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 BackHOUSE OF REPRESENTATIVES
Committee Report
| Legislation: | HS 1 for HB 197 |
| Sponsor: | Valihura |
| Long Title: | AN ACT TO AMEND TITLE 9 OF THE DELAWARE CODE ENABLING NEW CASTLE COUNTY TO UTILIZE TAX INCREMENT FINANCING AND SPECIAL DEVELOPMENT DISTRICTS TO FUND COSTS RELATED TO REDEVELOPMENT. |
| Committee: | HOUSING & COMMUNITY AFFAIRS |
| Number of Committee Members: | 13 |
| Date of Report: | 06/20/2007 |
| Committee Vote: | Favorable: | On Its Merits: | Unfavorable: |
| 0 | 7 | 0 |
Purpose of the Bill : This Bill enables New Castle County to take advantage of the opportunity to have redevelopment infrastructure impact costs financed through the use of tax increment financing (TIF) and the establishment of special development districts (SDD). TIFs and SDDs can be used effectively to encourage redevelopment by steering growth to desired areas. TIF and SDD funding is obtained through the issuance of bonds which are not required to be backed by the full faith and credit of the New Castle County. The payment for the bonds comes from an increase in real estate tax imposed only in the project area. Thus, those directly benefiting from the growth and development bear the burden of paying for it, and other real estate taxpayers are unaffected. TIFs and SDDs are implemented through agreements between New Castle County and the developers desiring to utilize the funding mechanism. The nature of the redevelopment and infrastructure associated with the project is subject to the approval of New Castle County. Impact associated with redevelopment which would not be covered by typical land use approval can be incorporated in TIF and SDD financings. TIFs and SDDs are utilized in forty-eight states to reduce the financial burden of States, Counties and Municipalities in dealing with redevelopment and new development financial impacts. Additionally, the General Assembly adopted Chapter 17, Title 22, known as the Municipal Tax Financing Act, and Chapter 18 relating to Special Development Districts granting authority to municipalities with a population in excess of 50,000 people the power to utilize TIFs and SDDs. Several Delaware municipalities have amended their charters to allow TIFs and the creation of SDDs.
Committee Findings: The committee found no problems with the bill.
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