Last modified: September 26, 2023
Policy No. 1940 Board Guidelines on Tax Increment Financing (Redevelopment/Community Development Agency) Agreements
- Download Policy No. 1940 Board Guidelines on Tax Increment Financing (Redevelopment/Community Development Agency) Agreements
- Economic development is not the mission of the Board of Education. The District’s role in economic development is to provide a well-educated workforce that can assume quality jobs in our community and compete in the world environment. Utah law allows the Board of Education to determine what, if any, tax increment will be provided for Redevelopment and Community Development Agencies.
- The Board will support no project when the request for participation in the project exceeds fifteen years. Preference will be given to projects with shorter terms. Any tax increment provided by the Board shall include provisions to terminate the RDA/CDA once the revenue stream has been met or at the end of the term in year, which ever comes first.
- The Board will support no project for which Provo City is not equally committed in terms/participation.
- For equity purposes, the Board will scrutinize contributions from all taxing entities prior to joining a project.
- Provo School District will contribute no more than 5% of its total property tax revenues toward all economic development projects.
- The Board of Education will not participate in any projects in which the Board or staff has not been involved in the early stages of project development.
- A Board decision to financially support a project requires that a strong long-term partnership be established between the benefiting entities and Provo School District with some expectation of a future return on investment to the school district (such as donations, programmatic support of key district programs, or use of space/facilities etc.)
- An evaluation of the viability of the project / area without a District tax increment will be a major factor in determining District participation.
- An evaluation of prior tax support to the benefiting agency will be made.
- The District must receive an agreed upon percentage of the tax increment immediately.
- All projects approved by the District will be made with the expectation that the City will not raise offsetting property tax rates, holding taxpayers harmless.
- An evaluation of how many new jobs and the impact of new District enrollments generated by the project will influence the District decision.
- An ongoing evaluation of the effectiveness of the City’s overall tax incentive track record will be made to help determine a project’s worth.
- Projects that have a high probability of spawning substantial additional new construction without tax subsidies or those that will provide higher future tax revenues will be given higher consideration.
- The City is encouraged to bring truly blighted areas or areas which for various reasons have a high probability of not being developed some other way to the Board for consideration.
Approved by Board of Education:
August 12, 2014
Revised: December 8, 2015