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Financing Tools to Become Retail Ready

TAD's and Enterprise Zones are a few of the tools discussed at Retail Ready

Retail recruitment and redevelopment projects are on a lot of economic development organization’s strategic plans. An essential part of these strategies must include having the tools in place to finance these types of projects. Growing populations and target consumer demographics may help your community get a first glance from a retailer, but the “math has to math” for your site or building to be in consideration.

Andy Camp, Regional Director of Economic Development at Thomas & Hutton, introduced Retail Ready participants to several programs that could help their communities compete for projects – Tax Allocation Districts (TADS) and Enterprise Zones.

Andy Camp, Thomas and Hutton

Tax Allocation Districts

Tax Allocation Districts (TADs) are an economic development tool used to bring new life to an underdeveloped area. These areas could include brownfield sites, declining commercial or industrial corridors (Tax Allocation Districts (TADs) - Georgia Mainstreet ). City or County participation in a TAD requires one-time local legislation during the state legislative session along with a jurisdiction-wide referendum.

Here’s how they work:

  • The Underutilized area is chosen
  • The current property tax base of the area is frozen while the area is being revitalized
  • As the property value increases, future tax revenue above the tax floor is captured
  • The collected tax revenue is dedicated to funding future improvements throughout the area

Andy said it simply, “It’s really just a way of moving money from being part of a tax collection general fund to being put back into the project as part of the capital stack.”

Enterprise Zones

Enterprise Zones are areas designated by a city or state that have been granted public assistance to encourage economic development and job creation. After the zone is decided, companies are encouraged to locate to the area with incentives like:

  • Local property tax exemption
  • Waived permit fees
  • Income tax credits
  • Grants

The Georgia Department of Community Affairs (DCA) covers State Enterprise Zones, including a list of participating cities and zones on the DCA website.

Utilizing tools and strategies like these can help attract the businesses you’re looking for and create the community you envision, but how do you know which is the best course of action to take for your region? Our Regional Economic Development Managers (RED) are here to help. Whether it’s facilitating a strategic planning session or introducing you to resources, our RED Managers are dedicated to helping you to reach your goals.

Join us for our Retail Ready Summit!

If you’re a community leader interested in learning more about retail location trends and prepping your area for your next retail opportunity, RSVP for our next Retail Ready Summit Event on October 23 in Macon, Ga. With opportunities to network and informational sessions, this is an event you won’t want to miss.