On May 6, 2019, the City Council passed Resolution No. 6431 adopting the Economic Development Policy as a means to promote community prosperity through the thoughtful use of incentives in a manner which is both attractive to developers and fair to taxing jurisdictions. The Policy was developed with the input of many community partners, including the School Districts, other taxing authorities, the EDC and Chamber. It serves as a valuable tool for the development process.
On April 19, 2021, the City Council passed Resolution No. 6669 amending the Economic Development Policy to add a section on Land Clearance for Redevelopment Authority (LCRA) as a means to combat blight and promote quality in-fill residential redevelopment.
In August 2022, the City Council passed Resolution No. 6844 updating the process for Neighborhood Improvement Districts, Community Improvement Districts, and Transportation Development Districts.
This amendment updates references to the recently approved City Action Plan (e.g., provisions regarding public art, etc.). The current Policy lists that development projects may include contributions in an amount equal to 1% of the redirected incremental City tax on real property (to a maximum contribution of $10,000) to the public art program and/or the installation of public art on site if practicable. This is not required. To date, projects have not elected to contribute to public art. In lieu of public art, development projects have opted to include funds for public improvements that serve the community as well as the proposed development, particularly improvements already envisioned in City development plans. Recent examples include public infrastructure improvements for both the Cargo Largo and Eastgate Commerce Center projects as well as the workforce training center being constructed for the Eastgate project. Had the developer been required to make contributions to the 1% for the Arts program, these public improvements would have likely been unfunded by the respective developers.
The TIF act requires that cities adopt written procedures relating to bids and proposals for implementation of redevelopment projects. The City’s longstanding written procedures were contained in a tax increment financing policy revised most recently in 2005, which was replaced by the current Economic Development Policy. This amendment adds written procedures to bring the City into compliance with the TIF act for any new projects that may come before the TIF Commission and City Council.
This resolution would update the Economic Development Policy by adding references to the City Action Plan, removing the public art fund contribution elective, and adding written procedures for the advertisement for proposals in connection with tax increment financing plans in order to ensure compliance with the TIF act.