Financial Information

Overview

Tax increment is redevelopment's major financial "tool." Upon adoption of a redevelopment project, the assessed valuation of land within the project boundaries determines the "base year value." Completed improvements result in an increase in the property values within the project area. The difference between the "base year value" and the new higher value following the property's improvement is called "tax increment." These funds are utilized to accomplish a variety of qualified private and public improvements within adopted project areas. Tax increment funding cannot be used for operations, maintenance and services.

In order to maximize redevelopment efforts, it is preferred that redevelopment funds be utilized for closing any gap between what is possible for the developer to achieve and a project's total cost. All project proposals analyzed by CCDC include a financial performa, identifying all costs anticipated for the project and demonstrating the developer's ability to achieve conventional financing prior to discussions regarding the need for assistance to close any existing "gap."

Direct financing can only be provided to close any "gap" for the development of new low and moderate income housing projects. Other types of new development may be considered for indirect financial assistance, such as loan programs, land assemblage or off-site improvements.

Property owners throughout downtown are encouraged to work with CCDC to increase their property's value through negotiated public/private partnerships. Gap financing can be provided in the form of rehabilitation loans to assist in accomplishing such projects. CCDC also finances public facilities, and can allocate funds for off-site public infrastructure needs necessary to make private projects work and accomplish redevelopment project objectives. Off-site improvements include street and sidewalk improvements, lighting, storm drains, etc.

Redevelopment agencies are required to annually deposit 20% of a project area's tax increment monies into a low and moderate income housing fund and maintain a minimum percentage of 15% low/moderate income housing stock while developing a broad range of housing types. CCDC continues to successfully exceed these goals in the development of residential units downtown.