Tax Allocation Districts are used nationwide as an economic development incentive to attract quality development to an underutilized or distressed redevelopment area. Gwinnett County may consider the use of TAD financing to support certain projects that provide a substantial public benefit. TAD projects help to create new jobs and/or retain 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 underused commercial parcels, and to implement the County’s Comprehensive Plan and economic development strategy.
TAD financing will generally be reserved for projects that do not qualify for alternative methods of financing, or where TAD assistance is deemed by the County to be the preferred method of economic development incentive. Each TAD project must demonstrate that “but for” the use of TAD financing, the project would not be economically feasible and would not be completed without the proposed TAD increment.
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 use 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 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, legal and financial services
Generally, the total amount of TAD assistance for project costs should not exceed 15 percent of the total estimated project value (excluding capitalized interest). Certain requirements for 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.
To learn more about TADs, please view the Gwinnett County Tax Allocation District Policies and Guidelines.