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City of Sau l larvoas Financing Resources Fee- In -Lieti Programs Building on our Downtown 1114:1 As part of dealing with issues from a regional perspective, development fees in lieu of on -site compliance could be levied to fund city parking, storm water management and tree replacement. Temporary Special Assessment A potential tool that could be powerful is a temporary change in property tax assessment for projects that fulfill the goals of the master plan and meet the new code, New Development that meets the code and Master Plan could be assessed at 30 percent of value for five to ten years. A typical parcel in downtown is about 1/4 acre (median) and valued at $171,000 (median). If parking is resolved cooperatively and the property was redeveloped with an FAR of 15 it could create approximately 10,000 new or renovated square feet of space. In accordance with the Fiscal Analysis of the Master Plan, the new value for the property would be close to $1,500,000. At an assessment of 30 percent of new value, revenue from taxes would still be more than twice current revenue. Since the reduction in property tax is a direct reduction of operating expense for the new property, the difference would add directly to net income and enhance the bottom line return, making the investment more competitive with suburban locations. While this is valuable to both the City and the developer, by itself it would not yield funding for public infrastructure and projects such as publicly provided parking, It is a useful structure to offer support to developers without cash or infrastructure "incentives ". Tax Increment Financing Funding produced by a TIF: in conjunction with other sources such as in- lieu -of fees could help finance downtown parking development. An alternate strategy to Temporary Special Assessments, this captures the new value of taxes to finance public investments such as street improvements or parking. Business Improvement Districts Business Improvement Districts can be instituted to defray costs of maintenance and operations in the district. While useful for providing a benefit to existing owners, they do not add an additional tax assessment that may detract from project feasibility in the short term by lowering net incomes to businesses, This is approximately the density of the lowest development Scenario I in the RIP Strategies Master Plan Fiscal Analysis. 01KOVUR ttcaw AT rv+��n.c cau�r�cssntv,�tnKC c►e.c cs�t 17