Missoula County opposes SB 321: Revise laws pertaining to targeted economic development districts, before House Taxation tomorrow morning. SB 321 would require a TEDD to spend down its annual increment or remit to the taxing jurisdictions, thereby preventing good long-range planning. It would significantly impact the ability of a TEDD to address infrastructure needs as a TEDD develops. Projects that are funded with bond proceeds often stimulate growth, with subsequent projects needed as a direct result of the growth. TEDDS are not static and the hope is that new projects will become apparent as the district develops.
For example, the Missoula County Tax Increment Finance Industrial District was formed under the now-repealed TIFID rules, however the need to accumulate increment is similar. The Missoula Airport TIFID issued bonds for most of the initial infrastructure projects. However, as the district developed several large projects became crucial to the success of the district. Without the ability to use accrued increment for projects after the bonding period expired would have had a negative impact on the district. The increment provision of the TIFID has now expired and the accrued funds the County was able to invest in the district has had a positive impact on the value of the district.
The Bonner West Log Yard TEDD is an example of a newer district. The district has not accrued sufficient increment to initiate a large project and it would not make good fiscal sense to fund projects or prematurely obtain bond financing. SB 321 prohibit the district from accruing any increment while the initial growth occurs.
Sent afternoon of April 8:
ReplyDeleteRepresentative Marler,
Missoula County opposes SB 321: Revise laws pertaining to targeted economic development districts, before House Taxation tomorrow morning. SB 321 would require a TEDD to spend down its annual increment or remit to the taxing jurisdictions, thereby preventing good long-range planning. It would significantly impact the ability of a TEDD to address infrastructure needs as a TEDD develops. Projects that are funded with bond proceeds often stimulate growth, with subsequent projects needed as a direct result of the growth. TEDDS are not static and the hope is that new projects will become apparent as the district develops.
For example, the Missoula County Tax Increment Finance Industrial District was formed under the now-repealed TIFID rules, however the need to accumulate increment is similar. The Missoula Airport TIFID issued bonds for most of the initial infrastructure projects. However, as the district developed several large projects became crucial to the success of the district. Without the ability to use accrued increment for projects after the bonding period expired would have had a negative impact on the district. The increment provision of the TIFID has now expired and the accrued funds the County was able to invest in the district has had a positive impact on the value of the district.
The Bonner West Log Yard TEDD is an example of a newer district. The district has not accrued sufficient increment to initiate a large project and it would not make good fiscal sense to fund projects or prematurely obtain bond financing. SB 321 prohibit the district from accruing any increment while the initial growth occurs.
Please oppose SB 321.