The Gainesville City Council is prepared to approve funding for the design of a youth sports complex when it meets at 5:30 p.m. Tuesday in the municipal courtroom of the Public Safety Complex.
About $450,000 in impact fee revenue (which comes from new construction fees) will be used to fund this first phase.
Special purpose local option sales tax money will be used to construct the $6.75 million complex, the city’s first youth sports fields in more than 30 years.
The complex will be located across from the Allen Creek soccer fields, and officials hope it will serve as a catalyst for new commercial and retail development in Gainesville along the U.S. 129 corridor.
Demand for youth sports programs are at an all-time high, and a new complex could help attract regional, state and national tournaments to the city, bringing with it new tourism spending.
New TAD funding for midtown district
In an effort to incentivize local business and industry to help redevelop midtown, the Gainesville City Council is looking to approve about $42,000 in tax allocation district funding to cover some construction costs for a 5,000-square-foot office and warehouse facility on Maple Street.
A vote will be made at the council’s meeting on Tuesday.
The building will be designed with a similar character to the Chastain Janitorial Supply building on Martin Luther King Jr. Boulevard.
The funds will support the purchase of brick and masonry materials, footings and installation labor for the retaining wall and fencing with brick columns.
Gainesville has two tax allocation districts — the midtown area and Lakeshore Mall — wherein increments in property taxes resulting from new growth are reinvested in properties.
After establishing a baseline of property taxes owed, any increments resulting from an increase in property value is pumped into the TAD account funds and reinvested in improvements. But only the growth in property tax revenue is funneled to the fund.
According to the city’s website, “In simple terms, the increased property taxes that would be generated by a development’s improvements are temporarily used to fund those improvements. Once the improvements are paid for, a development’s taxes are then distributed traditionally.”
The Atlantic Station development in Atlanta is one of the more prominent examples of the use of TAD funding in the state.
The Gainesville City Council approved new policies and procedures late last year for the ways redevelopment projects seeking Tax Allocation District financing are evaluated and approved.
All projects must generate sufficient tax increments to pay back the city’s debt, and should help reduce service costs, attract private investment and encourage new construction, according to the new policies.
In addition, projects that receive TAD funding must include a minimum $100,000 private investment.