
Mun
icip
aliti
es”
(Jan
uary
27,
201
1)
“Sal
es o
f Mun
i Bon
ds S
ink
to 1
0-Y
ear L
ow”
(Feb
ruar
y 1,
201
1)
“Fin
anci
al A
dvis
ers o
n M
unis
: Don
’t Pa
nic!
!”(F
ebru
ary
1, 2
011)
31
Few
er In
vest
ors A
re B
uyin
g M
unic
ipal
Deb
t
32
Few
er B
ank
Let
ters
of C
redi
t
33
Prac
tical
Obs
erva
tions
Con
tinui
ng D
iscl
osur
e is
crit
ical
(oth
er b
reak
out
sess
ion)
Abi
lity
to c
ompl
ete
econ
omic
dev
elop
men
t tra
nsac
tions
is h
eavi
ly im
pact
ed
34
Gui
danc
e on
thes
e an
d ot
her e
cono
mic
dev
elop
men
t too
ls:
Stat
e A
ssis
tanc
e
http
://w
ww
.ded
.mo.
gov/
BD
T/to
pnav
page
s/R
esea
rch%
20To
olbo
x/Fi
nanc
e%20
Gui
de.a
spx
35
Dem
ystif
ying
the
Too
lsfo
r E
cono
mic
Dev
elop
men
t
Five
Rul
es fo
r Nav
igat
ing
Acc
ess
to M
isso
uri’s
Eco
nom
icD
evel
opm
ent P
rogr
ams
36
Dem
ystif
ying
the
Too
lsfo
r E
cono
mic
Dev
elop
men
tRu
le N
umbe
r 1Kn
ow Y
our P
roje
ct o
r Kno
w Yo
ur B
usin
ess P
rosp
ect
–W
hat t
ype
of p
roje
ct d
o yo
u ha
ve?
•B
light
rem
edia
tion
•N
ew c
onst
ruct
ion
•In
fras
truc
ture
•E
xpan
sion
•R
eten
tion
–W
hat b
usin
ess a
ctiv
ity w
ill b
e co
nduc
ted?
–W
hat m
atte
rs m
ost t
o th
e pr
ospe
ct?
–W
hat t
axes
will
be
gene
rate
d?–
How
man
y jo
bs?
37
Dem
ystif
ying
the
Too
lsfo
r E
cono
mic
Dev
elop
men
t
Rule
Num
ber 2
You
Don
’t N
eed
to U
nder
stand
Eve
ry P
rogr
am
–T
he p
rogr
ams a
re to
o di
vers
e an
d to
o co
mpl
ex
–M
ake
your
goa
l to
know
:•
The
pro
ject
det
ails
•T
ype
of a
ssis
tanc
e ne
eded
by
gene
ral c
ateg
ory
•W
hen
to c
all f
or h
elp
•W
ho to
cal
l for
hel
p
38
Dem
ystif
ying
the
Too
lsfo
r E
cono
mic
Dev
elop
men
t
Rule
Num
ber 3
Dev
elop
You
r Net
work
for F
ree
Advi
cePu
blic
and
Pri
vate
Res
ourc
esPu
blic
Res
ourc
es–
DE
D–
MD
FB–
Reg
iona
l Pla
nnin
g C
omm
issi
on–
Cha
mbe
r of
Com
mer
ce–
Loc
al E
cono
mic
Dev
elop
men
t Pro
fess
iona
ls–
Col
lege
and
Uni
vers
ity R
esou
rces
39
Dem
ystif
ying
the
Too
lsfo
r E
cono
mic
Dev
elop
men
tRu
le N
umbe
r 3 -
Cont
inue
dD
evel
op Y
our N
etwo
rk fo
r Fre
e Ad
vice
•U
tility
Com
pani
es
•Pr
ofes
sion
al T
rade
Ass
ocia
tions
–M
isso
uri E
cono
mic
Dev
elop
men
t Cou
ncl(
ME
DC
)–
Mis
sour
i Eco
nom
ic D
evel
opm
ent F
inan
cing
Ass
ocia
tion
(ME
DFA
)–
Mis
sour
i Ass
ocia
tion
of M
unic
ipal
Util
ities
(MA
MU
)
•D
evel
op C
onta
cts a
t Sem
inar
s and
Con
fere
nces
•G
ilmor
e &
Bel
l, P.
C.
40
Dem
ystif
ying
the
Too
lsfo
r E
cono
mic
Dev
elop
men
t
Rule
Num
ber 4
Cate
goriz
e Yo
ur P
roje
ct a
nd P
roje
ct U
ser
–In
cent
ive
Prog
ram
s for
Job
Cre
atio
n Pr
ojec
ts–
Red
evel
opm
ent P
roje
cts
–In
fras
truc
ture
Dev
elop
men
t Pro
ject
s–
Wor
ker
Tra
inin
g In
cent
ives
–C
omm
unity
Dev
elop
men
t Inc
entiv
es–
Bon
d Fi
nanc
ing
Proj
ects
–O
ther
Spe
cial
ized
Pro
ject
s
41
Dem
ystif
ying
the
Too
lsfo
r E
cono
mic
Dev
elop
men
tRu
le N
umbe
r 5M
ove
Conc
erns
Abo
ut C
ompl
exity
to th
e En
d of
the
Proc
ess
–T
here
is a
diff
eren
ce b
etw
een
“bai
t and
switc
h”an
d “b
ait a
nd e
xpla
in”
–U
se c
ompl
exity
to y
our
adva
ntag
e
–T
here
will
be
time
for
disc
laim
ers
42
Part
ing
Tho
ught
Con
side
r dev
elop
ing
a w
ritte
n in
cent
ive
polic
y th
at is
ado
pted
by
the
gove
rnin
g bo
dy
Thes
e ar
e a
grea
t hel
p fo
r ele
cted
off
icia
ls a
nd
staf
f in
eval
uatin
g in
cent
ive
requ
ests
43
Shan
non
Cre
ight
onG
ilmor
e &
Bel
l, P.
C. –
St. L
ouis
scre
ight
on@
gilm
oreb
ell.c
om31
4-43
6-10
00__
____
____
____
____
____
Ric
k M
cCon
nell
Gilm
ore
& B
ell,
P.C
. –K
ansa
s City
rmcc
onne
ll@gi
lmor
ebel
l.com
816-
221-
1000
Que
stio
ns?