Regional Infrastructure Improvement Zones (RIIZs):

An Innovative

Infrastructure Financing & Funding Tool

Overview• National Problem• RIIZs are…• RIIZs are not…• 3 Steps to RIIZ• RIIZ Qualifications• RIIZ Example• RIIZ Benefits• Legislative Update• Questions/Comments

National Problem• THERE IS NO MONEY – Economic Recession and

Financial Constraints and Cuts at all levels of gov’t

• THE NEED IS TREMENDOUS – ASCE estimates it will cost $2.2T over the next five years just to repair current infrastructure

• FEDERAL POLITICS ARE SLOW – Typical legislative and funding vehicles are not moving through Congress

• LOCAL MATCH IS HARD TO MEET – Typical 80% federal, 20% local funding for infrastructure is increasingly difficult

RIIZs are…• A simple change to federal tax code – tax deduction• A voluntary public-private partnership for investment

in infrastructure – urban & rural• Infrastructure = surface transportation, water,

wastewater, stormwater• A part of an approved plan through COG/MPO, local

governments and community stakeholders• A possible local match contribution• A way to leverage private, federal, state, local dollars• A complement to other infrastructure funding

opportunities and mechanisms

RIIZs are NOT…• Reliant on lengthy federal authorization/appropriation

processes• A tax credit• An infringement on or contradictory to local or state

statutes• A direct liability of the local governments or their

officials• New mandates or federal requirements• To supplant other funding/financing mechanisms• Limited to any one category of public infrastructure

3 Steps to RIIZStep 1: Local businesses or individuals petition RC/MPO to form a RIIZ.

Step 2: RC/MPO review RIIZ application, build consensus and establish RIIZ that fits within approved regional plan.

Step 3: State Attorney General approves, and business or individuals contribute tax deductible funds (annual corporate/income tax) to RIIZ infrastructure improvements.

RIIZ Qualifications• Designated Area: No limitations - entire municipality,

single corridor, intersection or station area.

• Project Scope: No limitations - communitywide improvements or a single road or area.

• Requirements:(1) Public infrastructure(2) In RC/MPO or local gov’t infrastructure plan(s)(3) Consistent with plan decisions

• A four-way intersection with a bank, a gas station, a department store and an office building at each corner.

• Each could apply to the Regional Planning Organization for RIIZ designation to make tax deductible contributions for such projects as adding a turn lane, a sidewalk or a bus stop

RIIZ Example

Benefits of RIIZs• Uphold proven regional and local infrastructure

investment decision-making processes. • Drive monies directly to the local level – both rural

and urban.• Local governments and local elected officials

determine if a RIIZ is established.• Offer new options to fund and finance infrastructure

improvements and construction projects that are shelf-ready.

• Be a revenue positive for government.

And many more…

Legislative Update

• HR 3780 was introduced by Rep. Davis (R-KY, 4) in 112th Congress

• Working with Reps. Schock (R-IL, 18) and Schiff (D-CA, 29) for reintroduction in 113th Congress

• Looking for Congressional Co-sponsors• Building Support• Educating on Infrastructure Needs

Legislative Targets• Initial focus is House Ways and Means Committee• Secondary focus is House Transportation &

Infrastructure Committee• Welcome all Congressional support and assistance

RIIZs Supporters

RIIZs are an immediate way to provide local funding to our public infrastructure, thereby

improving safety, providing jobs and energizing our economy.

Please lend your support!

Questions/Comments?Mark Policinski

Executive Director, OKImpolicinski@OKI.org

513.621.6300

Shannon BaxevanisDeputy Director, NARCshannon@NARC.org 202.986.1032, x217