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Resolution of the Council of Allegheny County establishing a policy regarding the appropriate use of tax increment financing within the County.
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WHEREAS, Allegheny County Council wishes to promote sustainable development within Allegheny County that will add to the quality of life for residents and visitors;
WHEREAS, a robust regional economy which provides quality jobs and a stable tax base is necessary to sustain that quality of life;
WHEREAS, tax increment financing is one useful way to help stimulate the economy by committing local governments to spend a portion of future potential tax revenues to finance specific public improvements including water and sewer lines, roads, and other infrastructure;
WHEREAS, tax increment financing is a powerful financing tool for investing in infrastructure, and it should not be used as an incentive or subsidy since other programs and funding sources exist for that purpose;
WHEREAS, Allegheny County wishes to encourage, as appropriate, the development of economic generators for the region, including office, manufacturing, commercial and industrial uses, and, where feasible, mixed-use communities with a mixture of office, industrial, retail, and residential uses in proximity within a single project;
WHEREAS, Allegheny County wishes to encourage multi-municipal planning as well as intergovernmental communication and action to minimize undue and unhealthy competition within the region;
WHEREAS, Allegheny County wishes to encourage wise comprehensive planning at the municipal and county level, following the spirit and the letter of the Pennsylvania Municipalities Planning Code;
WHEREAS, Allegheny County wishes to implement a regional capital investment strategy to advance such municipal and county comprehensive plans;
AND WHEREAS, Allegheny County Council wishes to provide citizens of Allegheny County, local municipalities, businesses, developers and other interested parties with a clear policy regarding the appropriate use of tax increment financing within Allegheny County;
The Council of the County of Allegheny hereby resolves as follows:
SECTION 1.
Allegheny County Council hereby adopts the following policy:
A. Allegheny County, as a matter of general policy, will utilize tax increment financing:
a. Principally to facilitate the creation of high quality employment opportunities;
b. For uses that are consistent with applicable comprehensive plans and the appropriate municipal land use ordinances, as they apply to the proposed project site, and taking into account environmental impact, the desired redevelopment of brownfields, and the fabric and general needs of the community, to ensure that investments are made in the appropriate locations, that sustainable design is encouraged, and that green space and other community assets are strengthened and protected;
c. Where its use adds aggregate value to the regional economy;
d. In areas so designated by applicable comprehensive plans, and which take advantage of existing public infrastructure investment, including those tracts of land in the Airport Market Area as defined by the Tri-County Airport Partnership (T-CAP);
e. Principally in areas suffering economic distress, such as deteriorated urban areas and brownfields;
f. When there is a good faith effort on the part of the developer for participation in the project by existing Southwestern Pennsylvania residents, including individuals and small businesses;
g. Where the project in question does not have substantial adverse environmental effects;
h. Where there are found to be conditions of blight as defined by the Redevelopment Law of 1946, as amended;
i. Only to assist with the financing of public improvements, public infrastructure, and such other appropriate uses as are detailed in the Tax Increment Financing Act, 53 P.S. § 6930.5;
i. “Infrastructure” is defined as dedicated structures and facilities on which the continuance and growth of a community depend, including streets, highways, interchanges, road surfaces, bridges, tunnels, easements, right-of-ways, structured parking facilities, sanitary sewers, sewage treatment plants, storm water management systems, curbs, sidewalks, parks and other recreational facilities such as trails, pedestrian access, potable water supply, utility conduits, drainage structures; as well as costs associated with reclamation and environmental remediation, demolition of obsolete structures, and removal of abandoned foundations.
B. Allegheny County will participate in tax increment financing only to the extent necessary to make a project viable and at a maximum participation rate of 60%, with the following exceptions:
a. Allegheny County's rate of participation in tax increment financing for a project will operate on a sliding scale depending on proportion of retail uses within the project, as measured by square footage, with projects with little or no retail eligible for the County's maximum participation.
b. For projects that create significant economic impact in depressed communities, where the maximum participation rate may be 75%
C. Allegheny County will not use tax increment financing primarily for retail or residential development where no substantial public investment in infrastructure has previously been made.
D. The Allegheny County Department of Economic Development shall request County Council to approve a Resolution of Intent to Participate in the preparation of a TIF Plan. Pursuant to the TIF Act, this resolution assigns the Department the responsibility to work as part of a TIF Committee composed of representatives from each of the taxing bodies to prepare the proposed TIF Plan.
E. Prior to determining whether to approve a TIF district and/or to participate in another municipality's TIF district, the Allegheny County Council shall be presented with a formal request for action such that the request can be discussed at two regular meetings of the Council's Economic Development Committee and two regular meetings of the full Council before action is taken.
F. The official request for action submitted to Allegheny County Council shall include, at a minimum:
a. A standard and uniform Allegheny County Department of Economic Development Tax Increment Financing application form
b. A detailed breakdown of the proposed uses of the proceeds from the tax increment financing agreement.
c. A preliminary site plan for the proposed development.
d. A report paid for by the developer but commissioned by the Department identifying the economic impacts of the project on the County, including projected and estimated direct and indirect revenues and costs; the conditions constituting blight; and a discussion of all other applicable policy considerations including additional public investments that likely will be induced by the approved TIF (road, water, sewer, public transportation, etc.).
e. Substantiation of compliance with provisions of applicable municipal and county comprehensive plans.
f. A written recommendation from the Department Director on whether or not the County should approve a TIF district and/or participate in another municipality's TIF district.
G. The Allegheny County Department of Economic Development shall be directed to revise its existing tax increment financing program guidelines within 90 days of the passage of this resolution so that that they embody these policies.
SECTION 2. If any provision of this Resolution shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Resolution which shall be in full force and effect.
SECTION 3. Any Resolution or Ordinance or part thereof conflicting with the provisions of this Resolution is hereby repealed so far as the same affects this Resolution.