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HomeMy WebLinkAboutAUGUSTA REDEVELOPMENT PLAN TAX ALLOCATION DISTRICT 1 I I I I I I I I I I I I I I I I I I I ~4 ;J()O 3 c; Augusta Redevelopment Plan and Tax Allocation District #1 Richmond County, Georgia Prepared for the Government of of Augusta-Richmond County By McKenna Long & Aldridge LLP and PB&R Writing August 2008 I I I I I I I I I I I I I I I I I I I -zr- !(e~ Augusta Redevelopment Plan and Tax Allocation District #1 ...; Contents Executive Summary ............................................................................ 2 What is a Tax Allocation District? .........................................................2 Grounds for Exercise of Redevelopment Powers in Augusta TAD #1.......4 Voters Support the Redevelopment of Augusta TAD #1.........................4 Augusta Redevelopment Plan and Tax Allocation District #1......... 8 Introduction........................................................................................ 8 Geographic Boundaries* ...................................................................... 8 The Redevelopment Area in Profile ......................................................8 What is a Tax Allocation District? .........................................................9 The Proposal.... ..... ... .... ... ..... ..... ........ ............... .... ... ....... ....... ......... .... 18 Grounds for Exercise of Redevelopment Powers* ................................18 The Augusta Redevelopment Area Qualifies as a TAD.......................... 19 Challenges to Redevelopment...................................................... 20 Market Conditions................................................. ........................ 22 Community Vision for the Redevelopment Area............................. 25 Redevelopment Plan Vision and Goals ............................................ 26 Proposed Land Uses After Redevelopment* ................................... 27 Proposed Redevelopment Projects* ............................................... 27 Additional Improvement Initiatives..... ............... ........................ ......... 33 Historic Properties within TAD Boundaries* ................................... 34 Zoning &. Land Use Compatibility* ..................................................35 Relocation Plans* ... .............. ......... ....... ..... ..... ..................... .... ... ...... 38 Method of Financing I Proposed Public Investments* .................. 38 Contractual Relationships* ..............................................................41 Assessed Valuation of Redevelopment Area * ................................. 41 Tax Allocation Increment Base Value* ...........................................42 Property Taxes for Computing Tax Allocation Increments* .......... 44 Creation &. Termination Dates for TAD* .......................................... 46 Tax Allocation Bond Issues* ............................................................46 Amount of Bond Issue....................................................................... 46 Term of the Bond Issue or Issues ......................................................46 Rate of Bond Issue............................................................................ 46 Positive Tax Allocation Increments ..................................................... 46 Property to be Pledged for Payment of the Bonds ...............................46 Appendices ........................ ....... ..... ............ ............. .......... ................. 47 * Information required per the "Redevelopment Powers Law" found in the Official Code of Georgia, Chaoter 36. Title 44. Cover Photo: waltbud on Google Earth and at www.panoramio.com/photo/5695331 Another Tool Helping to Build One Augusta Page 1 I I I I I I I I I I I I I I I I I I I ,~ - . Augusta Redevelopment Plan and Tax Allocation District #1 ~ ''As our economic development and job creation efforts have propelled this community forward, so too has our renewed and strengthened commitment to community redevelopment as we have now dedicated the necessary resources to ensure that the needs of the lowest income areas of our city will go unmet no longer. H Mayor Deke Copenhaver, 2008 State of the City address, February 7, 2008 Executive Summary The Redevelopment Area Defined Augusta's geography and history have guided its physical development. The importance of both are mirrored in the finely constructed classical office and industrial buildings that remain intact - if deteriorating - downtown near the Savannah River. As Augusta's early economic, cultural and political influence grew, the center of the city grew farther away from the river and deeper into Richmond County. The post-war boom fueled suburban growth and land use patterns that mirror those found in every major U.S. city, as do the issues these patterns have created. More than half-a-million people now live, work and enjoy an enviable quality of life in Augusta and Richmond County. Recent improvements and redevelopments promise to attract more residents and businesses to this regional powerhouse. However, Augusta's downtown and a number of its older outlying neighborhoods are not attracting development and other economic activity at the same healthy rate. In fact, there are communities targeted for redevelopment in which population and economic investment continue to decline. Key departments within the Augusta-Richmond County government have been working in concert with a number of influential and committed business and civic associations to create planning documents and strategic economic development incentives that can be used to reverse this decline. The overall vision is to set the stage for a built environment that generates the finest examples of investment in and uses of new construction while the city's historic structures are maintained and improved via preservation and adaptive reuse. Stabilizing the physical community, developing more open space and parks, attracting mixed-use development and improving mobility, access and linkages - whether via pedestrian or bikeways, waterways or roads - have been identified as important redevelopment components within these areas. In support of this effort, the Augusta-Richmond County government proposes the creation of the Augusta Redevelopment Plan and Tax Allocation District #1. What is a Tax Allocation District? Over the last few decades, federal and state support for local infrastructure projects has declined. In response, local governments have found a way to invest in infrastructure and other necessary public improvements with a public finance tool called "tax increment financing," which is known as a "tax allocation district" in Georgia. Another Tool Helping to Build One Augusta Page 2 I II I -r;- ,~~ Augusta Redevelopment Plan and Tax Allocation District #1 .... I Nationally, tax increment financing is the most popular form of public finance for economic development projects, according to the Council of Development Finance Agencies. Local governments - cities and counties - have successfully used tax increment financing in some form in all 50 states, including Georgia, to support public infrastructure improvements necessary to encourage private investment. I I 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 public 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. I I I In Georgia, tax allocation districts are established by local governments to stimulate major new construction, renovations or rehabilitation in areas that suffer economically as a result of conditions that may contain: · Substantially underutilized properties I · 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 I · Incompatible land uses · Environmental, topographical or similar challenges to redevelopment I · Substandard, deteriorated, obsolete or otherwise distressed properties, all of which are considered blighted conditions I A TAD 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 I I Why a TAD in Augusta? I A tax allocation district designation is proposed Augusta Redevelopment Area, which includes a portion of West Augusta, all of Downtown and Old City Augusta, and portions of South Augusta. This TAD will enhance the private development community's perception of the City's desire to generate economic development activity in easily accessible areas. I I When the TAD is implemented, the redevelopment area is projected to attract significant private investment in the short term that will enable Augusta to meet many of its long-term economic development goals. The area's redevelopment into a mix of uses will refocus market attention to targeted areas of the county by offering a better mix of retail, dining, entertainment, residential, commercial and recreational development. Economic growth will I Another Tool Helping to Build One Augusta Page 3 I I I c ~ i Augusta Redevelopment Plan and Tax Allocation District #1 ....,. I flow into and around formerly neglected and underserved communities that will be redeveloped as a result of the investment of a tax allocation district. I A TAD would bring Augusta additional economic advantages as well. other Georgia tax allocation districts - redevelopment areas like Atlantic Station (Midtown Atlanta) and Camp Creek Marketplace (East Point) - share redevelopment and investment traits found in other U.S. cities that support tax increment financing, such as: · A stronger economic base. Private development that would not have occurred without the TAD designation often follows this incentive. Several Georgia TADs have generated strong redevelopment activity in areas surrounding the TAD as well as within the tax allocation districts. I I I · Promoting effective redevelopment without tapping into existing general governmental revenues or levying special assessments on property owners. · Successfully attracting private development and new industry, creating more jobs and, ultimately, expanding an area's tax base. I I Municipalities and counties that support TADs make their communities more attractive for residential and commercial redevelopment when measured against the many competitive advantages found in surrounding states and localities that offer cash or other incentives for economic development. I Georgia's TADs have been shown to bring investment to areas that would not otherwise see it, resulting in greater long-term economic benefits to those local governments as well as the areas in which TADs are formed. I 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 9 36-44-1, et seq.) I Voters Support the Redevelopment of Augusta's First TAD I The General Assembly authorized Augusta-Richmond County to exercise redevelopment powers subject to voter approval as provided by 2006 Ga. Laws, p. 4507. The citizens of Augusta- Richmond County have formally approved the use of TADs locally. In November 2006, voters gave the consolidated Augusta-Richmond County government the authority to exercise all redevelopment and other powers authorized or granted municipalities pursuant to the Redevelopment Powers Law. I I To create a TAD, the local government must adopt legislation finding that the area meets the definition of "redevelopment area" under state law. The law now defines "redevelopment area" as "blighted, substandard, deteriorated and distressed areas" that "contribute to or cause unemployment, limit the tax resources of counties and municipalities while creating a greater demand for governmental services." (OCGA 36-44-2) Other characteristics may include poorly planned, low-density development, inadequate infrastructure that "substantially impairs or arrests the sound growth of the community, retards the provision of housing accommodations or employment opportunities; or constitutes an economic or social liability." These conditions may include: · the predominance of defective or inadequate roadways I I I Another Tool Helping to Build One Augusta Page 4 I I I ~ ~~ .... Augusta Redevelopment Plan and Tax Allocation District #1 I I . faulty lot layout in relation to size, adequacy, accessibility, or usefulness; unsanitary or unsafe conditions · deterioration of former site or other improvements . the diversity of ownership, tax, or special assessment delinquency exceeding the fair value of the land or unusual conditions of title which prevent or encumber the property . conditions which endanger life or property by fire and other causes The proposed Augusta Tax Allocation District #1 qualifies as a Redevelopment Area under this statute. I I Augusta Redevelopment Area Qualifies as a TAD I The property within the proposed Augusta Redevelopment Area has not attracted significant private investment for office, industrial, residential, retail or other commercial or recreational uses for the very reasons it qualifies for the proposed TAD. This area, which covers more than 7,000 acres - much of it within the urban core of the county - holds a substantial number of underutilized properties with aged, deteriorating, poorly maintained and low-value structures; vacant and/or underutilized properties; poorly sited surface parking and other low-end uses that are less desirable now than if redeveloped; obsolete housing and commercial buildings; defective, obsolete and inadequate street layout; aging and poorly designed transportation infrastructure; and obtrusive utilities that are obstacles to redevelopment. I I I Additionally, within each of the five redevelopment nodes that form the proposed Tax Allocation District are a number of unique conditions that have long served as barriers to private redevelopment. I I Property Values Grow Slower and Plummet Faster Inside the Augusta Redevelopment Area & TAD #1 I 8% .::- 6% .. Q) Co III 4% 0_ .. c:: 0. Q) 2% .5 E ~Richrrond County Q) III C)1Il 0% ___TAD Parcels c:: Q) III III .s:. III 2005-2006 (.)<C -2% - >< !!l~ -4% c:: c:: <C -6% -8% I I I I Source: Augusta-Richmond Count Board of Assessors and Georgia Dept. of Revenue I Another Tool Helping to Build One Augusta Page 5 I I I I I I I c ~ '/J .... Augusta Redevelopment Plan and Tax Allocation District #1 Proposed Private Redevelopment Projects and Investment Private redevelopment projects that are planned, under construction or have been announced for parcels within the redevelopment area are projected to add more than $500 million to the current market value of the proposed Augusta Redevelopment Area and TAD #1. Of this amount, $503,200,000 qualifies to be used to calculate the Augusta TAD increment. NOTE: All redevelopment projects planned and underway as of the date of this report, August 2008, are located in Urban Services District (Tax District #1). Projects Planned and Underway Development Watermark Hotel at the Commons Sibley Mill Sutherland Mill JB White's & Doris Bldgs. - condos JB White's & Doris Bldgs. - retail/office Village at Riverwatch Bass Pro Shops= $25 million/ not included in this total TOTAL I I I I I I I I I I I I I Proposed Public Projects Value at Completion $ 200,000,000 $ 50,000,000 $ 103,200,000 $ 7,000,000 $ 10,000,000 $ 8,000,000 $ 125,000,000 $ 503,200,000 Significant private redevelopment investment will help Augusta-Richmond County support an ambitious work program of more than a dozen major targeted improvements and private nonprofit projects that are planned or underway within the proposed TAD. The list includes street extensions and park expansions and improvements, streetscaping and improvements to the downtown canal and parkways. Major potential new facility investments include a baseball stadium, trade center, judicial center, a multi-million dollar community and nonprofit center, a public safety administration and training facility, expansion of the medical center, and redevelopment of residences in the Laney- Walker/Bethlehem and Underwood Homes communities. TAD proceeds may be used to supplement funding by public and private sources for public improvements that spur private redevelopment activity. As estimated in this redevelopment plan, the amount of TAD support may range from $19.6 million to $80.9 million. Public investment at this level promises a return on investment in the form of private development ranging from six to 25 times the initial public investment - and higher taxable property values at the end of the day. The transforming power of a TAD often unlocks the development potential of surrounding areas along with that potential within the redevelopment area. This result, often referred to as the "halo effect," can have a significant impact on revenue collections in Augusta-Richmond County. Zoning and Land Use are Compatible with Community Vision Another Tool Helping to Build One Augusta Page 6 - I I ...-,r- ,11 .,.., Augusta Redevelopment Plan and Tax Allocation District #1 I 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 that include the Augusta-Richmond County Comprehensive Development Plan, the Community Assessment created for the 2008 CDP update and other public documents as referenced elsewhere in this redevelopment plan. I I How can a TAD help fund the redevelopment of the Augusta Redevelopment Area? I A TAD as created by Augusta-Richmond County will offer the consolidated government another way to finance significant redevelopment improvements within the TAD boundaries. As taxable property is developed and therefore improved, any property tax revenue increase above the 2008 base value that is collected within the TAD is deposited into a special fund to pay for redevelopment costs within the TAD. I 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. I Why is the TAD a good policy decision for Augusta-Richmond County? I Using TAD financing to fund infrastructure construction will enable Augusta-Richmond County to leverage from between $3.2 million to more than $7.2 million in positive property tax increments - depending on whether the Richmond County Board of Education contributes - to provide the infrastructure necessary to support more than $503 million in private sector investment in the TAD without tapping into current tax revenues and without adding new taxes. I I This investment will generate many new jobs and new sales tax revenues. It will increase income opportunities for local residents and raise sales revenues for area businesses. The redevelopment will provide Augusta-Richmond County a positive mix of new living, office, shopping, entertainment, public use and recreational facilities on properties within the TAD that are currently underdeveloped. Property values in the surrounding areas are also expected to increase, further enhancing the property tax base for the Consolidated County and the local Board of Education. I I I Approval of the Augusta Redevelopment Plan and Tax Allocation District is a good economic development decision and a good policy decision for Augusta-Richmond County. I I I I Another Tool Helping to Build One Augusta Page 7 I I I I I I I c. -r- -I.. Augusta Redevelopment Plan and Tax Allocation District #1 .~ Augusta Redevelopment Plan and Tax Allocation District #1 The ability to use the Redevelopment Powers act will be a powerful tool for our community to spur redevelopment of our city. Augusta Metro Chamber of Commerce www.augustagausa.com/newsletter/oct2006/TAD.shtml Introduction I I I I I I I I I I I I I The proposal to create Augusta's first Tax Allocation District follows decades of planning to attract private investment into some of the most historically rich - yet economically marginal - urban and older suburban communities in Augusta-Richmond County. Consent to the creation of a tax allocation district within the area proposed will mark another important action towards improving the quality of life and ensuring economic benefits for all residents of Augusta and Richmond County. Geographic Boundaries* The proposed Augusta Redevelopment Area and Tax Allocation District #1 lies within an area generally described as stretching approximately 13 miles from an interstate interchange in the northwest corner of the city to Diamond Lakes Regional Park in south Augusta. This area includes the Augusta Canal National Heritage Area, downtown Augusta, several older city neighborhoods, a large medical/educational complex, suburban-style commercial corridors, a vacant regional shopping mall, potential infill development sites and aging suburban subdivisions and strip commercial centers. For a map of the proposed district, see Appendix A. For a boundary description of the proposed redevelopment area and TAD, see Appendix B. Tax Parcel Identification numbers for properties included within the TAD are listed in a separate file titled "Appendix B - TAD parcel IDs 7-31-08," which is included with this report. The Redevelopment Area in Profile Augusta's development has been shaped by a mix of land uses that follow its history as an urban riverfront center whose growth fanned out to suburban and semi-rural areas. As described in the 2004 Comprehensive Development Plan: "Land use within the 'old' city limits includes neighborhoods of varying ages, a central business district, concentrations of public/institutional uses, commercial uses in shopping centers and on individual sites, and industrial uses on scattered sites. These uses are connected by a series of streets and highways, most of which are laid out on a grid pattern. In many cases, residential, commercial and industrial uses are in close proximity to one another, reflecting development that occurred prior to enactment of the local zoning ordinance. " Another Tool Helping to Build One Augusta Page 8 I I -r- :) " -'" Augusta Redevelopment Plan and Tax Allocation District #1 I In contrast, it describes the portion of Augusta now located in what was formerly unincorporated Richmond County as characterized by land uses that reflect post-World War II development patterns: I "Major urban land uses (residential, commercial, industrial and institutional) are separated from one another. Detached, single-family residences in subdivisions, apartment complexes, and manufactured homes are the predominant residential uses. Strip commercial development is prevalent along all of the major arterial highways and consists of shopping centers, office complexes, and businesses on individual sites. Major manufacturing plants are situated in industrial parks or on individual sites in close proximity to highways and railroad lines. At the fringe of the urbanized part of the city, development becomes sparse and gives way to more open space, some farms, residences on larger lots, and woodlands." I I I As Augusta's population followed housing, commercial and retail development away from its central core, it left several areas in a state of distress. These areas and others farther out are suffering the downside consequences of single-use development and have been unable to attract new investment. If left in their current state, they promise no near-term economic growth and, in fact, may demand greater public spending on public works and public safety. I The Augusta-Richmond County government, dedicated housing and community nonprofits, and leading business groups like Augusta Tomorrow recognize that Augusta's future redevelopment must include linkages to the best examples of its historic, architectural past - with twenty-first century improvements. They are working to attract redevelopment to core areas of the city, like Downtown and Old City, and to struggling older suburban areas that long ago lost their attractiveness and sustainability, like the Regency Mall site. In support of this work, the Augusta-Richmond County government proposes the creation of a tax allocation district. I I I What is a Tax Allocation District? A Tax Allocation District, also known as tax increment financing or "TIF district," is simply a public finance tool used by local governments to attract private redevelopment to substandard, deteriorated, distressed, obsolete, defective or otherwise blighted property. Created in response to the many challenging conditions that face local governments attempting to revitalize such areas, TADs are often the best choice among the selection of public financing options available. n I I Nationally, tax increment financing is the most popular form of public finance for economic development projects, according to the Council of Development Finance Agencies. I A Tax Allocation District finances public and other strategic improvements within the TAD that attract private investment. As investment occurs and property values within the TAD begin to rise, any property tax revenues that are generated above the TAD's original certified property tax revenue base, called the TAD increment, are used to pay for these public improvements. I How a TAD Works I "Tax increment financing captures the future tax benefits of real estate improvements to pay the present cost of those improvements. " - Council of Development Finance Agencies I I Another Tool Helping to Build One Augusta Page 9 I I I '--' .....,..- ~ Augusta Redevelopment Plan and Tax Allocation District #1 .,.". I Tax allocation districts use the increased property tax generated by new development to finance capital and other costs related to the redevelopment such as public infrastructure, land acquisition, relocation, demolition, utilities, debt service, and planning. I The full array of improvement costs a TAD may support includes I · 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 . Parking structures . Environmental remediation . Historic preservation and remediation I I How a TAD Works I 1st Step - Local Government Creates a Tax Allocation District Local Government Pledges to Fund Public Improvements within TAD, TAD Attracts Private Investment I I I ~ I I Redeveloped TAD Generates Jobs, Housing, New Sales and Other Tax and Economic Development Benefits, Higher Property Values Bring Additional Revenues into Local Government Local Government Captures Increase in Property Tax Revenues to Pay for TAD Improvements While Base Revenues Continue to Fund General Budget As Private Development and Public Improvements Are Built, Property Values Begin to Rise I I I I I Another Tool Helping to Build One Augusta Page 10 I I I -r;;- '1ot! Augusta Redevelopment Plan and Tax Allocation District #1 ... I 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 like schools and community centers. A TAD does not create a new tax or tax rate increase for a community. Tax increment financing (a TAD) is not subsidized by taxes from other areas; it is a self-sufficient financing tool funded by increased property values and corresponding increases in tax revenues from new development within the district. I I I In other words, 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 to repay TAD bonds. A TAD provides a community with a financing mechanism for public investments that will attract private redevelopment. I I Tax allocation districts are a great deal for everyone, because a developer might not normally risk building in a run-down part of town. ... After the development is built, the value of property around the TAD project is increased. - Neely Young, "Tools for Revitalization," Georgia Trend, June 2008 I Georgia TAOs Deliver on Their Promise I Many Georgia governments have used TADs to encourage redevelopment in areas that for many well- documented reasons have not been able to compete against other development sites. I In less than a decade, Georgia's TADs have: I · Produced than $900 million in new taxable digest value · Created thousands of jobs · Raised property values within redevelopment areas by more than 14 percent per year, on average I As of March 2007 there were 27 Tax Allocation Districts in place in Georgia with 17 outside the City of Atlanta, according to a study conducted in 2007 by the Livable Communities Coalition. These TADs encompassed more than 18,700 acres and nearly $1.9 billion in base property tax value the years they were created. I The redevelopment plans used to create these TADs forecast substantial positive economic impacts on their host communities. Statewide as of 2007, a total public investment of $3 billion - created and invested within the TADs - was being used to 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 - for the governments that approved the TADs - upon the completion of all projects as planned. I As reported by the same study, the total combined tax digest within Georgia TADs (at 40% of the appraised value) had increase by almost $908 million from 1998 to 2007, rising at an annual compounded rate of 14.7 percent per year - well above the overall rate of digest growth in their host communities. For those tax allocation districts that have been fully implemented, the annual rate of tax digest growth increased more than 300 percent, approximately, following their TAD certification. I I I Another Tool Helping to Build One Augusta Page 11 I I I C"" ~~~) J Augusta Redevelopment Plan and Tax Allocation District #1 I TAD Impacts on the City of Atlanta, 2007 I I As the City's redevelopment agent, ADA has managed six TAD bond issues totaling $410 million since 2001. The underlying 24 projects leveraged private direct investment in excess of $2.8 billion and resulted in: · 2 million square feet of office space · 2.2 million square feet of retail and entertainment space · 8,000 residential units (23% affordable) · 3,300 estimated construction jobs · 680 hotel rooms · Redevelopment of three historic properties · First new Auburn Avenue development in 30 years · Redevelopment of former AHA housing project · Establishing a Public Purpose fund for the Westside TAD I I Source: Atlanta Development Authority, TAD report posted online, Year-end 2007 I When is a TAD the Best Choice to Finance Redevelopment? I When compared against other areas in a city or county, the proposed Redevelopment Area is consistently found to be underdeveloped, underutilized and often abandoned. Many of the structures within a TAD are run down and poorly maintained. Others have deteriorated or consistently fail to meet code. Buildings and roads or other infrastructure are obsolete, outdated and underperforming. Utilities are not capable of supporting future development. I I Redevelopment Areas that DO NOT Implement their TAOs Continue to Underperform Their Respective Taxing Jurisdictions 30.0% I I . Ql c 25.0% OlO c ._ Ill" ..c:: III 20.0% 0.2 - Ql .- m 1: III Ql 15.0% mO >cO Illc( 1-1- 10.0% n; Ql :J U C .= 5.0% ~cn I I 0.0% S) c;, '" ~ .~~ ~ ~ .,;:.($ -,g j.,'< ~ c:,~ ~o ~.::.. & ~ 6~ *Indicates the average annual % increase (compounded) in total tax digest within each TAD from certification through 2006, compared to the annual percentage growth in citywide digest. Data Source: Livable Communities Coalition, Survey and Analysis of Tax Allocation Districts in Georgia, 2007 S) !/)o "'~ ~t !/)o ~ -;S:;~ ~c:; 4' .~o CJ ",,p ~~.::.. <::>" cP "" ~ ....0'" *-Ilf ~. <::>0 *-0<::0 I I I Another Tool Helping to Build One Augusta Page 12 I I I c.' - ~~ Augusta Redevelopment Plan and Tax Allocation District #1 .... I I Existing land uses are incompatible with the community's vision and have often impeded redevelopment. Often, demographics in the area fall into the lower quartiles for income, education, employment and housing, and public service needs are high. Environmental remediation may be required. These areas have not attracted private investment on their own, nor are they expected to do so in the future. I TADs are created to eliminate these and other adverse or blighted conditions that impair growth and damage the economic viability of an area. A TAD improves the prevailing character of these areas by reversing or arresting the factors that prevent its redevelopment. I I Georgia communities have created TADs to: · Encourage commercial development in largely undeveloped or under-developed commercial locations · Develop new town centers, redeveloping downtowns or revitalizing areas · Replace existing, lower-valued development with new urbanist and mixed-use projects · Replace aging shopping centers, apartment complexes and free-standing commercial and residential properties with more desirable and efficient uses I Because TAD-directed revenues are restricted to only 10 percent or less of a government's total property tax digest, cities and counties that create TADs do so only when and where the need is greatest: where redevelopment would not otherwise occur. I TAD or No TAD I Some critics have suggested that TADs are used to redevelop an area just ahead of naturally occurring growth. A recent survey of existing TADs shows that where TAD implementation was delayed, the tax digests within the TADs grew at a slower rate than the rest of the total tax digests for their cities and counties. I I "These trends suggest that the initial fiscal justification for forming these districts was probably valid, and that those TADs that have outperformed their host communities would not have done so without public sector action in initiating and implementing redevelopment projects." I I Uvable Communities Coalition, Survey and Analysis of Tax Allocation Districts in Georgia, 2007 Governments GAIN New Tax Revenues with TAOs I Critics of TADs commonly accuse local governments of "losing" or "giving up" tax revenue. The fact is, tax allocation districts have been proven to generate significantly more in local revenues than their redevelopment areas would have had the city or county done nothing. I Setting aside the City of Atlanta's success with TADs - and its latest population count of over a half-a- million for the first time in its history - three communities outside of Atlanta that have issued TAD bonds also serve as examples of how this tool benefits communities. The diagram that follows shows how their tax revenues are projected to increase. New revenues are gained, rather than lost, to local governments that approve a well-planned TAD. The impact of successful redevelopment can be so great that additional revenues are created ahead of the TAD's end date - revenues that can be directed back into general operations, among other uses. I I Another Tool Helping to Build One Augusta Page 13 I I I ~ Augusta Redevelopment Plan and Tax Allocation District #1 ... I The Revenue Impact of TAOs on Three Georgia Cities I I A I Marietta. East Point & Acworth T ADs issue TAD bonds valued at $36,400,000 I Bonds support private investment est. at $527,000,000 I Private Investment creates additional tax digest value of $219,000,000 I I Higher Tax Digest raises new tax revenues every year est. at $7,000,000 I New Revenues leave an annual surplus after paying debt service on bonds of $3,600,000, which can go to the taxing jurisdictions even while the bonds are being paid off I I Source: Livable Communities Coalition, "Survey and Analysis of Tax AI/ocation Districts, 2007 I Calling for a Better Understanding of this Popular Finance Tool I Some critics have stated that TADs are a form of "corporate welfare." That is a myth. TAD proceeds are managed and monitored by development authorities andlor local officials within the jurisdictions that create the TADs. Any payments that go to a developer on a reimbursement basis may be used to finance the development of public infrastructure supporting the development. I "Economic factors tend to discourage misuse of TAOs. Local governments won't authorize TAOs in areas that are thriving because the additional development wouldn't have as much impact on tax revenue. ''If it's an area that doesn't need a TAD, the math is not going to work. The market takes care of it. ", - Sen. Curt Thompson, Norcross, as quoted by Dave Williams in the Atlanta Business Chronicle, "Gwinnett to vote on TADs for unincorporated areas," 7-11-2008 I I Another Tool Helping to Build One Augusta Page 14 I . I I c Augusta Redevelopment Plan and Tax Allocation District #1 I Taxpayer Responsibilities Inside the TAD Boundaries I Unlike Enterprise Zones or other tax abatement programs, private property owners in a Tax Allocation District pay their full share of property taxes every year. They pay the full millage on their property's real assessed value, just as those who live outside the TAD do. I EXAMPLE- Kim lives outside of a TAD in an 1,800 sq. ft. townhome with a Fair Market Value (FMV) of $200,000 and an assessed value of $80,000 (40% of FMV). She pays $16.21 in city and county taxes for every $1,000 of the assessed value of her home. I I James lives in the same city in a TAD that was approved to be effective in the following year. He also lives in an 1,800 sq. ft. townhome with a FMV of $200,000 and an assessed value of $80,000, and he pays $16.21 for very $1,000 in assessed value. I Kim and James both pay $1,296.80 in city and county taxes, all of which is used by the city and county. The following year, city and county tax rates stay the same, but the value of both Kim's and James' homes has increased from $200,000 FMV to $210,000 FMV and tax bills have increased from $1,296.80 to $1,361.64 - a difference of $64.84. I Where doT AD Property Taxes Go? I If) Q) >< cu I- >- 1:: Q) c. e D.. $1,400 $1,200 $1,000 $800 $600 $400 $200 $- ~.: ~ :':..- ,0',' .'.:.....:. ';'.:: ';':':;':_:,:::.:.:.:.:.:::.' :::.:--:::: .::,',::. ',:':",: .' ~ ':', . '::', :',: '!ii:. S;:. ~~. (\I: .~. :~~ ,0.' 0.'. I I :..?..:: .:.... ,'....... :":';", :::',":::" .::,',::. ........ I '" .p '" '?-<::) ':,.&0 ~0<' '\)0 ~ 'b' 0~ 4,0'b' ~~:~ ~~ ",.p ",.p o ~ ':,.0'" ~ '\)0 ~ 'b' 0~ 4,0 10 ~ 0'? ~'b-~0 ~'b-~ . TAD bonds or payments o Oty/County General Fund I I Although Kim and James pay exactly the same amount, the difference is where their property taxes go. While property taxes outside of TADs are directed into a city and county's general fund, the revenues generated in a TAD are directed two ways: one portion - the original or "base" portion - goes into the general budget and continues to fund city and county services, and the remainder helps finance the TAD. I I In other words, persons and businesses within a TAD pay for city and county services AND for the capital improvements that made the revitalized neighborhood possible, while those who live outside the TAD pay only for the city and county services - NOT for TAD improvements. I Another Tool Helping to Build One Augusta Page 15 I I I -r:-- .i. ,J Augusta Redevelopment Plan and Tax Allocation District #1 I I Of the new tax bill of $1,361.64, all of Kim's taxes go to the city and the county. For James, all of the taxes that he paid in the year prior to the TAD ($1,296.80) continue to go to the city and the county. Only the increment of $64.84 goes to pay for the TAD improvements. I When Redevelopment Occurs, Where Do Revenues Generated within the TAD Go? I I I I I I ~ $3,500,000 I- 0) $3,000,000 .c - $2,500,000 .5 111 $2,000,000 0) ~ $1,500,000 I- ~ $1,000,000 0) $500,000 Co ~ $- c. I Base Year Year 5 Year10 Year15 Year20 Year25 Year30 Year 31 lEI Share to pay Redevelopment Costs E!I City, County and School Share Year 32 and beyond NOTE: Most TADs are designed to end before 30 years, and TAD financing can be paid off even earlier, as represented by the change in shading after years 20 and 25. These tax proceeds are returned to local governments. The 30-year final maturity of TAD financings is generally based on underlying values that experience no inflation. Typically, a 3-4 percent rate of inflation will retire bonds in about 15 years, with all increment thereafter reverting to the taxing authorities. I I When there is no significant improvement in a distressed area, and no TAD or other incentive is targeted at its revitalization, property and other tax revenues generally follow their historic trend or decline. Often the area shows no significant improvement or potential to generate new revenue. I I I I I Another Tool Helping to Build One Augusta Page 16 I I ~.!'f Augusta Redevelopment Plan and Tax Allocation District #1 ".# I Redevelopment Goes Elsewhere if TAD Is Not Approved I I $3,500,000 $3,000,000 ~ $2,500,000 III ~ $2,000,000 c:: ~ $1,500,000 a: ~ $1,000,000 I- $500,000 $- I I >;<;/';"/'%0/ /~? <' ~./>;.(.->///@/>>.()>(tmiV/<//<'<>> ">>'Y,'~';.Y?a:h-;;H: "y./,:////~///., //:>/)1 ':/;7~Z/..y<~~ y' /'.%, ".., '. ".--y>~.. aa6/v/z.:; m :y.~//y ~>-y%,..y~...~ ~,/ /~"'~/p"'/ .., i/.5:.</'" /y'" r/./~ '. ../y' ,,'y,,/y// //.-- ,,/ /. Y " . % / /:%;" U." /,/. /, / < JiL", .m",.0, A '/L:>>->7", .j/ Base Year Year 5 Year 10 Year 15 Year 20 Year 25 Year 30 I I!lI City, County & School Share Vear31 Year 32 and beyond A Final Word about TAOs in Georgia I TADs that have been fully implemented in Georgia are proving successful as a public financing tool. Atlantic Station, Camp Creek Marketplace and the former Avondale Mall site are a few of the better-known TADs, but several redevelopment areas are showing significant economic gains. Several more will seek approval for new TADs before the year is out. I Almost every city and county contains areas that, for one reason or another, will not be the first or best place for private investment. These areas - and their ability to attract new investment that generates new revenues, new jobs and economic vibrancy - will not improve unless they offer creative, strategic solutions to the formidable redevelopment challenges they face today. I I Areas that apply for TADs have suffered decades of neglect as the market and developers moved their dollars farther and farther away. Taxpayers often pick up more of the additional costs for public safety, public works, social services and other needs generated within these areas. Georgia lawmakers who understood that there are many valid reasons to implement TADs have amended the Redevelopment Powers Law as needed to allow cities and counties to better address their redevelopment needs. I Local officials and civic leaders who decide they need a tax allocation district do so only after carefully evaluating this tool in relation to other redevelopment tools available. Those involved in putting a TAD together know something about the rising costs of public infrastructure, successful economic development incentives and the advantages of public-private partnerships. They understand the tactical importance of TAD financing, and will not stand idly by as competing cities, counties and states generate an ROI that can produce double and triple-digit returns within their TADs. I I Governments work to create tax allocation districts when their citizens have told them that their focus on the redevelopment area is exactly where it should be. Citizen vision, mission and goals for the redevelopment area must be stated in every TAD redevelopment plan. And the government retains control of the use of TAD revenues. I "Local developer George Rohrig plans to add restaurants/ shops/ offices and possibly live theater to a rapidly gentrifying stretch of Edgewood A venue in Atlanta's Old Fourth Ward neighborhood. ... I I Another Tool Helping to Build One Augusta Page 17 I I I c -v- ~ ...J Augusta Redevelopment Plan and Tax Allocation District #1 I I I "The status of the project may hinge on whether Rohrig is able to receive tax subsidies from the city to defray the estimated $9 million cost of building a 600- space parking deck. The property sits in Atlanta's Eastside Tax Allocation District, or TAD, a special zone set up by the city to spur economic development. Rohrig said he won't be able to make the numbers work without TAD money... "Officials with the Atlanta Development Authority, which oversees the city's TADs, said they don't plan on taking applications from projects in the Eastside TAD this calendar year. "The Edgewood area, once filled with industrial facilities, is changing fast, with trendy lofts, restaurants and boutiques sharing space with aging auto shops and warehouses. " - Paul Donsky, "Retail, restaurants for Old Fourth Ward," Atlanta Journal-Constitution, 6-22-2008 I I I I Local governments create tax allocation districts to generate growth, and they also continue to manage that growth. A TAD merely ensures that the proposed redevelopment area is better outfitted and able to compete in the race to attract private investment. The Proposal I I The Augusta Tax Allocation District #1 will foster the public-private partnerships necessary to provide for major infrastructure and other public improvements that make redevelopment investment possible in many significant, if declining, areas in Augusta. It will help promote a mix of land uses that promotes sustainable growth while protecting the area's established residential areas and natural resources. I As established in this redevelopment plan, the Augusta Tax Allocation District will stimulate redevelopment and significant economic growth throughout Augusta by making it economically viable for others to revitalize portions of West Augusta, Downtown, Old City and South Augusta and improve their connections to adjacent neighborhoods - old and new. I I I Grounds for Exercise of Redevelopment Powers* 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) adopted by the Georgia General Assembly in 1985. To create a TAD, the local government must adopt legislation finding that the area meets the definition of "redevelopment area" under the state law. Originally, the law defined "redevelopment area" narrowly to include only blighted, substandard, deteriorated and distressed areas: "[T]hese areas contribute to or cause unemployment, limit the tax resources of counties and municipalities while creating a greater demand for governmental services." (36-44-2) I However, in 2001 the General Assembly expanded the definition of redevelopment area considerably, recognizing that many areas in need of TAD redevelopment assistance aren't slums but have poorly planned, low-density development and inadequate infrastructure. House Bill 409 (2001) and subsequent amendments to the Redevelopment Powers Law have expanded the characteristics of areas eligible for designation as redevelopment areas. Georgia's TAD definition today I I Another Tool Helping to Build One Augusta Page 18 I I I ,-- :;) Augusta Redevelopment Plan and Tax Allocation District #1 I I includes several categories that dovetail with the current conditions in the proposed redevelopment area to include "Any urbanized or developed area which by reason of the presence of a predominant number of substandard, slum, deteriorated, or deteriorating structures; because of the predominance of defective or inadequate street layout inadequate parking, roadways, bridges, or public transportation facilities, ... , either at present or following proposed redevelopment; the faulty lot layout in relation to size, adequacy, accessibility, or usefulness; unsanitary or unsafe conditions; deterioration of site or other improvements; the diversity of ownership, tax, or special assessment delinquency exceeding the fair value of the land; diversity of ownership on defective or unusual conditions of title which prevent or encumber the free alienability of land; or the existence of conditions which endanger life or property by fire and other causes; or any combination of the foregoing, substantially impairs or arrests the sound growth of the community, retards the provision of housing accommodations or employment opportunities; or constitutes an economic or social liability" I I I I I Additional conditions that apply to TADS are: "Any area located within an urbanized or developed area which is substantially underutilized by containing open lots or parcels of land or by containing a substantial number of buildings or structures which are 40 years old or older;" "Any [developed] area in which the current condition of the area is less desirable than the redevelopment of area for new commercial, residential, industrial, office, or other uses, or a combination of uses, including the provision of open space or pedestrian and transit improvements." "Any urbanized or developed area that has been subject to some development but which has inadequate roadways, bridges, or public transportation or transit facilities incapable of handling the volume of traffic or passenger flow in or through the area in a safe and efficient manner either at present or following proposed redevelopment." I I I The proposed Augusta Tax Allocation District #1 qualifies as a Redevelopment Area under this statute. I I The Augusta Redevelopment Area Qualifies as a TAD 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.usjlegisj 2005_06jfulltextjhb773.htm), as approved by a majority of the voters of Augusta-Richmond County in a referendum held in 2006. I I The section that follows will show that the Augusta Redevelopment Area, as proposed, contains characteristics of decline, distress and disinvestment that meet the definition of "redevelopment area" under Georgia law. I I Another Tool Helping to Build One Augusta Page 19 I I I .. Augusta Redevelopment Plan and Tax Allocation District #1 ... I Challenges to Redevelopment I The proposed Augusta Redevelopment Area contains five interconnected redevelopment nodes that have not attracted significant private investment for office, industrial, residential, retail or other commercial or recreational uses for the very reasons the area qualifies for the proposed TAD: I · Substantial number of underutilized properties with aged, deteriorating, poorly maintained and low-value structures; I · Vacant and/or underutilized properties, poorly sited surface parking and other low-end uses that are less desirable now than if redeveloped; · Obsolete housing and commercial buildings; I · Defective, obsolete and inadequate street layout, aging and poorly designed transportation infrastructure; and I · Obtrusive utilities that are obstacles to redevelopment; I Additionally, each of the five redevelopment nodes within the proposed Tax Allocation District hosts a number of unique conditions that are constraints to redevelopment: I · Redevelopment Node 1 - West Augusta: o Defective and inadequate pedestrian and greenway connections I o Limited public transit I "[TJhe municipality is in the process of gearing up and strengthening its efforts towards administering and managing effective revitalization activities. ... The Commission has developed a specialized sub-committee '" to create streamlined policies and procedures to effectively create positive change within blighted communities. Through this effort two (2) communities have been selected (Rocky Creek/Dover Street and Bethlehem) as communities which will serve as test cases for future redevelopment activities in other communities. " - City of Augusta, 2007 Annual Action Plan (11-9-2006) I I · Redevelopment Node 2 - Downtown, Old City and East Augusta: o A levee prevents direct access from Augusta to Downtown I o Rail lines bisect Downtown and run through historic areas; I o An expressway and busy thoroughfares carrying heavy traffic volumes create psychological barriers between downtown and adjacent neighborhoods, prevent expansion o Interchange prevents easy and logical access I I Another Tool Helping to Build One Augusta Page 20 I I I Augusta Redevelopment Plan and Tax Allocation District #1 ..,. I o Numerous underutilized and abandoned commercial and residential properties and vacant storefronts cover a significant area I o Multiple ownership that serves as a barrier to assembling larger parcels for redevelopment I o Large areas of empty surface parking o Underused land is a constraint to pedestrian-oriented development I "Several inner city neighborhoods experienced problems similar to downtown. Declining population resulted in deterioration and abandonment of housing in some neighborhoods. Dilapidated housing was torn down, leaving vacant lots to sit idle and collect trash and debris. As the population declined, neighborhood businesses closed up, giving the impression that the market for private investment was weak and that the remaining residents could not support business. Industrial facilities were abandoned as manufacturing operations ceased or relocated. Investment in new public facilities was limited and general property maintenance was sporadic. The general impression was that certain neighborhoods were not safe and healthy places to live and work." - Augusta-Richmond Planning Commission - 2004 CDP I I I · Redevelopment Nodes 3, 4 and 5 - South Augusta: o The vacant 800,OOO-square-foot Regency Mall, shuttered since the early 1990s I o Presence of regional roads, the scale and design of parking and dated commercial structures separate surrounding neighborhoods from retail and each other I o Floodplain along Rocky Creek o Physical blight and the presence of many vacant storefronts I o Inadequate street layout and lighting I o Multiple ownership that serves as a barrier to assembling larger parcels for redevelopment o Lack of maintenance of buildings, infrastructure and public spaces that lead to public safety concerns I I "[S]ome of the older suburban shopping centers and "first ring" suburbs in Augusta are now experiencing some of the same problems (as the inner city). In recent years both anchor tenants and small retailers have left some of the strip shopping centers located on major highways. The result has been the blight caused by abandoned storefronts (e.g. boarded-up display windows, empty parking lots) and a decrease in services available to adjoining suburban neighborhoods. Some of these same suburban neighborhoods are experiencing a decline in resident population. These neighborhoods are experiencing the effects of an aging population and are competing for residents with newer subdivisions. - Augusta-Richmond Planning Commission - 2004 CDP I I I Another Tool Helping to Build One Augusta Page 21 I I I - ;, Augusta Redevelopment Plan and Tax Allocation District #1 "'" I Areas in Need of Redevelopment I Downtown Augusta - The Central Business District has been the focus of a significant amount of redevelopment and revitalization over the last 25 years. Now that the majority of projects from the 1982 downtown development plan are complete, a consultant is being hired to prepare a plan to include a second generation of projects. I I Inner-City Neighborhoods - Several inner-city neighborhoods have been the focus of redevelopment projects for a number of years. Public, private and non-profit entities have all played a role in redevelopment efforts. Declining population and the presence of many dilapidated structures and vacant lots are just some of the indicators that much remains to be done to improve these neighborhoods. Additional neighborhood level planning projects are underway at the present time, and the public and private sectors continue to work together on projects of mutual interest. The targeted neighborhoods include East Augusta, aide Town, May Park, Laney-Walker, Bethlehem, Turpin Hill, Harrisburg (including West End) and Sand Hills. I I I Older Suburban Shopping Centers - Several older suburban shopping centers have been successfully rehabilitated in recent years. Some are being adaptively reused as office buildings, call centers, fitness centers and churches. Others have been upgraded for continued use as commercial centers. Some remain vacant and the result has been the blight caused by abandoned storefronts (e.g. boarded-up display windows, empty parking lots) and a decrease in services available to adjoining neighborhoods. The most visible example is the vacant, 800,000 square-foot former Regency Mall located at the intersection of Deans Bridge Road and Gordon Highway. I I Source: ARC Planning Commission, 2008 Comprehensive Development Plan "Community Assessment." WW. a ug ustaga. 9 ov / d epa rtm ents/ pia nn i ng_zon i ng/ docs/ pdf / com p/Com m unity Assessm e ntCom p I ete. pdf I I Market Conditions The development challenges located within the proposed Augusta Redevelopment Area have had a deleterious effect on the property values and citizens who continue to live and work in these communities. Property Values I This area includes a large area of the Laney-Walker neighborhood, including a district which has been designated on the National Register of Historic Places. The northern and eastern ends of the project area largely consist of vacant and underutilized commercial and industrial properties. - Augusta Third Level Canal, Laney-Walker Neighborhood Charrette Report: Strategic Concepts and Recommendations, May 2006 I I Property Values within the TAD I Decline and disinvestment in one neighborhood generally produce a dramatic impact on those that surround it. The redevelopment nodes and linkages that make up the proposed Augusta Redevelopment Area and Tax Allocation District #1 cover more than 7,000 acres - nearly seven I Another Tool Helping to Build One Augusta Page 22 I I I -r.- :) Augusta Redevelopment Plan and Tax Allocation District #1 ..,; I percent of the 47,775 acres in Richmond County. TAD property values are lower and have grown at a slower rate than those throughout the rest of the county, bringing the total value - and growth rate - of the county down with them. I Property Values Grow Slower and Plummet Faster Inside the Augusta Redevelopment Area & TAD #1 I I 8% ~ 6% ... Cl) D.1Il 4% 0_ ... c a.. Cl) c E 2% ~Richrrond County .- III Cl) III ~TAD Parcels ClCl) 0% C III III III 2005-2006 ,cc:( -2% ~ >< !!~ -4% C C c:( -6% -8% I I I I Source: Augusta-Richmond Count Board of Assessors and Georgia Dept. of Revenue Residential I Cost-burdened households are defined as those households paying 30 percent or more of their income for housing. Households with less than $20,000 annual income are most likely to be cost-burdened. The data indicate that an estimated 27.8 percent of Augusta homeowners, and 43.4 percent of renters, are cost-burdened. (ARC Planning Commission, 2008 Community Assessment) There is a particularly high concentration of older, substandard housing units within some inner-city neighborhoods.... Where dilapidated units have been removed, the resulting vacant lots have become blighting influences on neighborhoods. - ARC Planning Commission, 2008 Community Assessment I I Building Conditions I The 3,500 parcels in the Laney Walker and Bethlehem neighborhoods comprise nearly 40 percent of the total parcels included in the proposed Augusta Redevelopment Area and TAD. As such, their condition is indicative of the property conditions found in many of the areas targeted for redevelopment. I A recent "windshield survey" of the housing, commercial and industrial buildings in these two neighborhoods was conducted by APD for the Laney Walker/Bethlehem Neighborhood Plan (City of Augusta Housing & Community Development Department). The survey revealed that less than half of the buildings in Laney Walker - 44 percent - and only 8 percent in Bethlehem are in good or sound condition.. More than a third of the buildings in Laney Walker and almost three-quarters of the Bethlehem buildings are in poor condition - requiring repair - dilapidated or deteriorated. I I I Another Tool Helping to Build One Augusta Page 23 I I I --r:' - J Augusta Redevelopment Plan and Tax Allocation District #1 .... I Approximately 22 percent of the buildings in Laney Walker and 87 percent in Bethlehem are vacant, for a total of 1,069 empty buildings in these two neighborhoods alone. I I Area Demographics Population Population growth in Augusta-Richmond County is not keeping pace with that of the larger metropolitan area: While these population growth trends show that the MSA has had stable growth over the last seventeen years, they also show that some counties within the MSA have been more competitive than others for that growth. While Columbia County, Georgia, Aiken County, South Carolina, and Edgefield County. South Carolina have seen tremendous growth during the period, the growth rates in Richmond County... have been modest at best. It is therefore clear that the northern portion of the region S urban core (North Augusta) is effectively competing for its fair share of the regional growth, but that the southern portion (The City of Augusta - Richmond) must further expand its efforts to compete for population growth within the region. I I I - Augusta Tomorrow & ICON Architectore, A Shared Vision: Augusta/North Augusta 2008 Master Plan I From 1990 to 2000, the last Census count, population in the four Census tracts that make up the Bethlehem and Laney Walker neighborhoods (7,9,14 and 15) declined approximately 10 percent while growing 20 percent in the Augusta MSA. More than 80 percent of these households are low- to moderate-income. (APD, Inc. for City of Augusta Housing & Community Development Department) I Household Income I Low- and low-to-moderate income households are disproportionably clustered in areas within the proposed redevelopment area. I FIGU~E 2 . CON"CENTRATION OF LOW/MOO PERSON~ 1_ -".=:-":',r'l ...... .. ~~=..~-- Logoond D(::......~:"'-.vr -~3",,>>:JG D~~m-. m~ ill!lrc:n'QC~:J'" EZ?l"' """.." I I I I I .4,}. h,..~~ -' r~~I-' 11.: ~~ I I Another Tool Helping to Build One Augusta Page 24 I I I J ~ Augusta Redevelopment Plan and Tax Allocation District #1 ... I Poverty is rising in Richmond County - poverty that is concentrated in the areas targeted for redevelopment. In 1989, the Census shows that 20.6 percent of the county's population - more than a fifth - lived in poverty. The percentage in 2005 was 22.7 percent. "The target area master plan encompasses the neighborhoods of Laney Walker, Bethlehem, Turpin Hill and a portion of Uptown, which offer opportunities for residential revitalization, public-private partnerships, and employment possibilities. The overall goal of the plan is to create a sustainable, economically diverse neighborhood that contains housing, jobs, educational and workforce development opportunities. The main components of the plan include parks and open space, new and renovated housing, canal improvements, commercial and mixed-use areas, removal of the CSX railroad tracks, a biomedical park, and street improvements. " - CRSA Regional Development Center, The Augusta Area Diversification Initiative, November 2006 I I I I Households that rely on Section 8 vouchers to provide affordable housing are also concentrated in the proposed Redevelopment Area. I 1....II(1.I(J...~.....,. :~ :r.~ Commission Districts and Section 8 Residents I>~ I'''' II' ,IV. t.,. .ft, P: f' <<: !'l: b( ~~ = ~".~ -::;. '"tt-- m ~I Tr~ ~! I I I I I Community Vision for the Redevelopment Area I In its 2008 Comprehensive Development Plan update, the Augusta-Richmond County Planning Commission has designated new "Preliminary Character Areas," specific geographic areas within the community that will serve as planning sub-areas within the city. The preliminary character areas that have been chosen I · have unique or special characteristics that are important to preserve or enhance, I · have the potential to evolve into unique areas, given proper planning and development guidance, and · require special attention due to challenging development patterns or issues. I I Another Tool Helping to Build One Augusta Page 25 I I ,:~~' ~"" ~; .... .'~!;" - , /" ,'. G.,-.: -.,,>.,q ,.,t,',., _~~a'. Augusta Redevelopment Plan and Tax Allocation District #1 I "'" I As part of its planning process, the Commission during the writing of this redevelopment plan was conducting an online survey of Augusta's citizens to determine their vision for development objectives in each of these character areas. Each area is described in greater detail in the "Zoning and Land Use Compatibility" section that follows later in this plan. I Redevelopment Plan Vision and Goals I Historic preservation and adaptive reuse, stabilizing the physical community, developing more open space and parks, attracting mixed-use development and improving mobility access and linkages - whether pedestrian or bikeways, waterways or roads - are seen as important redevelopment components for the areas proposed. I I The development objectives as described in the Planning Commission's survey offer the means to realizing the vision and goals for a vital city and county as described in the CDP and other planning documents produced by Augusta-Richmond County and the many business and civic associations that work to support healthy, balanced economic growth for the area. I Quoting from the survey, following is a baseline vision by character area for redevelopment that will draw together the entire proposed redevelopment area into one interconnected whole: I DOWNTOWN: "Downtown Augusta will continue to reflect the predominant characteristics of a historic central business district, while at the same time adapting to the changing environment around it. Underutilized parcels will be redeveloped in a manner consistent with the overall vision for downtown and with respect for existing development patterns and the historic architecture in the area. Redevelopment will include new medium- and high-density housing, additional commercial and office development, new civic and institutional facilities and shopping and entertainment facilities. Adaptive reuse of historic buildings will be a key component. " I I I OLD CITY NEIGHBORHOODS: "Maintain low-density Single-family residential development in areas where it is already the predominant land use. Infill residential development at densities compatible with the surrounding area. Site design reflects traditional neighborhood patterns and existing architectural styles. Redevelopment projects (housing and economic development) in neighborhoods targeted for such activities. Neighborhood activity centers provide a focal point for community services and location for appropriately-scaled retail establishments. SOUTH AUGUSTA: "Promote a mix of housing types at low-to-medium densities while preserving the single-family residential character that is predominant in the area. New private development should complement the existing in style, appearance and location. Public investment should strengthen existing neighborhoods and create a climate conducive to additional private investment." I I I WEST AUGUSTA: "Promote limited development of the remammg vacant tracts while preserving the single-family residential character that is predominant in the area. Commercial development will be confined to existing locations and any additional redevelopment of commercial sites will be buffered from adjoining reSidential areas. Mixed-use development will be encouraged on sites being redeveloped. " I I Augusta's citizens will further refine the vIsion for redevelopment of the proposed redevelopment area with their response to this Planning Commission survey and their participation in planning and other public forums. I Another Tool Helping to Build One Augusta Page 26 I - I I ... J Augusta Redevelopment Plan and Tax Allocation District #1 The Augusta Tax Allocation District #1 is designed to stimulate the creation of an interconnected series of economically vibrant Iive-work-play clusters with significant new private and public investments that spur material improvement in important communities that have long experienced disinvestment. These clusters are targeted for redevelopment nodes that track from West Augusta to East Augusta and Downtown/Old City to South Augusta, connected by linkages that run along improved waterways and roadways. Redevelopment policies and investment will be tailored to emphasize the strengths of each redevelopment node while introducing to each a greater variety of land uses that may include new mixes of residential, commercial, entertainment, cultural and recreational development. I Proposed Land Uses After Redevelopment* I I I I I Improved road connections, sidewalks, bike paths and greenways will better connect neighbors and businesses, transforming a number of disconnected, difficult-to-access and underdeveloped land uses into several attractive, economically re-invigorated, pedestrian-and visitor-friendly communities that will attract new residents, employers and workers to Augusta's core areas and better serve the entire county. Proposed Redevelopment Projects* Private redevelopment projects that have been announced and are planned or under construction are projected to add more than $500 million to the current market value of the proposed Augusta Redevelopment Area and TAD #1. Of is amount, $503,200,000 qualify when calculating the TAD increment. NOTE: All redevelopment projects planned and underway as of the date of this report, August 2008, are located in Urban Services District (Tax District #1). I I I Projects Planned and Underway I Development Watermark Hotel at the Commons Sibley Mill Sutherland Mill JB White's & Doris Bldgs. - condos JB White's & Doris Bldgs. - retail/ofc. Village at Riverwatch Bass Pro Shops= $25 million, not included in this total TOTAL I I I Value at Completion $ 200,000,000 $ 50,000,000 $ 103,200,000 $ 7,000,000 $ 10,000,000 $ 8,000,000 $ 125,000,000 $ 503,200,000 I Descriptions of major public and/or private projects underway or planned within the boundaries of the proposed Augusta Redevelopment Area and Tax Allocation District #1 follow. The projects are grouped within the redevelopment nodes - as indicated by number - of the TAD. I I I Another Tool Helping to Build One Augusta Page 27 I I ...,,- l Augusta Redevelopment Plan and Tax Allocation District #1 .... I West Auausta (TAD RedeveloDment Node 1 ): ProDosed Private RedeveloDment I · Village at Riverwatch - A 132-acre tract located in the northeast quadrant of the Riverwatch Parkway /1-20 interchange has been graded for a $150 million shopping center called the Village at Riverwatch. Texas-based MGHerring Group is the developer. Aside from Bass Pro Shops other potential anchor tenants include Belk, Costco and Starplex Cinema. Originally envisioned as an all- retail center, developers have been exploring non-retail uses such as hotels and offices. A revised site plan has yet to be submitted to the city, and, except for Bass Pro Shops, a timetable for implementation has yet to be revealed. Parcel #: 008-0-010-08-0; 008-0-010-10-0 Note: this second parcel is reserved for "Future Development" on the Village at Riverwatch Site Plan currently on file at the Augusta-Richmond County Planning Commission. I I I "Scheduled to open in 2009, Village at Riverwatch will feature Bass Pro Shops, specialty stores, large format retail, restaurants and hotels. Located at 1-20 and River Watch Parkway, it will fulfill the demand for unique shopping, dining and entertainment to the residents and visitors of Augusta, GA and Aiken, SC " MGHerring Group, htto://www.villaaeatriverwatch.com/home.oho I I · Bass Pro Shops - The first occupant of the Village at Riverwatch will be a Bass Pro Shops Outdoor World Retail Store. Construction of the 100,000 square-foot sports venue and tourist attraction is expected to start in the fall of 2008. The facility will create more than 250 jobs and have an investment of more than $25,000,000 when completed in the fall of 2009. Presumably going to be built on part of Parcel #: 008-0-010-08-0. I I NOTE: The Development Authority of Richmond County will assist with the development of the Bass Pro Shops Outdoor World Retail Store as a redevelopment, commercial, sporting goods and sports facility, as part of its mandate to develop and promote trade, commerce, industry and employment opportunities in its area of operation. The Development Authority will issue revenue bonds for the construction, finishing and equipping of the Bass Pro Shops facility in Augusta- Richmond County. In the exercise of its Redevelopment Powers under the Redevelopment Powers Law, the consolidated government of Augusta, Georgia, will lease the Bass Pro Shops land and building from the Development Authority for rentals sufficient to retire the revenue bonds issued by the Development Authority for such facilities. The consolidated government of Augusta, Georgia, in a further exercise of such powers will sublease the facilities to the Bass Pro Shops ownership entity, for rentals that take into account certain taxes and other amounts generated by the Bass Pro Shops Outdoor World Retail Store. I I I , \ I ... ~ I ":: '.cltW, '1. ; fl ,?~r'I' ""'1'1]'1')1'...11 -. Jl~ .. ,=m.~:! CIONS!I~ll'IJC'I'ION__ ~~ - ~ .;;"- 'ill'" ,..,,_ : >11 L I ::.. I I Another Tool Helping to Build One Augusta Page 28 I I I I I I I I I I I I I I I I I I I I c f Augusta Redevelopment Plan and Tax Allocation District #1 .... "There are a significant number of tenants were talking to that want to be in a Bass Pro Shop shopping center, " said Frank Mullins, Collett's Augusta point man. 'This brings men into the center which don't normally come in. They stay most of the day. They travel a distance. That creates the need for hotels in close proximity. It creates the need for food and other retail for family members that might not want to go to the Bass Pro. " Tim Rausch, Augusta Chronicle, April 17, 2008: httD://chronicle.auQusta.com/stories/041708/bus 195356.shtml West Auausta (TAD RedeveloDment Node 1 ): ProDosed Public Investment · Augusta Canal National Heritage Area - Design in progress for extending the Augusta Canal Multi-Use trail along the route of the former Bartram Trail. Project will create a "loop" configuration for the trail. · Riverwatch Parkway - Construct median barrier on Riverwatch Parkway from 1-20 to Jones Street in downtown Augusta, and install lighting at 1-20 / Riverwatch Parkway interchange. Project designed to improve safety and drainage. Current estimate is $12.0 million. Funding not available at present. Project is in long range. Downtown. Old City and East Auausta (TAD RedeveloDment Node 2): Pro Dosed Private RedeveloDment · Watermark - A $100 million condo-office-hotel-retail project slated for development on a 6-acre tract of riverfront land bordered by sht St., 6th St. and Reynolds Street in downtown Augusta. Overall plans call for a 62,OOO-square-foot office building, a ls0-room hotel, the Reynolds Street train depot renovated into retail space, a four-story parking garage and 100 condos priced from $350,000 to $400,000. Developers want to build the office building first, followed by the hotel. The goal is to pre-lease at least 50% of the office space before starting construction. A firm timetable has yet to be announced, though the project has been delayed until at least early 2009. Parcel #: 047-2-003-00-0 · J.B. White's Building - Project involves conversion of former department store at 936 Broad Street into condominium and commercial space. The 80,000 square-foot, 4-story main building is being renovated and the first tenant moved in late July 2008. The White Azalea restaurant and Casablanca Cafe coffee shop are scheduled to open in early August. Renovations continue on the upper floors. Horizon Group Investments out of Atlanta is the developer. When finished with the main building, work will begin on a separate, but connected sO,OOO-square-foot building on Ellis Street. The residential/commercial development scheme will be repeated in this building. A total of 80 condo units will be available in the two buildings. Parcel #s: 037-3-153-00-0, 047-1- 115-01-0 · Sibley Mill - Vacant textile mill located on the banks of the Augusta Canal in the Harrisburg neighborhood. Currently owned by Avondale Mills, but Augusta Capital, LLC anticipated closing on the purchase by the end of 2008. Concept is to turn the 516,000-square-foot mill into a mixed-use facility with office, retail and residential space. Estimated investment when completed is $50 million. Parcel #: 027-4-096-00-0 · Sutherland Mill - Project that is ongoing involves the rehabilitation of a 50,000 square- foot former textile mill (ca. 1887) for use as customized medical office space. Property is located off Greene Street near the former Enterprise Mill. The property will have access to the St. Sebastian Way / Greene Street Extension road improvement project. Medical center is 5 minutes away. Project represents an investment of $7.0 million. Parcel #: 036-3-214-00-0 Another Tool Helping to Build One Augusta Page 29 I I I I I I - :J Augusta Redevelopment Plan and Tax Allocation District #1 .... The Commons on Broad Street - Eight-story, $50 million hotel/retail/loft apartment development proposed for a multi-parcel site at the intersection of James Brown Blvd. and Reynolds Street adjacent to the Augusta Common. Site is across Reynolds Street from the proposed location of the TEE Center. Concept plan received approval of Augusta Historic Preservation Commission, subject to submission and approval of a site plan for the project within 12 months (by March 2009). No firm timetable for project implementation. Parcel #s: 037-3- 089-00-0, 037-3-100-00-0, 037-3-103-00-0, 037-3-104-00-0, 037-3-105-01-0 I I I I I I I I I I I I I · The Enclaves on James Brown Blvd. - 28-unit townhouse development under construction on a 1.3-acere site at the corner of Ninth Street and D'Antignac Street. Prices start at $139,900. The project developer is the Augusta Neighborhood Improvement Corporation. Value upon completion is estimated at $4.6 million. Parcel #s: 046-4-242-01-0. 046-4-251-00-0, 046-4-250-00-0, 046-4-249-00-0, 046- 4-248-00-0, 046-4-247-00-0, 046-4-246-00-0, 046-4-245-00-0, 046-4-244- 00-0. Downtown. Old City and East Auausta (TAD RedeveloDment Node 2): ProDosed Public Investment · St. Sebastian/Greene Street Extension Project - $30.3 million road improvement / extension project that will connect the medical complex with Riverwatch Parkway. Construction on the project started in June 2008 and the contract completion date is July 31, 2010. · Trade, Exhibit and Event Center - The TEE Center is to be built on a site at the northwest corner of Reynolds and James Brown Blvd.(9th St.) adjacent to the Marriott Hotel and Suites. The center will contain about 115,000-120,000 square feet of space, including 40,000 square feet of exhibit space and another 27,000 square feet of public circulation space. The center is designed to attract trade and exhibition shows to Augusta that need large amounts of flat, open space for displays (e.g. boat shows, car shows, business expositions). $20 million in SPLOST funds have been allocated to the project. · Laney-Walker/Bethlehem Redevelopment (Dedicated Public Financing) - On March 1, 2008 a new city ordinance went into effect imposing a Transportation and Tourism Fee of $1.00 per room night on hotel and motel rooms in Augusta. The room tax proceeds, estimated at $1.1 million per year or more, are to be deposited in a Transportation Fund for distribution in the following manner: 1. $750,000 per year for 50 years for planning and development projects (''Tourism Enhancement") in the Historic Heritage District (with priority assigned to projects in Laney-Walker and Bethlehem) 2. $350,000 per year for 50 years for management and operations of the TEE Center 3. Any additional funds collected to be allocated to the Augusta Transit Department · Judicial Center- New judicial center to be built on property bounded by Walton Way, 10th St., the CSX railroad and James Brown Blvd in downtown Augusta. Center will house court functions now in the Municipal Building. Estimated cost likely to exceed $50 million. Expect to break ground in early 2009. · Public Library - New 90,000 square-foot main library to be built on a site on the corner of Telfair and James Brown Blvd. Construction cost will be $16.4 million. Total investment (e.g. land acquisition, clearance and demolition, relocation expenses, construction and furnishings) in the Another Tool Helping to Build One Augusta Page 30 I I ..".- Augusta Redevelopment Plan and Tax Allocation District #1 , I $20-22 million range. Construction to start late summer 2008 and take about 24 months to complete. I I . Downtown Baseball Stadium - Project as proposed would involve the construction of a 6,500- seat baseball stadium / multiuse facility on vacant, riverfront property (10.7 acres) located at 11th and Reynolds Streets. A phase 1 feasibility study concluded that a multiuse project represents the highest and best use of the property. Constraints include the fact that the property is currently owned by the State of Georgia and whoever develops would have to pay $9.5 million: $6 million to the city to reimburse sales tax investments and $3.5 million for bond indebtedness. Construction cost estimated in the $30 million+ range. Project website http://www.brinabaseballdowntown.com/defau It. asp . James Brown Blvd. (9th St.) Streetscape Project - Transportation Enhancement grant award of $200,000 made in December 2007. Grant award has to be matched at least 20% by local sponsor. Likely improvements to include pedestrian and landscaping improvements on James Brown Blvd. No timeline for implementation set, though likely will be implemented within 24 months. I I I . Redevelopment of Underwood Homes (East Augusta) - The Augusta Affordable Housing Corporation and the Augusta Housing Authority are currently soliciting developer interest in a multi-phase, mixed-income housing project that would replace Underwood Homes. Underwood is a ca. 1972, 250-unit apartment complex located off Sand Bar Ferry Road in east Augusta. Low- income tax credits expected to finance part of the project costs. The plan calls for the development to be built in phases. The first phase is a 50- to 55-unit complex built on an empty 31/2-acre tract in front of Underwood. About 30 percent of the units will be set aside for public housing; 60 percent for working families eligible for rent reductions with incomes from $26,300 to $31,560 and 10 percent at market rate. Construction of first phase not anticipated until late 2010. I I I . The Ray and Joan Kroc Corps Community Center - Project involves the construction of an 111,000 square-foot multi-purpose center on a 26-acre site adjacent to the Augusta Canal in the Harrisburg neighborhood. Estimated investment will include $30 million (acquisition and construction) + $30 million (operating endowment) + $30 million (local fundraising goal) for a $90 million total. Project timeline has doors opening by late 2010 or early 2011. I I Over 25 non-profit service offices will provide a continuum of social services in a single, on-site service center. Facilities will also include full facilities for the United Way of the CSRA. Recreation facilities will include a full sized fitness center with a gym, aerobic, weight and fitness training equipment and facilities and an aquatics center. I The art, education and worship center will include The Salvation Army chapel and administrative offices, skills training facilities, a SOO-seat performing arts center with extensive support area and full scenery fly space, a senior lounge, computer labs, adult education classrooms, art classrooms, music rehearsal and teaching classrooms, dance rooms, drop-off child care and an indoor playground. In addition, it will feature a 400-seat Banquet Center with teaching kitchen for job skills training and an outdoor cafe overlooking an outdoor amphitheater on the banks of the Augusta Canal. I I · Expansion of Medical College of Georgia - MCG is updating campus master plan to include expansion on the property occupied until recently by residents of the Gilbert Manor Public Housing Complex. The U.S. Department of Housing and Urban Development has approved the sale of the property and the City of Augusta has agreed to finance the purchase at a cost of $10 million (to be repaid with future SPLOST). MCG plans call for over $200 million investment in new buildings and support facilities on the I I Another Tool Helping to Build One Augusta Page 31 I I I -r:- ;J", Augusta Redevelopment Plan and Tax Allocation District #1 .... I Gilbert Manor property. Implementation time frame contingent in part on funding from the University System of Georgia Board of Regents. I South Auausta (TAD RedeveloDment Nodes 3. 4 and 5): Pro Dosed Private RedeveloDment I · Former Regency Mall Site - no specific plans in place at present I NOTE: Located at the geographic center of Augusta-Richmond County, Regency Mall opened in 1979 with 800,000 square feet of retail and dining space on 75 acres. The mall structure stands vacant now, its buildings boarded. The idea of its use as government offices or park space have been proposed, but the proposals for redevelopment most often pointed to are contained in the report, The Redevelopment Strategy for Regency Mall and Surrounding Area, as prepared by Winward Properties, LLC and associates - with public involvement - for Greater Atlanta Progress, Inc. I I "4, I I I I From The Redevelopment Strategy for Regency Mall and Surrounding Area I The proposal calls for redevelopment of this area as a town center mixed-use project that could include: · 200,000 s.f. of large office space for a back office tenant like a call center · 300,000 s.f. of general office space for small- and medium-sized businesses · 110,000 s.f. of retail space geared to sports and entertainment · 100,000 s.f. of retail space geared to outlet or value-oriented retail · New multi-family residential · New and rehabilitated single family residential in established neighborhoods I I South Auausta (TAD RedeveloDment Nodes 3. 4 and 5): ProDosed Public Investment I · Fire Administration and Training Facilities - City of August project involving rehabilitation of former auto dealership near Deans Bridge Road and 1-520 into Fire Department training facility. Former bank building to be rehabilitated for use as Fire Department administrative offices. I · Bobby Jones Expressway (1-520) Widening - Planned project to widen 1-520 from 4-6 lanes between Gordon Highway and Deans Bridge Road (3.2 miles), including upgrades to the I Another Tool Helping to Build One Augusta Page 32 I I I Augusta Redevelopment Plan and Tax Allocation District #1 I interchanges. Funds currently allocated $8.9 million. Currently programmed for construction start in year 2010, but likely will be delayed due in part to need for additional funds. I · Windsor Spring Road Widening (Phase IV) - Project to widen Windsor Spring Road from 2-4 lanes with raised median from Tobacco Road south to Willis Foremen Road. Includes widening of bridge over Spirit Creek. Preliminary Plans are 95% complete and right-of-way plans submitted to GDOT for review. $17.4 million currently earmarked for right-of-way acquisition. Construction funds (current estimate is $27.4 million) not available at present. I I · Diamond Lakes Park Expansion - This regional park is the focus of ongoing investment in accordance with a park master plan. Next scheduled improvements include the construction of a tennis complex. I Additional Improvement Initiatives I · Augusta-Richmond County Target Area Master Plan I I I I I I I ".- ..._,- .......,- r.~ 1t.....",.II.,..'........ . . '.' ........ -...-"" :.-..... '10.... __ _. ..... ~ 'J a -..-.-- 'u ::: ...J w ~ ...... ~~{. .......- ~.. _11"-" G-- 8--- 8-- 0- o ,;,....1.......... o ---- 8 ----~- 1~ ~71tl. friffl,......O"" Developed by EDAW{frinity Plus One Consultants, this report proposed that Augusta- Richmond County develop public-private partnerships with major Augusta employers including the Medical College of Georgia, the Georgia Medical Center Authority, Paine College, the Augusta-Richmond County Housing Authority, the Richmond County Board of Education and the State of Georgia to ensure the success of a redevelopment strategy for the neighborhoods of Laney Walker, Bethlehem, Turpin Hill, Harrisburg, Academy-Baker, the Central Business District, aide Town, May Park, East Augusta and a portion of Uptown. I I I Another Tool Helping to Build One Augusta I Page 33 I I Augusta Redevelopment Plan and Tax Allocation District #1 ...;. I Projects as proposed in the Target Area Master Plan lay the framework for future redevelopment in this area of Augusta. They include the proposed baseball stadium, infill housing, mixed-use developments that include multi-family housing and retail, canal improvements, park and recreation areas, and the removal of CSX lines that run through the area, all of which is mentioned elsewhere in this redevelopment plan. I I · A Shared Vision: Augusta/North Augusta 2008 Master Plan I This plan will update the earlier City Center Master Plan produced by Augusta Tomorrow, an association of business and civic leaders whose mission is "To serve the community at large by planning, promoting, and implementing the development of Augusta with particular emphasis on the city center." For the new plan, which is not scheduled for release until the end of the year, ICON Architecture has produced an initial report, "Report #1 - Findings and Directions" - in which the firm compiles data and citizen interviews and analyzes its findings to develop a framework on which it will develop a final plan. Available in this first report are a definition of the study area, a look a recent developments, summaries of the downtown area's attributes and obstacles to revitalization. It also contains proposed focus areas for redevelopment as well as potential strategies, initiatives, projects and next steps. Several of the findings in this study are reported in the Augusta Redevelopment Plan and TAD #1. I I I · Laney Walker Housing Market Analysis I Conducted by Dale Henson Associates with Bleakly Advisory Group, this 2004 plan examines the initial round of revitalization in Laney Walker/Bethlehem neighborhoods and identifies more than $229 million that has or will be invested, including $25 million in ANIC housing and commercial projects, $30 million in Board of Education projects and $2.5 million in road and streetscape improvements. The report projects that these public investments will result in 125 units of new housing for the area. I · Laney Walker/Bethlehem Neighborhood Plan: Paving a New Trail on a Historic Road I This 2008 report, a strategic plan to guide revitalization and sustainability of the Laney Walker and Bethlehem communities, was recently presented by APD, Inc. to The City of Augusta Housing & Community Development Department. It examines and analyzes the two earlier reports on this area, and provides new information as well as specific project area recommendations and a community-driven vision of what these areas could look like. It also outlines action steps designed to encourage reinvestment. I I Recommendations for improvements and investment are presented in a set of area profiles for 27 Proposed Project Areas in Laney Walker and 17 in Bethlehem. They include restoring and building new infill, mixed-use, multi-family and senior housing, commercial and retail spaces, restoring the Laney Walker Museum, building a new Heritage Trail, and a number of projects that improve and support the economic and rich historic and cultural health of Augusta's core communities. I I Historic Properties within TAD Boundaries* Augusta's many rich contributions to American history are reflected in its many national and local historic districts and properties. ) I I Another Tool Helping to Build One Augusta Page 34 I I I - J ll' Augusta Redevelopment Plan and Tax Allocation District #1 -' I I Augusta's eight National Register Historic Districts encompass approximately 6,200 properties, 34 of which are listed individually on the National Register. These districts and properties represent many aspects of Augusta's history of development: the central business district, industrial facilities, urban neighborhoods, institutional buildings, and rural resources. Three areas - Downtown, Summerville and aide Town - have also been designated as local historic districts under the city's historic preservation ordinance, according to the ARC Planning Commission. I Although Augusta's historic past is centered in its Downtown and Old City areas, other areas may include architecturally and historically significant structures that could be targeted for preservation at a later date. I I I National Register Historic Districts Augusta Canal & Industrial Local Historic Districts Summerville Bethlehem aide Town Downtown Downtown I Harrisburg - West End & Woodlawn Laney-Walker Sand Hills I I I Pinch Gut Summerville TAD proceeds can be used towards the rehabilitation of historic structures that have public uses. If public funds are used to alter any historic property within the City's proposed redevelopment area and TAD, such alterations will follow relevant federal, state and local guidelines and requirements. Zoning &. Land Use Compatibility* I I I I The redevelopment nodes within the proposed Augusta Redevelopment Area and Tax Allocation District #1 comprise more than 7,000 acres that include a broad range of zoning and land use classifications as described in the Augusta-Richmond County 2004 Comprehensive Development Plan. Land Use Compatibility The boundaries of the Augusta TAD fall within five of eight new character areas as designated by the Augusta-Richmond Planning Commission. These character areas have been designated based on their unique or special characteristics that are important to preserve or enhance, and their potential to evolve into unique areas, given proper planning and development guidance. They also require special attention due to their challenging development patterns or issues. I I The character areas within the proposed Augusta Redevelopment Area and TAD #1 and their current land uses are described in the commission's report, Preliminary Character Areas in Augusta, as follows: Another Tool Helping to Build One Augusta Page 35 I I I -r- "i .... Augusta Redevelopment Plan and Tax Allocation District #1 I West Augusta (TAD Redevelopment Node 1): Predominantly suburban residential and commercial, regional activity centers, canal, environmentally sensitive areas, greenspace, major transportation corridors, quarry I West Augusta is an area reflecting the suburban development patterns of the last 50-60 years. Low-density residential subdivisions and commercial development, dating from the 1950's-1980s, are predominant in the area. Apartment complexes of varying ages are scattered throughout the area. Developable land has become scarcer in recent years, resulting in the development of more attached townhouse and condominium complexes. Transit service is more limited than in the old city neighborhoods. I I I Old City Neighborhoods (TAD Redevelopment Nodes 1 and 2): Historic districts and properties, traditional and suburban residential, neighborhood and regional retail, civic and institutional, regional activity centers (medical, education), canal I Most of these neighborhoods developed prior to World War II and reflect the major characteristics of so-called "traditional" neighborhoods. They include aide Town, May Park, Uptown, Laney-Walker, Bethlehem, Turpin Hill, Harrisburg (including the area formerly known as West End), Academy-Baker, Pendleton King, Summerville, Sand Hills, Highland Park, Forest Hills, Albion Acres / Forest Acres. Downtown (TAD Redevelopment Node 2): Historic districts and properties, historic central business district, mix of uses, expressway, riverfront recreational and entertainment, canal I I I Downtown Augusta is where the city was founded and first developed. Downtown has the major characteristics of a traditional central business district, including a wide variety of land uses (retail, office, cultural, entertainment, financial, government, open space, industrial and institutional), high level of access for vehicles, pedestrians and transit, a mix of architectural styles, medium to high-density residential development, and commercial buildings with no front or side setbacks. I East Augusta (TAD Redevelopment Node 2): Suburban and multi-family residential, light and heavy industrial, major transportation corridor and airport, environmentally sensitive areas, conservation areas and greenspace I East Augusta is characterized by a mix of natural resource areas, industrial uses and limited residential and commercial land uses. Residential development includes some conventional subdivisions dating from the 1950s -1970s, some apartment complexes and newer townhouse and condominium development, some of which is located along the Savannah Riverfront. The conventional subdivisions are concentrated in the northeast (e.g. Hornsby, Eastview, and Marion Homes), central (e.g. Hyde Park, Aragon Park, Lombardy and Virginia Heights) and south central (e.g. Apple Valley) parts of East Augusta. All of these conventional subdivisions are located in relatively close proximity to industrial land uses. I I I South Augusta (TAD Redevelopment Nodes 3, 4 and commercial, light and heavy industrial, major transportation retail, educational and recreational, conservation area and sensitive areas 5): Suburban residential and corridor, institutional, regional green space, environmentally I I Another Tool Helping to Build One Augusta Page 36 I - I I ....."... ..... Augusta Redevelopment Plan and Tax Allocation District #1 ... I South Augusta is also largely characterized by a suburban pattern of development. Residential development is characterized by low-density subdivisions with mostly single- family detached units on uniform lots approximately 1/4-acre in size. Subdivision development started in this area as early as the 1940s and continues to the present day. Apartment complexes are scattered throughout the area and usually located in close proximity to employment centers, shopping and major roads. Curvilinear street patterns predominate. There are generally few amenities for pedestrians (i.e. sidewalks, crosswalks), and transit service is more limited than in the old city neighborhoods. I I I Zoning I With few exceptions, according to the Augusta-Richmond County Planning Commission, Augusta's traditional zoning ordinance has separated residential, commercial, industrial and institutional uses from one another. Although an example of every land use exists in the total area of the proposed TAD, each redevelopment node is zoned for different sets of uses that define its character as distinctly separate from the others. West Augusta (TAD Redevelopment Node 1): Predominantly light industrial, but includes some heavy industrial, general business and agricultural zoning. Old City, Downtown and East Augusta (TAD Redevelopment Node 2): Predominantly general business and industrial zoning (heavy and light) along the river, with the industrial areas in West Augusta; further away from the river the zoning is heavily residential - both single-family and multi-family - with some neighborhood and general business and professional/office. There's an area along the river zoned for planned unit development. I I I South Augusta (TAD Redevelopment Nodes 3, 4 and 5): Includes heavy and light industrial in the redevelopment area nearest Augusta's downtown, with general and neighborhood business and residential - single- and multi-family - covering more area as one moves away from the center of town. Area 5 is predominantly single-family and mobile home residential with some neighborhood business and agricultural zoning. It has been recommended that the government create and use special zoning district guidelines and planning strategies that can be applied to redevelopment projects as they are proposed in areas within the Augusta TAD. These strategies may include rezoning with particular guidelines attached or a design review system as well as I I I · Overlay districts that encourage infill and/or mixed-use development I · Zoning that permits residential development in commercial zones · Zoning that allows conservation subdivisions to be developed, requiring a minimum of 40% of the subdivision to be permanently protected greenspace I The zoning and land uses as described reflect the vision and goals of the citizens of Augusta and Richmond County as expressed in public meetings and presented in key planning documents that include the Augusta-Richmond County Comprehensive Development Plan, the Community Assessment created for the 2008 CDP update and other public documents as referenced elsewhere in this redevelopment plan. I I Changes to traditional zoning classifications will be recommended for project areas within the TAD as necessary to reflect the future vision and redevelopment goals for the TAD. When I Another Tool Helping to Build One Augusta Page 37 I - I I ,..r Augusta Redevelopment Plan and Tax Allocation District #1 ...,,; I redevelopment may require more of an urban than suburban code, the City will work with the developer and the neighborhoods in which the proposal is made to develop the appropriate code. I Relocation Plans* I As is currently foreseen, no relocation of tenants from private homes or businesses is anticipated within the proposed Augusta Redevelopment Area and Tax Allocation District #1. I 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 for under all applicable federal, state and local guidelines. Such sources of funds require relocation benefits to be offered to tenants and users for relocation. I 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. I Method of Financing I Proposed Public Investments* I TAD proceeds may be used to supplement funding by public and private sources for public improvements that spur private redevelopment activity. As estimated in this Redevelopment Plan, this amount of TAD support may range from $19.6 million to $80.9 million. These 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: I PROPOSED PUBLIC IMPROVEMENT COSTS within the AUGUSTA TAD #1 (All Funding Sources) Item Estimated Costs I Water and Sewer $1,659,000 - $13,825,000 I Transportation - which may include roads, sidewalks, curbs, streetscapes, lighting, traffic control, gateways, etc. $5,530,000 - $13,825,000 I Parking structures $1,700,000 - $12,719,000 $553,000 - $4,968,000 $2,488,500 - $9,401,000 $4,424,000 - $14,931,000 $1,500,000 - $3,871,000 $1,790,000 - $7,354,000 Parks, pathways and green spaces I Environmental remediation Land acquisition and development I Professional Services Misc. TAD expenses I Estimated Augusta TAD #1 Budget $19,644,500 - $80,894,000 I NOTE: These categories and cost allocations are estimates presented in constant 2008 dollars, and as such are subject to revision as this Redevelooment Plan is imolemented. I Another Tool Helping to Build One Augusta Page 38 I I I ,l Augusta Redevelopment Plan and Tax Allocation District #1 .... I I As of the date of this plan, August 2008, private investment activity for projects that fall within the Augusta Redevelopment Area and TAD #1 add up to more than $503 million. I A NOTE ABOUT BOND PROCEEDS: Based on the value of new developments totaling approximately $503.2 million, the annual increment generated from city and county millage of $3.2 million supports gross bond proceeds of $31.6 million and net proceeds (after adjusting for issuance costs and capitalized interest and debt reserves) of $25.2 million. If the November referendum is successful and the Richmond county school board agrees to contribute its millage to the TAD, the annual increment projected based on the stabilized value of new developments of $7.2 million supports gross TAD bonds of $69.5 million and net proceeds of approximately $55.4 million. These numbers do not net out the current property taxes produced by the parcels on which the new development will occur. Bond calculations are based on a 25 year final maturity assuming zero percent inflation on the assessed value of real property within the TAD and a 7 percent coupon. Actual bond proceeds will be determined by a variety of factors including general market conditions in affect at the time of issuance, bond underwriter requirements and the assessed value of real property within the TAD as determined by the county assessor's office. I I I I 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: I I · 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; I · County capital improvement funds, such as those generated by the County's Special 1% Sales Tax, SPLOST, Urban SPLOST, and Hotel-Motel Room Tax currently in place; I I I · Community Improvement Districts; · Local bonds; · Private development funds; · Private donations; and · Other federal, state and local grant and funding sources as appropriate and available. I I I Another Tool Helping to Build One Augusta Page 39 I I I .....".... , ,> Augusta Redevelopment Plan and Tax Allocation District #1 ~ I Q &, A about the Augusta TAD I How can a TAD help fund the redevelopment of the Augusta TAD? I A TAD, once created by Augusta-Richmond County, offers consolidated Augusta another way to finance public 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. I 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. I Why is the TAD a good policy decision? I Using TAD financing to fund construction of infrastructure will enable Augusta-Richmond County to leverage from $3.8 million to more than $8 million in positive property tax increments to provide the infrastructure necessary to eventually generate more than $503 million in private sector investment in the TAD without tapping into current tax revenues and without adding new taxes. I I This investment will generate many new jobs and new sales tax revenues. It will increase income opportunities for local residents and raise more sales revenue for area businesses. The redevelopment will provide Augusta-Richmond County a positive mix of new living, office, shopping, entertainment, public use and recreational facilities on underdeveloped areas within the TAD. 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, the Consolidated County 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, the Consolidated County 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? I I I I 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 projects as planned for the Augusta Redevelopment Area are not financially viable without TAD financing for the infrastructure and other public improvements. I The purpose of the Augusta TAD, as proposed, is to use positive tax increments to make private development possible. 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. I I I Another Tool Helping to Build One Augusta Page 40 I I I I I --r,- 1 Augusta Redevelopment Plan and Tax Allocation District #1 ... Contractual Relationships* Pursuant to a.C.G.A. 934-44-3(a), the Development Authority of Richmond County (DARC) will act as the redevelopment agent and will exercise redevelopment powers as needed to implement this plan. In doing so, the DARC may conduct the following activities and enter into the following contracts: I I 1. Coordinate implementation activities with other major participants in the redevelopment plan and their respective development and planning entities, including, Augusta- Richmond County, the Downtown Development Authority of Augusta, Richmond County Board of Education and other stakeholders, as well as the Augusta Housing and Community Development Department and other Augusta-Richmond County departments involved in implementing this redevelopment plan. 2. 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. I I I I I I I I I I I I I 3. Enter into development agreements with private developers to construct infrastructure and vertical developments to implement the redevelopment plan. 4. Negotiate and enter into public-private ventures, loans to private enterprise and intergovernmental agreements as needed. 5. Coordinate public improvement planning, design and construction among the Consolidated County and State agencies and departments. 6. 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. The Consolidated County 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. Augusta-Richmond County and the Development Authority of Richmond County will perform other duties as necessary to implement the redevelopment plan. Assessed Valuation of Redevelopment Area* The redevelopment area defined in this Redevelopment Plan has a current 2008 fair market value of $867,751,364 for its taxable properties, $770,076,160 for its tax-exempt parcels, and an assessed (40%) value of $347,100,546 that is taxable, according l to Augusta-Richmond County tax records. The last few years of assessments show that the tax base of the proposed redevelopment area has not contributed to the overall growth of the county for decades. In fact, property values within the proposed TAD declined during the last few years while the overall county assessments increased in value. Another Tool Helping to Build One Augusta Page 41 I I j Augusta Redevelopment Plan and Tax Allocation District #1 -' I I I I Pursuant to the Redevelopment Powers Law, upon adoption of the Redevelopment Plan and the creation of the tax allocation district, the Development Authority of Richmond County will request that the Commissioner of Revenue of the State of Georgia certify the tax base for 2008, the base year for the tax allocation district. Once this Redevelopment Plan and Augusta TAD are approved and the financing of public 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 district - a spillover effect - leading to an overall increase in property values that further improves revenue generation within the City and County. I I I I I I I I I I Upon completion of the redevelopment of the Augusta TAD #1 as presented in this plan, the redeveloped acreage in this tax allocation district is projected to include new developments that will add a fair market value of more than $503 million and an assessed value of at least $221 million. Tax Allocation Increment Base Value* On or before December 30, 2008, the Development Authority of Richmond County 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 as follows: Augusta Tax Allocation District Parcel Information, 2008 Total Number of Parcels (includes 822 tax-exempt parcels) 9,485 Total Area Approximately 7,074.5 acres Total Assessed Value (40%) of Taxable Parcels in the Augusta TAD $ 347,100,546 · District 1 Assessed Value = $168,767,288 · District 2 Assessed Value = $123,201,348 · District 5 Assessed Value = $34,414,940 · District 6 Assessed Value = $20,716,969 Total Assessed Value of Taxable Parcels in Augusta-Richmond County $ 3,700,435,246 Value of TAD as a Percent of the City of Augusta's Total Tax Digest 9.4% Total Property Taxes Collected to Serve as the Increment Base Base Value with School Board Participation · District 1 = $5,999,508 · District 2 = $3,386,928 · District 5 = $1,223,417 · District 6 = $ 736,468 Base Value Without School Board Participation · District 1 = $2,735,211 · District 2 = $1,003,968 · District 5 = $ 557,763 · District 6 = $ 335,760 I I I TOTAL Base Value with Schools = 11 346,321 TOTAL Base Value without Schools = $4,632,702 Another Tool Helping to Build One Augusta Page 42 I I -r- J ~ Augusta Redevelopment Plan and Tax Allocation District #1 ... I I Property Taxes Collected Within Tax District to Serve as Base with School Board Participation I I Total Assessed Value of Taxable Property ($347,100,546) x Usable Millage (varies by district, see calculations that follow) = $11,346,321 Base Value Property Taxes Collected Within Tax District to Serve as Base without School Board Participation I I I I I Total Assessed Value of Taxable Property ($347,100,546) x Usable Millage (varies by district, see calculations that follow) = $4,632,702 Base Value I Property Taxes Collected Within each Tax District District 1, with School Board District 1, without School Board Total Assessed Value of Taxable Property Total Assessed Value of Taxable Property ($168,767,288) ($168,767,288) x Usable Millage (0.035549)* x Usable Millage (0.016207)* = $5,999,508 Base Value = $2,735,211 Base Value * Includes millage rates for County Incorporated, * Includes millage rates for County Incorporated and Augusta Urban City Service and Richmond County Augusta Urban City Service Board of Education District 2, with School Board District 2, without School Board Total Assessed Value of Taxable Property Total Assessed Value of Taxable Property ($123,201,348) ($123,201,348) x Usable Millage (0.027491)* x Usable Millage (0.008149)* = $3,386,928 Base Value = $1,003,968 Base Value * Includes millage rates for County Incorporated and * Includes millage rates for County Incorporated Richmond County Board of Education I I I I -table continues- I I I Another Tool Helping to Build One Augusta Page 43 I I Augusta Redevelopment Plan and Tax Allocation District #1 ;; .... I I Property Taxes Collected Within each Tax District District 5, with School Board District 5, without School Board Total Assessed Value of Taxable Property Total Assessed Value of Taxable Property ($34,414,940) ($34,414,940) x Usable Millage (0.035549)* x Usable Millage (0.016207)* = $1,223,417 Base Value = $557,763 Base Value * Includes millage rates for County Incorporated, * Includes millage rates for County Incorporated and Augusta Urban City Service and Richmond County Augusta Urban City Service Board of Education District 6, with School Board District 6, without School Board Total Assessed Value of Taxable Property Total Assessed Value of Taxable Property ($20,716,969) ($20,716,969) x Usable Millage (0.035549)* x Usable Millage (0.016207)* = $736,468 Base Value = $335,760 Base Value * Includes millage rates for County Incorporated, * Includes millage rates for County Incorporated and Augusta Urban City Service and Richmond County Augusta Urban City Service Board of Education I I I I I I I I I I I I I I I Property Taxes for Computing Tax Allocation Increments* As provided in the Redevelopment Powers Law, the taxes that will be included in the tax increment base for the tax allocation district are based on the following authorized ad valorem taxes: 2008 MILLAGE RATES - District 1 M&O with Bd of Ed M&O w/out Bd of Ed County Incorporated Augusta Urban City Service Richmond County Bd. Of Education 8.149 8.149 8.058 8.058 19.342 Totals 35.549 16.207 Another Tool Helping to Build One Augusta Page 44 I I I I I I I I I I I I I I I I I I I .r Augusta Redevelopment Plan and Tax Allocation District #1 ... 2008 MILLAGE RATES - District 2 M&O with Bd of Ed M&O w/out Bd of Ed County Incorporated Richmond County Bd. Of Education 8.149 19.342 8.149 Totals 27.491 8.149 2008 MILLAGE RATES - District 5 M&O with M&O w/out Bd of Ed Bd of Ed County Incorporated 8.149 8.149 Augusta Urban City Service 8.058 8.058 Richmond County Bd. Of Education 19.342 Totals 35.549 16.207 2008 MILLAGE RATES - District 6 M&O with M&O w/out Bd of Ed Bd of Ed County Incorporated 8.149 8.149 Augusta Urban City Service 8.058 8.058 Richmond County Bd. Of Education 19.342 Totals 35.549 16.207 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. Another Tool Helping to Build One Augusta Page 45 I I I I -- ';", Augusta Redevelopment Plan and Tax Allocation District #1 J Creation &. Termination Dates for TAD* 1 I The Augusta Tax Allocation District will be created effective December 31, 2008. 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 Bond Issues* I' 1 I I I I I I I I I I I Amount of Bond Issue Upon adoption of this Redevelopment Plan, Augusta-Richmond County proposes to issue tax allocation bonds in one or more bond issues in amounts that will range from $5 million to $25 million. Term of the Bond Issue or Issues Augusta-Richmond County proposes to issue tax allocation bonds for no greater than the maximum term permitted by law. Rate of Bond Issue Augusta-Richmond County intends to issue fixed-rate tax-exempt bonds if possible. The actual rate, however, will be determined at the time of issuance based upon general market conditions, anticipated development within the redevelopment area, assessed taxable property values and federal tax law considerations. Positive Tax Allocation Increments The positive tax allocation increment for the period covered by the term of the bonds is estimated to range from between $3.2 to $7.2 million annually at full build-out, depending on whether the Richmond County Board of Education contributes. 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. Property to be Pledged for Payment of the Bonds It is anticipated that the bonds 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. Another Tool Helping to Build One Augusta Page 46 I I I I I I I I I I I I I I I I I I I """"I:r oJ Augusta Redevelopment Plan and Tax Allocation District #1 ... Appendices Appendix A. Maps & Drawings 1. Redevelopment Plan Boundary Map* - Total Area 2. Redevelopment Plan Boundary Map* - Area 1 3. Redevelopment Plan Boundary Map* - Area 2 4. Redevelopment Plan Boundary Map* - Area 3 5. Redevelopment Plan Boundary Map* - Area 4 6. Redevelopment Plan Boundary Map* - Area 5 7. Current Land Use in Proposed Redevelopment Area 8. Character Areas - East Augusta and West Augusta 9. Character Areas - Downtown and Old City lO.Character Areas - South Augusta l1.Zoning Maps - West Augusta & Downtown, Old City, East Augusta l2.Zoning Maps - South Augusta 13. Future Land Use Map Appendix B. Tables & Text 1. List of Tax Parcel ID Numbers (Properties within TAD) 2. Redevelopment Area Boundary Description Appendix C. Appendix D. Augusta Commission References and Other Resources Another Tool Helping to Build One Augusta Page 47 I I , Augusta Redevelopment Plan and Tax Allocation District #1 ..... I Appendix A. Maps & Drawings I 1. Redevelopment Plan Boundary Map* -- TOTAL AREA I I I I I. .111- ~ 1([. ~ 8 :. ,I f~.l ~ ~- II ~ . ;' '" i: ~l! 'i . ; \ l.tlt ~ 0- ~ ~ "11,1[111 @ '-~~; \ . il It of ",-" IJ ll.,ll 0 ~ I I I I I I I I I I Another Tool Helping to Build One Augusta Page 48 I I I I I I I I I I I I I I I I I I I I - l Augusta Redevelopment Plan and Tax Allocation District #1 .... Appendix A. Maps & Drawings 2. Redevelopment Plan Boundary Map* -- Close-up of Area 1 ~: I~ ~ i.\ 1,1 . J I II 1, 1 !'~; I..; * fl .., ;: .it o ~......,,,. , I .. ">If...... " ., " ~....., --.. .... " I J "",,- ..... .. :to/( l . " t t , I I Another Tool Helping to Build One Augusta Page 49 I I I I I I I I I I I I I I I I I I I ,,,,"," --r:.o- ,,:'.I 1'.. Augusta Redevelopment Plan and Tax Allocation District #1 .... Appendix A. Maps & Drawings 3. Redevelopment Plan Boundary Map* -- Close-up of Area 2 ~ 1'11"11 ~!'"1'l,., t ~ 111~ ~ ~ ~ I II; ~ ~ ;\11'1, ! " ) i Jflll : j~ " J j .l #4': #/ ""if......, '.... ..... ''"4;w I -., ..... , i ....... ....... l ....u,j I l \ J \ . '\ .., ~.. \ " \ ", .. ~, . J t J l i l I '~"'..... . J t f I 4..~ Another Tool Helping to Build One Augusta Page 50 I I 1 I I I I I I I I I I 1 I I I I I - ) Augusta Redevelopment Plan and Tax Allocation District #1 ~ Appendix A. Maps & Drawings 4. Redevelopment Plan Boundary Map* -- Close-up of Area 3 I I I t .: \ \ \ ~Trt~ "'.. "'.. ., ".. . \ \ ., 'Yo l \ .. " '. ./Jl~1 1-_._ t J ..... "" l!''''-- ....,., '/ p""... I 1..- .." ".:,,-)~ '" .. ---... ,. " \. ..... '"'- ; ,tg ", ., . . ; ,........ i ,. \ \ .... ." ", \ 01 I'll 'i : t II ;: ,!III \. K I~I ~ lj'dl \) iUn 0 8 '" 't' .-. ~. ... ., l '" o ~ ... 8~ ~ ,- i" .- r ;. '\" '-. , " ~. /' Another Tool Helping to Build One Augusta Page 51 I 1 I I I I I I I I I I 1 I I I I I I -rr- :j1 Augusta Redevelopment Plan and Tax Allocation District #1 .... Appendix A. Maps & Drawings 5. Redevelopment Plan Boundary Map* -- Close-up of Area 4 ! t ".fi j I ...."", I i" // /'" ....." i u,g ~ lIlI ~ ~; 1111 ~ ~ ~I~I~ ~ ,j IrUJI ~~ #/ " \ \ - ~."'1" ;. ~_ ,- r ,- o ~ ." '.. ...... " J t \ "\'.. " , J <I> 11' ,It ~~ .,f...,..... ..,.- Another Tool Helping to Build One Augusta Page 52 I I I 1 I I I I I I I I I I I I I I I --no- Augusta Redevelopment Plan and Tax Allocation District #1 -- Appendix A. Maps & Drawings 6. Redevelopment Plan Boundary Map* -- Close-up of Area 5 " .1 I "Q!t.~ ~- ...........s-,. .... ; i I ! . ;; ~Q ~ 1'1111 ! t ~ IIII ~ ':, : .1111 ! \1'\ Iq~ 1111., \) i 11.11 ., ... ?.~~- {WI ,.. ...'- g .' .. :S Another Tool Helping to Build One Augusta Page 53 I I I I I I I I I I I I I I I I 1 I I -,,-- , Augusta Redevelopment Plan and Tax Allocation District #1 ..... Appendix A. Maps & Drawings 7. Current Land Uses in Proposed Redevelopment Area ". ~ i j . ~ fl. I. i 1111&'1111' t I " I ;: _;':-w J~ Iu" ~ i p. I.i fl.' fl ," ~ &~ '~'l-' ~1~li ,II!! Ill! 1111 111!1li ! Illlllllfl~ll ~ ~~. !It~ ~ ! IlE8fl~' I. .1' I 10 J .1 J i ,r ill " 01 a.. c( :E ~~ z:l :;)Q 0% u~ Ot:' zO o~ :Eo ]:z ut= -tJ) 0::- .~ i!. t/)CD :;),- C)e :;)5 <Cii: .. ~ i :s .. . ." if ~ i ~ Another Tool Helping to Build One Augusta Page 54 I I - of Augusta Redevelopment Plan and Tax Allocation District #1 - I Appendix A. Maps & Drawings I 8. Character Areas I I '. . . ~ I-'~t~ ~.(' ,.P ..-N'..... h,........ '.... ........,.".. _............. --" ........ _&>.6IIw.a. ."":.'..1"1(00\.I. l{'~......... ~.....:o!....#I...r..I~ _M""'I=":~"N:' ..)11...... ~~::.:,....- " / J LAND USE ./,/ I I I I .... ,... ~ _" - ~ - - ~/i ;:~~~:;~;/ -=.Jii-~:< I Land Use - West Augusta I Corresponds to TAD redevelopment node 1 I I . '. \. \: - f . 'fT '.' ;: .~~'l'oi. :.... ;..... ea.. ," _ -t-" :-'1-- - ...;.."-::":'J'-/~'" .1...0# .....,.... .", '.-t\; (\~__~ /< ' )~.-'~l~'~~';~-:';'.""'i.. '_ I"', "'-.-t" Y ,J', g...... j._-l-~~~~ i. . ..t.,/~'--"-- ~ ..-'"'" -1---1--. . ,,\'.i'" .' '. v~" ')l "V.I /rj '.......... " ...." I._ " Y ('i. .;.r_.-' '-.7-1~- 1,"- ~ "-.' '..-.,., ;-Y- I ':/ , ;' -<t~~_ .:,' .'. ~ / -----~.... ~...~ i I~~ "Z....__~/~__ _ -..,f .' " ",/.--- .. // " i .,"/ "~- \, j'./ ;'~"~'-"""./''t.,..-._/:-...... f ; / I, ./ .;..,.:~~~:,!,>__.A\. ....- -"(/"-'~'.J.~...__ " .J LAND USE I I.,..... L:'M.I.,IA.4.".J. ........':.. .~.....-.......... _..~-,~_.... ...-... ...e-a _.,u_ _...-...:H"t'_~ _"h3#E..:~.ot> .....,..,1.-" .......... D4.u...~........_. I I I I !"o.. I Land Use - East Augusta Corresponds to portion of TAD Redevelopment Node 2 I Another Tool Helping to Build One Augusta Page 55 I I 1 -r:-- i ... Augusta Redevelopment Plan and Tax Allocation District #1 I Appendix A. Maps & Drawings I 9. Character Areas I " '~..... ._-...:::.~.... ~~~~.. .I'.~ -.....::::-~ ~. ~--.~-._--.~ . '.o:,__----~ LAND USE ...... I . .-..Jl T"~""'~ ..~~~~~.~... ...;-..... Iil."'''-?':''''-::''!'N' ~..................... .:~.=:"::."l _c~:.. l...>>.~ _..~.... .r.-..:...........""... "W'=I('o,.:Jo.U"~:.t'^... _~.'4:;" ~.&...~ I I +..."'>., "'>~ """" ..~......~ 1 '" '. ....-...:~~~.~~., ........,. ", .... 1- ..... 1>1- .r''' Land Use - Downtown I Corresponds to portion of TAD Redevelopment Node 2 I I ... \\ /~,&._--- '? " ,,~'1! ...... ( 0 -"'. 't.. . ,,"-' " -, , ','-':-. " ~S'r;..-"'--../'\ - / ',~ \~"oe:...,.". I tp, / \ ;/ 0 t / \ c ( / . ~ .- 'I~ ..,t'ot~ I I I _ _--:t---~. / 'I , I <~G>-.f?, \ '\',~", II /' I Land Use - Old City Neighborhoods Corresponds to portions of TAD Redevelopment Nodes 1 and 2 1 I Another Tool Helping to Build One Augusta Page 56 I - I I I I I I ..l Augusta Redevelopment Plan and Tax Allocation District #1 -' Appendix A. Maps & Drawings 10. Character Areas I I I I I I I I 1 I I I 1 ,,7 1."..1 1..1..:..,.... ....................,. .~..~'n4. ............." _:~.... ..... -~...- _.....~....~ .;" - _......,.."1 -'l.-."'--' .../" i '. t' . I '> I "'" "" -~.,......-(j.~;...........~\... , '("'" ! "~ .~~:t-....>>:1' !!Il:.....'" Land Use - South Augusta Corresponds to TAD Redevelopment Nodes 3, 4 and 5 Another Tool Helping to Build One Augusta Page 57 I I " ~ Augusta Redevelopment Plan and Tax Allocation District #1 I Appendix A. Maps & Drawings I 11. Zoning Maps West Augusta I :!~~ ~.::.=.:~-=-::;:- -..--------- I I ~~.:..~: .a t~~ Legend D ZCntng TalC Alloeatton Qis.!rica I , -1r' I I -- Downtown, Old City Be. East Augusta I vL~-i'!.;' ~O. Q I ~ I . . - -~~ -----.---.-..... -.--------- I Legend D Zoning Tax AllocatiOn Dfstrict5 I I I I I Another Tool Helping to Build One Augusta Page 58 I I I I I I I - )- 1~ Augusta Redevelopment Plan and Tax Allocation District #1 ... Appendix A. Maps & Drawings 12. Zoning Maps South Augusta I I I I I I I 1 I I 1 I 1 I :7:r-::-~!'; ~~ ..,-... .. ..,. . -..--=,-- .+. ,,-,c:r:~'!'; - ~~ LlI1I"nd 0"""" Another Tool Helping to Build One Augusta Page 59 1 I I I I I I I I I I I I I 1 I I I I Augusta Redevelopment Plan and Tax Allocation District #1 ... Appendix A. Maps & Drawings 13. Future Land Use Map ;c .... Z :J - .~ U Q Z o ~ - o - ~ < ~ ~ :.J .. - :.. < .+. Another Tool Helping to Build One Augusta Page 60 I I I I I I I I I I I I I I 1 I I I I ,.J Augusta Redevelopment Plan and Tax Allocation District #1 ... Appendix B. Tables & Text 1. List of Tax Parcels with 1D Numbers (Properties within TAD) Appendix B-1 is a separate file attachment. Another Tool Helping to Build One Augusta Page 61 I I - ~ ... Augusta Redevelopment Plan and Tax Allocation District #1 ...,; I Appendix B. Tables & Text I 2. Redevelopment Area Boundary Description I The area encompassing the proposed Augusta Redevelopment Area and Tax Allocation District #1 stretches approximately 13 miles from an interstate interchange in the northwest corner of the city to Diamond Lakes Regional Park in south Augusta. At five redevelopment nodes the area expands to include neighborhoods and property as indicated on the TAD maps and parcel ID list. I I-20/Riverwatch Parkway Interchange I I I The TAD begins at the interchange of Riverwatch Parkway and Interstate 20 and includes a large tract located in the northeast quadrant of the interchange that has been graded for a mixed-use project called the Village at Riverwatch. Downtown Augusta and City Neighborhoods Land at the interchange is connected to downtown Augusta via the Augusta Canal National Heritage Area. A channel of the canal stretches approximately 8 miles to a TAD redevelopment node that includes downtown Augusta and the adjacent inner-city neighborhoods of Harrisburg, Laney-Walker, Bethlehem, Turpin Hill and part of East Augusta. Also included is Augusta's medical/education complex. I I I Deans Bridge Road/Gordon Highway Corridors From the medical/education center the TAD extends in a southwest direction along Martin Luther King, Jr. Blvd. and Deans Bridge Road (Georgia SR 4, US 1). The Deans Bridge Road part of the TAD is a 7-mile long corridor that leads to a TAD redevelopment node at the intersection of Deans Bridge Road and Gordon Highway (Georgia SR 10, US 78, US 278). Here the TAD boundaries expand to include a number of properties on and near Gordon Highway between Tubman Home Road on the east and Wheeless Road/Highland Avenue on the west. Near the Deans Bridge Road/I-520 interchange the TAD boundaries extend approximately 1.5 miles to the southeast to incorporate a group of vacant tracts with frontage on the interstate. Tobacco Road/Windsor Spring Road Corridors I I From the Deans Bridge Road{Tobacco Road interchange the TAD extends in an easterly direction along Tobacco Road for 2.85 miles to its intersection with Windsor Spring Road. It includes properties fronting this part of the Tobacco Road corridor and. The TAD extends a few hundred feet east of the intersection I From Tobacco Road, the TAD extends in a southerly direction on Windsor Spring Road for approximately 2.7 miles to the intersection of Willis Foreman Road. The TAD takes in both old and new suburban-style subdivisions flanking Windsor Spring Road and 286-acre, city-owned Diamond Lakes Park, located off the west right-of-way of Windsor Spring Road. The intersection of Windsor Spring Road and Willis Foreman Road marks the southern terminus of the TAD. I 1 I Another Tool Helping to Build One Augusta Page 62 1 I I ...-,r- ] Augusta Redevelopment Plan and Tax Allocation District #1 ..,;; I Appendix C. Augusta Commission Members I I I Deke S. Copenhaver Mayor Betty Beard District 1 Mayor Pro Tem Corey Johnson District 2 I I I I Joe Bowles District 3 Alvin Mason District 4 Calvin Holland, Sr. District 5 I .G' R- I I Joe Jackson District 6 Jerry Brigham District 7 Jimmy Smith District 8 I I I J.R. Hatney District 9 Don A. Grantham District 10 I Source: City of Augusta website, www.auaustaaa.aov/commission/home.aSD. retrieved 7-18-2008 I Another Tool Helping to Build One Augusta Page 63 I - I I I I I I I I I I I I I I I I I I I Augusta Redevelopment Plan and Tax Allocation District #1 ""*' Appendix D. References and Resources . APD (Asset Property Disposition, Inc.). Laney Walker/Bethlehem Neighborhood Plan: Paving a New Trail on a Historic Road. City of Augusta Housing & Community Development Department, 2008. · Augusta-Richmond County Planning Commission. 2004 Comprehensive Development Plan: www.auaustaaa.aov/deoartments/olannina zonina/como olan.asp . Augusta-Richmond County Planning Commission. Augusta-Richmond County Comprehensive Plan Update Community Assessment www.auaustaaa.aov/deoartments/olannina zonina/como clan uodate.aso . Augusta-Richmond County Planning Commission. Special 1% Sales Tax PRECONSTRUCTION Project Status Report, February 2008: www.auaustaaa.aov I deoartmentsl ena i neeri nal docs/Preconstruction Feb08. odf . Augusta-Richmond County Planning Commission. Various maps and plans: www.augustaga.aov I deoartmentsl clan n ina zoni na/home.aso . Augusta-Richmond County, Finance Department. 2007 budget: http://www .augustaaa .aov Ideoartments/finance/docs/2007recao274-797. odf · Augusta Tomorrow. Various reports: www.auaustatomorrow.com . City of Augusta, Housing and Community Development Department. 2007 ANNUAL ACTION PLAN: www.auaustaaa.gov/departments/olannina zonina/docs/odf/como/2008 Commu n itv Assessment. odf · CSRA Regional Development Center. The Augusta Area Initiative, A Brighter Tomorrow. htto: I Iwww.csrardc.ora/csra/docs/olannina/Soecia IProiectsl AuaustaArea Diversifi cationInitiative. pdf . Dale Henson Associates, Bleakly Advisory Group. The Laney Walker Neighborhood Housing Market Analysis. 2004. . Development Authority of Richmond County, Augusta Economic Development: www.auaustaeda.com/com mdatal · Downtown Development Authority of Augusta: www.mvauaustadowntown.com/m ission .shtm I . EDAW/Trinity Plus One Consultants. Augusta-Richmond County Target Area Master Plan: www.auaustaaa.aov/deoartments/housina dev/eco dev.asp · Historic Augusta: www.historicauausta.ora/ . MACTEC Engineering and Consulting, Inc. Augusta Third Level Canal, Laney- Walker Neighborhood Charrette Report: Strategic Concepts and Recommendations. Augusta Canal Authority. May 2006: www.auaustacanal.com/Cha rretteReoort- 3rd Level. odf · South Augusta Business: www.southauaustabusiness.com/develooment.html · West Augusta Alliance: http://westaugustaalliance.augustaneeds.com/ . Winward Properties, Inc. Redevelopment Strategy for Regency Mall. Greater Augusta Progress: www.auaustaaa. aov I deoa rtmentsl olann ina zoni nal docsl odf IReaencvMall J an ua IY&Qf Another Tool Helping to Build One Augusta Page 64