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Home My WebLink About2013-02-25-Meeting Agendawww.augustaga.gov Finance Committee Meeting Commission Chamber- 2/25/2013- 12:55 PM FINANCE 1. Approve the replacement of 12 Operations and Maintenance vehicles for Augusta Regional Airport. Attachments 2. Motion to approve Development Agreement with Rockwood Pigments NA, Inc. Attachments 3. Approve salary increase for Board of Elections Director and Assistant Director. Attachments 4. Discuss House Bill 159 and the effects it poses to Augusta. Attachments 5. Motion to approve the minutes of the Finance Committee held on February 11, 2013. Attachments 6. Affirm funding for Option 2d and other renovations and modernizations for the Augusta, Georgia Municipal Building. Attachments Finance Committee Meeting 2/25/2013 12:55 PM 2013 - Airport Vehicles Department:Finance Department - Fleet Management Caption:Approve the replacement of 12 Operations and Maintenance vehicles for Augusta Regional Airport. Background:The Augusta Regional Airport- Operations and Maintenance Divisions would like to request the acquisition of 12 replacement vehicles that were approved by the Airport Commission per the attached approval letter. The proposed replaced vehicle evaluation sheets have been attached for review and meet Augusta’s standard requirements for replacement of the proposed vehicles. The new units would help significantly in keeping the airport’s vehicle maintenance cost to a minimum as well as enhance the operations and maintenance job performance. Please see the attached vehicle evaluations. Analysis:Fleet Management submitted a request for bids for a portion of the vehicles (pickup trucks) through the Procurement Department utilizing the Demand Star electronic bid system which offers nationwide competitive bid coverage. The remainder of the vehicles were purchased through the Georgia State Contract bid program which also assures the best pricing throughout the state on those particular vehicles. The Procurement Department received bid quotes back from two vendors for the pickup trucks with the following results: Bid 12-213: F150 4 x 2: Bobby Jones Ford - $18,429.00 Each; Allan Vigil - $18,649.00 Each (4 Units) F150 4 x 4: Bobby Jones Ford - $24,436.00 Each; Allan Vigil - $24,596.00 Each (3 Units) Georgia State Contract: Chevy Impala: Hardy Chevrolet - $18,240.00 Each; Dealer Invoice Price – $24,826.00 Each See attachment (2 Units) Ford Expedition: Allan Vigil Ford - $30,904.00 Each; Dealer Invoice Price: $40,568.00 Each See attachment (1 Unit) Goshen II Shuttle Bus – National Bus Sales - $37,075.00 Each; Alliance Bus Sales - $50,258.00 Each See Attachment (2 Units) Financial Impact:The vehicles will be purchased through the use of the Georgia Municipal Association Lease program. The total cost of the 12 vehicles will be $288,558.00. There will be three annual lease Cover Memo Item # 1 payments of $96,186.00. Alternatives:(1) Approve the request; (2) Do not approve the request. Recommendation:Approve the request to purchase 12 replacement vehicles for the Augusta Regional Airport departments Funds are Available in the Following Accounts: Georgia Municipal Association Lease Program (631-) / Enterprise Fund REVIEWED AND APPROVED BY: Finance. Procurement. Law. Administrator. Clerk of Commission Cover Memo Item # 1 Attachment number 1 \nPage 1 of 36 Item # 1 Attachment number 1 \nPage 2 of 36 Item # 1 Attachment number 1 \nPage 3 of 36 Item # 1 Attachment number 1 \nPage 4 of 36 Item # 1 Attachment number 1 \nPage 5 of 36 Item # 1 Attachment number 1 \nPage 6 of 36 Item # 1 Attachment number 1 \nPage 7 of 36 Item # 1 Attachment number 1 \nPage 8 of 36 Item # 1 Attachment number 1 \nPage 9 of 36 Item # 1 Attachment number 1 \nPage 10 of 36 Item # 1 Attachment number 1 \nPage 11 of 36 Item # 1 Attachment number 1 \nPage 12 of 36 Item # 1 Attachment number 1 \nPage 13 of 36 Item # 1 Attachment number 1 \nPage 14 of 36 Item # 1 Attachment number 1 \nPage 15 of 36 Item # 1 Attachment number 1 \nPage 16 of 36 Item # 1 Attachment number 1 \nPage 17 of 36 Item # 1 Attachment number 1 \nPage 18 of 36 Item # 1 Attachment number 1 \nPage 19 of 36 Item # 1 Attachment number 1 \nPage 20 of 36 Item # 1 Attachment number 1 \nPage 21 of 36 Item # 1 Attachment number 1 \nPage 22 of 36 Item # 1 Attachment number 1 \nPage 23 of 36 Item # 1 Attachment number 1 \nPage 24 of 36 Item # 1 Attachment number 1 \nPage 25 of 36 Item # 1 Attachment number 1 \nPage 26 of 36 Item # 1 Attachment number 1 \nPage 27 of 36 Item # 1 Attachment number 1 \nPage 28 of 36 Item # 1 Attachment number 1 \nPage 29 of 36 Item # 1 Attachment number 1 \nPage 30 of 36 Item # 1 Attachment number 1 \nPage 31 of 36 Item # 1 Attachment number 1 \nPage 32 of 36 Item # 1 Attachment number 1 \nPage 33 of 36 Item # 1 Attachment number 1 \nPage 34 of 36 Item # 1 Attachment number 1 \nPage 35 of 36 Item # 1 Attachment number 1 \nPage 36 of 36 Item # 1 Invitation to Bid Sealed bids will be received at this office on Tuesday, November 27, 2012 @ 11:00 a.m. for furnishing: Bid Item 12-213 6000 GVW Pickup Truck for Fleet Management Bid Item 12-214 8500 GVW Pickup Truck for Fleet Management Bid Item 12-215 10,000 GVW Pickup Truck for Fleet Management Bids will be received by Augusta, GA Commission hereinafter referred to as the OWNER at the offices of: Geri A. Sams Procurement Department 530 Greene Street - Room 605 Augusta, Georgia 30901 706-821-2422 Bid documents may be viewed on the Augusta, Georgia web site under the Procurement Department ARCbid. Bid documents may be obtained at the office of the Augusta, GA Procurement Department, 530 Greene Street – Room 605, Augusta, GA 30901. Documents may be examined during regular business hours at the offices of Augusta, GA Procurement Department. All questions must be submitted in writing by fax to 706 821-2811 or by email to procbidandcontract@augustaga.gov to the office of the Procurement Department by Friday, November 9, 2012 @ 5:00 p.m. No bid will be accepted by fax, all must be received by mail or hand delivered. No Bid may be withdrawn for a period of 90 days after time has been called on the date of opening. Invitation for bids and specifications. An invitation for bids shall be issued by the Procurement Office and shall include specifications prepared in accordance with Article 4 (Product Specifications), and all contractual terms and conditions, applicable to the procurement. All specific requirements contained in the invitation to bid including, but not limited to, the number of copies needed, the timing of the submission, the required financial data, and any other requirements designated by the Procurement Department are considered material conditions of the bid which are not waiveable or modifiable by the Procurement Director. All requests to waive or modify any such material condition shall be submitted through the Procurement Director to the appropriate committee of the Augusta, Georgia Commission for approval by the Augusta, Georgia Commission. Please mark BID number on the outside of the envelope. Bidders are cautioned that acquisition of BID documents through any source other than the office of the Procurement Department is not advisable. Acquisition of BID documents from unauthorized sources places the bidder at the risk of receiving incomplete or inaccurate information upon which to base his qualifications. GERI A. SAMS, Procurement Director Augusta Chronicle October 18, 25, November 1, 8, 2012 Metro Courier October 24, 2012 cc: Tameka Allen Deputy Administrator Ron Crowden Fleet Management Russell Sanders Fleet Management Revised: 8/15/2011 Attachment number 2 \nPage 1 of 1 Item # 1 Allan Vigil Ford 6790 Mt Zion Blvd Morrow, GA 30260 Bobby Jones Ford PO Box 15398 Augusta, GA 30919 Yes Yes 94460 117480 SAVE Form Yes Yes 8 - 10 Weeks 90-120 days 5.01 Full-Size Truck-Reg Cab $16,286.00 $16,550.00 5.02 Full-Size Truck-Ext Cab $22,090.00 $18,902.00 5.03 Full-Size Truck-Ext CabSW $19,489.00 $19,693.00 5.04 Full-Size Truck-Ext Cab $22,188.00 $22,511.00 5.05 Full-Size Truck-Crew Cab $23,075.00 $23,299.00 5.06 Full-Size Truck-Crew Cab4 $25,497.00 $25,988.00 5.07 Speed Control $187.00 $187.00 5.08 Tilit Steering Wheel No Charge standard 5.09 Heavy Duty Cooling Pack n/a n/a 5.10 Heavy Duty Electrical Pack n/a n/a 5.11 Heavy Duty Suspension Pk n/a $1,279.00 5.12 Skid Plate Package 4X4 $137.00 $137.00 5.13 Minimum 8 Foot Bed 5.01-5.04 $279.00 5.05-5.06 $1128.00 $278.00 5.14 Trailer Tow Package $320.00 $320.00 6.01 Fire Extinguisher $110.00 $46.00 6.02 Outlet Receptacle $67.00 $55.00 6.03 Bedliner $325.00 $300.00 6.04 Toolbox $350.00 $240.00 6.05 Trailer Hitch $380.00 $230.00 6.06 Trailer Wiring included w/6.05 $25.00 6.07 Trailer Ball $30.00 $10.00 6.08 Window Tint, Reg Cab $120.00 $110.00 6.09 Window Tint, Ext Cab $135.00 $125.00 6.10 Window Tint, Crew Cab $155.00 $135.00 6.11 Safety Cone Holder $161.00 $60.00 6.12 Safety Cones $130.00 $120.00 7.01 Backup Alarm $55.00 $62.00 7.02 LED Top Mount Light $612.00 $446.00 The following vendors did not respond: Thomson Motor Cent / 2158 Washington Rd. / Thomson, GA 30824 Hardy Chev Pontiac / 1249 Charles Hardy Parkway / Dallas, GA 30157 Team Ford of Marietta / 869 Cobb Parkway / Marietta, GA 30060 Attachment B E-Verify Number Delivery Time Bid Item #12-213 6000 GVW Pickup Truck for Augusta, Georgia - Fleet Department Bid Opening Date: Tuesday, November 27, 2012 @ 11:00 a.m. Vendors 7.00 Alert Warning Systems 5.00 Vehicle/Options Required 6.00 Outfitter's Specialty Items Page 1 of 1 Attachment number 3 \nPage 1 of 1 Item # 1 Attachment number 4 \nPage 1 of 3 Item # 1 Attachment number 4 \nPage 2 of 3 Item # 1 Attachment number 4 \nPage 3 of 3 Item # 1 Attachment number 5 \nPage 1 of 3 Item # 1 Attachment number 5 \nPage 2 of 3 Item # 1 Attachment number 5 \nPage 3 of 3 Item # 1 Attachment number 6 \nPage 1 of 1 Item # 1 Finance Committee Meeting 2/25/2013 12:55 PM Approve Development Agreement with Rockwood Pigments, NA, Inc Department:Finance / Law Caption:Motion to approve Development Agreement with Rockwood Pigments NA, Inc. Background:On November 15, 2011 the commission approved the creation of TAD 3 and tasked the Finance Department to develop the necessary documents for the Rockwood Pigment project. Approval of this document is the next step in the process that was approved on November 15, 2011. Analysis:This is a part of the ongoing process and one of the final step involved. Financial Impact: Alternatives:none Recommendation:Approve Development Agreement Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 2 Augusta Tax Allocation District #3 Doug Barnard/Dixon Airline Redevelopment Plan Bringing More High-Value Jobs to Augusta-Richmond County Prepared for the Board of Commissioners of Augusta-Richmond County B y McKenna Long & Aldridge LLP and PB&R Writing October 2011 Attachment number 1 \nPage 1 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 1 Cover Photo: Proposed East Augusta TAD #3 parcels, Augusta-Richmond, GA Tax Commissioner’s Office (www.arctax.com) S Contents Executive Summary....................................................................................……………………….2 Tax Allocation Districts Generate Economic Investment...............................................................2 Grounds for the Exercise of Redevelopment Powers in Augusta...................................................3 Augusta’s Voters Support TADs .................................................................................................3 Summary of Potential TAD Benefits for the Doug Barnard/Dixon Airline Redevelopment Area………5 The Proposal: Augusta Tax Allocation District #3...................................................................7 Introduction .............................................................................................................................7 East Augusta Today –Current and Future Land Use ...................................................................7 Augusta Costco breaks ground; fall opening targeted..........................................................12 Doug Barnard/Dixon Airline, The Redevelopment Area..............................................................14 Geographic Boundaries (A)*...................................................................................................14 Grounds for Exercise of Redevelopment Powers (B)*..........................................................14 Proposed Land Uses After Redevelopment (C)*...................................................................15 Proposed Redevelopment Projects (D)*................................................................................15 Community Vision for the Redevelopment Area ........................................................................15 Other Improvement Initiatives Nearby .....................................................................................17 Contractual Relationships (E)*...............................................................................................18 Relocation Plans & Payments (F)*.........................................................................................18 Zoning & Land Use Compatibility (G)*...................................................................................19 Historic Properties within TAD Boundaries (J)*....................................................................20 Estimated Redevelopment Costs / Proposed Public Investments (H)*..............................20 Assessed Valuation of the Redevelopment Area (I)*...........................................................23 Creation & Termination Dates for TAD (K)*..........................................................................23 Tax Allocation Increment Base Value (M)*...........................................................................23 Total Property Taxes Collected to Serve as the Increment Base.................................................24 Ad Valorem Property Taxes for Computing Tax Allocation Increments (N)*......................25 Tax Allocation Bond Issues (O, P, Q)*...................................................................................25 Amount of Bond Issues...........................................................................................................25 Term of Bond Issues...............................................................................................................25 Positive Tax Allocation Increments (P)*...................................................................................26 Property to be Pledged for Payment of the Bonds (Q)*.............................................................26 Other Information as Required (R)*......................................................................................26 School System Impact Analysis................................................................................................27 Appendices (L).........................................................................................................................30 * Information required per the “Redevelopment Powers Law” found in the Official Code of Georgia, Chapter 36, Title 44. Attachment number 1 \nPage 2 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 2 Executive Summary Communities throughout the state are discovering how TADs can help infuse public funding in areas that want to attract private redevelopment. They understand that TAD is a mechanism where everyone wins – developers, city governments, county governments, school districts and, most importantly, residents who want to live and work in thriving communities.-Atlanta Journal-Constitution story, February 18, 2008 The Redevelopment Area Defined A major chemical manufacturer is in discussions about building a manufacturing facility that will bring 80 to 100 new high-value manufacturing jobs to Augusta-Richmond County.This project is anticipated to spur future industrial redevelopment on an approximately 179-acre site proposed as the Doug Barnard/Dixon Airline Redevelopment Area, which is adjacent to the northwest corner of the Augusta Regional Airport. The proposed redevelopment area is generally bounded by Dixon Airline Road on the south, the Norfolk Southern rail line to the west, Butler Creek to the north and Doug Barnard Parkway to the east, minus an approximately nine-acre parcel of land in the southeast corner of this area that currently houses a truck rental facility. In support of the effort to attract a major manufacturer to an area the community envisions for this use, the Augusta-Richmond County government proposes the creation of the Doug Barnard/Dixon Airline Redevelopment Plan and Tax Allocation District #3. Tax Allocation Districts Generate Economic Investment In Georgia, a tax allocation district is a local, legislatively created redevelopment area that qualifies for tax increment financing.This popular public finance mechanism works by capturing the future tax benefits of private real estate investment in a redevelopment area –the TAD increment –to pay the present costs of the improvements that make the redevelopment possible.TADs have been used to support millions of dollars in private investment in areas that would otherwise not attract redevelopment, resulting in positive economic change for many formerly underdeveloped and blighted communities. In Georgia as of May 2011, at least 47 tax allocation districts had been established by local governments to stimulate major new construction, renovations or rehabilitation in areas that had suffered economically from the following conditions: Substantially underutilized properties, Defective or inadequate transportation infrastructure or facilities, Conditions that are less desirable at present than they would be if redeveloped with new uses, expanded green spaces and transportation improvements, Incompatible land uses, Environmental, topographical or similar challenges to redevelopment, and/or Attachment number 1 \nPage 3 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 3 Substandard, deteriorated, obsolete or otherwise distressed properties, all of which are considered blighted conditions. A tax allocation district offers local governments the opportunity to promote redevelopment projects in areas that would otherwise not receive investment. TADs offer a flexible alternative to financing economic development without the need to use general funds, LOST or SPLOST revenues or to raise taxes. … TADs can be an excellent way to finance economic development in cities. –Georgia Municipal Association, www.gmanet.com Grounds for the Exercise of Redevelopment Powers in Augusta Georgia’s local governments have the authority to create tax allocation districts as set forth in the Redevelopment Powers Law, which was initially adopted by the Georgia General Assembly in 1985 and has been amended from year to year. (OCGA § 36-44-1, et seq.)In 2009 the Redevelopment Powers Law was re-enacted and reauthorized by the General Assembly after a 2008 Constitutional Amendment. Augusta’s Voters Support TADs The General Assembly authorized Augusta-Richmond County to exercise redevelopment powers subject to voter approval as provided by 2006 Ga. Laws, p. 4507.In November 2006, local voters gave the Augusta-Richmond County consolidated government the authority to exercise all redevelopment and other powers authorized or granted municipalities pursuant to the Redevelopment Powers Law. The Doug Barnard/Dixon Airline Redevelopment Area Qualifies as a TAD The proposed Doug Barnard/Dixon Airline Redevelopment Area has never attracted significant private investment, because of the very reasons it qualifies for the proposed TAD. This area, which covers approximately 179 acres, contains vacant and/or underutilized properties; defective, obsolete and/or inadequate street layout;aging and poorly designed transportation infrastructure; substandard utilities, significant wetlands and extensive floodplains (that run 500-700 feet wide at Butler Creek, per the city’s Flood Hazard Mitigation Plan),and other obstacles to its redevelopment. It is called the “Barrett and Lawrence sites” by the Augusta Development Authority, which describes the area as such: “The Barrett and Lawrence Sites are in an area surrounded by heavy industrial development and in close proximity to the airport. This land has great potential as an industrial site, but also several challenges that must be overcome. “The Lawrence Site is bank-owned due to foreclosure. The Barrett Site was once the home to a local race track. Remnants of this track are still evident, visible on aerial maps. “Additionally, the northern portion of the site contains numerous acres of wetlands surrounding Butler Creek. The wetlands and race track make it very difficult to market Attachment number 1 \nPage 4 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 4 and develop this property. With more than 25 acres of wetlands, companies do not want to spend the money required to purchase this property.” The proposed Augusta Tax Allocation District #3 at the intersection of Doug Barnard Parkway and Dixon Airline Road qualifies as a Redevelopment Area under Georgia’s Redevelopment Powers Law. Proposed Private Redevelopment Projects and Investment The redevelopment planned for this area of Augusta is a manufacturing facility for a major chemical corporation on approximately 179 acres of land at the intersection of Doug Barnard Parkway and Dixon Airline Road. This area is known by Augusta’s planners as East Augusta –to which it will be referred in this document –but is commonly called South Augusta by local residents. According to the Development Authority, the deal being structured will allow for the private redevelopment of the Lawrence and Barrett sites (including the race track) for Heavy Industrial use, while allowing the Development Authority of Richmond County to purchase the northern portion of the site, including the wetlands. The Development Authority of Richmond County will review the use of the wetlands and determine the best way to preserve the natural area around Butler Creek. Private Project Planned Estimated Value at Completion Major Chemical Manufacturing Facility $ 115,850,000 Redevelopment Proposed Attachment number 1 \nPage 5 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 5 Proposed Projects The TAD-eligible improvements proposed for this site include water and sewer, utilities, roadways, environmental, engineering and other infrastructure to the redevelopment area. Zoning and Land Use are Compatible with Community Vision The zoning and land uses as described in this redevelopment plan reflect the vision and goals of the citizens of Augusta and Richmond County as expressed in public meetings and presented in key planning documents including Augusta’s Future Development Map, the latest Augusta-Richmond County Comprehensive Plan, the community assessments created for these planning documents,and other public documents as referenced elsewhere in this redevelopment plan. Augusta’s third TAD is a good policy decision for Augusta-Richmond County Using TAD financing to fund infrastructure construction will enable Augusta-Richmond County to leverage from between $59,000 and $1.24 million in positive property tax increments1 –depending on whether the Richmond County Board of Education contributes –to provide the infrastructure necessary to support approximately $115 million in private sector investment and bring new high- value manufacturing jobs in the TAD without tapping into current tax revenues and without adding new taxes. The initial investment will generate up to 100 new well-paying jobs in the chemical manufacturing sector. These jobs, in turn, may indirectly generate a multiplier as high as three new jobs for every manufacturing job created, on both counts generating a significant economic impact and producing new tax revenues. Its construction and operations will increase income opportunities for local residents and raise sales for area businesses. The redevelopment will provide Augusta-Richmond County a positive new job generator within the TAD. As these parcels improve,values in the surrounding industrial and commercial areas are also expected to increase, further enhancing the property tax base for the Consolidated County and the local Board of Education. Summary of Potential TAD Benefits for the Doug Barnard/Dixon Airline Redevelopment Area As shown in following table, the creation of the Doug Barnard/Dixon Airline Redevelopment Area would generate approximately $115 million of new market value in the TAD #3, which would increase its current taxable value of $286,636 by an additional $42 million in assessed, taxable value –a 147-fold increase. The redevelopment of this area, as proposed, would result in approximately 1.24 million1 in new annual property tax receipts –approximately $6,950 per acre more on land that currently generates less than $50 an acre –and support TAD funding for necessary infrastructure improvements to the site of approximately $12.7 million. The chemical manufacturing facility proposed for the site could generate from 80 to 100 high-value jobs, with potential for future growth. 1 Does not adjust for Amendment 74, which exempts manufacturer from county M&O millage for five years subject to certain usage requirements. Attachment number 1 \nPage 6 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 6 Augusta TAD #3 Summary of Potential Benefits Value of TAD parcels at build out $115,850,000 Value of new private capital investment subject to assessment2 $105,850,000 Cost of eligible infrastructure that can be financed by TAD $12,675,000 Estimated annual ad valorem tax after full build out3 Up to $1,252,036 Estimated annual ad valorem tax increment after full build out4 Up to $1,243,560 Estimated new jobs created 80 to 100 Approval of the Augusta Tax Allocation District #3, Doug Barnard/Dixon Airline Redevelopment Plan is a good policy decision that will help further improve the growing economy of Augusta-Richmond County. 2 Certified pollution control equipment in the amount of $10 million is exempt from property taxes under GA Tax Code 48-5-41 #11. 3 Estimated with the participation of the Board of Education 4 Amount does not adjust for Amendment 74. Attachment number 1 \nPage 7 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 7 The Proposal: Augusta Tax Allocation District #3 “To encourage such redevelopment, it is essential that the counties and municipalities of this state have additional powers to form a more effective partnership with private enterprise to overcome economic limitations that have previously impeded or prohibited redevelopment of such areas.”Redevelopment Powers Law, § 36-44-2.Legislative Intent Introduction Since it was first adopted in 1985,Georgia’s Redevelopment Powers Law has provided local governments a powerful, effective tool to generate economic development. Areas that would not normally attract private investment have been redeveloped under the provisions of this law. They are now generating important public revenues and a higher quality of life in many Georgia communities. The proposal to create Augusta’s Tax Allocation District #3 is an effort to attract significant private investment and highly valued manufacturing and related jobs into economically stagnant land parcels in an area of Augusta-Richmond County called East Augusta by city planners. Consent to the creation of a tax allocation district within the area proposed will mark another important action towards ensuring higher value jobs and the economic benefits they provide, which will further improve the quality of life for all residents of Augusta and Richmond County. East Augusta Today –Current and Future Land Use East Augusta is unique to the metro area because of its high concentration of industrial uses –some in close proximity to residential areas –and environmentally sensitive land uses. The 2008 Comprehensive Plan describes the proposed redevelopment area as characterized by a mix of natural resource areas, industrial uses and limited residential and commercial land uses, with conventional subdivisions located in relatively close proximity to industrial land uses.Augusta Regional Airport at Bush Field is a significant regional activity center located in East Augusta. “East Augusta is home to much of Augusta’s warehousing, light industry and heavy industry. Heavy industries include those producing chemicals, paper and wood products, clay products, transportation equipment and food products. Warehousing facilities tend to be located in close proximity to the surface transportation network especially along the major highways and near interstate interchanges, or in close proximity to railroad lines.” –2008 Comprehensive Plan The abundance of natural resources present calls for carefully planning and can be an impediment to redevelopment, sending projects to locations that offer fewer costly roadblocks to development. “The floodplains of the Savannah River and some of its tributary creeks (Oates, Rocky, Butler and Spirit) account for the largest land use in East Augusta. Within these floodplains are some designated natural resource / conservation areas including the Merry Brickyard Ponds, the Phinizy Swamp Wildlife Management Area and the Phinizy Swamp Nature Park.” –2008 CP Attachment number 1 \nPage 8 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 8 Trends and opportunities for redevelopment in East Augusta are listed in the Comprehensive Plan as: Additional residential development limited by proximity to industry, contaminated industrial sites and the presence of natural resource / conservation areas Some neighborhood revitalization is ongoing Clean-up and stabilization of Hyde Park neighborhood and environs Create opportunities for additional commercial development serving area residents Additional industrial development likely in proximity to airport and major highways Protection of natural resources and conservation areas In support of this vision and in an effort to expand the industrial base in the East Atlanta area as proposed by the community in Augusta’s Comprehensive Plan,the Augusta-Richmond County government proposes the creation of a third tax allocation district to support the industrial redevelopment of the TAD parcels as proposed in the East Augusta Redevelopment Plan. How a TAD Works The Georgia Municipal Association (GMA) provides a concise explanation of how TADs work in its online Municipal Desk Reference.The GMA article, “Tax Allocation Districts Q&A,” also provides links to the Liveable Communities Coalition’s 2007 “Survey and Analysis of TADs in Georgia” and other summaries and analysis. Go to www.gmanet.com/MDR.aspx?CNID=22896. Additionally, the Association County Commissioners of Georgia in 2008 produced a video to better inform voters about the Redevelopment Powers Act. It is available on the association’s website at www.accg.org/content.asp?contentid=1443. As explained by the Georgia Municipal Association, a TAD gives “[L]ocal governments the authority to sell bonds to finance infrastructure and other redevelopment costs within a specifically defined area (a TAD). The bonds are secured by a ‘tax allocation increment,’ which is the increase in property tax revenues resulting from the redevelopment activities taking place within the tax allocation district. Tax increment financing allows cities to charge the costs of constructing public facilities and infrastructure to be charged directly to the businesses that use them rather than the public at large. In return, the businesses benefit from the construction of facilities that might not otherwise be available to them. “When using a TAD, a city designates a specific geographic area that has the potential for redevelopment, but which suffers from blight or other ‘economically or socially distressed’ conditions. As public improvements and private development take place in the area, the taxable value of property in the TAD increases. The city collects the total revenues, putting the increase in revenues as a result of new development into a special fund to pay off the bonds that financed the TAD-eligible improvements, while the remainder goes back into the city’s general fund. The TAD is dissolved when the bonds have been retired and any other public financing has been repaid.” Attachment number 1 \nPage 9 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 9 Tax allocation districts use the increased property tax generated by new development to finance capital and other costs related to the redevelopment such as infrastructure, land acquisition, relocation, demolition, utilities, debt service, and planning. A TAD may support the following improvements: Sewer expansion and repair Storm drainage Street construction and expansion Water supply Parks, paths and green spaces Bridge construction and repair Curbs and sidewalks Traffic control Street lighting Landscaping Property acquisition Building acquisition Demolition and clearance work Pre-vertical Development Parking structures Environmental remediation Historic preservation and remediation Cities and counties may also target excess TAD revenue growth, new sales and use taxes, alcohol taxes and business license revenues generated within tax allocation districts to finance capital improvements for public facilities. This happens most often when the proposed redevelopment includes residential or other uses that would expand the need for such improvements. TAD (TIF) Assessed Value (AV) Over Project Life Diagram: National Association of Realtors, Tax Increment Financing, Nov. 2002 A TAD IS NOT A PROPERTY TAX INCREASE, nor is it a tax break for developers. Rather, a TAD offers a way for local governments to capture future tax revenues that result from new development, as taxes collected on the new development in the designated tax allocation district go Attachment number 1 \nPage 10 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 10 to repay TAD bonds. A TAD provides a community with a financing mechanism for public investments that will attract private redevelopment. Georgia TADs Deliver on Their Promise When evaluated as of March 2007,Georgia’s 27 Tax Allocation Districts in place in Georgia encompassed more than 18,700 acres and nearly $1.9 billion in base property tax value the years they were created.A total public investment of $3 billion –created and invested within the TADs – will leverage more than $17.6 billion in direct private investment that is projected to result in an increase of $6.1 billion in the property tax digests within the TADs,upon completion of projects as planned.(Livable Communities Coalition) Joseph Maxberry created a map of Georgia’s TADs as of July 2008, showing whether they were active, inactive or pending. Go to http://bit.ly/p7aGAe to view the map. Nearly five years later, more than 47 TADs now exist throughout Georgia, from Gainesville to Albany. The collective redevelopment plans written for these TADs forecast that this incentive, as applied throughout the state,will attract more than $18 billion in private investment. Why TADs are a Right Choice for Redevelopment in Georgia In 2008, Senate Resolution No. 996,Act No. 777,Ga. L. 2008, p. 1211 was approved by the the voters of Georgia. “Shall the Constitution of Georgia be amended so as to authorize community redevelopment and authorize counties, municipalities, and local boards of education to use tax funds for redevelopment purposes and programs?" The arguments presented in favor of this resolution, in favor of TADs, are as true today as they were in 2008, before the Great Recession: All existing school taxes continue to go to the schools. Only if new,additional redevelopment occurs are the additional taxes used to provide project infrastructure financing. From 1999 to 2008 school boards in Georgia overwhelmingly chose to participate in redevelopment when they had the chance; it helps them grow their tax base and increase sales taxes used for school construction. 49 States and the District of Columbia use tax increment financing as a key form of development incentive, TADs, which are Georgia’s version of tax increment financing, is nothing new or untested. School districts do not face any additional debt burden from the bonds; they are issued by the City, County or Consolidated Government. Over $450 million in TAD bonds have been issued in Georgia since 1999 and there have been no defaults. These bonds have triggered over $3 billion in additional private investment. Attachment number 1 \nPage 11 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 11 TADs are most typically used to trigger redevelopment in areas which are declining or slow growing, accelerating the growth of the local tax base. The current economic downturn makes TAD even more important as a tool to create jobs and expand the local tax base. Source: Ballotpedia.org, 2008 TADs Remain the Right Choice for this Economic Climate Governing magazine published an interview with Toby Rittner, the president and CEO of the Council of Development Finance Agencies, who was asked to respond to questions about whether tax increment financing can withstand declining real estate values and a tough economic climate. Following are excerpts of the article: Let's start with the basics. How does tax increment financing work? It's unlike any other tool. A locality is able to direct specific tax dollars from the development itself to pay for that development. The premise is that if you take an underutilized piece of property that is not returning much tax revenue and put a better facility on there, it will be assessed at a higher level and bring in a higher tax return. TIFs are used predominantly for redevelopment, regeneration and reinvestment in underserved or underutilized markets What happens if real estate values fall? There are some situations where TIFs are struggling. But the large majority of TIF projects did not allocate the full increment [of increased property taxes] to the project --only 50 to 70 percent of the increment. They created debt reserve funds to protect the investment, and they often have underlying letters of credit or a guarantee of some sort. The majority of projects are doing okay even without huge increases in property assessments. It's a vindication of sorts for the use of TIFs because even in difficult economic times, they've still done pretty well. Beyond real estate value, what sort of risks are there with TIFs? You have to have a lot of faith and comfort with the developer. If the developer flakes out or bails out on a project where you used TIF to extend the infrastructure --that's a primary risk. It happens rarely, but it does happen. Other risks are that a project doesn't return what you expected it to -- you were supposed to see, say, $10 million in tax returns and you only get $2 million. That happens rarely because most TIFs are very conservative. Looking at the array of tax incentives available to localities to attract development, how would you rate TIFs? There's no question that TIF is an incentive for the developer. But this is not corporate welfare. The only way the developer gets access to TIF funds is to do the development. Unlike abatements or other incentives --even tax credits --you really have to do the project to get the tools. Source: Governing.com, 9/16/2010 Attachment number 1 \nPage 12 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 12 Project-based TAD Redevelopment Proves Successful in Augusta Village at Riverwatch, Augusta’s TAD #2 Augusta Costco breaks ground; fall opening targeted By Meg Mirshak Staff Writer, The Augusta Chronicle Thursday, June 30, 2011 Construction of a Costco Wholesale store officially got under way Thursday afternoon at the site off River Watch Parkway. Sara Caldwell/Staff Henry Ingram (from left), Augusta Mayor Deke Copenhaver, Sue Parr, Julie Cruz and Roger Campbell use golf clubs to stir up sand as part of the groundbreaking ceremony for construction on the Costco Wholesale store on River Watch Parkway. Costco representatives, Augusta Mayor Deke Copenhaver and Augusta Commission members used golf clubs to kick up sandfor the groundbreaking ceremony. The store will anchor the Village at Riverwatch development and is expected to open in November and employ 200 people, said Campbell, the senior vice president for Southeast Costco stores. *** Costco taking applications for Augusta location Costco is taking applications online for positions at the Augusta location. Posted: 11:16 AM Jul 13, 2011, WRDW-TV Augusta Retrieved on the website of The Augusta Chronicle at http://chronicle.augusta.com/news/business/local-business/2011-06-30/augusta-costco-breaks-ground-fall-opening-targeted?v=1309471062 on October 12, 2011; and WRDW-TV Augusta on October 21, 2011 at http://www.wrdw.com/home/headlines/125488778.html. Attachment number 1 \nPage 13 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 13 The Future of TADs in Georgia TADs that have been fully implemented in Georgia are proving successful as a public financing tool. Augusta’s TAD #2 –which attracted COSTCO –has successfully attracted significant commercial investment and jobs. Although Atlanta TADs like Atlantic Station, Beltline and Camp Creek Marketplace have gotten most of the media and other attention in Georgia, several TAD redevelopment areas throughout the state have shown significant economic gains. This form of financing’s popularity and success in encouraging economic development are expected to continue. During the November 2011 election, for example, citizens in Whitfield County (Dalton), Dunwoody and Lawrenceville will be asked to vote to allow their communities to develop tax allocation districts.This tool will continue to be used to improve redevelopment areas in cities, towns and counties throughout the state. Attachment number 1 \nPage 14 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 14 Doug Barnard/Dixon Airline, The Redevelopment Area "Within the next four years, I would like to see Augusta become a sustainable model for smart growth and development and see us further our reputation as a world-class mid-size city." –Mayor Deke Copenhaver quoted in the Augusta Chronicle, Nov. 4, 2010 Geographic Boundaries (A)* The proposed Augusta Tax Allocation District #3, Doug Barnard/Dixon Airline Redevelopment Area, lies within an area generally described as: Two land parcels of approximately 179 acres the area of Augusta-Richmond County referred to as East Augusta for planning purposes. The proposed redevelopment area is bounded on the west by the Norfolk Southern rail line and right-of-way to a northwest corner property line that runs in a southwest to northeast direction where the line meets Butler Creek, its northern boundary, which meanders east to Doug Barnard Parkway, its eastern boundary, which runs south to the intersection of Dixon Airline Road, its southern boundary. It does not include an area at the southeast corner where Doug Barnard Parkway and Dixon Airline Road meet, which contains one outside parcel of approximately 9 acres that currently house a Penske Rental facility. Tax Parcel Identification numbers for the two properties included in the proposed Augusta Tax Allocation District #3, Doug Barnard/Dixon Airline Redevelopment Plan are: 135-0-005-00-0 146-0-005-00-0 For a map of the proposed district, see Appendix A. Grounds for Exercise of Redevelopment Powers (B)* Local governments in Georgia are given the authority to create tax allocation districts as set forth in The Redevelopment Powers Law (Chapter 44 of Title 36) as adopted by the Georgia General Assembly in 1985 and reauthorized by the 2009 Constitutional Amendment and 2009 re-enactment of the Redevelopment Powers Law. The tax allocation district is one incentive among several that Augusta has used to effectively encourage the revitalization of distressed or underutilized areas. This tool is available under provisions of the Official Code of Georgia and the Rules of the Georgia Department of Community Affairs. These incentives are available for businesses that are located within the Tax Allocation District, (O.C.G.A. 36-44-8), Enterprise Zones (O.C.G.A. 36-88) and Opportunity Zones (D.C.A. rules 110-24-1). According to Augusta’s official website, “Tax allocation districts are Georgia’s version of tax increment financing, which allows a local government to capture tax revenues attributable to increases in property values within a prescribed development area and use those revenues for neighborhood improvement projects.” Augusta currently has two TADs. Attachment number 1 \nPage 15 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 15 The definition of properties or areas eligible for inclusion in a TAD was amended by 2009 HB 63. Properties considered blighted, distressed and/or deteriorating, are defined in the bill as: A blighted or distressed area with obsolete buildings, deteriorating older structures or pervasive poverty. A deteriorating area experiencing economic decline with older structures, high vacancy rates or a shortage of affordable housing or inadequate utility. Deteriorating or inadequate utility, transportation or transit infrastructure. Specifically as it relates to the proposed Doug Barnard/Dixon Airline Redevelopment Area, the act defines an ‘area with inadequate infrastructure’ as an area characterized by: Deteriorating or inadequate parking, roadways, bridges, pedestrian access, or Public transportation or transit facilities incapable of handling the volume of traffic into or through the area, either at present or following redevelopment,or Deteriorating or inadequate utility infrastructure either at present or following redevelopment. Augusta-Richmond County has the authority to exercise all redevelopment and other powers authorized or granted municipalities pursuant to the Redevelopment Powers Law, as now or hereafter amended, provided for by Chapter 44 of Title 36 of the O.C.G.A. This authority was granted by House Bill 773 in 2005 (www.legis.state.ga.us/legis/ 2005_06/fulltext/hb773.htm), as approved by a majority of the voters of Augusta-Richmond County in a referendum held in 2006. The proposed Augusta Tax Allocation District #3 qualifies as a Redevelopment Area under this statute. Proposed Land Uses After Redevelopment (C)* The Augusta Tax Allocation District #3, Doug Barnard/Dixon Airline Redevelopment Area will attract the development of a significant Heavy Industrial use to the area proposed. It will bring $115 million in new investment in land, building and equipment to build a new,high-value job-creating chemical manufacturing facility on a portion of approximately 179 acres that will allow room for future expansion. Proposed Redevelopment Projects (D)* Community Vision for the Redevelopment Area The Community Agenda as outlined in Chapter 11 of Augusta’s Comprehensive Plan looks to East Augusta to continue supporting the industrial uses of the metro area, with careful consideration given to environmental concerns: Attachment number 1 \nPage 16 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 16 “Industrial –Industrial and warehousing uses are scattered throughout the community, with most of the heavy industry concentrated at large sites in East Augusta. Most of the remaining sites suitable for new or expanding industry, particularly heavy industry, are located east of Mike Padgett Highway (SR 56) or in established industrial parks (e.g. Augusta Corporate Park). Due to the proximity of some sites to water resources and conservation areas, environmental considerations will be important in evaluating the suitability of such sites for industrial use.” Furthermore, the vision for the East Augusta Neighborhood Area as outlined in this Community Agenda suggests that new industry continue to be concentrated near the Augusta Regional Airport. Infill development is stated as one of the Quality Community Objectives for this area. The community plan also suggests the appropriate zoning classification for this area: H-I (Heavy Industrial)–Most concentrated in industrial parks and sites located along or near the following roads: Columbia Nitrogen, Sand Bar Ferry, Gordon Hwy., Doug Barnard Pkwy. Mike Padgett Hwy., Marvin Griffin Rd. and Goshen Industrial Blvd. Additionally, the plan recommends that as a guiding policy, industrial development should be encouraged in appropriate locations: “Any new heavy industrial development should be confined to the areas in East Augusta where it already exists, to appropriate locations east of Georgia Highway 56 and to industrial parks and sites already zoned for such uses. Such locations might include some vacant sites in close proximity to Augusta Regional airport.” Proposed Private Redevelopment Project and Investment The redevelopment project proposed for the Doug Barnard/Dixon Airline Redevelopment Area is a manufacturing facility for a major chemical corporation on approximately 179 acres of land at the intersection of Doug Barnard Parkway and Dixon Airline Road in East Augusta. Project Planned Estimated Value at Completion Major Chemical Manufacturing Facility $ 115 million The redevelopment costs for all public and private improvements will be funded by public and private sources as identified prior to and during redevelopment. These potential funding sources are listed in detail in a later section titled, “Estimated Redevelopment Costs/Proposed Public Investments.” Attachment number 1 \nPage 17 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 17 Infrastructure Exhibit for the Proposed Facility Public Projects Proposed The Board of Commissioners of Augusta-Richmond County and the Development Authority of Richmond County will review the use of the wetlands outside of the TAD acreage proposed for redevelopment and determine the best policies and methods to preserve the natural area around Butler Creek. Other Improvement Initiatives Nearby Butler Creek Greenway –The goal of Augusta’s Greenspace Program, updated in the fall of 2002, is to permanently preserve 20 percent of Augusta’s land area as greenspace. It has identified areas for protection, including lands along the Savannah River, Phinizy Swamp and Augusta’s major creeks, including Butler Creek, with an objective to permanently protect lands in these areas. The Butler Creek Greenway will extend for nine miles along the creek from north of Deans Bridge Road to New Savannah Bluff. Augusta, in partnership with the Central Savannah River Land Trust, has assembled 80 percent of the land along Butler Creek from Lombard Mill Pond to Phinizy Swamp, a 1,150 acre nature park partnership with Augusta and the Southeastern Natural Sciences Academy, consisting of newly created wetlands and natural swamplands.The Central Savannah River Land Trust administers the Greenspace Program on behalf of Augusta. Augusta Regional Airport –A major expansion was completed at the airport in 2008 to attempt to attract more passengers who might otherwise fly out of the Atlanta and Columbia airports. Located Attachment number 1 \nPage 18 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 18 on approximately 1,400 acres, the publicly owned facility has two runways. Passenger traffic in 2009 grew to nearly 400,000. Phases of the expansion included a new terminal, new car rental facility, a new check-in with e-kiosks and automatic check-in facilities, food concessions and other improvements. Plans are to add more parking spaces and valet parking. Contractual Relationships (E)* Pursuant to O.C.G.A. §34-44-3(a), the Augusta-Richmond County Commission (ARCC) will act as the redevelopment agent and will exercise redevelopment powers as needed to implement this plan. In doing so, the ARCC may conduct the following activities and enter into the following contracts: Coordinate implementation activities with other major participants in the redevelopment plan and their respective development and planning entities, including the Development Authority of Richmond County, the Downtown Development Authority of Augusta,the Richmond County Board of Education and other stakeholders, as well as other Augusta-Richmond County departments involved in implementing this redevelopment plan. Conduct (either directly or by subcontracting for services) standard predevelopment activities, including but not limited to site analysis, environmental analysis, development planning, market analysis, financial feasibility studies, preliminary design, zoning compliance, facilities inspections, and overall analysis of compatibility of proposed development projects with the Augusta-Richmond County Comprehensive Plan. Enter into development agreements with private developers to construct infrastructure and vertical developments to implement the redevelopment plan. Negotiate and enter into public-private ventures, loans to private enterprise and intergovernmental agreements as needed. Coordinate public improvement planning, design and construction among the Consolidated County and State agencies and departments. Prepare (either directly or through subcontract to other appropriate entities) economic and financial analyses, project-specific feasibility studies and assessments of tax base increments in support of the issuance of tax allocation bonds by the Consolidated County. Augusta will enter into contractual relationships with qualified vendors for the provision of professional and other services required in qualifying and issuing the bonds, including, but not limited to, legal, underwriting, financial analysis and other related services. The Augusta-Richmond County Commission will perform other duties as necessary to implement the redevelopment plan. Relocation Plans & Payments (F)* As is currently foreseen, no private homes or businesses exist within the proposed Augusta Tax Allocation District #3, Doug Barnard/Dixon Airline Redevelopment Plan, so no relocation activity will be necessary for this area. Attachment number 1 \nPage 19 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 19 In cases where public funds are used for property acquisition and there may be a relocation of existing private homes or businesses, such relocation expenses will be provided to tenants and users for relocation under all applicable federal, state and local guidelines, as required. In any case where there is relocation of existing public housing or other public facilities, such relocation expenses may be provided for under all applicable federal, state and local guidelines. Zoning & Land Use Compatibility (G)* The redevelopment area within the proposed Augusta Tax Allocation District #3, Doug Barnard/Dixon Airline Redevelopment Plan contains approximately 179.04 acres that include zoning and land use classifications as described in the Augusta-Richmond County 2008 Comprehensive Development Plan. Land Use is Compatible with Recommended Development Patterns Building plans for the proposed Doug Barnard/Dixon Airline Redevelopment Area, which lies within the East Augusta Neighborhood Area, conform to the Heavy Industrial use described in the city’s latest Comprehensive Plan. Appropriate land uses within this area, where consistent with recommended development patterns, are identified in the plan as: Low-Density Urban Residential (1-4 units / acre) Medium Density Urban Residential (4-6 units / acre) Professional Office Neighborhood Commercial General Commercial Light Industrial and Warehousing Heavy Industrial Public/Institutional Transportation,Communications and Utilities Parks,Recreation and Conservation Mixed Use Existing Zoning Districts and Overlays in East Augusta Plans for the proposed Doug Barnard/Dixon Airline Redevelopment Area conform to the Heavy Industrial zoning classification as named in the Comprehensive Plan. As of the end of October 2011, these are the classifications of the parcels in the proposed TAD: Parcel 146-0-005-00-0 –Currently zoned LI (Light-Industrial) Parcel 135-0-005-00-0 –Currently zoned A (Agriculture), but a rezoning application is pending to change the zoning to Zone HI (Heavy Industrial). The application was on the October 3rd Planning Commission meeting agenda, but the applicant requested that the application be postponed until the November 7th meeting. This zoning request is compatible with the zoning classifications that exist for the East Augusta Area, which include: A (Agricultural) –Covers much of the Phinizy Swamp, Savannah River floodplain and other low-lying land in the character area. Attachment number 1 \nPage 20 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 20 R-1, R-1A, R-1B, R-1C, R-1D and R-1E -(Single-Family Residential Zones) –Most conventional suburban residential subdivisions in the character area are zoned R-1C. R-MH (Manufactured Home Residential) Zone –A few sites so zoned R-2 (Two-Family Residential Zone) –Few, if any, duplex zones R-3A, R-3B and R-3C (Multiple-Family Residential Zone) –Multi-family zoning largely confined to conventional apartment complexes PUD (Planned Unit Development) Zone –a mixed-use district (residential, commercial, institutional and open space) currently found sparingly anywhere in the city. P-1 (Professional / Office) Zone –Few, if any, professional zones B-1 (Neighborhood Business) Zone –Generally confined to major streets and major intersections. B-2 (General Business) –Generally confined to major streets and major intersections. L-I (Light Industrial) –Most concentrated on sites along Sand Bar Ferry Rd. and Laney- Walker Blvd. Ext. and on scattered sites elsewhere. H-I (Heavy Industrial) –Most concentrated in industrial parks and sites located along or near the following roads: Columbia Nitrogen, Sand Bar Ferry, Gordon Hwy., Doug Barnard Pkwy. Mike Padgett Hwy., Marvin Griffin Rd. and Goshen Industrial Blvd. PDR (Planned Development Riverfront) Zone –An overlay district covering the Savannah riverfront, including that portion of the river levee between East Boundary and a point near the intersection of Sand Bar Ferry Rd. and Laney-Walker Blvd. Ext. Savannah River Corridor Protection District –An overlay district that establishes a 100-foot vegetative buffer along the Savannah River throughout Augusta. Within the district certain land uses are permitted, but facilities for the receiving, storage or disposal of hazardous or solid wastes are prohibited Historic Properties within TAD Boundaries (J)* There are no historic properties located within the boundaries of the proposed Augusta Tax Allocation District #3, Doug Barnard/Dixon Airline Redevelopment Area. Estimated Redevelopment Costs / Proposed Public Investments (H)* TAD proceeds may be used to supplement funding by public and private sources for improvements that spur private redevelopment activity. As estimated for the Augusta TAD #3, Doug Barnard/Dixon Airline Redevelopment Plan, costs eligible for TAD reimbursement for the chemical manufacturing project will be approximately $12.7 million. These redevelopment costs can fluctuate based on costs for labor, equipment and materials, and as such are estimated as a percent of the total projected private investment. Cost estimates follow. Attachment number 1 \nPage 21 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 21 NOTE: The cost estimate is presented here in constant 2011 dollars, and as such is subject to revision as this Redevelopment Plan is implemented. As of the date of this plan,the private redevelopment proposed for the project that will lie within the Augusta TAD #3, Doug Barnard/Dixon Airline Redevelopment Area is estimated to total approximately $115 million in 2011 dollars. (Note: This investment estimate is subject to revision as the redevelopment plan is implemented.) The redevelopment costs for all public and private improvements will be funded by public and private sources as identified prior to and during redevelopment. These sources may include, but are not limited to: Existing federal and state funding agencies and programs for transportation improvements, community redevelopment and other uses as they apply; Proceeds of tax allocation bonds, commercial financing, and/or tax allocation increment; County capital improvement funds, such as those generated by the County’s Special 1% Sales Tax, SPLOST and Hotel-Motel Room Tax currently in place; Local bonds; Private development funds; Private donations; and Other federal, state and local grant and funding sources as appropriate and available. PROPOSED PUBLIC INVESTMENT within the AUGUSTA TAD #3 (All Funding Sources) Land Acquisition and Development Site Work Professional Services: Environmental and Permitting Construction Services: Architectural and Engineering, including Pre-Vertical Development Project Fees: Consulting and Management Misc. TAD-related expenses Estimated Augusta TAD #3 Eligible Improvements $12,675,000 Attachment number 1 \nPage 22 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 22 Q & A about the Augusta TAD #3 How can a TAD help fund the redevelopment of the Augusta TAD? A TAD, once created by Augusta-Richmond County, offers another way to finance improvements for redevelopment within the TAD boundaries. As this property is redeveloped and therefore improved, any property tax revenue increase within the TAD is deposited into a special fund to pay for the redevelopment costs within the TAD. Tax exempt bonds may be issued to pay for infrastructure and other eligible redevelopment costs in partnership with private developers. As the TAD area is redeveloped, the tax increment resulting from these redevelopment projects is used to retire any bonds issued to fund eligible redevelopment costs. No general fund dollars are used to repay TAD bonds. Why is the TAD a good policy decision? Using TAD financing to fund construction of infrastructure will enable Augusta-Richmond County to leverage from $59,000 to as much as $1.24 million5 in positive property tax increments annually to provide the infrastructure necessary to eventually generate approximately $115 million in private sector investment in the TAD without tapping into current tax revenues and without adding new taxes. This investment will generate up to 100 direct new jobs when the chemical manufacturing facility opens and significant new property tax revenues. It will increase income opportunities for local residents and raise sales revenues for area businesses. The fully completed redevelopment will provide Augusta-Richmond County a significant new source of high-value manufacturing employment on an underdeveloped area within the TAD that is not currently pulling its share of the city’s and school district’s tax load. Property values in the surrounding areas are also expected to increase, further enhancing the Consolidated County’s and the local Board of Education’s property tax base. If TAD bonds are issued, once they are retired, Augusta will receive the full property tax increment from the development.If no bonds are issued and if property values within the TAD rise faster than projected, Augusta will receive the difference between the infrastructure costs earmarked for payments and the increment collected. Can Augusta-Richmond County use the new tax revenues for projects outside the TAD? Why do they have to stay in the TAD? Positive tax increments are NOT generated in the redevelopment area unless private developers invest in new construction. Without the TAD, there are no significant new tax revenues.The redevelopment project as planned for the Doug Barnard/Dixon Airline Redevelopment Area is not financially viable without TAD financing for the infrastructure and other eligible improvements. The purpose of the Augusta TAD #3, as proposed,is to use positive tax increments to make private development possible. 5 Does not adjust for Amendment 74. Attachment number 1 \nPage 23 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 23 Augusta-Richmond citizens will reap the benefits of the private investment –and public capital improvements planned for the TAD –without having to use current tax revenues to pay for necessary infrastructure improvements. Assessed Valuation of the Redevelopment Area (I)* The 2011 fair market value of the two parcels in the proposed redevelopment area totals $716,589, which gives them an assessed (taxable) value of $286,636, according to the Augusta-Richmond County Tax Assessors office. The proposed redevelopment area is undeveloped and –as taxed currently at $48 per acre (net)–is not pulling its share of the tax load. It has not and will not contribute to the overall growth of the county unless it is redeveloped. Pursuant to the Redevelopment Powers Law, upon adoption of the Doug Barnard/Dixon Airline Redevelopment Plan and the creation of the tax allocation district, the Augusta-Richmond County Commission will request that the Commissioner of Revenue of the State of Georgia certify the tax base for 2011, the base year for the Augusta Tax Allocation District #3. Once this redevelopment plan and TAD are approved,and the financing of eligible improvements is implemented via pay-as-you-go or the issuance of tax allocation bonds, this area is expected to stimulate private investment that will expand the tax base.In addition, the redevelopment proposed is intended to create an environment that encourages additional new development in the area –a spillover effect –leading to an overall increase in property values that further improves revenue generation within Augusta. Upon completion of the redevelopment of the Augusta TAD #3 as presented in this plan, the redeveloped acreage in this tax allocation district is projected to include a new development with a fair market value of approximately $115 million, with equipment, and an assessed value of approximately $42 million (which includes deduction for $10 million private investment in pollution control equipment). Creation & Termination Dates for TAD (K)* The Augusta Tax Allocation District #3 will be created effective December 31, 2011. The Redevelopment Powers Law provides that the district will be in existence until all redevelopment costs, including debt service, are paid in full. “The existence of a tax allocation district shall terminate when the local legislative body, by resolution, dissolves the district, but no such resolution may be adopted until all redevelopment costs have been paid.” (OCGA 36-44-12) Tax Allocation Increment Base Value (M)* On or before December 30, 2011, the Augusta-Richmond County Commission will apply to the Georgia State Revenue Commissioner for a determination of the tax allocation increment base of the proposed tax allocation district. The base assessed value is estimated in the following table. Attachment number 1 \nPage 24 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 24 Augusta Tax Allocation District #3 Parcel Information, 2011 Total Number of Parcels 2 Total Area Approximately 179.04 acres Total Assessed Value (40%) of Taxable Parcels in the Augusta TAD #3 $286,636 Total Assessed Value of Taxable Parcels in Augusta-Richmond County(1) $3,805,223,342 Value of TAD as a Percent of the City of Augusta’s Total Tax Digest 0.0075% (1)This amount reflects the total assessed value of taxable parcels in Augusta-Richmond County as of October 11, 2011, at approximately 8:23 a.m., when the query was run by the Board of Assessors Office. This value may change based on appeals being processed. By Georgia law, tax allocation districts are allowed to make up no more than ten percent of a city or county’s total tax digest. The value of Augusta’s TAD #1, approved in 2008, was valued at 9.4% of the City of Augusta’s total tax digest; Augusta’s TAD #2, approved in 2010, was valued at 0.17% of this tax digest. At less than one-tenth of one percent of the current total assessed value of taxable parcels within Augusta-Richmond County,Augusta’s TAD #3 falls well within the allowable limit that remains. Total Property Taxes Collected to Serve as the Increment Base To find the Base Value, multiply: Total Taxable Value x Useable Millage = Base Value Base Value(2)WITH School Board Participation $8,476 Base Value(2)WITHOUT School Board Participation $2,998 (2)Base Value is calculated from the School M&O, Fire Protection-County,County Capital Outlay and County M&O minus the County Sales Tax Credit Attachment number 1 \nPage 25 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 25 Ad Valorem Property Taxes for Computing Tax Allocation Increments (N)* 2011 MILLAGE RATES With Bd of Ed Participation Without Bd of Ed Participation County M&O 14.086 14.086 County Sales Tax Credit -6.011 -6.011 Fire Protection -County 1.602 1.602 County Capital Outlay 0.784 0.784 Richmond County Bd. Of Education 19.110 -- Totals 29.571 10.461 For purposes of this redevelopment plan, only real property has been calculated in the base value. There is currently no personal property on the TAD parcels that is assessed or taxed. Personal property increment will be pledged to the TAD and therefore included in the calculation of future increment. Creation of the tax allocation district will not affect any business improvement districts, community improvement districts or enterprise zones that exist or are created within the boundaries of the redevelopment area. Any additional millage levied as a result of a future business improvement district or community improvement district will not be included in the calculation of the tax allocation increment. Tax Allocation Bond Issues (O, P, Q)* Amount of Bond Issues Upon adoption of the Doug Barnard/Dixon Airline Redevelopment Plan, Augusta-Richmond County proposes to fund the redevelopment on a pay-as-you-go basis. However, if in the future it becomes more economically advantageous to finance redevelopment costs in the TAD, Augusta reserves the option to issue tax allocation bonds in one or more bond issues in amounts that will total no more than $20 million. Term of Bond Issues In the event Augusta-Richmond County issues tax allocation bonds, the terms of such bonds shall be no greater than the maximum term permitted by Georgia Revenue Bond law. Rate of Bond Issues In the event Augusta-Richmond County issues fixed-rate tax-exempt bonds in the future, the actual rate will be determined at the time of issuance based upon general market conditions, anticipated Attachment number 1 \nPage 26 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 26 development within the redevelopment area, assessed taxable property values and federal tax law considerations. Positive Tax Allocation Increments (P)* The positive tax allocation increment for the period covered by the term of any bonds issued is estimated to range from between $59,000 to $1.24 million6 annually at full build-out, depending on whether the Richmond County Board of Education elects to participate in the TAD. The actual amount will depend upon the pace at which the redevelopment plan is implemented and the impact of the redevelopment activities and other economic factors on the tax base in the district as a whole. Comparison of Estimated TAD #3 Increments Available to Pay Redevelopment Costs Total Net Property Tax1 Increment Base Paid to Taxing District Increment to TAD1 Net Tax With School Participation Base Year $8,476 $8,476 0 Base Year +1 $175,652 $8,476 $167,176 Base Year +2 $1,252,036 $8,476 $1,243,560 Net Tax Without School Participation Base Year $2,998 $2,998 0 Base Year +1 $62,138 $2,998 $59,140 Base Year +2 $442,919 $2,998 $439,921 Property to be Pledged for Payment of the Bonds (Q)* It is anticipated that any bonds issued will be secured by the positive tax allocation increment from eligible ad valorem taxes levied by the Consolidated Government of Augusta-Richmond County for operating expenses. As approved by the Richmond County Board of Education, the bonds also may be secured by the positive tax allocation increment from eligible ad valorem taxes levied by the Richmond County Schools. Other Information as Required (R)* 6 Does not adjust for Amendment 74. Attachment number 1 \nPage 27 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 27 School System Impact Analysis The Augusta Tax Allocation District #3, Doug Barnard/Dixon Airline Redevelopment Plan proposes to include ad valorem taxes levied by the Richmond County Board of Education in the tax allocation increment. Introduction The Redevelopment Powers Law governs the establishment and operation of tax allocation districts (TAD) in Georgia. In the November 2008 general election, a majority of Georgia voters approved an amendment to ART. IX, SEC. II, PARA. VII to expressly authorize the use of school tax funds for redevelopment purposes and programs. As a result of that voter referendum, the Redevelopment Powers Law was reenacted during the 2009 Legislative Session. The reenacted legislation includes a new provision codified in O.C.G.A. §36-44-3(9)(R), which requires the preparation of an “analysis regarding the estimated effect of redevelopment on the (local) Public Schools.” This new section requires that a “Public Schools Impact Analysis” address, at minimum, five specific issues: 1.The portion of the total Public Schools tax digest represented by the proposed TAD; 2.An estimate of the number of school aged children that will result from redevelopment; 3.Whether any existing school facilities are located in the proposed TAD; 4.An estimate of the Educational Special Purpose Local Option Sales Taxes (ESPLOST) that would be generated in the proposed TAD if applicable; and 5.The projected value of new residential properties in the TAD verses the value of new residential development in Augusta generally. The brief analysis that follows will address the economic and fiscal impacts of redevelopment on the Richmond County Public School System (RCSS). The Redevelopment Plan and TAD #3 addressed in this analysis has been proposed to the Augusta-Richmond County Commission and, if approved, the TAD digest will be submitted for certification by the Georgia Department of Revenue. As summarized in the Redevelopment Plan, the project proposed for the East Atlanta Redevelopment Area is expected to consist of a job generating chemical manufacturing plant on an area encompassing approximately 14 acres on a site of approximately 179 acres (much of which is wetlands)at a total cost of approximately $115 million.The facility is projected to employ 80 to 100 personnel in high-value manufacturing and related jobs. The following sections address the impacts of the Augusta TAD #3 on the Richmond County School System in accordance with the provisions of the Redevelopment Powers Law listed above. 1.The Value of Augusta TAD #3 as a Percentage of the Richmond county Public Schools’ Tax Digest The Tax Allocation District Base for the Augusta TAD #3 is expected to be certified at $286,636 (Assessed Value). According to the Richmond County Tax Assessors Board, the School District’s total 2011 M&O tax digest is $3,805,223,342.The Augusta TAD #3 therefore represented 0.0075 percent (less than 1/100th of one per cent) of the School District’s total tax digest at the time of certification. Attachment number 1 \nPage 28 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 28 In 2011, real property within the entire estimated 179-acre TAD generated $5,478 in taxes for the School District. Should the Board of Education consent to participate in the TAD, all of the current school revenues from the certified base portion of the tax digest will continue to flow to the Richmond County Public Schools. Total annual School District revenues generated within the TAD currently contribute less than one one-one percent of total property taxes levied by the RCSS and less than three one-hundredths of one percent of the School District’s FY 2011 Budget of approximately $251 million. In its long- standing undeveloped condition, the 179-acre TAD is currently assessed a full market value of approximately $4,000 per acre and generates approximately $30 per acre in annual revenues for the School District. Given that this area is strategically located near rail and the Augusta Regional Airport, it should be expected to contain some of the highest valued heavy industrial real estate in Augusta. Instead, wetlands and other infrastructure issues have kept current per acre values extremely low, indicating the under-developed nature of the site and its need for redevelopment. Without significant public investment within the TAD, it is probable that the 179-acre site could remain vacant for several more years. It is also possible that without the TAD, future development on the site could change from the current proposed manufacturing use proposed to lower valued distribution and other related uses. Such changes could reduce the area’s potential to generate significant new revenues for the school district. 2.Estimated School-Aged Children that Will Result from Redevelopment As currently planned, no residential development is proposed within the TAD and therefore no direct impact on school enrollment is expected. Any school enrollment impacts, should they occur, would be limited to the indirect effects of any new households moving into the School District in response to the 80-100 new employment opportunities created within the TAD. Any efforts to quantify a specific number of students or associated costs would be highly speculative. For the previously approved Augusta TAD #2 (2010), the Bleakly Advisory Group examined full-time equivalent (FTE) enrollment in the RCSS from 2005 to 2010 to determine whether the system may be experiencing capacity constraints that would challenge its ability to accommodate new students. Their analysis follows: According to enrollment data on file with the Georgia Department of Education, October FTE enrollment in the RCSS had been trending downward in recent years, from 33,900 in 2005 to 32,300 at the start of the 2010 school year. RCSS has experienced a net reduction in FTE enrollment of -4.7% over the past five years. Based on these trends, it appears that should modest gains in student population indirectly result from redevelopment within the TAD, those additional students should be easily accommodated. Therefore, this analysis concludes that projected development within the TAD #2, Augusta Village at Riverwatch (i.e., retail and commercial redevelopment) would produce no significant immediate or long-range enrollment impacts or costs on the Richmond County School System. Over the long run, redevelopment within the TAD may actually help to mitigate enrollment declines. To the extent that redevelopment could help to stabilize the student population attending Augusta schools, it may actually be beneficial to the District. Attachment number 1 \nPage 29 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 29 Given the high value of the jobs created by the development of a chemical manufacturing facility proposed for TAD #3, any new enrollment of students in Augusta schools resulting as an indirect impact may also help stabilize the student population and be beneficial to the District. 3.The Location of School Facilities within the Redevelopment Area There are no Richmond County Public School facilities located inside the boundaries of Augusta TAD #3. 4.Projected Estimated Educational Special Purpose Local Option (ESPLOST) Sales Taxes from TAD Development O.C.G.A. § 36-44-3(9)(R) requires that a Public Schools Impact Analysis provide “an estimate of the Educational Special Purpose Local Option Sales Taxes (ESPLOST) that would be generated in the proposed TAD if applicable”. Because the Heavy Industrial use proposed for the TAD #3 will not generate retail sales and the resulting ESPLOST revenues, an ESPLOST estimate is not required for this TAD. 5.Projected Value of Residential Properties in Augusta TAD #3 versus Augusta- Richmond County No residential development is proposed within Augusta TAD #3. Attachment number 1 \nPage 30 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 30 Appendices (L) Appendix A.Maps & Drawings 1.Redevelopment Plan Boundary Map* -Total Area 2.Current Land Use in Proposed Redevelopment Area 3.Zoning 4.Future Development Map 5.Future Land Use Appendix B.Augusta-Richmond County Commission Appendix C.Richmond County Board of Education Appendix D. References and Other Resources Attachment number 1 \nPage 31 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 31 Appendix A.Maps & Drawings 1.Redevelopment Plan Boundary Map*--TOTAL AREA Attachment number 1 \nPage 32 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 32 Appendix A.Maps & Drawings 2.Current Land Uses in Proposed Redevelopment Area Attachment number 1 \nPage 33 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 33 Appendix A.Maps & Drawings 3. Zoning Area of East Augusta around the Augusta Regional Airport Source: Augusta-Richmond County Planning Commission. Map drawn October 13,2011. Attachment number 1 \nPage 34 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 34 Appendix A.Maps & Drawings 4. Future Development Map, Future Development Patterns Note: The future development pattern envisioned for the area Preliminary Character Area west, north and south of the Augusta Regional Airport Regional Center Area #5 is Industrial. Attachment number 1 \nPage 35 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 35 Appendix A.Maps & Drawings 5. Future Land Use Attachment number 1 \nPage 36 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 36 Appendix B. Augusta-Richmond County Commission Deke S. Copenhaver Mayor Matt Aitken District 1 Corey Johnson District 2 Joe Bowles District 3, Mayor Pro Tem Alvin Mason District 4 Bill Lockett District 5 Joe Jackson District 6 Jerry Brigham District 7 Wayne Guilfoyle District 8 J.R. Hatney District 9 Grady Smith District 10 Source: Augusta, GA –Official Website, www.augustaga.gov/index.aspx?nid=652,retrieved 10-15-2011 Attachment number 1 \nPage 37 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 37 Appendix C. Richmond County Board of Education Marion E. Barnes District 1 Eloise Curtis District 2 Alex Howard District 3 Barbara Pulliam District 4 Patsy Scott District 5 Jack Padgett, Jr. District 6 Frank Dolan District 7 Jimmy Atkins District 8 Venus Cain District 9 (At Large) Helen Minchew District 10 (At Large) Source: Richmond County School System website www.rcboe.org, retrieved 10-18-2011 Attachment number 1 \nPage 38 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 38 Appendix D.References and Resources Augusta-Richmond County Board of Assessors and Tax Commissioner’s offices Augusta-Richmond County Planning Commission. Augusta-Richmond County Comprehensive Plan 2008.http://www.augustaga.gov/index.aspx?NID=319 Augusta-Richmond County Planning Commission. Various maps and plans: http://www.augustaga.gov/index.aspx?nid=290 City of Augusta, Georgia. Flood Hazard Mitigation Plan, 2004 Compound Annual Growth Rate Calculator: www.investopedia.com/calculator/CAGR.aspx#axzz1azDDAnCU Sylvia Cooper, “Copenhaver lays out plans for Augusta’s future,” Augusta Chronicle, November 4, 2010,retrieved at http://chronicle.augusta.com/news/government/elections/georgia-elections/2010-11- 04/copenhaver-lays-out-plans-augustas-future. Georgia Department of Revenue, https://etax.dor.ga.gov/. Ballot*Pedia.”Georgia Education Taxes for Redevelopment, Amendment 2 (2008),” Retrieved at http://ballotpedia.org/wiki/index.php/Georgia_Education_Taxes_for_Redevelopment ,_Amendment_2_(2008)on 10/9/2011. Georgia General Assembly –HB 63 (as passed House and Senate) by Rep. Earl Ehrhart of the 36th. Retrieved at www.legis.state.ga.us/legis/2009_ 10/pdf/hb63.pdf. Georgia Municipal Association, “Tax Allocation Districts Q&A.” Municipal Desk Reference, retrieved at www.gmanet.com/MDR.aspxCNID=22896. Lemov, Penelope. “Tough Times for TIFs?” Governing, September 16, 2010. Retrieved at http://www.governing.com/topics/finance/tough-times-tax-increment- financing.html on 10/11/2011. National Association of Realtors, Tax Increment Financing (TIF), Prepared by Craig L. Johnson, Indiana University, Robinson & Cole LLP, 2002. Richmond County Board of Education website, Board Photos and Contact Information: http://www.rcboe.org/site_res_view_template.aspx?id=efeba669- 2bab-4bab-b1de-e6c9aa28f53f&userGroupId=83bf30d9-bbe8-40d0-9652- 5dceb1dee839&userGroupType=G Attachment number 1 \nPage 39 of 40 Item # 2 Redevelopment Plan for Augusta Tax Allocation District #3 Bringing More High-Value Jobs to Augusta-Richmond County Page 39 Rosalind Rubens Newell, of Counsel. Fundamentals of Tax Allocation Districts,” PowerPoint presented to the Richmond County Board of Education,2010.McKenna Long & Aldridge LLP Saporta, Maria. “Names in Business: Georgia’s Cities could be a TAD disadvantaged,”The Atlanta Journal-Constitution, February 18, 2008. ATLANTA:5340186.2 Attachment number 1 \nPage 40 of 40 Item # 2 Finance Committee Meeting 2/25/2013 12:55 PM Approve Salary Increase for Board of Elections Director and Assistant Director Department:Board of Elections Caption:Approve salary increase for Board of Elections Director and Assistant Director. Background:The Board of Elections is requesting a 15% salary increase for the Director and Assistant Director. The Assistant Director is a very accomplished 18 year employee of the Board. The salary increase will bring him to the mid range of his current salary range. The Director's is a 25 year employee of the Board and has been Director for 20 years. In 2012, she atttained national accredidation as a Certified Elections and Registration Administrator through the Election Center. Her current salary is towards the bottom of the salary range for a SES Director 1. Analysis:Both positions need to be upgraded to properly compensate the employees for their experience, achievements and years of service. Funding has been identified within the current operating budget for Board of Elections by defering certain repair and maintenance of voting equipment. Financial Impact:$10,000 - 20,000 Alternatives: Recommendation:Transfer funds out of the current repair and maintenance budget for the Board of Elections and place the funding into salaries. Funds are Available in the Following Accounts: 101-01-4111-52.23112 REVIEWED AND APPROVED BY: Cover Memo Item # 3 Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 3 Finance Committee Meeting 2/25/2013 12:55 PM Discuss House Bill 159 and the effects it poses to Augusta Department: Caption:Discuss House Bill 159 and the effects it poses to Augusta. Background:On February 17, 2011 the Georgia House of Representative introduced HB 291. HB 291 set out to “amend Article 1 of chapter 5 of title 48 of the official code of Georgia”. The goal of the bill was to remove any charges from a tax bill, which are not considered a tax. Within that bill there were two fees, specifically identified, which included solid waste fees as well as storm-water fees, however, the legislation was broad reaching to include any other fee that a government wanted/had added to a tax bill. On April 14, 2011 the house “withdrew, recommitted”, the bill. On January 30, 2013 the Georgia House of Representative introduced HB 159. Just as HB 291 intended, HB 159 sets out to “amend Article 1 of chapter 5 of title 48 of the official code of Georgia”, making it where local governments cannot add any fees to a tax bill. The proposed language adds some new sections which read as follows: "48-5-33. (a) No property tax bill issued by the tax commissioner or other local fiscal authority for the collection and payment of ad valorem taxes on tangible property shall include any nontax related fees or assessments, such as, including but not limited to, storm-water service fees or solid waste service fees. Any collection and payment of such nontax related fees and assessments shall be addressed in separate billings from property tax bills; provided, however, that this shall not preclude a tax commissioner or other local fiscal authority from including multiple billings in the same mailing. (b) This Code section shall be applicable to all taxable years beginning on or after January 1, 2013.” Historically, Augusta has charged several fees on the tax bills. The fees which are currently charged on tax bills include solid waste and streetlights. Analysis:Generally if HB 159 passes in its current version, local governments will have significant issues to deal with. Here are several; (a) The State is limiting the options that local governments and Georgia citizens have to collect fees for services offered by local governments. If fees are removed from a tax bill, the local governments are left with two basic options. They can Cover Memo Item # 4 increase taxes to cover the cost of the services being provided, or they can create a billing system to collect the fees. A tax system is a one size fits all method, making it less attractive for the items typically collected through a fee system. For example, Augusta does not have streetlights in every neighborhood. If we implement a tax for streetlights, then everybody would be charged for such a service whether they receive the benefits or not. This can be seen in solid waste as well, where the systems have been set up on a “pay as you throw” concept. The more services you use, the more you pay. If this was converted to a tax, volume and usage would have no bearing on the amount charged, rather, property values would determine the cost of services provided. (b) Should August choose to tax for services, which are currently collected through a fee, then Augusta would be forced to raise taxes at the hands of the state. Augusta has a unique situation when it comes to raising taxes. Augusta is faced with being one of only a few jurisdictions in the state which has a tax cap. This cap, based on Augusta’s current tax model, could greatly limit our ability to collect the revenues needed to cover the costs of the program. (c) Should Augusta choose to create a city services bill, then Augusta would face increased billing costs for serviced offered. Currently, using the tax bill as a billing method, we only have one bill to print, mail, receive and apply payments for. At a minimum, moving to an annual bill would double our billing cost. If Augusta took a more customer friendly approach to billing semi-annual, or even quarterly, then the costs go up exponentially from there. Another significant, but unknown cost would be the administrative cost of dealing with starting and stopping services for a fee based customer. As fees are currently on a tax bill, if the property is sold, then the proration is done at the closing of the property. In a direct billing model, Augusta may be responsible for the proration’s, charges and refunds to the customers, adding additional complexity and cost to the system. (d) Governments could face a significant risk of non-payment and collection of funds. Generally, when fees are collected on a tax bill, and the tax commissioners are allowed to collect the fees, the collection rates are relatively high. By moving to a fee system, local governments will need to figure ways to address non-payments. In most cases, it is not as easy as discontinuing the service. (e) Time is of the essence, as this bill in its current form would prohibit these fees on the 2013 tax bill scheduled to be mailed in September. An alternate billing method would have to be selected, tested and operational prior to that date. Augusta’s citizens are not exempt from the pain they will feel if this bill passes. (a) For homeowners who have an escrow account, it will take the financial institutions a full tax cycle to “true up” the escrow account. If we move to a tax system then a significant portion of residents escrow account fees will be increased, increasing the mortgage payments, and if we go with a fee system, then it will take a full tax cycle for the financial institution to reduce the escrow account fees. (b) If a tax method is used, then citizens will see high tax rates with no choice Cover Memo Item # 4 in service delivery. The citizens will be forced into a one size fits all type of government; or (c) If a fee system is used then, citizens will bear the additional costs of a new billing system and the cost of collecting fees and the increased bad debt associated from those who chose not to pay. (d) For renters, fees on a tax bill are likely included in the rent payments paid to the landlord. If transitioned to a tax system rent could be increased due to a tax increase. For properties with low values, it is unlikely that the landlord would reduce rent. The recommendations to resolving this issue are; (a) Lobby hard to ensure that HB 159 does not pass. (b) Lobby hard that if HB 159 is to pass, that this bill becomes effective in the 2014 tax year to allow those governments on a calendar year budget, to be able to implement an effective fee system. (c) Move forward, and continue to develop a standardized fee based system for street lights, storm-water and environmental services to be placed on a tax bill. (d) Authorize the Administrator to develop a detailed plan to create a “City Services Bill”. (e) If the bill does not pass, continue billing and collection methods as they are. This would be a fee on a tax bill. Staff would continue to evaluate options as history has shown this issue will continue to come up. (f) If the bill passes and becomes law, then expeditiously implement the plan identified in step “b” above. Financial Impact:Varies by selected method. Alternatives:1. Increase taxes to cover costs currently charges as fees. 2. Develop a seperate fee billing system. Recommendation:Develop a seperate fee billing system Funds are Available in the Following Accounts: N/A REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 4 At t a c h m e n t n u m b e r 1 \ n P a g e 1 o f 2 It e m # 4 At t a c h m e n t n u m b e r 1 \ n P a g e 2 o f 2 It e m # 4 At t a c h m e n t n u m b e r 2 \ n P a g e 1 o f 2 It e m # 4 At t a c h m e n t n u m b e r 2 \ n P a g e 2 o f 2 It e m # 4 Finance Committee Meeting 2/25/2013 12:55 PM Minutes Department:Clerk of Commission Caption:Motion to approve the minutes of the Finance Committee held on February 11, 2013. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Cover Memo Item # 5 Attachment number 1 \nPage 1 of 4 Item # 5 Attachment number 1 \nPage 2 of 4 Item # 5 Attachment number 1 \nPage 3 of 4 Item # 5 Attachment number 1 \nPage 4 of 4 Item # 5 Finance Committee Meeting 2/25/2013 12:55 PM Municipal Building Renovation and Modernization Department:Administrator Caption:Affirm funding for Option 2d and other renovations and modernizations for the Augusta, Georgia Municipal Building. Background:The design for the Municipal Building Renovations has progressed into the Construction Document phase. During the Code Review process it was discovered that the stairways and elevators did not meet current code requirements. The stairway can be brought up to code with some modifications. However, the optimum solution for the elevators, which require an enclosed smoke lobby and are not ADA Compliant, is to construct a 9-story addition to the building to house new code compliant elevators. To accomplish this, the construction costs exceed the anticipated budget for this project. Various Options were presented to the Commission for their consideration at their September 4, 2012 meeting. At this meeting, the Commission approved the Administrators recommendation to proceed with Option 2d. Analysis:The motion to approve option 2d tasked the administrator with identifying additional SPLOST funds to be used for this project. SPLOST III, IV and V have the appropriate project catagories and fund balances to complete option 2d. The phasing of the construction in plan 2d will also cause several departments to be relocated into sweing space for several years and therefore requires that some renovations be done to the swing space. The administrator was also tasked with determining the viability of bonding the remaining cost of the municipal building and the new IT building. Dianne McNabb, our financial advisor, has reviewed and determined that the projects could be bonded and with Augusta's bond rating we would be able to issue bonds and receive favorable interest rates. As the project continues forward other issues may be brought forward for discussion. One such issue is the scope of building security. A screening station is in the current design, the administrator is requesting input as to the level of security screening for visitors and employees coming into the building. Cover Memo Item # 6 Financial Impact:The $6.5 million required to complete phase 2d is available by using fund balance from SPLOST Phases III, IV and V. There would be remaining fund balance to allow for some cost escalation in other current SPLOST projects. Issuing bonds for the balance of the funds needed would cause Augusta to have an annual debt service payment of approximately $1.9 Million. Current SPLOST funds could be used to fund debt service until the next SPLOST referendum is approved. Alternatives:1. Affirm the use of fund balance to complete plan 2d with the remaining funding to complete the building to come from the next SPLOST referendum. 2. Approve issuance of bonds for the complete renovation of the municipal building and auxiliary buildings and the construction of an IT Building on this campus. 3. Delay renovation of municipal building until the next SPLOST referendum has passed and funds are available. Recommendation:Approve the issuance of bonds for the complete renovation of the municipal building and auxiliary buildings and the construction of an IT building on this campus. Funds are Available in the Following Accounts: Fund balance Funds 323, 324 and 325 or Issuance of bonds REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 6