Infrastructure Development Districts (IDDs) Amid Georgia’s continued growth, a need exists for local governments to expedite crucial infrastructure that supports development. The Georgia General Assembly recognized the need for a new infrastructure financing tool by passing the Georgia Smart Infrastructure Growth Act of 2007, which provides for the creation of Infrastructure development districts (IDDs). If approved in the November 2008 statewide referendum, the provisions of the Act will be available January, 1, 2009. What is an IDD? A special purpose district with the ability to sell bonds to finance public infrastructure Bonds are backed by future fees and/or assessments upon property within the district. Can be used for commercial or residential purposes Creating an IDD Must obtain local government approval after public meetings. Petition must include: master plan & boundaries of district, list & cost of each infrastructure project, 20% green space required, no septic tanks – sewer service required, Development of Regional Impact Review required, and a list of initial board members. Key Features & Benefits Expanded job creation opportunities Greater economic development in the area – desired projects become feasible Local governments do not give up property taxes on district property Local governments are not liable for debt issued by IDD Desirable growth pays for itself with no investment by existing taxpayers Environmental safeguards – 20% green space requirement and cleaner ground water due to sewer requirement. No septic tanks are allowed. Greater public oversight of development IDD is subject to all local ordinances, including zoning IDDs can fund school infrastructure costs not permitted under impact fee law IDD projects receive more scrutiny, increasing the odds of a successful development IDDs make larger projects in rural areas feasible; current limitations do not permit these areas from financing the needed infrastructure IDDs are not subject to debt limitations Community has increased influence over type & quality of development that fits with the community’s long-term goals IDDs can spur other development in keeping with the community’s wishes IDDs successfully used in 17 states – Florida has more than 400, used in Alabama as well Development occurs with lower cost financing, amenities installed “up front” to enhance marketing, long-term obligations met with more certainty, and an increased ability to make sound development projects viable, all of which help to create jobs Prospective buyers are given specific notice of assessments associated with IDDs IDD is managed by a Board and, in 6 years or less, is made up of IDD residents/owners For more information, please contact us: Georgians For Quality Economic Development, PO Box 688, Marietta, GA 30064 Heath Garrett, heath@ssg-south.com or Toby Carr, carr.toby@gmail.com, 404.454.7888