Last week we talked about TIF (Tax Increment Financing). This week, let’s talk about something that helps provide critical infrastructure to key projects.
This is the second in a series of episodes about economic development incentive programs. This week, I would like to briefly discuss Transportation Development Districts or TDDs. The State of Missouri allows certain groups to create a political subdivision that generates funds for transportation improvements through the collection of taxes. TDDs can be formed by registered voters, transportation authorities or property owners and must be approved by the circuit court of the county in which they are formed.
Let’s look at the Veteran’s Memorial Drive to better understand how TDDs work. In this case the entire tract of land had one owner. That owner elected to establish the TDD with a one-cent sales tax to be imposed on future sales. The developer was then responsible for paying all costs to build the road and other transportation infrastructure. After the development is complete, the TDD will begin receiving its portion of the revenue, which will then go back to the developer to reimburse for a portion of the original infrastructure development costs.
This tool helped provide access and lay the groundwork for the development of the incredible new SportsPlex, which is already bringing visitors to our community. Those visitors stay in our hotels and eat at our restaurants, providing an economic boost to the entire community. With further development, we expect to continue seeing increased activity and City tax revenue as a result of this key regional project.