City Council discusses possible TIF district to connect two shopping centers – Picayune Item
The possibility of creating a Tax Raise Funding District to help fund a connecting road between Walmart and Home Depot was discussed at Tuesday’s Picayune City Council meeting.
Troy Johnson and Butler Snow started the discussion with a description of a TIF neighborhood and how the city would use such an option to help fund the city’s development.
Such financing options have been used in the past for earlier developments, such as the Ramey’s Mall in Poplarville, according to previous coverage.
In Tuesday’s meeting, Johnson said creating a TIF district would start by establishing a baseline for the amount of taxes currently generated by a property, and then comparing the amount of taxes generated after its development.
Once these parameters were established, the city would be able to decide on the amount of bonds it would seek. The refund of the deposit would be made by setting aside part of the sales generated and the ad valorem taxes.
Johnson said the most common payment method he’s seen is to set aside 100 percent of ad valorem taxes as well as 50 percent of sales tax generated as part of the development.
Before a TIF is approved by the Board, a plan that explains the project needs to be formed, which would be used to hold a public hearing to gather feedback from residents.
At this point, the Board can decide whether to go ahead with the TIF plan or not. The proposed project for TIF may be a connecting road from Walmart to Home Depot.
AP Guizerix said it owns part of the property that would be used to create the road, but that means two more owners are expected to accept the project.
Guizerix said he wanted to create the road for several reasons, including making it easier for traffic to flow during peak hours and creating access to the property he owns and would like to develop. Some of his development ideas include restaurants and maybe a hotel, but none of those projects are set in stone. Although he said an anonymous company got involved.
Guizerix also said he plans to donate the property used in the construction of the road to the city, along with another piece of land that could be used to create a third exit lane for the Walmart mall.
No decision has been taken on this matter. City Manager Freddy Drennan said more information on the project will be presented at the next council meeting.