Blonde words break down legalese

   Here’s a question for you. Just answer yes or no. Shall the Act be approved which authorizes our city to exercise redevelopment powers under the Redevelopment Powers Law (RPL) or Tax Allocation District (TAD) for the purpose of improving economic and social conditions in depressed areas within the city?

   Should I have given you a third choice of “Huh?”

   On November 6, that question will be put before voters in Suwanee, Dacula, Norcross, Duluth, Loganville, Sugar Hill and Lilburn. And since I’ll be one of those voters, I thought I’d ask some questions before I went to the polls. I spoke extensively with Thor Johnson, President of the Lilburn Business Association and took detailed notes from a speech delivered by Nick Masino, VP of Economic Development for the Gwinnett Chamber of Commerce.

   Let’s look at a hypothetical example of how RPL or TAD works.

   Let’s say the Rundown Gas Station has been vacant for five years. The windows are boarded up with warped plywood. The only noticeable activity has been the applying and removal of graffiti, the latter at taxpayers’ expense. The city collects $100 a month in taxes from Rundown Gas, almost enough to cover the cost of painting over the graffiti.

   Joe Fixer has visions of tearing down Rundown Gas and establishing Gold Goblet Restaurant, which would raise property tax to $1,000 a month. And with diners spending on average $50 per meal, Gold Goblet would generate untold revenue from profits as well as create jobs.

   A big problem is that it could cost Joe Fixer $100,000 just to remove the gas pumps and replace all the contaminated dirt before he could even break ground for Gold Goblet. Here’s where RPL or TAD comes in.

   After voters give the go ahead, City Council can explore economically depressed areas where the RPL or TAD might apply. Then the proposal goes before the public for debate, and finally the city sends the results to the County School Board for approval.

   If Joe Fixer’s dream is approved, then private investors may purchase bonds to finance his project. The property tax will remain fixed at Rundown Gas. When Gold Goblet opens its doors, property tax will be reassessed at its appreciated value with the additional revenue going to pay off the bonds, while Gold Goblet’s presence increases the value of the surrounding area. End of hypothetical story.

   Now, back to reality: RPL or TAD is not a tax. It costs the taxpayer nothing. It does not open doors to eminent domain. It provides for local government control with no federal strings attached. And for a real life example of how RPL or TAD works, look at Atlantic Station in downtown Atlanta. 

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