Prepared by:
Kosmont Companies
Infrastructure Financing District Overview
City Council Briefing Presentation
August 2023
City Council Briefing Outline
Communicating in a Digital World
2 1. Introductions and Background
2. Potential Barstow TIF/CFD Overview
3. Study Goals and Expectations
4. Next Steps and Timing
5. Questions and Answers
Introduction and Background
3 • City of Barstow received grant funding from SCAG to evaluate one or more special district(s) to fund housing-supportive infrastructure:
– Evaluate feasibility of Tax Increment Financing (TIF) mechanism such as Enhanced Infrastructure Financing District (EIFD), as well as potential complementary Community Facilities District (CFD)
– Enable City (and potentially County) to finance infrastructure using property taxes from new development
– Promote housing production and related infrastructure – Focus on infrastructure needs consistent with adopted planning documentation – No new taxes to local taxpayers with TIF/EIFD (CFD could levy new special taxes for landowners who approve)
4 What is an Enhanced Infrastructure Financing District (EIFD)? Private property
investment or new
development
Increased property
tax revenue from
new property value
Deposited in
separate EIFD
fund
Funds pay for public
improvements
• EIFDs are a funding tool for affordable housing and infrastructure, such as streets, parks, flood control, utilities, parking, and other public improvements • Uses a portion of future local property tax revenues from new development, so no new taxes are being proposed
• Potential for City/County partnership
5 Assessed Property Value Within a TIF District
Note: Illustrative
TIF Illustration –Not a New Tax
$100,000,000
$300,000,000
AT DISTRICT FORMATION AFTER PRIVATE SECTOR INVESTMENT
In Assessed Property Value
(“Baseline”)
1% Property Tax = $1,000,000
City share at 10% = $100K annually
In Assessed Property Value
1% Property Tax = $3,000,000
City share at 10% = $300K annually
Difference between new $300K and
initial $100K = $200K annually
available to TIF district for
infrastructure
$200M in Private Sector
Investment / Development
Districts in
Progress Statewide
(Partial List)
6 Fully Formed In Formation Process Under Evaluation
Case Studies
Communicating in a Digital World
7 • City of La Verne +
County of Los
Angeles Transitrelated EIFD
• City of Rancho
Cucamonga EIFD
Barstow Financing District Study
Goals and Expectations
Communicating in a Digital World
8 • Evaluate TIF/CFD surrounding BNSF-adjacent opportunity site parcels, Main Street, and other potential opportunity areas as a tool for housing-supportive public infrastructure investments
• Provide decision-makers with the necessary information for potential District implementation
• Specific tasks:
a) Boundary alternatives
b) Available revenues
c) Potential projects to be funded (stakeholder input is essential) d) Public and non-profit / private investment partners
e) District formation (future phase of work)
Barstow Financing District Boundaries Under Study
9 Source: City of Barstow, San Bernardino County Auditor-Controller (2022) • Approx. 13,207 acres (~50% of Citywide acreage)
• Approx. $566M in existing assessed value (~35% of
Citywide A/V)
• Vacant and/or underutilized sites identified based
on objective screening criteria, potential for new
investment
Area #2 (TIF)
Area #1 (TIF)
Area #3
(CFD+TIF)
Area #4 (CFD+TIF)
Area #1 (TIF)
Area #2 (TIF)
LEGEND
Barstow City Limits
Area #3 (CFD+TIF)
Area #4 (CFD+TIF)
10 1. Sewer utility expansion
2. Water utility enhancements, including upgrades to existing wastewater treatment facilities
3. Roadway / curb improvements
4. Workforce housing – focus on eastern part of City
Sample Projects Eligible for EIFD Funding
Initial List Based on City Staff Discussions
Outline of Public Involvement Plan (PIP)
Communicating in a Digital World
11 City Council / Public Intro Meeting
August 2023
City Council / Public Update Meeting
Fall 2023
Project
Fact
Sheet
Webpage
Additional public meetings and hearings required if City decides to implement (not part of SCAG scope of work) Next Steps and Timing
Communicating in a Digital World
12 • Staff / Consultants to return to City Council with analysis findings in Fall 2023 • If there is community and elected official support, implementation with required public meetings and hearings in 2023 / 2024 (not part of SCAG scope of work)
• Target of district formation in FY 2023-2024, EIFD funding becoming available 2024 and beyond
13 THANK YOU
Questions?
Kosmont Companies
1601 N. Sepulveda Blvd. #382 Manhattan Beach, CA 90266
Ph: (424) 297-1070 | Fax: (424) 286-4632
www.kosmont.com
Communicating in a Digital World
14 Appendix
15 $0M
$50M
$100M
$150M
$200M
$250M
$300M
$350M
$400M
$450M
$500M
0 5 10 15 20 25 30 35 40 45 50 55
Baseline Property Value
Property taxes continue to flow to City / County / Schools / Other Taxing Entities as normal New Property Value from
New Development / Rehabilitation
Available to TIF District
Years from District Formation
Assessed
Property Value
(A/V) within
TIF District
Boundaries
New Total
Value After
TIF District
Benefits all
Taxing Entities
Period of New
Development
Note: Illustrative. Conservative 2% growth of existing assessed value (A/V) shown; does not include mark-to-market increases associated with property sales.
TIF Illustration –Not a New Tax
16 EIFD versus Former Redevelopment Agencies
Sample of Differences
Former RDAs EIFDs
Eligible Use of Funds • Infrastructure and affordable
housing
• Market-rate housing
• Land clearing and parcel assembly
• Tax and other private business /
developer subsidies
• Public infrastructure (e.g., roads,
sewers, open space, utilities)
• Affordable housing
Eminent Domain /
Condemnation
• Allowed • Not allowed
Eligible Areas • Must qualify as “blighted” • No “blight” finding required Governance • City Council or County Board • Public Financing Authority including Public Members
Formation • Vote of governing body • 3 public hearings, majority protest opportunity
Why are Public Agencies Authorizing EIFDs?
Communicating in a Digital World
17 1. Return on Investment: Private sector investment induced by district commitment accelerates growth of net fiscal revenues, job creation, housing production, essential infrastructure improvements
2. Ability to attract additional funds (“OPM”) – tax increment from other entities (county, special districts), federal / state grants / loans (e.g., for transit-oriented development, water, housing, parks, remediation)