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Draft Business/Finance Plan Overview & Draft Business Terms

Economic Development Committee January 10, 2012. RED LINE REGIONAL RAIL PROJECT. Draft Business/Finance Plan Overview & Draft Business Terms. POLICY FRAMEWORK Economic Development Focus Dual Benefit Strategy Unified Benefits Approach State Leadership.

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Draft Business/Finance Plan Overview & Draft Business Terms

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  1. Economic Development Committee January 10, 2012 RED LINE REGIONAL RAIL PROJECT Draft Business/Finance PlanOverview & Draft Business Terms

  2. POLICY FRAMEWORK • Economic Development Focus • Dual Benefit Strategy • Unified Benefits Approach • State Leadership

  3. Presenters @ Public Policy Meeting(s) Paul Morris, Deputy Secretary – NCDOT Katherine Henderson, KKH Consulting Mark Briggs, Parsons Brinckerhoff

  4. Economic Development Focus

  5. Economic Development Focus

  6. Dual Benefit Strategy • Freight Oriented Development (FOD) • Transit Oriented Development (TOD) • Revenue-sharing across jurisdictions • 25% State • 25% CATS • 50% Local • Tax Increment • Assessment District • Governed by Joint Powers Authority (JPA) • State backing of the bond financing package Unified Benefits Approach State Leadership

  7. RESOLUTION REQUIRING A FISCAL IMPACT ANALYSIS FOR PUBLIC SUPPORTED ECONOMIC DEVELOPMENT PROJECTS December 18, 2006 WHEREAS, . . . NOW, THEREFORE BE IT RESOLVED by the Mecklenburg Board of County Commissioners, that a fiscal impact analysis be performed for all new economic development initiatives seeking Mecklenburg County’s partnership and financial support;

  8. RESOLUTION REQUIRING A FISCAL IMPACT ANALYSIS FOR PUBLIC SUPPORTED ECONOMIC DEVELOPMENT PROJECTS December 18, 2006 WHEREAS, . . . NOW, THEREFORE BE IT RESOLVED by the Mecklenburg Board of County Commissioners, that a fiscal impact analysis be performed for all new economic development initiatives seeking Mecklenburg County’s partnership and financial support;

  9. Premise: Counties provide services to “Household” Proposed methodology for fiscal impact analysis Definition of Household A household includes all the persons who occupy a housing unit. A housing unit is a house, an apartment, a mobile home, a group of rooms, or a single room that is occupied (or if vacant, is intended for occupancy) as separate living quarters. – U.S. Census Bureau

  10. Household Service Charge Analysis

  11. Total Service Costs > $18,978,000 per yr. Equiv. Service Costs > $ 7,204,000 per yr. > Residential Tax Revenue needed: (# Households) * ($1,653 per Household)

  12. Summary of Tax Increment Options

  13. Draft Business Terms • % Retainage • Iredell County’s participation • Bryton excluded • No County financing risks • O&M support • Cost Overruns • Allocation District boundaries • Projects outside District boundaries • Termination provisions • JPA Formation, Composition, and Dissolution

  14. NEXT STEPS • Public Policy Presentation (today) • ED Committee Recommendations (by 3/13/12) • Board Action (by 3/20/12) • Final Draft Business/Finance Plan (by 3/31/12)

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