Funding Tools
Program 380
This State statue (Chapter 380) allows cities to provide economic development programs, including making loans and grants of public money. Program 380 can be used to capture taxes from site specific development. This program is similar to a tax abatement, but instead of exempting taxes the property pays normal taxes and is rebated the City portion annually. Sales tax generated from a specific development can also be rebated annually. Program 380 will be a key tool in encouraging and facilitating "new private investment", because TIFs can only fund public infrastructure.
Section 108
Cities can borrow funds from future Community Development Block Grants (CDBG) to fund specific projects. These funds could be utilized to off-set the initial costs of the redevelopment and be repaid through incremental revenue capture (i.e. 2% grow, plus new development). City staff is exploring the capacity of the Section 108 Program.
Local Development Corporation (LDC)
The importance and complexity of the Implementation Plan will require a streamlined approach to stimulating private investment.TLC Advisors emphasized that unnecessary "red tape" would be a major obstacle in attracting private investment. Cities have the authority to create and delegate specific powers and duties to local development corporations. The board of the LDC could consist of elected and appointed officials from the multiple public partners. The LDC would orchestrate the redevelopment process (i.e. property acquisition, public infrastructure, and development incentives).