Partnership Gwinnett
TAD...a partnership for the cities, but what is it?
by: Paula Hastings
In November, eight municipalities will have the Tax Allocated District (TAD) referendum on the ballot. The passage of the TAD was an action
item identified for the Quality of Life committee to achieve during the implementation phase of the Partnership Gwinnett initiative.
When the voters of these cities go to the polls, they will find the following question on the ballot:
“Shall the Act be approved which authorizes the City of __________________to exercise redevelopment powers under the ‘Redevelopment Powers Law,’ as it may be amended from time to time, for the purpose of improving economic and social conditions in depressed areas within the city?”
For a lot of people, this one sentence generates questions. We went to the experts for the research and data to educate our readers on this important decision and its impact on Gwinnett going forward.
What is the “Redevelopment Powers Law”?
Georgia’s Redevelopment Powers Law gives local government a simple, yet powerful tool to leverage private investments to pay for infrastructure and other improvements in declining or blighted areas. Those areas can then become safe, attractive and productive parts of the community again.
How does it work?
The City would designate a defined area that is in need of redevelopment. After the required public notice, public input and public hearings, the City would adopt a redevelopment plan that specifically outlines how that area would be redeveloped and would create a “Tax Allocation District” or TAD.
As property within a TAD is redeveloped and improved by private investment, the City and School Board would receive increased property tax revenues as a result of the increase in property values. Only this new revenue is earmarked to make improvements within the TAD.
Is this a tax increase?
This is not a tax increase nor is it a new tax. But because the T in TAD stands for “tax”, some people naturally get confused. However, the key word in TAD is really “allocation.” TAD’s are simply a means of allocating only the new revenue that results from the increased property values of the improved and redeveloped properties within a TAD.
Where will TAD’s be located?
Approval of this ballot question does not create a TAD. It only gives the Cities the ability to create them. No TAD could be created and no new tax revenues could be earmarked for a TAD without the specific approval of the City Council after extensive public input and public hearings.
How have TAD’s been used in Georgia?
In Atlanta, Atlantic Station is a good example as it developed a former brownfield site (Atlantic Steel) into a mixed-use development. When completed, it will have created up to 30,000 jobs and converted a blighted area into a thriving live, work, play center.
Cobb County, Marietta and Smyrna have created TAD’s to provide funding for various redevelopment projects.
Hopefully, this Q & A has shed some light on the TAD. Thank you to Sharon Gay of McKenna Long and Aldridge for her expertise on TAD’s. As always, we encourage our readers to take the time to research and form your own opinion before casting your ballot in November. Your vote does count!
