Report to Mayor and City Council
Tuesday, September 03, 2019
Discussion
SUBJECT:
Title
PRESENTATION BY KOSMONT & ASSOCIATES AND DISCUSSION REGARDING THE POTENTIAL ESTABLISHMENT OF A CARSON ENHANCED INFRASTRUCTURE FINANCING DISTRICT (CITY COUNCIL)
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I. SUMMARY
Kosmont & Associates (Kosmont) was retained in 2017 by the City to evaluate the feasibility of establishing an Enhanced Infrastructure Financing District (EIFD) to fund essential infrastructure improvements in the City. EIFDs use the increase in property taxes when properties are developed (tax increment) to finance improvements. EIFDs do not increase property taxes for property owners. Kosmont's evaluation concluded that EIFDs have the ability to assist the City to raise funds; however, they would be most effective by forming partnerships with other taxing entities such as Los Angeles County and the Fire District with an allocation of a portion of their property taxes. This report provides a brief update to the City Council and requests direction regarding the formation of the proposed Carson EIFD. Kosmont will provide a presentation at the City Council meeting.
II. RECOMMENDATION
Recommendation
1. DIRECT staff to proceed with the formation of the Carson EIFD without the initial participation of other taxing entities; but continue to solicit the participation of other taxing entities.
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III. ALTERNATIVES
1. DIRECT staff to continue soliciting for another taxing entities' participation into the Carson EIFD before proceeding with the formation of an EIFD; or
2. TAKE any other direction City Council deems appropriate.
IV. BACKGROUND
The State dissolved all redevelopment agencies in 2011 to balance the State's budget deficit. The Carson Redevelopment Agency was the tenth largest in California and provided $28 million annually to implement revitalization projects. The loss of redevelopment funding severely impacted the City's ability to address properties such as former landfills and...
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