Union City is looking to redevelop targeted areas of the city with a focus on commercial areas such as Shannon Mall. Setting the stage for that redevelopment was an April 18 vote to put a measure on the November ballot authorizing the city to create a Tax Allocation District.

Tax Allocation Districts (TAD) were approved by Georgia General Assembly in 1985. Also known as tax increment financing, tax allocation financing is a redevelopment and financing tool by which governments can provide financial assistance to eligible public and private redevelopment efforts within an officially designated TAD. Increases in property tax revenues, generated primarily from new development in the district, are allocated to pay infrastructure costs or certain private development costs within the TAD, according to Atlanta Development Authority (ADA). This is primarily done through the issuance of tax allocation district bonds.

TADs are established for the purpose of publicly financing certain redevelopment activities in underdeveloped areas. Redevelopment costs are financed through the pledge of future incremental increases in property taxes generated by the resulting new development. A redevelopment agency does not have the authority to levy or increase property taxes. The increased tax revenue from the sale, development or rehabilitation of property reflects a rise in property value and not an increase in the tax rate, according to ADA.

“What we’re doing is calling for elections to be authorized,” City Administrator Terrell Jacobs told the council. “More information, including the areas and projects (targeted for the TAD) will be forthcoming. The primary focus are commercial areas. Those areas in and around the (Shannon) Mall are a logical place for such redevelopment.”

Jacobs added that the bedrock in some of the commercial area around Union City contain a substantial quantity of rock, a fact that increases development costs. If approved by voters in November, the establishment of a Tax Allocation District will be a great incentive for developers.

Commenting in favor of putting the measure on the Nov. 7 ballot, council member Angelette Mealing agreed that the measure would be an opportunity for redevelopment, adding that TADs are a great tool for redevelopment as it relates to moving the city forward.

Local examples of redevelopment using allocation funding include Atlantic Station and development in the Camp Creek Parkway area, Jacobs said.

Also commenting on the measure was council member Helen Turner, who supported the effort yet wanted to ensure that the Tax Allocation District, if voted in and instituted, would come to its intended fruition.

“I’m all for it but I want to see some action,” Turner said. “I hope we can see some changes if we pass this. I’ve heard too many tales told in the past.”

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