Okaloosa County BOCC — February 3, 2015 — Public Hearing - Regarding PJ Adams Parkway Tax Increment Financing — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: February 3, 2015 TO: Honorable Chairman and Members of the Board FROM: Jason Autrey SUBJECT: Public Hearing - Regarding PJ Adams Parkway Tax Increment Financing DEPARTMENT: Public Works BCC DISTRICT: 1 and 3 STATEMENT OF ISSUE: This is a continuation of the public hearing to consider an Ordinance establishing the Tax Increment Financing (TIF) Area which is intended to provide funding for various improvements to PJ Adams Parkway. BACKGROUND: On January 6, 2015 the Board of County Commissioners began the public hearing regarding the proposed establishment of the North Okaloosa Transportation Tax Increment Area; commonly this has been referred to as the PJ Adams TIF. Information provided on January 6th is as follows: <<begin copy>> Mr. Mike Chesser, of Chesser & Barr, P.A. in Shalimar, has been working with residents and staff regarding the development of a Tax Increment Financing area that could be utilized to provide funding for various improvements related to PJ Adams Parkway. An ordinance has been proposed that will create the "North Okaloosa Transportation Tax Increment Area" that will provide a dedicated funding source for the construction and expansion of PJ Adams Parkway. The TIF ordinance proposes to utilize the dedicated increment value (as defined in section 200.001(8)(h), Florida Statutes) beginning January 1, 2016 to serve as the funding source for future improvements. Funds collected through the TIF can be used as leverage, matching or project dollars toward the construction and expansion of PJ Adams Parkway. The project corridor available for funding is consistent with the alignment adopted in the adopted PD&E for the PJ Adams Parkway and Antioch Road corridor (approved September 3, 2013 by the Federal Highway Administration). Areas within Okaloosa County that are included within the TIF are properties north of the Eglin Reservation, excluding the Crestview CRA district (as shown on the attached map). Forecast models based on the formulas described in the draft ordinance attached are also provided for reference. Assuming a 20 year term for the TIF, nearly $20 million in revenue is estimated; it is important to note that the actual amount of revenue experienced could be more or less than the projections shown in the table depending on the land areas included within the TIF area and rate of appliciation. For perspective, the order of magnitude costs to achieve construction for various segments of PJ Adams Parkway are as follows: SR 85 to I-10: $30 million I-10 to US 90: $60 million Interchange with I-10: $25 million Funds collected in accordance with the prescribed formula would be deposited into the North Okaloosa Transportation Trust fund for future expenditures strictly related to the PJ Adams Parkway project. Any and all future use of the deposited funds would require approval by the Board of County Commissioners. Further participation in the TIF program is authorized, and anticipated, by way of an interlocal agreement with the City of Crestview and possibly other governmental entities. <<End copy>> Subsequent to the discussion conducted on January 6th, additional funding alternatives have been presented to staff for consideration. The first of such concepts includes the implementation of the remaining additional two cents of the local option gas tax for one year. Implementation of two additional cents of gas tax is estimated to generate approximately $1.2 million. Funds generated from this specific portion of the gas tax would be designated for use only along PJ Adams Parkway. The proposed concept would call for the two cent tax to sunset after one year of implementation. In addition, to offset the one year implementation of the full five cents of the second local option gas tax, the proposal includes a reduction of the currently ex