Local Infrastructure Financing

1. Local Infrastructure Financing Proposed Scope and Objectives FaraDaun, Peter Heineccius, and Eric Whitaker JLARC Staff

2. What is the Local Infrastructure Financing Tool (LIFT)? Bellingham Waterfront RDA • LIFT is a program to provide state revenues to finance local public infrastructure in order to encourage economic growth • LIFT projects must be approved by the Community Economic Revitalization Board (CERB) Local Infrastructure Financing

3. How Does LIFT Work? • Local contributions and matching state funds pay off bonds used to finance the infrastructure project • Limits total and per project annual state contributions • LIFT projects must demonstrate increases in tax revenues to qualify for state matching funds • Started 2006, 9 projects approved Bothell Crossroads RDA Local Infrastructure Financing

4. Washington Has Other Infrastructure Financing Programs Everett RDA • Local Revitalization Financing (LRF) program • Very similar to LIFT • Smaller per project annual state contribution limit • Started 2009, 18 projects approved • Other financing programs focus on building hospitals and transferring development rights Local Infrastructure Financing

5. JLARC Will Report Every Five Years for the Life of the LIFT Program ESHB 2673 (2006) requires JLARC to: • Report on each LIFT project every five years starting in 2013 • Report changes in taxes, property values, housing, businesses & employment • Conduct an analysis by 2028 of how expanding LIFT would affect economic development Federal Way RDA Local Infrastructure Financing

6. 2028 Economic Analysis Requires Substantial Planning and Data Gathering Mount Vernon RDA • This is a very complex analysis and requires time to plan • JLARC will need to collect data annually from: • Local governments • County Assessors • Departments of Revenue, Employment Security, and Commerce • United States Census Local Infrastructure Financing

7. Initial Report Will Focus on Methodology and Address Six Objectives • What is the current status of the LIFT projects? • What methodology does JLARC identify as appropriate to measure changes in employment, property values and taxes, sales and use taxes, housing, and existing businesses within the project areas? Puyallup RDA Local Infrastructure Financing

8. River District Initial Report Will Focus on Methodology and Address Six Objectives (cont.) • Should other tax increment financing programs similar to LIFT be included in the analysis? • What methodology does JLARC identify as appropriate to evaluate the economic impacts of Washington’s tax increment financing programs? Spokane County – Liberty Lake River District RDA Local Infrastructure Financing

9. Initial Report Will Focus on Methodology and Address Six Objectives (cont.) • Are any changes in the timing or nature of subsequent reports appropriate? • What resources will JLARC need to conduct this study? Vancouver Riverwest RDA Local Infrastructure Financing

10. Initial Report Will Identify the Specific Objectives for Subsequent Reports Yakima RDA Subsequent reports will focus on: • Using the methodology developed in the initial report to identify changes in each project area • How projects’ interim results compare to their selection criteria Local Infrastructure Financing

11. Next Steps and Contacts Initial Report September 2013 Fara Daun, Project Lead F.Daun@leg.wa.gov 360-786-5174 Peter Heineccius, Research Analyst Peter.Heineccius@leg.wa.gov 360-786-5123 Eric Whitaker, Research Analyst Eric.Whitaker@leg.wa.gov 360-786-5618 Valerie Whitener, Project Supervisor Valerie.Whitener@leg.wa.gov 360-786-5191 www.jlarc.leg.wa.gov