City Council Sets TIF Criteria

The Jonesboro City Council adopted a set of guidelines Monday that city officials will use when considering applications for tax increment financing for commercial developments.

The city has authorized the new financing tool for development of the infrastructure associated with The Mall at Turtle Creek and has received formal requests for two other locations. Yet another developer said Monday he planned to request approval for another project.

A tax increment financing district, or TIF -- also called a redevelopment district -- freezes property tax payment totals to local governments, school districts and other taxing entities within the district's boundary. The developer would pay higher taxes resulting from improvements to property in the district, but the additional taxes would be used to pay off the TIF bonds that financed the improvements.

The City Council imposed a moratorium on consideration of new redevelopment districts in August until the city can adopt a set of criteria. That moratorium expires in October.

Alderman Alec Farmer, chairman of the council's Finance and Administration, drafted the guidelines, which were endorsed by the committee last week. It requires applicants to submit certification that the project meets the following requirements to the mayor, city clerk and city attorney at least two weeks before it is considered by the council:

• That the district meets requirements as set out in Amendment 78 of the Arkansas Constitution and subsequent legislation; 
• A project plan; 
• District property is properly zoned for developmental purposes; 
• Approval by the Metropolitan Area Planning Commission of site development plans; 
• A petition signed and certified by the county clerk of more than 50 percent of the property owners, representing more than 50 percent of the appraised value within the proposed district; and 
• Payment to the city for the cost of notice requirements.

After those conditions are met, the criteria sets out factors for the City Council to consider when deciding whether to approve a request. They include:

• Development of unimproved property; 
• Total private investment in the district; 
• Permanent full-time equivalent job creation; 
• Unique infrastructure needs to which the TIF funds would be applied; 
• Benefit to the city and its residents, such as drainage or road improvements; 
• A list of specific infrastructure and-or other improvements with projected costs that would be paid by the TIF funds; 
• Support of or no opposition by the affected school district or other government entity; 
• Duration of the TIF district; and 
• Other factors that require TIF assistance.

If the project is being undertaken to redevelop a blighted area, the following issues would be considered:

• Rehabilitation of existing developed property; 
• Percentage of vacant property; 
• Length of time more than 35 percent vacant; 
• Percentage of low-income residents, as defined by the U.S. Department of Housing and Urban Development; 
• Whether there are high incidents of personal or property crimes; 
• Benefit to the city and its residents, such as drainage and transportation improvements; 
• Support of or no opposition by the affected school district or other government entity; 
• Duration of the TIF district; and 
• Other factors that require TIF assistance.

Developers of The Mall at Turtle Creek plan to use TIF bonds to pay for relocating Turtle Creek to better facilitate construction of the mall, while also improving drainage for a large area of eastern Jonesboro. Other improvements include extension of Matthews Avenue to the mall site, as well as traffic signals.

Warmack & Co. LLC, of Texarkana, Texas, which owns Indian Mall and a large tract off Southwest Drive, had requested creation of districts for those properties, but postponed moving forward until plans could be developed.

Jonesboro developer Kent Arnold said Monday night he would propose a TIF district to develop 56 acres off East Johnson Avenue if he can gain approval of a rezoning proposal.