10-02-2007, 01:55 PM
Carey, In an Enterprise Zone, tax breaks and incentives are supposed to reduce property owners and business operating expanses so they can put that back into operational improvements. But like you said, they have to put up the money and hope their tax savings offset the improvements. There's other things that goes into it as well that makes it unattractive since it's geared more towards the businesses improvements not necessarily the improvements of the zone.
In a Special Assessment District (or Business Improvement District) you have no tax breaks or incentives. The property owners agree that the area needs improvement. They figure out what they need to do to stem blight, increase employment, reduce vacancy rates, attract business, advertise themselves, attract tourism, and all the other "community" things that goes into revitalizing the area. They come up with a financial plan and a fair and equitable way for each property in the District to pay for it.
From there they ask the County to partner with them on this plan. That partnership is using the county's tax collection system to assess the additional agreed upon amount above the normal property tax. The District is basically self taxing themselves to meet a common community objective. The County can, if they think it helps, float a bond for the improvements and repay themselves through the special assessment. The County only has general fiscal oversight of the additional assessment, but it's the elected District Board made up of property, business, residential, and other economic development people who control the District’s operation.
I've been involved in forming several and if properly done, it can turn a blighted area with little hope of economic recovery into a shining star. It's all based on the simple philosophy that good things come to those that help themselves. (Not to mention it’s already authorized in Hawaii law and has already been done in Hawaii so you’re not reinventing the wheel)
In a Special Assessment District (or Business Improvement District) you have no tax breaks or incentives. The property owners agree that the area needs improvement. They figure out what they need to do to stem blight, increase employment, reduce vacancy rates, attract business, advertise themselves, attract tourism, and all the other "community" things that goes into revitalizing the area. They come up with a financial plan and a fair and equitable way for each property in the District to pay for it.
From there they ask the County to partner with them on this plan. That partnership is using the county's tax collection system to assess the additional agreed upon amount above the normal property tax. The District is basically self taxing themselves to meet a common community objective. The County can, if they think it helps, float a bond for the improvements and repay themselves through the special assessment. The County only has general fiscal oversight of the additional assessment, but it's the elected District Board made up of property, business, residential, and other economic development people who control the District’s operation.
I've been involved in forming several and if properly done, it can turn a blighted area with little hope of economic recovery into a shining star. It's all based on the simple philosophy that good things come to those that help themselves. (Not to mention it’s already authorized in Hawaii law and has already been done in Hawaii so you’re not reinventing the wheel)