By Heather Jensen Weekend Anchor/Reporter
News 3 On Your Side
Columbus voters will likely be looking for a referendum with a small name on Tuesday. But they won't see the "TAD" name on the ballot.News 3 On Your Side
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Stumble It!The so-called TAD Referendum asks:
“Shall the Act be approved which authorizes the consolidated government of Columbus, Georgia, to exercise redevelopment powers under the “Redevelopment Powers Law,” as it may be amended from time to time?”
With redevelopment powers in place, the city government can establish tax allocation districts, or TADs.
Columbus State University has offered online help and forums to inform voters.
“A tax allocation district is a carefully designated area that is a part of a large redevelopment plan,” says Dr. Linda Hadley, Dean of Columbus State University’s D. Abbott Turner College of Business.
Any number of Columbus communities could benefit from redevelopment and TADs. The idea is to make those areas more attractive to private developers using bonds.
Here’s how it works.
City leaders designate an area as a TAD. Then they make a redevelopment plan which would include potential investors. Bonds would pay for improvements in the area. And developers would pay off the bonds.
“The increase in the tax base would bring about additional tax revenue so it's a way to finance economic development without raising taxes at all,” says Dr. Hadley.
That means no tax increase for current property owners, and no change to the way property taxes are set.
Additionally, if revenue falls short, investors would be responsible.
But there are risks.
The city must be careful how they structure deals to ensure bond repayment. The new growth could result in a greater demand on public services. And there's a possibility of gentrification, where low income families or small business are displaced because of the growth.
There are safeguards in place to prevent the risks associated with TADs, including a mandatory public hearing prior to implementing any redevelopment plan.
The referendum must get a majority of the votes in order to pass. With so much at stake, the referendum with a small name could come down to government accountability.
“I think the biggest opposition is the fear that the redevelopment powers will not be used wisely,” Hadley says. “It is a matter of trust.”
Polls open Tuesday at 7 a.m. Eastern.
