Economic Development

Industrial Revenue Bonds (IRB)

Through the taxable Industrial Revenue Bond (IRB) program, the county may induce new businesses to locate in the county and support the expansion of existing businesses in the county by providing significant abatement of property taxes on land, buildings and equipment for a period of up to thirty years. Industrial Revenue Bond projects are also eligible for gross receipts and compensating tax abatement on purchases of equipment.  The county generally requires a payment in lieu of taxes (PILOT) to cover certain conditions such as a percentage of the abated taxes that would have been paid to the school district or the county general fund. Throughout the IRB term, the county monitors the economic benefits the IRB project provides to the citizens of the county and compiles reports on economic indicators including job creation and capital investment.    


Local Economic Development Act (LEDA) 

The Local Economic Development Act (“LEDA”) allows local governments, such as the County, to create new job opportunities by providing land, buildings or infrastructure for facilities to support new or expanding businesses.  The LEDA program assists the economic development goals of the County including stimulating capital investment in the community, creating jobs, encouraging the development of environmentally sustainable businesses and fostering increased access to amenities in underserved areas of the County.  A qualifying business entity may submit a project application to the County for consideration.  The County reviews the application based on the provisions of its economic development plan, the financial and management stability of the qualifying entity, the demonstrated commitment of the qualifying entity to the community and a cost-benefit analysis of the project, among other things. Following the application review process, the County Commission may elect to adopt an ordinance approving the project. After the project has been approved, the County and the qualifying entity enter into a project participation agreement. The participation agreement must describe the contributions to be made by each party, the security provided to the County by the qualifying entity and a schedule for project development and completion. Recipients of LEDA funds must report certain economic indicators, such as job growth and wages, to the County to allow the County to monitor performance and ensure the goals of the program are served.  


Multifamily Housing Revenue Bonds

The county may issue Multifamily Housing Revenue Bonds to provide tax-exempt financing for the construction or rehabilitation of multi-family housing projects for low-income individuals. Although the county is the issuer, Multifamily Housing Revenue Bonds do not constitute a debt of the County.  They are instead secured by payments received from the developer of the project under a lease agreement.  Multifamily Housing Revenue Bonds are subject to the State’s volume cap limitation, and a separate application must be made to the State Board of Finance for an allocation of volume cap.  


Public Improvement Districts (PID)

The County may create a Public Improvement District (PID). The purpose of a PID is to finance various on-site and off-site public infrastructure improvements constructed by a developer such as water and sewer systems, drainage and flood control, streets, trails and parks, public buildings, libraries and cultural facilities, school facilities, equipment and related soft costs.  Following formation, the PID typically imposes a special assessment on real property located within the PID boundaries.  The PID uses special assessment revenues to finance, through the issuance of bonds or otherwise, its administrative costs, as well as public infrastructure or enhanced services that benefit the real property in the PID and are contemplated in the general plan.  


Tax Increment Development Districts

The County also may create a Tax Increment Development District (TIDD) to finance public infrastructure improvements.  A TIDD uses a portion of gross receipt taxes (GRT) or property tax increment (less than 75%) dedicated to it by the County as a source of repayment for TIDD bonds, the proceeds of which can be used to reimburse a developer for public infrastructure constructed by the developer and dedicated to a governmental unit. The TIDD bonds are secured by property taxes on the incremental increase in property values within the district over a base year amount and/or on increases in gross receipts tax collections within the district.


Tax Increment Financing (TIF)

Tax Increment Financing (“TIF”), offered through the Metropolitan Redevelopment Act, couples the growth of the tax a base in an area designated as slum or blighted with the financing of infrastructure improvements in that area.  In other words, certain property taxes generated by a new project are used to finance infrastructure on a pay as you go basis.  In order to implement a TIF,  notice is given to the County Assessor to establish the base value for the distribution of certain property tax revenues.   Upon completion of the improvements, the County Assessor is advised and a new taxable value is established.  The amount by which the revenue received exceeds that which would have been received by application of the same rates to the base value before inclusion in the metropolitan redevelopment project is credited to the project. 




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