Infrastructure development districts are

advertisement
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
Download