Report to Mayor and City Council
Tuesday, May 07, 2019
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 2 TO AGREEMENT WITH KOSMONT & ASSOCIATES FOR ENHANCED INFRASTRUCTURE FINANCING DISTRICT CONSULTING SERVICES (CITY COUNCIL)
Body
I. SUMMARY
In February 2017, the City entered into an agreement with Kosmont & Associates to evaluate the feasibility of establishing an Enhanced Infrastructure Financing District (EIFD) to fund essential infrastructure improvements in the City. EIFDs do not increase property taxes for property owners, but instead use the increase in property taxes when properties are developed (tax increment) to finance improvements. Kosmont's evaluation concluded that Enhanced Infrastructure Financing Districts have the capacity to assist the City and would be most effective with partnerships among other taxing entities.
Subsequent to this initial evaluation, the City approved an amended contract in the amount of $55,000 on February 6, 2018 to work towards the establishment of City's EIFD. The term of contract expired on February 6, 2019, however the task has yet to be completed. During this term, Kosmont & Associates and the City reached out to the County of Los Angeles, as a major taxing entity, to participate and partner in the EIFD. However, at this time, the County of Los Angeles does not appear interested to participate in Carson's EIFD (nor any other city's EIFD within Los Angeles County).
Because EIFDs rely on tax increment, they are most effective in areas with significant spike in property taxes (e.g. areas with major new developments). Given the influx of new developments in recent years, Carson is well suited for the immediate formation of an EIFD. Therefore, staff is recommending the continuance of EIFD formation without the initial participation of other taxing entities. Should other taxing entities decide to participate in the EIFD in the future, the current base year (and subsequent tax increments) would have alre...
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