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The anticipated amount of tax increment for the Project Area would be <br />sufficient for the Agency to invest in a modest amount infrastructure, public <br />facility, commercial rehabilitation, and economic development projects. As <br />with any redevelopment project, the Agency will be working closely with the <br />private sector so these tax increment revenue investments can be leveraged <br />for the most effective impact on Project Area blight. Long term, it is the intent <br />of the Agency that its redevelopment activities will stimulate others to invest <br />in the Project Area as well. <br />Reasons for the Provisions of Tax Increment <br />Tax increment financing will be an essential component of a successful <br />redevelopment program in the Project Area. As demonstrated in Section B of <br />this Report, many of the Project Area blighting conditions are attributed to a <br />lack of financial incentives for new development and property rehabilitation. <br />Market values and development constraints have prevented maintenance <br />investments resulting in physical decay. <br />Historically, assistance from federal government has not been an adequate to <br />fund projects to significantly alleviate blighting conditions. Also, with the <br />recent state budget deficit, state assistance in providing funding for <br />necessary public infrastructure improvements and facilities cannot be <br />reasonably expected. While there are other means to raise public funds <br />without tax increment financing, these techniques would ultimately result in <br />higher taxes or increased development costs, both of which are <br />counterproductive to resolving the unique issues in the Project Area. For <br />example, certain public improvements could be financed by creating an <br />assessment district, but the property owners would probably not support <br />creation of the district because many cannot afford the cost of additional <br />taxes (two-thirds of the voters must approve formation of such a district). <br />Tax increment financing provides a dedicated source of revenues for the <br />Agency to invest into housing and other redevelopment programs, without <br />burdening property owners or residents with additional costs that they cannot <br />afford. <br />ROSENOW SPEVACEK GROUP, INC. REDEVELOPMENT AGENCY OF THE CITY OF STOCKTON <br />MAY 3, 2004 <br />ROUGH AND READY ISLAND REDEVELOPMENT PROJECT <br />- C-6 - PRELIMINARY REPORT