Muscogee County School Board joins city to establish Tax Allocation Districts
The Muscogee County School Board has joined the county’s other taxing authority, the Columbus Consolidated Government, in the local effort to establish a new mechanism for redeveloping certain areas.
During its monthly meeting Monday night, the board approved a series of four resolutions and intergovernmental agreements with the city to form Tax Allocation Districts.
Known as TADs in Georgia and TIFs (Tax Increment Financing) in other states, they are economic and community development tools.
In a TAD, the amount of property taxes that go to the local government is frozen on all real estate in its boundaries. Bonds are issued to redevelop the area. As property values rise, so does the property tax revenue. Any revenue collected over the frozen amount goes toward retiring the bond debt and possible infrastructure improvements.
In 2007, Muscogee County voters narrowly defeated the TAD referendum, 51-49 percent. In 2014, they passed the TAD referendum by 59-41 percent. That authorized the local governing bodies to established TADs.
The Columbus Council approved the first local TAD, the proposed Fort Benning Technology Park, in December. Two months ago, council approved the final three of the four proposed TADs: Liberty District, Uptown and City Village, which are contiguous parts of the River District Redevelopment Plan.
Monday night was the next step, getting the school board on board. The votes were 7-0 on all four TADs. Kia Chambers, the nine-member board’s lone countywide representative, and District 7 representative Shannon Smallman said they recused themselves to avoid any appearance of a conflict of interest because they are real estate brokers.
Brian Anderson, president and chief executive officer of the Greater Columbus Chamber of Commerce, told the board, “We’ve had a growth in capital investment. We’ve had a growth in job creation. We’ve had a growth in the (tax) digest to a degree, but not on the same pace as those communities we’re competing with. So we’re looking to strengthen our toolbox from an economic development standpoint and using every tool available to us so we can be the most competitive community, not just in Georgia but the entire Southeast.”
Anderson noted the TAD won’t cost the city nor the school board any tax revenue.
“But you could, by the use of this instrument, incentivize or instigate the growth that we currently need so that your digest, which delivers you revenue, can grow,” he said.
TADs may be used only in underdeveloped or blighted areas, Anderson said.
School board members John Thomas of District 2 and Frank Myers of District 8 praised Anderson for taking the time to address their concerns.
“I wanted to make sure the school district wasn’t giving up any funding going forward,” Thomas said.
Myers added, “I had prejudged Mr. Anderson. But we sat down together and had a nice conversation, and he followed up with real answers to real concerns. … You were straightforward. You were truly transparent, a breath of fresh air. I could go on. … The bottom line on why I’m going to vote yes is Brian Anderson, and we thank you for what you do, sir.”
The proposed Fort Benning Technology Park comprises 183 acres between the U.S. Army post and I-185. Improvements to the interstate’s interchange at Custer Road will provide access to the park. Developing that land is projected to improve its annual tax revenue from $2.3 million to $47.5 million.
The Liberty District TAD involves 599 parcels on 296 acres along the Sixth Avenue corridor, with a fair market value of $130 million and taxable value of $27 million.
The Uptown TAD involves 389 parcels on 194 downtown acres with a fair market value of $339 million and taxable value of $48 million. It is bordered by 14th Street on the north, the river on the west, Sixth and Eighth streets on the south and Veterans Parkway and Third Avenue on the east.
The City Village TAD involves 990 parcels on 370 acres between TSYS and Bibb City, with a fair market value of $106 million and taxable value of $30 million.
Staff writer Mike Owen contributed to this report.
This story was originally published May 16, 2016 at 11:11 PM with the headline "Muscogee County School Board joins city to establish Tax Allocation Districts."