GHCC endorses city's TAD plan

GAINESVILLE - The Greater Hall Chamber of Commerce Board of Directors Thursday threw its support behind City of Gainesville's Tax Allocation District (TAD) plan.

The proposal, part of the city's ongoing efforts to spur redevelopment in certain disadvantaged areas, will go before the voters in November.

It calls for the implementation of a funding tool to be used to partner with private developers without having to create new or increased taxes for residents.

The chamber board, in giving a nod to the idea, agreed that the concept will help stimulate new investment within the city and encourage new office, residential and retail development.

According to a fact sheet given the board Thursday:

· A TAD is not a tax increase.

· Within a TAD, tax-exempt bonds are issued to pay front-end infrastructure and eligible development costs in partnership with a private developer. As redevelopment occurs in the district, the "tax increment" resulting from redevelopment projects is used to retire the debt issued to fund the eligible redevelopment costs.

· TADs will help stimulate new investment within the city and encourage new infill office, residential and retail development.

· TADs are now in place in a number of cities throughout Georgia including Marietta, Powder Springs, Smyrna and Acworth.

· TADs create long-range benefits for the city and Board of Education in terms of higher property values and increased sales tax revenues.

· A TAD is the best available vehicle to draw quality retail, restaurants, housing, office space and jobs to neglected areas in Gainesville.

· TADs (known as Tax Increment Financing in other states) have been popular for several decades to spur redevelopment in blighted areas. Currently, 44 states have some form of TADs.

Examples of TADs in Georgia

City of Marietta
The Marietta TAD includes a former public housing development and a city-owned hotel, and it is designed to finance public improvements supporting a mix of retail stores, condominiums and lofts.

City of Acworth
The Acworth TAD is intended to pay the cost of stabilizing and recapping a landfill site so that it can be redeveloped into a shopping center.

City of Smyrna
The Smyrna TAD is intended to pay for curb and street improvements and landscaping, all in hopes of stimulating the expansion of Smyrna's village concept and the creation of a mixed income community.

Sandy Springs
The Sandy Springs TAD in unincorporated Fulton County is designed to finance infrastructure for the purpose of attracting large-tract developers who have previously shunned the area.