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Abstract:
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In February 2012, the legislature abolished the state’s redevelopment program. Local redevelopment agencies had participated in a myriad of economic development activities. Along with the dissolution of these entities, local officials lost the ability to use tax increment financing to fund projects. In the aftermath of these actions, municipal leaders are struggling to determine how they will finance future economic development and infrastructure.
In this thesis, I provide an in-depth review of economic development activities once financed by RDAs, as well as remaining financing techniques local governments have at their disposal. I determine which financing mechanisms still exist that municipalities can use to complete economic development activities, and how each tool fits into the myriad of local economic development activities. Using a qualitative criteria alternatives matrix analysis I provide a matrix of options that pairs funding mechanisms with economic development activities. To evaluate each combination, I consider four criteria that need to be present in order to achieve success.
This analysis underscored two important points. First, none of the current financing mechanisms have the same flexibility that existed with TIF through RDA. Second, financing mechanisms existed for nearly all of the economic development activities evaluated. |
