Tax Allocation Districts are used nationwide as an economic development incentive to attract quality development to an underutilized or distressed redevelopment area. If approved by voters, Gwinnett County may consider the use of TAD financing to support certain projects which provide a substantial public benefit. TAD projects help to create new jobs and/or existing employment, eliminate blight, reduce crime, strengthen the employment and economic base, increase property values and tax revenues, decrease poverty, create economic opportunity, redevelop underperforming neighborhoods and underutilized commercial parcels, and to implement the county?s Comprehensive Plan and economic development strategy.

TAD funding will be used for quality mixed-use Activity Centers that contain a combination of land uses where residents of all ages and income levels can live, work, and play, thereby reducing automobile travel trips and congestion. TAD financing will generally be reserved for projects that do not qualify for alternative methods of financing. Each TAD project must demonstrate that ?but for? the use of TAD financing, the project would not be economically feasible

Applicants must clearly document all approved TAD expenses. TAD cost estimates and fees will be reviewed by the County and professional consultants to ensure their reasonableness. The County will not consider funding requests for "Retroactive TADs," which provide financial support for projects after land disturbance or construction has commenced. TAD financing for major infrastructure improvements that will enable substantial future redevelopment to occur will be viewed more favorably than projects that propose to utilize tax increments for minor aesthetic improvements.

TAD bond proceeds shall be used only to fund the following eligible expenses:

• Capital costs
• Financing costs
• Land clearing and grading
• Real property acquisition (provided the property is acquired for public use)
• Demolition of existing structures
• Environmental remediation
• Construction of public works
• Other system improvements that may be necessary to support the project
• Professional services such as fees for architectural, planning, engineering, environmental, legal, and financial services

Generally, the total amount of TAD assistance for project costs should not exceed 15% of the total estimated project value (excluding capitalized interest).

Certain requirements for TADs and TAD projects may be waived if necessary in order to encourage the development of an especially unique or distinctive development or amenity that will serve as a smart growth model for future projects or as a catalyst project to spur redevelopment in surrounding areas. Gwinnett County will hold public hearings to gather input from citizens before a TAD is approved; however, the County will NOT guarantee any related TAD bonds or notes. Private bond holders and project developers will bear any risk associated with the project. The County will not be generally obligated to support bonds by pledging its full faith and credit.

Gwinnett County Tax Allocation District Policies and Guidelines