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Old Corvallis Road Urban Renewal Program
An Overview
May 4th, 2009
Project Sponsors– The City of Hamilton– Ravalli County– The Ravalli County Economic
Development Authority
Area Description
The City of Hamilton is embarking on an effort to develop and revitalize the area in the vicinity of the Old Corvallis Road, roughly bounded by:
– The County Fairgrounds on the south (including the Fairgrounds but not the adjacent residential area),
– The Glaxo-Smith-Kline Laboratory on the north,– Portions of the East Side Highway and the drainage ditch
on the east (at Blodgett View Drive), and – Portions of Old Corvallis Road and Highway 93 on the west.
Proposed Urban Renewal Area
Opportunities
– Additions to the Glaxo-Smith-Kline Laboratory
– Entrepreneurship Center– Proposed 800 home subdivision
adjacent to the Daly Mansion– “Area 3” planning area development– Neighborhood mixed-use/commercial
development
Proposed Action
Design and implement a development program for the Old Corvallis Road Area that addresses:
– Public improvements– Economic Development– Public-Private Partnerships
Identify associated financing mechanisms including:
– Tax Increment Financing – Other funding strategies
The Steps (Montana Urban Renewal Statute)
Identify District Boundaries Prepare a Finding of Blight and Associated Resolution for
Adoption Prepare an Urban Renewal Plan with a Tax Increment
Financing Provision Provide for Public Participation Determine Accordance with the Growth Policy Provide for Public Notice and Hearing Adopt the Plan (Ordinance) Notify the DOR and other Taxing Bodies
Prepare an Urban Renewal Plan for the Covallis Road Area
The Plan can include:– Transportation Related
Improvements– Road Improvements (Old
Corvallis Road, Fairgrounds Road (curbs, gutters and storm sewers)
– Non-Motorized Facilities (bicycle and pedestrian trails) (more)
A Workable Plan (Continued)
– Water Related Improvements (storage and transmission)
– Sewer Related Improvements (interceptors, waste water treatment plant upgrades)
– Park Development– Lighting– Communication –
Internet Services
Tax Increment Financing
The Concept
A state authorized, locally driven funding mechanism for community and economic development
A methodology for eliminating blight and infrastructure deficiencies
A strategy for stabilizing, diversifying and expanding the tax base in critical areas
What is Tax Increment Financing?
TIF is authorized in the Montana Urban Renewal Law, under 7-15-4282, MCA and enables communities to direct property taxes that accrue from new development within a designated blighted area to various development activities. A base year is established from which incremental increases in property values are measured.
The Tax Increment Calculation
Base Year ValueTaxable Valuation x Mill Value = Taxes Collected
Directed to All taxing Bodies (Local Gov, Schools, State)
Tax Increment ValueIncremental Taxable Valuation x Mil Value =
Incremental Taxes CollectedAll Directed to Tax Increment Program (except
University Levy)
BASEDeclining Property Values
TIF Start Date
Increment for Development
TIF End Date
Tax Value for
Distribution
Tax Value for Distribution
Taxable
Valu
e
Time
How a Tax Increment Finance Provision (TIF) Works
Base + Increment
Other Important Provisions
Provisions for Returning Funds
SunsetBonding
It Takes a Big Private Investment
Assume: $10,000,000 dollars of New Development
Assume: Class 4 property @3.01% (2007) Assume: A mill levy of .562140 Increment Value = $169,204
Applications
Urban Renewal Districts – Within Cities Only Industrial Districts Technology Districts Aerospace Transportation and Technology
Districts
Provide Opportunities for Public Participation
Development and Review of Planning Concepts– Public Meetings and Work Sessions with the City
Commission and Planning Board– Focus Group Meetings– Key Person and Organizational Meetings
Overall Community Planning Considerations
The Urban Renewal Plan must Conform with the Hamilton
Growth Policy Reflect and Consider
– Hamilton Transportation Plan– Economic Development and
Housing Plans– Parks and Recreation Plans– Infrastructure Plans
First Things First
The Urban Renewal Area must be entirely located within the municipal boundaries of the City of Hamilton.
Portions of the proposed Old Corvallis Urban Renewal Area must be annexed to the City of Hamilton prior to creating the district and tax increment financing provision.
The Benefits of Annexation
City Services Participation in the Urban Renewal Program
– Infrastructure Development– Taxes directed to improvements that benefit your
property through TIF
Property Value Increases
The Cost of Annexation
Current mill levy for those living outside of the city limits:
– Hamilton Rural/no fire: 453.530– Hamilton Rural/fire: 471.130
Current mill levy for properties within the city limits
– An additional levy of 128.97– Total Levy: 562.140
An increase of 24% or 19%
Questions and Answers